Could Ozempic Save Airlines Millions in Fuel? How Weight-Loss Drugs Might Reshape the Entire Economy

Will Wegovy Lower Your Grocery Bill? Why Are Retailers Like Walmart Worried About the ‘Ozempic Effect’?

Discover how GLP-1 drugs like Ozempic and Wegovy are poised to disrupt the US economy. From boosting GDP through higher labor productivity to saving airlines millions in jet fuel, explore the massive financial ripple effects of America’s weight-loss revolution.

Don’t miss the investment shift of the decade—read the full summary below to see which industries are set to boom (and which might bust) as America gets thinner.

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This concise article explains how the weight-loss benefits of drugs such as Ozempic and Wegovy could transform the American economy across numerous dimensions. From reduced consumer spending on items such as snacks and medicines to cuts in company expenses for jet fuel and worker sick days, the effects will spread across the economy. Reporters Cork Gaines and Allie Kelly offer a useful overview of what these medications could mean for greater labor productivity and higher GDP growth.

Take-Aways

• The rising consumption of weight-loss drugs could benefit companies in unique ways.
• Weight-loss medication could improve individual productivity and lead to a stronger economy.
• The drugs’ currently high prices present profit opportunities and cost challenges.

Summary

The rising consumption of weight-loss drugs could benefit companies in unique ways.

Ozempic is the brand name for a drug, semaglutide or GLP-1, used to treat diabetes. When research proved it could help patients lose weight because it lowers appetite, its manufacturer received approval to offer it as Wegovy for weight loss.

“While it’s too early to know exactly how GLP-1 drugs will ripple out to the broader economy long term, it’s already had significant effects on patients’ consumption, and companies are keeping an eye out for future developments.”

Almost half of Americans are obese, so these weight-loss drugs could be a game changer for the individuals who use them and for the businesses that make them. The market for all weight-loss medicines could be as high as $1.7 trillion annually; in contrast, the 2022 market for pain medications is $72.3 billion. The introduction of these weight-loss medicines could also positively affect firms’ bottom lines: Analysts say that airlines, for example, could save millions in fuel costs if passengers weighed less.

Weight-loss medication could improve individuals’ productivity and lead to a stronger economy.

Consumers using weight-loss drugs tend to spend less money on food and drink over time. Instead, they spend more on lifestyle items and physical fitness, as Walmart noted in its stores. This change in consumer behavior could result in greater overall productivity in the long term due to people’s better health and increased longevity.

“Employee productivity could increase as Americans see the long-term benefits of weight loss and stay in the workforce longer.”

Better health leads to less disease, fewer days lost to illness, and higher productivity. Individuals will be happier as they become able to control their weight. And because GLP-1 drugs have reduced some patients’ urge to use alcohol, tobacco, and opioids, the medications could potentially treat addiction.

The drugs’ currently high prices present profit opportunities and cost challenges.

The price for Ozempic and Wegovy is steep, and few insurers will cover the cost of the drugs for non-diabetes treatment. Some research indicates that some 44% of Americans would take the drugs if they cost $100 per month, compared to only 5% at the current $1,000+ monthly price. The drugs’ popularity raises the risks of higher employer health insurance premiums and outsized profits for pharmacy benefit managers, whose monthly cost for the medications averages $100 while the drugs retail for fourteen times as much.

“While obesity doesn’t cause a lockdown like COVID, treating it could save lives and have massive benefits to the economy and the country.”

Individuals who are on these medications, which would require life-long usage, would save on health care costs. Some argue that obesity is equivalent to the public health crisis caused by COVID-19, and that therefore the government should cover the methods to treat it.

About the Authors

Cork Gaines and Allie Kelly are journalists with Business Insider.