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There has been a lot of fuss about the weight loss injections from the pharmaceutical company Novo Nordisk. Demand is particularly high in the USA. This can have an impact on many areas of the economy.
The weight loss syringes with the brand names Ozempic or Wegovy bring huge profits to the manufacturer Novo Nordisk – but there are concerns in other sectors of the economy. The active ingredient semaglutide contained in the syringes, which was originally developed to treat type 2 diabetes, inhibits appetite. Do supermarket operators or food manufacturers now have to assume that their sales will decline – because people who take the drug consume less?
Changed Shopping behavior
The US supermarket chain Walmart, which is known for oversized packaging, says it is already noticing a change in customer shopping behavior. The head of the US business, John Furner, said in early October that those who used diet injections or anti-obesity drugs also bought less food.
This is shown by an evaluation of the customer data. It wasn’t just Walmart shares that fell as a result. The securities of international brands such as Lindt & Sprüngli, Nestlé and Kellanova also lost value. Concern about declining sales is growing among both investors and manufacturers.
Investment bank predicts decline in sales
This is also due to estimates by the investment bank Barclays, which predicts sales declines of more than one percent at food companies due to obesity medications and weight loss injections. Manufacturers of alcoholic beverages could even suffer sales losses of up to three percent. It is estimated that people taking these medications reduce their daily calorie intake by 20 to 30 percent.
German confectionery manufacturers have not yet been affected by this. This is what Bahlsen says when asked tagesschau.de To date, there has been no decline in sales due to the slimming syringes. The development is still being monitored very closely. Stefan Riße, capital market strategist at Acatis Investment, also estimates the impact on the German food market to be relatively low at the moment.
Nine million prescriptions issued
Unlike in the USA, where more than nine million prescriptions for the injections were issued in the last quarter of 2022, the “hype” in Germany has so far been limited, explains Riße. This also has to do with the fact that the injections require a prescription and are only approved for adults and young people who are morbidly overweight or have health problems such as type 2 diabetes or high blood pressure.
The high price also deters many interested parties. So far, Ozempic and Wegovy as weight loss injections are not included in the catalog of services offered by statutory health insurance companies in Germany. Statutory health insurance patients whose doctor issues a private prescription for the injection must therefore bear the costs themselves. Private health insurance covers them under certain circumstances.
Experts expect demand to grow worldwide. In the U.S. alone, the number of people using these shots could increase nearly fivefold to 24 million Americans by 2035, according to Morgan Stanley estimates.
“Slimming injections could become a mass product”
This could particularly shake up the traditional diet market with its diet coaching or weight loss apps. “For companies whose business model is designed for overweight patients, the weight loss injection is definitely competition,” says Riße.
The diabetes drug semaglutide could also be a threat to the dialysis provider Fresenius Medial Care. A new study by Novo Nordisk shows that semaglutide can also be used in kidney disease. Fewer dialysis treatments may then be necessary.
“At the latest if health insurance companies decide to take over the products, Wegovy or Ozempic have the potential to become a mass product,” says Riße. At the request of several large health insurance companies that did not want to be quoted tagesschau.dethe medical studies on the syringes are being closely monitored.
Textile industry and airlines could benefit
Other sectors of the economy could benefit from the weight loss injection. Bank of America predicts additional business for the textile industry. Parts of the population could stock up on new clothing sizes.
The weight loss injections could also have an impact on airlines. According to the consulting firm Jeffries, airlines could save millions if the average weight of their passengers were reduced by four and a half kilograms.