The growing market for GLP-1s

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

But it will take about a year before she starts to notice her hair falling out in clumps. Cooper said it was especially shocking because she had always had thick hair.

“I was really hoping it wouldn’t happen,” Cooper, 29, told CNBC. “What my provider told me is that since you are taking medication that allows you to lose weight at a faster rate, that is what can cause hair loss.”

Desperate to combat the side effects, Cooper said she began prioritizing protein in her diet, taking vitamins designed to help her hair and investing in hair care products aimed at stimulating the scalp to promote growth.

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

Cooper turned to social media for support, where she found dozens of other GLP-1 users experiencing the same thing. While the rhetoric was less frequent at the beginning of her weight-loss journey, the emergence of GLP-1 means more people are flocking to her page to commiserate and strategize.

“There’s been a growing number of people who want to know how to deal with it, but there’s also a lot of people who want to know how they can prevent it, and that’s just something I don’t have an answer for,” Cooper said.

According to Gallup, the use of GLP-1 drugs has doubled since early 2024. The KFF Health Tracking Poll found that nearly one in eight U.S. adults, or roughly 13%, currently takes a GLP-1 drug.

By 2030, JPMorgan estimates that nearly 25 million Americans will be on GLP-1, up from just 5 million in 2023.

Many GLP-1 users have seen significant weight loss results. But medications come with many side effects as well.

Zepbound, manufactured by the pharmaceutical giant Eli Lillyadvertises common side effects on its website that include hair loss, nausea, vomiting, fatigue, and more. Mongaro, another Lilly drug, warns of similar side effects, as well Novo NordiskOzambik. Wegovy also includes hair loss among its possible side effects.

It’s a common risk with any type of major weight loss due to changes in the body, according to Dr. Heather Woolery-Lloyd, a dermatologist and chief medical advisor for hair care brand Nutrafol.

“When you lose weight, either through GLP-1 or another type of weight loss, you may be taking in less nutrients and protein, and the weight loss itself may be a stressor,” she told CNBC.

These consumers are increasingly looking for solutions to make the physical process easier, according to Circana. The Chicago-based market research firm estimates that non-GLP-1 households spend approximately 30% more on beauty products than non-GLP-1 households.

“Hair loss solutions continue to be a prominent growth sector in hair care, supported by prolonged consumer pressure since the pandemic and the use of GLP-1 as an additional cofactor,” said Larissa Jensen, Beauty Industry Advisor at Circana. “Many GLP‑1 users report temporary hair loss, which translates into increased demand for at-home growth treatments, scalp serums and nutritional supplements.”

The impact on a GLP-1 user’s confidence from hair loss can mean more stress, according to Woolery-Lloyd.

In her practice, she said she has noticed a marked increase in the number of patients coming in specifically because of concerns about hair thinning, many of them due to 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.

Hair loss caused by GLP-1s is one of the top side effects the beauty industry is monitoring, according to Audrey Depreiter-Montassel, global beauty industry leader at Accenture.

“GLP-1 has not only changed the way people lose weight, but the way consumers expect beauty and personal care to address the situation,” she told CNBC, adding that it is not a “one-size-fits-all” solution.

Depraeter-Montacel described the size of the GLP-1 market as “unprecedented” and said the business opportunity for a hair treatment market with such a growing population paves the way for innovation.

“In terms of life sciences, we see a lot of pharma brands raising money to pursue innovation and new solutions,” she said. “So a lot of money has been raised in the name of this opportunity, which I think underscores that there is definitely a business opportunity here with investors putting dollars into this on both sides,” he added.

Consumers who will buy into the GLP-1 hair treatment market are also still to be found, Depreiter Montasil said. Since hair treatment products often take a few months to start showing results, these customers are expected to be very loyal.

Brands are taking notice. In early April, Ulta CEO Kecia Steelman told Yahoo Finance that the company is seeing more consumers buying hair treatment products as part of the GLP-1 craze.

Redken, a hair care company owned by Lorealcreated an entire hair treatment line specifically for consumers with thin hair called the Complete Acid Growth System.

“We wanted to make sure we tested the Acidic Grow Full System range on this specific group of GLP-1 users, as they may have unique hair care needs,” Mounia Taheri, Redken’s U.S. general manager, told CNBC. “[It] Tested on existing GLP-1 users who, upon using the products, immediately noticed that their hair appeared fuller and thicker.

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

The hair care brand is similarly seeing an increase in demand for hair health products, Nutrafol CEO Cindy Gustafson told CNBC.

“Although we are not achieving performance related to the use of GLP-1, overall growth is driven by increased awareness and a shift toward clinically supported, personalized solutions,” she said.

Gustafson said the company expects this growth to continue as more people start taking GLP-1s and look for products to prevent or combat hair thinning.

KeraFactor, another scalp health company, told CNBC that it is seeing 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, that was actually the first kind of spike in patients coming to KeraFactor, and then after COVID, it kind of stabilized. And then now, we’re seeing that spike again with the GLP-1 craze,” Lauren Bartholomeus, the company’s chief commercial officer, told CNBC.

Bartholomeus said KeraFactor has changed the way it treats patients to now come from a more preventive perspective to combat potential hair loss while taking medications.

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

She has tried many hair products over the past three years of taking weight loss medications, hoping her hair will return to its previous density.

“I paid more attention to it for about a year, and I noticed it came back,” Cooper said. “A lot of people get nervous when their hair falls out, because it’s like, ‘Oh, I’m going to be bald forever.’ But the hair comes back, and that’s what made me feel at peace with it. But it was scary.”