Are GLP-1s Good for Business? The Jury Says …

The explosive growth of GLP-1 medication use is affecting business from farming to health insurers to grocers to clothiers to airlines, all of whom are having to adjust to major impacts on supply and demand.

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Businesses outside the growing transaction pipeline for GLP-1 treatments are seeing impacts on their bottom line as more people use the weight-loss drugs that are becoming more affordable and convenient.

That impact may not be as big as the hype around it has been, said Dr. Aaron Yelowitz, professor of economics in the University of Kentucky Gatton College of Business and Economics. The drugs have seen explosive growth, but their use is still fairly low amongst Americans, he said.

"The numbers I've seen from Gallup polls show that about 3% of American adults were using GLP-1s in 2024," Yelowitz told Business Lexington. "Now, it's about 11%. That's a big increase, but still a fairly low number, especially given the fact that about 36% of American adults are obese. There's potentially many more people who, if GLP-1s were more affordable, might get on them."

Efforts to get the perspective of Central Kentucky's significant healthcare provider sector were unsuccessful. Some did not respond and one who did said there isn't enough data yet to describe how the emerging trend is affecting healthcare provider finances.

According to Gallup, about 15% of all U.S. adults report having used a GLP-1 medication for weight loss at some point. When including use for type 2 diabetics and other chronic conditions, the usage rate jumps to about 1 in every 8 adults (or 12%).

By far, usage is highest among adults between 50 and 64, with 20% of women in that age bracket using the drug. Usage in younger adults has risen steadily from 7% in 2021 to 13% by 2024.

The drug's growth also coincides with its drop in price. In 2024, the price for the drugs were in the $1,000-plus a month range, Yelowitz said. Now, as the price has dropped, more people have decided to try it and likely that number will rise if it gets more affordable.

Coinciding with that growth is the number of company health insurance plans that are covering the drugs.

"The second thing, which probably explains why there is room to grow, is that a lot of employers don't pay for GLP-1s," he said. "The Journal of American Medical Association Health Forum shows only about 15% of employer plans covered GLP-1s in 2024."

Covering it could be good for business.

In a 2025 report, Goldman Sachs estimated the use of GLP-1s could have a positive effect on the economy through increased productivity. The use of GLP-1s as a weight-loss drug could boost U.S. gross domestic product by 0.4%, which is $130 billion, by increased productivity and lower healthcare treatment savings, the financial company said.

"Poor health imposes significant economic costs that would diminish if health outcomes improve," Goldman Sachs analysts wrote in the report. "Academic studies find that obese individuals are both less likely to work ... and less productive when they do."

GLP-1 users are more likely to use gyms and fitness clubs, global financial services firm William Blair said. A 2026 survey of 300 GLP-1 users found them more likely to report exercising after beginning GLP-1 treatment. Respondents to their survey said they experienced higher energy levels and improved mobility. Gym membership among GLP-1 users rose to 34.5% after starting their treatment.

But, the investment firm cautioned, GLP-1 users are not known for sticking with the treatment. Just 46% of users stay on the treatment six months, and only 32% stick with it 12 months.

Other forecasts indicate the drugs' popularity will positively affect clothing markets as those who've lost weight buy new clothes that fit them better. Analysts said rapid wardrobe replacements and jewelry purchases are up nearly 40%.

The GLP-1 weight loss could also impact airlines, a Michigan State University Center for Economic Analysis study found. If average passenger weight decreases by 10%, the amount of fuel used by an airline would drop 2%, reducing costs. Commercial airlines could see a 514 million-gallon reduction in fuel needs per year, an estimated $2 billion saving annually.

For some businesses, GLP-1s could have potentially negative effects, Yelowitz said.

"The clearest evidence is that within 6 months, households cut grocery spending by about 5% and savory snacks by about 10%," he said. "Because they're eating less food, grocery bills go down. By far, the biggest effect in principle is a decline in purchasing ultra-processed food. These are the things that are in the middle of the supermarket, not on the ends of the supermarket."

That decreased demand for food could also negatively impact transportation. According to the Michigan State study, that reduced demand for food, could also reduce the demand for trucking. The study cited predictions by FreightWaves that estimated truck traffic devoted to food and beverages will decline by 3 million truck loads per year.

In July, Medicare announced it would cover GLP-1 prescriptions for seniors for only a $50 co-pay. As prices for the drug continue to drop, Yelowitz said, we could see all of these effects magnify as more people can afford the drug.

Pharmacists caution, however, that increased access doesn't always mean patients are receiving a quality product. One pharmacist in Lexington, who wished to remain anonymous, said compounding pharmacists have restrictions in making GLP-1 drugs. They may provide customers with legally prescribed brand name GLP-1s, but they cannot create one for less than what pharmaceutical companies charge for them.

That doesn't prevent other companies from doing that exact thing, pharmacists said. Ads on social media offer GLP-1 medications may be adding liquid or other compounds to the medication. In effect, people who use online companies have no way of knowing what is in the shot they are injecting into their bodies, they said. The medications may come from outside of the state, according to pharmacists, or from compounding pharmacies that start up to fulfill demand for compounded GLP-1s, make money, then shut down only to reappear under another name somewhere else.

The ultimate story is still being written.

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