Weight-loss drugs to slow supermarket sales
Weight-loss drugs are set to slim down supermarket sales in the UK as more Brits opt for diet-conscious shopping, a City broker has warned.
The growth rate of supermarket sales is expected to slow this year due to the increasing popularity of diet-suppressant jabs, population growth and falling food inflation, according to a note from analysts at Shore Capital.
UK retailers are battling growing employment barriers and costly theft and cyber attacks, but have been boosted by falling food inflation.
City analysts said the sector’s big players remain well placed to “modestly” build their market share and widen their margins this year.
Weight-loss jabs reshaping Brits’ food baskets
Weight-loss drugs are expected to dampen supermarket growth by cutting demand for snacks and alcohol, Shore Capital said, though appetite for fibre-rich foods could surge.
The analysts said they expect the popularity of diet-suppressant drugs is set to grow as prescriptions become more widely available.
As many as 1.6m British adults are taking weight-loss drugs according to University College London.
Speaking in January, Greggs boss Roisin Currie, said there was “no doubt” weight-loss jabs are pushing consumers to want smaller portions, affecting the bakery chain’s bottom line.
Even Brits who don’t use diet-suppressant drugs are more interested in watching their weight, analysts said, warning this will have an impact on supermarket sales.
“We have written for some years now that we see the diet and health component of food markets as becoming gradually and progressively more important,” Shore Capital said.
Sainsbury’s and Tesco on the up
Despite the uncertainties caused by weight-loss jabs, the UK’s biggest hitters, Tesco and Sainsbury’s, remain in a strong position and are likely to grow steadily this year, Shore Capital said.
“Sainsbury and Tesco equities have emerged as consummate cash compounders, steadily growing share and revenues, embracing margin accretion, albeit modest,” the analysts said.
Both supermarket giants are listed on the FTSE-100 and have seen their share price grow steadily so far this year.
Tesco is up 12.8 per cent in the year to date, while Sainsbury’s lags behind slightly, up 9.4 per cent in 2026.