Fast-Food Chains Feel the Pressure As GLP-1 Medicines Like Ozempic Change Consumer Spending Habits

• A new study has revealed how Glucagon-like peptide-1 (GLP-1) medicines, such as Ozempic, affected consumer spending habits
• Many South Africans are changing their spending habits, as they slowly begin to embrace a healthier lifestyle
• A healthcare professional warned that, as GLP-1 medications grow in popularity, more compound medicines were developed

Byron Pillay, a Briefly News journalist, has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He worked as a newspaper journalist for 10 years before transitioning to online.

South Africa’s fast-food industry has taken a bit of a knock as the rise of weight-loss and diabetes medications has changed consumer behaviour in the country.

A new report by Discovery Bank and Visa’s SpendTrend26 revealed that thanks to the popularity of Glucagon-like peptide-1 (GLP-1) medicines, such as Ozempic, Wegovy and Mounjaro, more South Africans are adopting a healthier lifestyle.

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This has resulted in South Africans spending less on takeaways, restaurants and in some cases even groceries over the past year.

What did the report find?

The report, which is based on an analysis of more than 2.6 billion transactions across 12 million credit cards over the past year, combined with Discovery Bank client data and a survey of 1,000 consumers, found that fast-food giants faced a new challenge.

While GLP-1 medicines were initially developed to treat diabetes, they have become increasingly popular as weight-loss treatments, which has begun to affect consumer spending patterns.

Data showed that most respondents who use GLP-1 medicines reported spending more money on healthier foods. 48% indicated that they were spending less on takeaways and restaurants, while nearly half of the consumers reported spending less on alcohol. 38% even confirmed that they were spending less on groceries overall.

A similar situation unfolded in the United States of America, where GLP-1 medicines are more widely used, as consumers reduced their fast-food spending by approximately 8% within the first six months of starting treatment.

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South Africa’s eating patterns are changing

Research company Eighty20 also noted that eating habits among South Africans were changing. Eighty20 director Andrew Fulton said that while the number of people eating out remained relatively stable, they were doing it less frequently.

He also stated that consumers were starting to favour more affordable protein options, such as chicken. This has meant that traditional burger-focused chains like McDonald’s, Wimpy and Steers have lost some ground in the country.

Healthcare expert warns about compound medicines

Charles Green, a healthcare and pharmaceutical expert at Cliffe Dekker Hofmeyr (CDH), warned that due to the increase in demand for GLP-1 medicines, there has also been a rise in compounded medicines.

Compound medicines are custom-made by a licensed pharmacist or healthcare professional and are not approved by a regulator, such as the South African Health Products Regulatory Authority (SAHPRA).

Green said that the high demand for the medicine had given rise to a lucrative new market but warned that this raised concerns about patient safety.

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“The concern, and I think the main concern with compounded GLP-1s, is that they are not actually assessed or tested by the regulator, the applicable regulators.

He explained that many consumers assumed that compounded medicines were just cheaper versions of approved products, but this wasn’t the case.

“That is an assumption many people make. Compounding medicine is different. It serves a different purpose,” he explained.

South African in the US compares fast food favourites

Briefly News reported that a South African who travelled to the USA decided to compare the two countries' food.

The content creator decided to focus on the difference between fast food in South Africa and the United States.

TikTok videos of the South African's food series in America explored the unexpected side of comparing a first-world country to a third-world one.

Source: Briefly News