The study found that most people taking weight-loss medications spend less in restaurants and takeaways

A very talked-about group of medication for weight reduction and diabetes reduces the appetite of some consumers and also reduces food expenses.

A Morgan Stanley survey released Tuesday found that most people taking these drugs, called GLP-1, say they’re spending less on dining out and ordering takeout. A smaller proportion of respondents say they tighten their purse strings on the food market.

The findings add to concerns that rising demand for GLP-1 could derail the performance of a number of the largest restaurant corporations and makers of packaged snacks, similar to Doritos, Oreos and Hershey’s Kisses. GLP-1 include New NordiskWegovy’s hit weight reduction shot and its diabetes counterpart Ozempic, together with Eli Lillythe favored weight reduction drug Zepbound and the antidiabetic shot Mounjaro.

The rising demand for these 4 drugs will not be expected to abate any time soon. In a brand new study, Morgan Stanley analysts said they expect the GLP-1 market to be value $105 billion by 2030. They also estimate that by 2035, 31.5 million people, or about 9% of the U.S. population, can be taking GLP-1.

“There is growing evidence that drugs have a significant impact on consumer behavior and spending on groceries and restaurants,” Morgan Stanley analysts said in the survey. “All these dynamics suggest that the impact of GLP-1 drugs on consumer sectors will increase as drug consumption increases and behavior changes among a demographic that accounts for a disproportionate share of caloric intake.”

But many food and beverage corporations do reassured investors over the past few months, it’s still unclear how much these drugs will reduce their revenues. Morgan Stanley also said in the survey that GLP-1s pose manageable long-term pressure on restaurants, not an “existential risk.”

“Restaurants offer convenience and/or experience in addition to food, and this will not change with the use of GLP-1,” analysts say. However, they noted that some restaurants can have to adapt to the behavior of health-conscious consumers.

Healthier fast-casual and coffee restaurants are higher equipped to deal with increasing consumer use of GLP-1, including wine, Chipotle, Sweet green AND Starbucks– says Morgan Stanley. Home-service restaurants and “more indulgent” fast-casual restaurants may face more pressure, including Jack in the box, Wendy, Wing stop, Shake the Cottage AND Portillos.

Meanwhile, Morgan Stanley’s views Hershey because the most at-risk amongst packaged food corporations given their U.S. consumer-facing snack portfolio. Companies offering healthy food should use GLP-1, amongst others: Vital Farms, Bellring brand, Just good food– the corporate said.

Among beverage producers, those producing alcoholic beverages pose the best risk. Belong to them Molson Coors, Boston Beer, Constellation brands AND Diageo– says Morgan Stanley.

In February, Morgan Stanley conducted a survey of 300 consumers who’re currently taking GLP-1 medications. According to the corporate, these people are “at the beginning of their weight loss journey” but are making significant changes to their food regimen and spending.

When asked how their monthly spending on eating out has modified since starting GLP-1, 63% of consumers said they were spending less, 28% said they were spending concerning the same amount, and 9% said they were spending less. more. Meanwhile, 61% said they were spending less on restaurant deliveries or takeout, 31% said they were spending concerning the same amount, and 8% said they were spending more.

Fewer participants said that they had reduced their grocery spending since starting GLP-1: 31% said they were spending less, 46% said they were spending concerning the same amount, and 23% said they were spending more.

The study also found that people tended to remain at the identical restaurant but modified the form of food they ordered.

When asked whether or not they eat less of the food they ordered in one sitting when dining out, 42% of participants responded “always” or “most of the time,” and 44% responded “sometimes.” Forty-one percent said they “always” or “usually” order smaller portions of food, while 43% said they only do it sometimes.

Consumers in the study reported lower food consumption overall, however the Morgan Stanley study said the difference was most noticeable for snacks, sweets, carbonated and sweet drinks, and alcohol. About half of people reported reducing their consumption of normal soda, alcohol, and salty snacks by 50% or more since starting weight reduction medications. Twenty-two percent reported stopping alcohol use completely.

Based on these results, Morgan Stanley forecasts that consumption of ice cream, cakes, cookies, candy, chocolate, frozen pizza, crisps and regular soda could fall from 4% to five% by 2035. The company also expects consumption to say no by about 3%. . alcohol, frozen popcorn or pretzels, crackers, cereals, cheese, chewing gum or mints, energy drinks and others.

Packaged fruit juices, soups, sports drinks, coffee, frozen food regimen meals, tea, granola and energy bars are among the many foods that will see the least reduction in consumption, the corporate says.

Of note, the study also found that 40% of participants reported smoking traditional cigarettes not less than once every week before starting GLP-1, but this number dropped to 24% after treatment. Similarly, weekly e-cigarette use decreased from 30% to 16% of respondents.

Morgan Stanley, nonetheless, said it was cautious about drawing conclusions from the study on the consequences of GLP-1 on addictive behaviors similar to smoking. The company said it’s monitoring ongoing medical research in this area.