Investing.com – Analysts at Bernstein launched insights on the influence of GLP-1 medication for weight reduction within the US meals and restaurant sectors on Sunday, after a latest Gallup ballot revealed that 6% of US adults have tried GLP-1 medication for weight reduction, and three% are at the moment utilizing them.
This knowledge, gathered from 5,577 US adults in early March 2024, represents the biggest pattern dimension so far. A second survey by KFF of 1,479 adults supplied further insights.
Based on IQVIA, round 1.4% of US adults have been taking medication like Ozempic, Wegovy, Mounjaro, and Zepbound in Could 2024, up from 0.9% the earlier yr. Nevertheless, these statistics could also be understated as they exclude gross sales from compounding pharmacies, that are quickly allowed to promote GLP-1 medication as a consequence of shortages.
Surprisingly, the utilization is sort of evenly break up between women and men, and older sufferers usually tend to drop out from utilizing these medication in comparison with youthful ones. Regardless of this, two-thirds of sufferers discover these medication efficient. Notably, many older customers don’t fee the effectiveness as extremely as youthful customers, which could influence insurance coverage protection and long-term use.
Implications for US Meals:
GLP-1 utilization can modestly influence meals consumption, significantly processed meals. About 40% of customers reported decreasing their consumption of heavily-processed meals, though meals gross sales in grocery shops are experiencing some restoration.
Implications for US Eating places:
The upper-than-expected utilization of GLP-1 medication could be impacting restaurant visits, particularly Fast Service Eating places (QSRs). Final yr’s survey indicated a 45-50% decline in visits to burger eating places amongst GLP-1 customers. The low drop-out fee amongst youthful customers, who’re important for long-term progress, is especially regarding. The continuing use of those medication might additional have an effect on site visitors to QSRs, that are frequented by lower-income shoppers with greater charges of weight problems and coronary heart issues.
Total, whereas the influence seems modest at the moment, it’s essential to watch the evolving adoption of GLP-1 medication, as they might considerably affect restaurant menus, innovation tendencies, advertising and marketing methods, and potential progress alternatives.
Funding Implications:
- US Meals Sector: Bernstein continues to fee Mondelez Worldwide Inc (NASDAQ:), Merely Good Meals Co (NASDAQ:), McCormick & Firm Included (NYSE:), Kraft Heinz Co (NASDAQ:), Tyson Meals Inc (NYSE:), Hershey Co (NYSE:), and The Hain Celestial Group Inc (NASDAQ:) as “Outperform,” whereas Past Meat Inc (NASDAQ:), Kellanova (NYSE:), JM Smucker Firm (NYSE:), Campbell Soup Firm (NYSE:), Normal Mills Inc (NYSE:), and Conagra Manufacturers Inc (NYSE:) are rated “Market-Perform.”
- US Eating places Sector: The analysts fee Chipotle Mexican Grill Inc (NYSE:), Wingstop Inc (NASDAQ:), Darden Eating places Inc (NYSE:), Restaurant Manufacturers Worldwide Inc (NYSE:), and Yum! Manufacturers Inc (NYSE:) as “Outperform.” McDonald’s Company (NYSE:), Starbucks Company (NASDAQ:), The Wendy’s Co (NASDAQ:), and Domino’s Pizza Inc (NYSE:) are rated “Market-Perform.”
Total, regardless of the short-term volatility, Bernstein maintains a long-term optimistic outlook on Japanese equities, pushed by the facility of reform, reflation, restructuring, and reshoring.
