The growing market from GLP-1s

When Branneisha Cooper first started taking the GLP-1 injection Mounjaro in late 2022, she heard online that she might experience temporary hair thinning and prepared for the worst.

But it would be about a year before she noticed her hair falling out in clumps. Cooper said this was especially shocking because he’s always had thick hair.

“I was really hoping it wouldn’t happen,” Cooper, 29, told CNBC. “My provider told me that because you’re on medication that makes you lose weight faster, that’s what could be causing your hair loss.”

Desperate to eliminate the side effect, Cooper said she began prioritizing protein in her diet, taking vitamins meant to help her hair, and investing in hair care products that stimulate the scalp to promote growth.

She is one of a growing number of GLP-1 users experiencing temporary hair loss due to the drug, creating a new market for hair care products amid the weight-loss drug craze.

Cooper took to social media to get support, where she found that many other GLP-1 users were experiencing the same thing. While the discourse was less frequent at the beginning of her weight-loss journey, the rise of GLP-1s meant more people flocked to her page to commiserate and strategize.

“There are more people wanting to know how to deal with this, but there are also a lot of people wanting to know how to prevent it, and that’s something I don’t know the answer to,” Cooper said.

Use of GLP-1 drugs according to Gallup more than twice Since the beginning of 2024. KFF Health Follow-up Survey found that roughly one in eight U.S. adults, or nearly 13%, currently use a GLP-1 drug.

JPMorgan by 2030 predictions It predicts that the number of GLP-1 users will increase from only 5 million to approximately 25 million in 2023.

Many GLP-1 users have seen significant results in weight loss. However, drugs also have many side effects.

Zepbound, produced by the pharmaceutical giant Eli Lilly, advertises Common side effects on the website include hair loss, nausea and vomiting, fatigue, and more. Mounjaro, also a Lilly drug, warns of similar side effects. Novo NordiskOzempic. Wegovy’s possible side effects include hair loss.

Dr., dermatologist and chief medical advisor of hair care brand Nutrafol. According to Heather Woolery-Lloyd, this is a common risk with any significant weight loss due to changes in the body.

“When you lose weight through GLP-1 or any other form of weight loss, you may be taking in less nutrients, less protein, and the weight loss itself can be a source of stress,” he told CNBC.

According to Circana, these consumers are increasingly looking for solutions that will streamline physical processes. The Chicago-based market research firm estimates that GLP-1 households spend about 30% more on beauty products than non-GLP-1 households.

“Hair loss solutions continue to be a prominent growth segment in hair care, driven by prolonged consumer stress and GLP-1 drug use emerging as a growing headwind since the pandemic,” said Larissa Jensen, beauty industry consultant at Circana. “Many GLP-1 users report temporary hair loss, which means there is increased demand for at-home growth treatments, scalp serums and supplements.”

According to Woolery-Lloyd, a GLP-1 user’s hair loss can mean even more stress, knocking their self-confidence.

He said his practice has seen a noticeable increase in the number of patients presenting specifically with concerns about hair thinning, many of which are due to the side effects of GLP-1. Woolery-Lloyd said the last time she saw an influx of patients with these concerns was during the pandemic due to unexpected amounts of stress on the body.

According to Audrey Depraeter-Montacel, Accenture’s global beauty industry leader, hair loss from GLP-1s is one of the top side effects the beauty industry is tracking.

“GLP-1s have not only changed the way people lose weight, they’ve also changed how consumers address it in beauty and personal care,” he told CNBC, adding that it’s not a “one-size-fits-all” solution.

Depraeter-Montacel called the size of the GLP-1 market “unprecedented” and said the business opportunity for the hair treatment market with this growing population is paving the way for innovation.

“On the life science side, we are seeing many pharmaceutical brands raising funds to pursue innovation and new solutions,” he said. “So a lot of money has been raised on behalf of this opportunity, and I think that confirms that there is definitely a commercial opportunity here as investors are putting dollars on both sides.”

Depraeter-Montacel said that consumers who will buy into the GLP-1 hair treatment market will stick around. Since it usually takes several months for hair care products to start showing results, these customers are expected to be extremely loyal.

Brands attract attention. At the beginning of April, Ulta CEO Kecia Steelman told Yahoo Finance The company is seeing more consumers purchasing hair care products as part of the GLP-1 craze.

Redken, a hair care company owned by L’Oréalhas created a complete hair care line specifically for consumers with fine hair called the Acidic Growth Complete System.

“We wanted to make sure the Acidic Growth Complete System line was tested on this specific population of GLP-1 users because they may have unique hair care needs,” Mounia Tahiri, Redken’s US general manager, told CNBC. “[It] It was tested on existing GLP-1 users who immediately noticed that their hair looked fuller and thicker when using the products.”

Tahiri said the company has also seen an increase in Google searches for hair loss and weight loss medications and plans to continue innovating in hair care products as the GLP-1 population grows.

Nutrafol CEO Cindy Gustafson told CNBC that the hair care brand has similarly seen increased demand for hair health products.

“While we cannot demonstrate the performance associated with GLP-1 use, overall growth is driven by increased awareness and the shift to personalized, clinically supported solutions,” he said.

Gustafson said the company expects this growth to continue as more people begin taking GLP-1 and seek products to prevent or eliminate hair thinning.

KeraFactor, another scalp health company, told CNBC it saw 100% year-over-year growth in its direct-to-consumer store due to increased interest from GLP-1 users.

“We’ve seen a lot [hair loss] “During Covid, so that was actually the first spike in the number of patients coming into KeraFactor, and then after Covid it kind of calmed down,” Lauren Bartholomeusz, the company’s chief commercial officer, told CNBC.

Bartholomeusz said KeraFactor has changed the way it treats patients to now take a more preventative perspective to avoid possible hair loss while taking the medications.

There may be light at the end of the tunnel for Cooper, a 29-year-old GLP-1 user.

She has tried many hair products over the past three years, taking weight-loss pills, hoping her hair will return to its former thickness.

“I’ve been paying more attention to it for about a year now and I’ve noticed it’s coming back,” Cooper said. “A lot of people get nervous when their hair falls out because they’re like, ‘Oh, I’m going to be bald forever.’ But it grows back, which is what made me come to terms with it. But it was scary.”