The latest hunger-suppressing weight-loss drugs are transforming the way obesity is treated in the U.S. The category has achieved blockbuster status over the course of a year, with more growth to come—Morgan Stanley Research analysts estimate that 24 million people, or 7% of the U.S. population, will be taking these drugs by 2035. This may be welcome news for the biopharma industry, but the drugs’ prevalence could have long-term implications for food-related sectors as consumers eat less and make more nutritious choices.

“The food, beverage and restaurant industries could see softer demand, particularly for unhealthier foods and high-fat, sweet and salty options,” says Morgan Stanley’s tobacco and packaged food analyst Pamela Kaufman.

That’s because the new class of obesity medicines works by decreasing appetite and in turn can reduce calorie intake by 20% to 30% daily, according to findings from a Morgan Stanley research survey of 300 patients taking the drugs. Significantly, survey participants cut back the most on foods high in sugar and fat, reducing their consumption of confections, sugary drinks and baked goods by as much as two-thirds. As more people in the U.S. use obesity drugs, overall consumption of carbonated soft drinks, baked goods and salty snacks may fall up to 3% by 2035.

That said, the expected 1% to 2% calorie reduction among U.S. consumers should be manageable across most industries. “Companies will likely adapt to changes in consumer behavior through innovation and by reshaping their product portfolios. Brands already offering healthier options will be in the best position to respond to the change,” Kaufman says.

Here’s how the rise of obesity drugs could have an impact across food-related sectors:

Repackaging Packaged Food: Confectionery, baked goods and salty snacks appear to be most at risk from increased usage of obesity drugs, with analysts forecasting a drop in consumption of as much as 3% through 2035.

“Two-thirds of patients reported eating three or more snacks per day before starting the drugs, while 74% reported eating two snacks or less after starting the drugs,” says Kaufman.

On the other hand, demand should continue to grow for “weight-loss management foods” such as protein shakes and bars as a substitute for snacks and meals perceived as unhealthy (see Figure 1).