Telsey analyzes GLP-1 drugs' impact on consumer sector

Investing.com -- Telsey released a report examining how GLP-1 medications are affecting consumer spending patterns across multiple retail categories. The drugs, first approved by the FDA in 2005 for type 2 diabetes treatment, have gained widespread adoption in recent years.

GLP-1 medications include semaglutide, sold as Ozempic and Rybelsus for diabetes and Wegovy for obesity, and tirzepatide, marketed as Mounjaro for diabetes and Zepbound for obesity. The drugs work by stimulating insulin release, reducing blood sugar, slowing digestion, and reducing hunger.

Companies covered by Telsey have reported changes in consumer behavior related to GLP-1 use, including purchases of new wardrobes, products to manage side effects such as skincare and beauty items, changes in exercise habits, and altered eating patterns. Retailers including NYSE:WMT and NASDAQ:COST have noted effects on pharmaceutical sales.

Usage of GLP-1 medications increased 364% among all adults between 2019 and 2024. Among adults aged 18-39, usage rose 588% during the same period. Medicaid prescriptions increased over 546% from 2019 to 2024.

An Axios survey from July 2026 found that 26% of respondents have used GLP-1s personally or know someone who has used them in the past three months, up from 4% in 2023.

The FDA approved two oral versions of the medication. The Wegovy pill launched in January 2026, and Foundayo received approval on April 1, 2026.

When asked why they did not want to take the drugs, 48% of survey respondents said they preferred to manage weight through diet and exercise, 39% cited concerns about side effects, 20% worried about permanent weight loss, and 15% said the medications were too expensive.

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