Food companies are changing how they create and market products due to the rising popularity of GLP-1 drugs. These medications, like Ozempic and Wegovy, are widely used for weight loss and other health issues. In fact, a recent poll found that about 1 in 8 adults in the U.S. are using these drugs, and the number is expected to grow. This has major implications for food and beverage sales as people on GLP-1 drugs tend to eat less, particularly avoiding processed snacks.
According to a Cornell study, households with GLP-1 users saw grocery spending drop by 6%. Companies are taking note of this shift. General Mills’ CEO, Jeff Harmening, stated that these drugs will have a long-lasting impact on the food market. To adapt, they’re reducing portion sizes and focusing on products rich in protein and fiber. This ensures that customers get enough nutrients while managing their appetite.
Recent trends show that households with users of these medications could account for over a third of food sales in the next five years, as per a report by Circana. Companies like Nestlé and Danone are already introducing new products tailored to these consumers. For instance, Nestlé launched “Vital Pursuit,” aimed at those focused on weight management, while Danone is promoting a yogurt drink designed to help maintain muscle mass.
However, experts like Erin Lash from Morningstar caution that the market should be prepared for potential fluctuations. Historical diet trends, like Atkins and South Beach, have shown how quickly consumer interests can change. Studies indicate that a significant portion of GLP-1 users—between 50% and 75%—stop taking the drugs within a year. While food companies aren’t overly worried yet, they recognize the need to evolve without alienating traditional consumers.
Bob Nolan of Conagra Brands highlighted their strategy of providing products that cater to both GLP-1 users and the general population. They offer portion-controlled meals and snacks rich in protein and nutrients, anticipating that once individuals reach their weight goals, they will be looking to maintain a healthy lifestyle.
Not everyone agrees on the long-term impact of GLP-1s. Dirk Van de Put, the CEO of Mondelēz International, believes the effect on his company’s sales will be minimal. He points out that consumer preferences are already shifting towards protein-rich foods, which some of his products, like Clif Bars, have benefited from.
In summary, the impact of GLP-1 medications on the food industry is undeniable. While companies are adjusting their offerings to meet the demands of a more health-conscious consumer base, the long-term trajectory of this trend remains uncertain. As the market continues to evolve, the focus will likely remain on providing nutritious options that cater to both users of GLP-1 drugs and traditional consumers.
For further insights, you can see how large-scale studies, like those by the Journal of the American Medical Association, are exploring the long-term effects and usage patterns of these medications.
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