Rising GLP-1 use could shift consumer spending patterns and have implications for businesses across retail, food, hospitality, alcohol, fashion and beauty, according to EY-Parthenon.
The findings are based on a survey of 9202 Australian adults and EY-Parthenon modelling. GLP-1 adoption could reach between 17.1 and 30.1 per cent of the adult population by 2036. The outcome depends on access, Pharmaceutical Benefits Scheme (PBS) coverage, treatment costs, clinical confidence and the availability of oral formulations.
Lisa Nijssen-Smith, EY regional consumer products & retail leader for Oceania, said GLP-1 medicines were originally developed to treat diabetes. They are now used by increasing numbers of Australians for health and weight management.
“Even at today’s level of use, the implications for Australian businesses are already visible,” she said.
According to EY, supermarkets and food manufacturers are likely to face some of the most direct impacts as GLP-1 users shift towards fresh foods and protein-rich products while reducing purchases of sugary drinks, snacks and processed foods.
More than half of GLP-1 users said these changes had influenced the eating habits of other household members, suggesting the effects extend beyond individual users.
“Everyone eating from the same fridge is likely to share in that healthier basket,” Nijssen-Smith said.
GLP-1 users reported dining out 44 per cent less, indicating restaurants may need to review menu formats and customer offerings.
Alcohol consumption also fell. Seventy per cent of GLP-1 users said they were less likely to want alcohol. Reported consumption also fell by 41 per cent, adding to an existing trend in Australia.
Spending patterns also shifted across fashion and beauty, with 67 per cent of GLP-1 users saying they were more likely to update their wardrobe after starting treatment, 57 per cent having increased spending on clothing, and 53 per cent paying more attention to skincare and grooming.
Nijssen-Smith said the market could see increased demand for clothing designed for consumers whose body size changes during treatment.
Nijssen-Smith said the effects of GLP-1 medicines on Australia’s consumer economy are expected to become more visible as access expands. She said businesses should assess how changing consumer behaviour could affect product portfolios and services, from grocery ranges and restaurant menus to fashion product development.
