Ulta Beauty Inc. (NASDAQ:ULTA) is benefiting from the booming popularity of GLP-1 weight loss drugs, as users turn to hair and skincare products to address side effects like hair thinning and changes in skin elasticity.

GLP-1 Drugs Drive Beauty Product Demand

GLP-1 medications such as Ozempic and Wegovy have surged in use across the U.S., with roughly 10% of Americans reportedly on some form of weight-loss drug in 2025.

On Monday, Ulta CEO Kecia Steelman told Yahoo Finance's Opening Bid that the trend is driving demand for beauty products.

"Hair loss with GLP-1s is real and products that can help with that," Steelman said.

She added, "And then also skin elasticity, when you're losing weight really rapidly. The skin elasticity is something that you’ve got to get moisture into."

She noted a crossover with aging-skincare consumers, saying both groups are seeking products that maintain "the longevity of the look."

GLP-1 Drugs Drive Competition Among Eli Lilly, Novo Nordisk And Roche

Last month, Eli Lilly and Co. (NYSE:LLY) reported promising Phase 3 results for retatrutide, a weekly triple hormone receptor agonist, which lowered A1C by 1.7%-2.0% and helped participants lose 36.6 lbs on average, while improving cardiovascular risk factors.

Roche Group AG's (OTC:RHHBY) unit Genentech faced competition after Phase 2 results for petrelintide showed up to 10.7% weight loss below expectations, despite meeting the primary endpoint.

Roche partnered with Zealand Pharma, which received $1.65 billion upfront plus milestone payments.

In 2025, Novo Nordisk A/S (NYSE:NVO) sharply increased U.S. advertising for Wegovy and Ozempic to $487 million, more than double Eli Lilly's spend on Zepbound and Mounjaro, intensifying the GLP-1 market race.

Price Action: Ulta Beauty closed at $542.65, up 0.98% on Monday, and was down 0.23% in pre-market trading on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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