GLP-1 growth is changing retail demand patterns—and not just in food

GLP-1 medications are affecting categories other than food

GLP-1 weight loss drugs are driving significant changes in the retail industry. With the drugs creating new consumer behaviors, the impacts are being seen across many CPG and retail segments. These new behaviors have a rarely seen adoption rate, most similar to the trajectory for the industry-disrupting iPhone and seem to be long lasting. Shifts are being felt across beauty, fitness, travel, and retail.

What is going on

• A PwC analysis reports that as of December 2025, 20% of U.S. households had at least one GLP-1 user, up from 9% in 2024. With the recent introduction of cheaper pills as an alternative to injections, access is expected to expand even further.
• GLP-1 users experience significant lifestyle changes leading to investment in areas outside of food, including new clothing and new hobbies.
• Off-price retailers have seen a nearly 7% increase as consumers are hesitant to pay full price for clothes in transitional sizes while losing weight.
• Apparel segments such as athletic wear are experiencing high single-digit growth rates as these consumers adopt a more active lifestyle, turn to more wellness-focused experiences such as hiking and fitness classes, and vacation in more health-oriented destinations.
• Sales of health and beauty products are also trending up as GLP-1 users struggle with side effects such as changes in skin elasticity, thinning hair, and dry mouth.

Looking ahead

• Noticeable shifts in retail inventory and purchasing behavior are expected to continue.
• New consumer behaviors will require retailers to become more nimble as these trends evolve.
• Supply chain visibility will become essential as retailers manage shifting assortments and evolving inventory patterns.

Logistics impacts of the rise of direct-to-consumer retail

Direct-to-consumer retail is a driving force in today’s marketplace. A retailer’s ability to control every step in the purchase cycle, from product design to post-purchase care, allows an authentic relationship with customers while also signaling where the industry might head in the future.

What makes direct to consumer different

• With discretionary spending down and value-driven decision-making up, trust has become the ultimate consumer marketing tool. The leading direct-to-consumer brands rely on AI for scale, but their real strength is uniqueness and authenticity.
• Direct-to-consumer brands can turn satisfied consumers into influencers and advocates for their brand. Referral programs, micro-influencer partnerships, and authentic storytelling are essential aspects of successful marketing.
• To keep up, traditional retailers will need to build cohesive in-store and online experiences to retain a loyal customer base, with a seamless buying experience that highlights visibility and authenticity.

The logistics takeaway

• Unify channels and inventory: Build a single, real-time view of inventory and demand across stores and online channels, using item-level visibility to place product precisely and fulfill from anywhere.
• Redesign for speed and flexibility: Shift to distributed fulfillment (ship-from-store, regional nodes) and offer flexible delivery options to meet rising expectations.
• Control costs while improving experience: Optimize last mile and returns; use tracking and availability accuracy as a core trust driver; and deploy AI and data to balance service levels, inventory, and margins.

Independent grocers make up 38% of U.S. food retail sales

A recent study by the National Grocers Association finds that independent grocers account for 38% of the U.S. food retail sector. Remarkably, they have grown by 39% or just under $100 billion since 2020. Independent grocers now represent approximately 2% of the U.S. gross domestic product—roughly $557 billion in total economic activity.

Behind the numbers

• The study finds that for every $1 spent at independent grocers, an additional 58 cents is added to supply chain and household spending. But this multiplier actually under-represents the full economic impact of independent grocers. Other factors include job creation, worker wages, and supply chain spending.
• Independent grocers bring an additional estimated $190 billion in economic activity through value-added services such as merchandising, distribution, and logistics.
• At the same time, independent grocers face stiff competition from larger chain competitors who can easily afford omnichannel shopping experiences and advanced AI that are out of reach for most independents.

How smart supply chain strategies can help independent grocers

• Lean into local differentiation and suppliers. Double down on regional sourcing, curated assortments, and community ties to compete on freshness, uniqueness, and trust—not price or breadth of assortment.
• As independent grocers work to remain competitive in an uncertain economy, they will also benefit from logistics providers that help them maintain margins by moving product as efficiently and as cost effectively as possible.

Shippers may be impacted by Supreme Court decision on trucking accidents

The U.S. Supreme Court’s recent decision in Montgomery v. Caribe Transport clarifies a legal issue for the freight industry. The Court ruled that accident-liability lawsuits against brokers may proceed under state law. While not explicit, the Court also appeared to suggest that shippers, too, may be liable under state law if a truck hauling their freight gets in an accident.

This introduces new complexity for shippers, who may face increased litigation exposure tied to how they select and vet trucking companies. While federal safety oversight remains in place, the addition of state-level liability is expected to increase compliance demands, legal costs, and insurance premiums.

Shippers should stay in close contact with their logistics providers to evaluate how the changing landscape may affect their transportation choices.

Taiwan Section 232 tariffs set at 15%

The United States and Taiwan have finalized a trade deal that sets a 15% cap on Section 232 tariffs on goods such as wood, aluminum, and copper. The tariffs are retroactive to May 1.

For more details, see the Trade Policy & Customs section of this report. 

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