Ozempic is surging in popularity. With three-quarters of Americans overweight or obese, the weight-loss drugs are selling so fast pharmacies are having trouble keeping them in stock. Since people seemingly have an injectable alternative to the treadmill and the stairclimber, you might think all of this would be bad news for gyms and those who sell workout equipment and clothing. Instead, it seems more likely to be bad news for the junk food and health care industries and good news for the fitness industry as takers of weight-loss drugs further invest in their fitness and appearance. The Barbell investigates.
NEW FITNESS CUSTOMERS
The soaring sales of injectable GLP-1 semaglutide drugs like Ozempic and Wegovy, which reduce appetite, have boosted the stock prices of their drugmakers and weighed down the stock prices of grocery and packaged food stocks. Still, whether those drugs would hurt or help the fitness industry remained an open question—until now. The answer: They help.
A recent survey found a twofold increase (from 35% to 71%) in weekly exercise by those who had begun a weight-loss drug regimen. The survey’s author noted: “…perhaps as patients lose weight, they simply feel both more physically able and more mentally motivated to exercise more to compound the benefits they are seeing from weight loss medications.” Stock analysts predict a potential boon to not just gyms but also workout clothing companies like Nike and Lululemon and beauty companies like Ulta and Estee Lauder. Positivity breeds more positivity. People who look better want to look even better.
GYM DRUGSTORES
And gyms may benefit from more than just increases in memberships. The Life Time gym chain, which has over 160 health clubs in America, is experimenting with prescribing and selling the weight loss drugs via in-house medical professionals. Last month, it began a pilot program for an “integrated” approach to delivering the popular drugs to its members. If this is successful, other gym chains will likely follow suit.
SLIMMER WAISTS, FATTER PROFITS
Novo Nordisk, maker of Ozempic and Wegovy, recently reported a 90% year-over-year increase in sales. Profits are getting fatter while waistlines are getting slimmer, and the fitness industry looks to be a big beneficiary.
