Widespread use of weight-loss drugs like Ozempic, Wegovy and Mounjaro has led to a surge in demand for smaller-sized clothing (sizes 0 to 8) as customers need to downsize their wardrobes after dramatic weight loss, according to retailers.
Approximately 15.5 million Americans have tried these injectable medications, resulting in a significant shift in consumer behavior and demand for apparel retailers.
Retailers, like Rent the Runway, Amarra, and Lafayette 148, are experiencing unprecedented demand for smaller sizes, with customers experimenting with new, more body-hugging and risqué styles after weight loss.
However, this trend has also led to potential financial losses for retailers due to incorrect size curves and a decrease in demand for larger sizes, with potential losses of $20 million yearly.
The impact of these weight-loss drugs on the economy and consumer behavior is profound, with the global GLP-1 market forecasted to reach $105 billion by 2030.
Novo Nordisk and Eli Lilly have become the largest pharma companies by market capitalization due to the growing demand for GLP-1 drugs.
Companies like WW International, Nestlé, and Walmart are tapping into the weight-loss drug market, and these drugs are anticipated to impact the fitness industry and food sector.
This article was written in collaboration with Generative AI news company Alchemiq
Sources: New York Post, The Independent, Yahoo Finance, exbulletin.com, Fortune, Quartz, Seeking Alpha, LiveMint.