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Ozempic's success is affecting candy sales
Problems ahead for the sugar industry
January 29th, 2025
The impact on health from excessive sugar consumption is now well documented, but the global market tied to this product continues to thrive. The advent of new weight-loss drugs is however opening unprecedented scenarios, potentially challenging a demand that until now has proven resistant to almost every type of awareness campaign or legislative intervention. At the center of this transformation are medications like Ozempic, Wegovy and Mounjaro, known for their ability to reduce appetite, which are revolutionising not only the treatment of obesity but also the cultural relationship between consumers and food. This class of drugs, initially developed for the treatment of diabetes, is gaining a lot of popularity. By acting directly on the brain, they reduce hunger and even those "nervous" cravings that often lead to the consumption of high-calorie and sugary foods. But the positive effects are not limited to weight loss: more generally, many patients report a reduction in all addictions, from smoking to alcohol to the use of certain drugs, which in the future could have important repercussions on the habits of individuals. The change of pace does not only concern people's health, but is already leaving tangible traces on the food industry, particularly in the United States.
i have this feeling that with the rise of conservatism, a return and longing for the yuppie aesthetic and ozempic making ‘thinness’ more accessible that the next body trend is going to be the 80s supermodel body (muscular, athletic figures, tall, svelte but curvy) pic.twitter.com/sgcNQrTeai
— C (@churchofysl) December 11, 2024
In the United States, a country where 74% of adults are overweight and 40% obese, the prospect of a change in consumption is worrying the sectors that have historically thrived thanks to the spread of sweet and sugary foods. As the Financial Times reports, some large US companies operating in the food sector are already starting to notice the effects of Ozempic on sales: the retail chain Walmart, for example, has reported a decline in food purchases, while Mondelez, PepsiCo and Hershey have recorded a slight decrease in sales most likely linked to the growing use of weight-loss therapies. For food companies, the fear is that, with the spread of these drugs, tens of millions of people may not only significantly reduce the amount of food consumed, but also change preferences, moving towards healthier products at the expense of packaged snacks – rich in sugars and fats. The change could have consequences that should not be underestimated for the global sugar market, reports the New York Times.
Although the concrete effects will manifest over time, the signs of a potential crisis for producers and traders are already partly evident, and while on the one hand it should be emphasized that the high costs of weight-loss drugs represent a significant barrier to their large-scale diffusion, the market could quickly adapt and evolve. In the United Kingdom, the government has planned to make Mounjaro available through the national health system. At the same time, prices are expected to fall in the future in other countries as well, thanks to competition between pharmaceutical companies and new less expensive versions of the same drugs.The widespread diffusion of weight-loss medications has been favored by intense media promotion. Celebrities, influencers and advertising campaigns have fueled curiosity and demand, making Ozempic and its like a real cultural phenomenon – which has also affected the fashion world.
The growing popularity of Ozempic and the like carries important economic implications. If the prices of weight-loss drugs were to fall, the "snack crisis" could quickly spread to emerging markets such as India, – where sugar consumption is the highest in the world and obesity is on the rise. The sugar market could therefore find itself facing an unprecedented challenge: although the possibility of converting sugar into alternative products represents a way out for the sector, these processes take time and would not compensate for losses in the food industry in the short term. Faced with these dynamics, it is clear that modern weight-loss drugs are not only a health revolution, but also a powerful agent of economic and cultural change, destined to redefine the relationship of many people with food and to challenge the global food ecosystem. That said, the possible side effects and limitations of new weight loss drugs should not be underestimated: the most common symptoms include nausea, diarrhea, tiredness and, in some cases, hair loss. Furthermore, the effectiveness of the drugs ceases as soon as the intake is interrupted, which forces patients to prolong the therapy to maintain the results obtained.