Ask which scientific breakthrough has loomed largest in the public imagination in the past few years, and most will pick artificial intelligence in the form of large language models. But a close second, and arguably deserving a joint first place, are GLP-1 receptor agonists, the compounds used in drugs such as Ozempic and Wegovy, prescribed originally for diabetes but now hugely popular for weight management.
As with AI, the uptake of GLP-1 drugs has been enthusiastic when available, and we are only beginning to see the economic repercussions of widespread use. Their remarkable effectiveness for weight loss is significant enough. But their effects could ripple through the entire economy, and even conceivably test the tenets of capitalism itself.
There is now solid evidence that GLP-1 users buy less food — with the biggest reductions in calorie-rich, highly processed food types. The drop in demand seems to be having a dramatic impact in some markets. Global sugar prices have halved in the past two years due in part to a drop in demand. Most strikingly, sliding sales of ice cream are hurting the finances of the maker of Magnum and Ben & Jerry’s.