Ozempic, a prescription medication developed by Novo Nordisk, has recently taken the pharmaceutical and wellness worlds by storm.

Originally designed to treat Type 2 diabetes, its active ingredient, semaglutide, has also become popular as a weight loss aid. This surge in popularity has led to a ripple effect across various industries, one of the most unexpected being the beer industry.

Ozempic works by mimicking a hormone called GLP-1 (glucagon-like peptide-1), which plays a role in regulating blood sugar levels, insulin production, and appetite.

One of the drug’s most notable side effects is a reduction in appetite. For those taking Ozempic, there’s less desire to consume large portions of food or drink, including alcohol.

Reports have shown that Ozempic users tend to experience a diminished interest in alcohol, including beer, wine, and spirits. This change isn’t limited to those using the drug for weight loss alone; even patients taking it for diabetes management have reported drinking less.

The reduction in cravings is linked to how the drug interacts with brain receptors associated with pleasure and reward. For the beer industry, where social drinking and habitual consumption play a crucial role in sales, this shift is impactful.

The degree to which Ozempic is actually affecting beer sales is difficult to quantify, but to deny that its users are drinking less is also naïve.

The beer industry is already grappling with changing consumer preferences and the rise of health-conscious lifestyles. Beer sales have been on a slow decline in recent years as more consumers shift to lower-calorie or non-alcoholic beverages.

Although overall alcohol sales have not plummeted, the beer segment is more vulnerable to this shift due to beer’s relatively higher calorie content compared to spirits or hard seltzers.

But while beer appears to be taking the hardest hit, the broader alcohol industry isn’t immune to Ozempic’s impact either. Wine and spirits could also see reduced sales if more people adopt the drug for weight loss or diabetes management.

“For the folks that are using these drugs, they probably will consume less alcohol, just like they consume less food,” Linda Montag, senior vice president for Moody’s Ratings, told Quartz. “And that’s something that companies will have to adjust and adapt to.”

And while the full extent of Ozempic’s impact on beer sales is still emerging, it’s clear that the craft beer industry must innovate to remain competitive in a landscape where consumer habits are rapidly evolving.