The Ozempic Boom Has An Unexpected Winner: Americans Are Spending More On Beauty, Fashion And Wellness

Weight-loss drugs are changing more than Americans' weight. They're also creating a new group of beauty and fashion shoppers, with research showing that people taking medications such as Ozempic and Wegovy are spending more on skincare, makeup, wellness and clothing as their bodies change.

GLP-1 users spend twice as much on beauty products and 3.7 times as much on wellness as nonusers, according to research from investment bank Jefferies cited in Barron's on Friday.

The findings have caught the attention of Wall Street analysts looking beyond the pharmaceutical companies making billions from weight-loss treatments. Jefferies analyst Sydney Wagner identified beauty retailer Ulta Beauty and cosmetics company Estée Lauder as potential beneficiaries of changing consumer habits.

The opportunity is not limited to people replacing clothes after losing weight. Some consumers are buying products to address changes in their skin and hair, while others are exploring makeup, fitness and clothing styles they previously avoided.

A new study by The Consumer Collective found that 73% of surveyed women who had used GLP-1 medications reported at least one new beauty concern since starting treatment.

Skin sagging was reported by 35%, while 32% mentioned hair thinning. The survey also found that 72% had bought a beauty product specifically because of changes they associated with the medication.

The research, based on a survey of 750 U.S. consumers conducted in October, found that 48% of women who currently or previously used GLP-1 drugs were more interested in beauty than a year earlier. That compared with 23% of women who had never used the medications.

Makeup was another area attracting additional spending. Among women with GLP-1 experience, 45% said they were buying more makeup than a year ago, compared with 19% of other women.

The changes are creating opportunities for companies selling facial skincare, hair treatments, cosmetics and other personal care products. However, the survey measured reported purchasing behavior rather than independently verified retail sales.

Jefferies' analysis offers another indication of the spending difference. Wagner found that 38% of GLP-1 users had spent more than $250 on beauty products during the previous three months, compared with 18% of nonusers, Barron's reported.

The bank's research suggests that spending could remain an important opportunity for beauty companies even after some consumers stop taking the medications. That remains an analyst assessment, rather than a confirmed forecast of future sales.

Fashion retailers are experiencing another side of the weight-loss trend. An EY-Parthenon consumer report released Oct. 22 found that 72% of GLP-1 users had changed clothing sizes, while 46% had fully or partially switched apparel brands, often because their previous clothes no longer fit.

For retailers, changing sizes can affect which products customers search for, the brands they consider and the merchandise stores need to keep in stock.

Separate research from LSEG and Centric Market Intelligence found that online searches for plus-size dresses had declined 19% over two years. Searches for non-plus-size swimsuits, meanwhile, increased 20% from a year earlier.

The researchers cautioned that the changes could not be attributed directly to weight-loss medications. Fashion trends, pricing and other consumer preferences may also influence demand.

Some retailers have begun discussing the changes in their own businesses. Personal styling company Stitch Fix reported that customer mentions of weight loss in styling requests had tripled over two years and increased 75% from a year earlier, according to the company commentary examined by LSEG.

H&M also reported discontinuing certain 3XL and 4XL clothing assortments because of lower demand, although the company did not establish that GLP-1 use was responsible for the change.

The shift in spending extends to what consumers put in their shopping carts. EY-Parthenon's survey found that 63% of GLP-1 users had reduced their consumption of sweet snacks, while 57% were eating fewer salty snacks. At the same time, 66% reported eating more fresh produce and 61% were consuming more protein.

More than half of the respondents used GLP-1 medications primarily for weight management, rather than diabetes or other health conditions.

For beauty brands, the changes have also brought a different kind of customer into focus: people searching for products that address specific concerns rather than simply following the latest cosmetics trend.

The Consumer Collective found that 56% of women who had used GLP-1 medications were willing to pay more for beauty products that delivered noticeable results. The study also found that 59% reported feeling more confident about their appearance.