Weight reduction drugs have been in the highlight. But they’re only one aspect of a growing deal with health — on the a part of each consumers and governments. The Covid-19 pandemic was an enormous factor behind the rising deal with weight and its implications for health, Morgan Stanley noted. “Thus health (or wellness) has develop into more of a driver of weight reduction than the desire to conform to a certain appearance; we note that at the same time as the rapid rise in weight reduction drug adoption, there has also been a powerful movement (supported by social media) to destigmatise obesity and encourage body confidence,” it wrote. Wellness goes beyond weight reduction — it also encompasses fitness, nutrition, appearance, sleep and mindfulness, the bank wrote, citing a McKinsey survey, which showed showed that millennials are focusing more on those aspects. The bank noted that the increase in health-care spending — each in absolute terms and as a percentage of gross domestic product — has increased the deal with implementing policies that address those issues. “Even before GLP-1s hit the headlines, developed markets policy was shifting to a more interventionist approach to consumer health,” Morgan Stanley wrote in a Nov. 1 report, referring to glucagon-like peptide-1 drugs originally developed for diabetes but additionally popularly used for weight reduction. “The fee of treating obesity-related diseases, and the lack of employee productivity, makes continued intervention likely, in our view,” the bank added. Such drugs are also affecting dietary habits: Walmart said last month it’s seeing a “slight change” in the way people shop for food , which could also be due in part to customers buying less while using appetite-suppressing medications like diabetes drugs Mounjaro and Wegovy. “While the perception could also be that the US has been leading the way in the adoption of weight reduction drugs, Europe has develop into relatively more interventionist from a policy perspective, in the type of increased taxes/restrictions on products which can be deemed unhealthy, and strategies designed to push the broader population towards higher health,” Morgan Stanley said. CNBC Pro takes a take a look at the stocks Morgan Stanley says can be affected by those trends — each positively and negatively. Beneficiaries Morgan Stanley said “functional” foods, waters, skincare and cosmetics, and consumer health ought to be well positioned. The wellness trend ought to be positive for corporations that deal with nutrient-dense foods, equivalent to protein powders and other protein-enhanced foods like premium yogurts, the bank said. French food producer Danone is well positioned for the “global shift to wellness,” the bank said, adding that each one three divisions in the company may gain advantage: essential dairy and plant-based products; water products; and specialized nutrition. Morgan Stanley upgraded its rating for Danone to “obese.” It also reiterated its obese rating on Glanbia — a significant manufacturer of protein powders in the United States — in addition to Nestle , which it said ought to be “broadly neutral” to the GLP-1 debate. But the bank said Nestle has the potential to capture upside in the wellness trend through its nutrition division, which produces protein powders and supplements. The bank said the “personal care” category should proceed to profit, thanks to the “increased association of looking good with feeling good,” said the bank. “We predict the “medicalisation” of skincare will proceed, with increased uptake of lively/dermatological products, including SPF, as skin health importance grows,” it added. It listed L’Oreal , Beiersdorf and Intercos as key beneficiaries. “We note also that customers spending less on grocery can have more disposable income, mitigating near-term concerns that some investors have around spending on the more discretionary beauty category,” said Morgan Stanley. In danger Alcoholic beverages and soft drinks appear to be amongst categories most affected by the GLP-1 trend and the deal with wellness, Morgan Stanley said. That is because medical studies have shown that GLP-1 drugs might be effective in reducing alcohol consumption and relapse-drinking behaviors, the bank said. Alcoholic beverage corporations in its list of stocks with an underweight rating include Diageo and Remy Cointreau . Beers ought to be the least affected, Morgan Stanley said. “GLP-1 uptake currently skews heavily towards women, which suggests that beer consumption, which skews male, ought to be less impacted, at the least in the short to medium term.” Brewer Anheuser-Busch Inbev is the best positioned, it said. As for soft drinks, there’s been a “notable shift” toward low- or no-calorie drinks, which should “soften any potential impact,” the bank said. British soft drinks producer Britvic ought to be higher positioned than Fever-Tree, which produces mixers and might be affected by weakness in the spirits category. — CNBC’s Michael Bloom contributed to this report.