How weight loss jabs are expected to disrupt markets
Monday, 20 July 2026
Weight loss jabs are expected to do more than shrink waist lines, with a string of industries set to feel the squeeze, as more people turn to the medicine to lose weight.
A global report by EY says GLP-1 medicines are expected to shake up not only agriculture sectors and supermarkets, but the hospitality, beauty, fitness, retail, manufacturing and even insurance industries.
As appetites change, so too will household food choices, the make-up of grocery baskets, dining habits and wider spending decisions, says Michael Summers-Gervai, director of business consulting at EY New Zealand.
The consulting firm’s report The New Appetite outlines its research found GLP-1 users in Australia had already starting shifting habits, including becoming more selective about food and drink; increasing their consumption of fresh fruit and vegetables, protein and health-oriented products, and were further reducing their consumption of alcohol and soft drinks, snacks, baked goods and confectionery.
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“It certainly presents some early signals for what we might see over here,”Summers-Gervai told The Post.
“As consumers are rethinking what they eat, they may also rethink how they spend, socialise, travel, and look after themselves in general,” he said.
With GLP-1 expected to become publicly funded for Kiwis who were extremely overweight, it was likely only a matter of time until similar changes start occurring among New Zealand consumption patterns, and the knock-on effects for industries become apparent.
“GLP-1 is often only talked about as weight loss or in the context of food, but the wider implication is how it might change choices consumers are making across their lives across a broad range of categories, so businesses that aren't directly in food and grocery or manufacturing shouldn't sit comfortably, they should think about potential implications for their organisations,” said Summers-Gervai.
“The issue isn't necessarily that consumers are going to stop spending, but they're probably going to spend less impulsively and become a bit more deliberate about what feels worth paying for.”
Basket sizes weren’t necessarily shrinking, but they were becoming more curated, with fewer impulse purchases, more intentional choices, and a broader influence across how an entire household eats, said Summers-Gervai.
He said he believed it was only a matter of time before New Zealand started seeing the same changes.
GLP-1 users in Australia reported a 44% reduction in dining out, according to the report.
“Convenience-led dining is dropping quite sharply,” Summers-Gervai said of the findings. That was likely because convenience dining tended to be associated with less healthy food options, he said.
“Dining out might be less frequent, but it's much more deliberate.”
Growers and manufacturers would also be impacted, he said, and there would a “recalibration” of supply as new levels of demand became apparent, similarly to what happened during the Covid-19 pandemic and in the years that followed.
“There's implications across other sectors and value chains beyond food and grocery. Yes hospitality, but think what the impact might be on fashion or beauty or even into the insurance sector as well. From a from a fashion brand or retailer perspective, how might they embrace resale, rental, repair when people are likely changing the clothes that they're wearing more frequently.”
While the changes could potentially mean more business for some sectors, such as fashion as consumers needed to replace their wardrobes as they lost weight, Summers-Gervai said the research also showed people had changed preferences, such as increased their spending on apparel and now seeking alternative styles and materials.
“Seventy-two per cent say that fit [now] matters most, while brand, style, and following trends are actually becoming less important for this group of customers.
“We're seeing some other similar interesting numbers - 53% said their focus on skincare and grooming has increased, and noticeably more amongst men.”
Summers-Gervai said the tourism industry could be another industry impacted. “If exercise and experience-led travel become more of a thing for people who are users or have used GLP-1 because of the changing consumption habits, how does our tourism and the exercise industry respond to that? In other areas in more traditional sectors like the pharmacy sector, if people are interacting more in those environments that maybe they haven't previously, how do pharmacies respond beyond just dispensing prescriptions too.”
He said GLP-1 could also shake up how the insurance industry operates, including how it sets and prices premiums.
One in 10 Australian adults surveyed said they use GLP-1, and just under a quarter said they would consider using it in the future.
Currently, about 30% of the population in Australia is taking GLP-1.
Summers-Gervai said it was important for business and the New Zealand economy to take insights from the Australian market. “We often are very fast followers, so it's pretty interesting to look at what's happening there as potential indicators of what might happen in New Zealand in the future.”
A separate study by Circana also found the rise of weight loss medications was driving profound changes in consumer behaviour.
Its data showed GLP-1 medication users had higher engagement with self-monitoring devices, and a overall a greater tendency to track their health through devices and apps, and more likely to eat “mini meals,” opting for nutrient-dense products that deliver protein, satiety and fibre in smaller quantities.
Daniel Bone, insights director of Circana Australia, said the rise of GLP-1 medications had even in relatively short span of time had a profound shift in consumer behaviour.
He said opportunity for retailers and brands was in product innovation and positioning “from high-protein, low-calorie, and portion-control options, to new ways of educating consumers” about GLP-1-friendly foods.
“The full impact of GLP-1 medications is still unfolding, but it’s clear they’re reshaping diets, shopping baskets and dining choices. Brands that invest in learning more about these evolving consumer needs will have a greater chance of capitalising on this changed market.”
Sir Jim Mann, professor in medicine and human nutrition at the University of Otago, said he held concerns about GLP-1 and what it would mean when it became widely available, and eventually able to be purchased without a prescription.
“It comes off patent in some countries very soon.
“My concern is that these medications should be used under careful supervision, and I'm very nervous because we won't have that here,” said Mann.
“We haven't got the care system in place to provide that supervision.”
Asked about the EY report and the expected widespread disruption the use of the medicine would have on various industries and consumer habits, he said it was possible there would be a change to the status quo, but he hoped there would not, because “I don't think that we are at a stage where it should be part of our national diet almost.”