Apotex Inc., Canada’s largest drug manufacturer, just got the green light from Health Canada to market a generic version of Ozempic. This is a big deal. Originally a diabetes treatment, Ozempic and similar drugs are changing how Canadians think about food and health.
GLP-1 drugs, like Ozempic and Wegovy, are moving into the mainstream. It’s estimated that by the end of this year, over two million Canadians will be using these medications mainly for weight loss. Recent data shows that nearly 8% of adults, about three million people, are already relying on these drugs, up from about 4-5% last year. That’s a huge jump in just over a year.
This trend isn’t just a health issue; it’s reshaping demand in the food market. Data reveals that people on GLP-1 treatments cut their calorie intake by more than 20% and reduce their grocery spending by around 5% soon after starting the medication. While those numbers seem small for one person, they add up fast when millions of people are involved.
Estimates indicate that GLP-1 adoption may remove between $2.3 billion and $3.4 billion from Canada’s agri-food economy yearly. For an industry that runs on tight margins, that’s a significant loss.
The financial benefits are shifting as well. In 2025, Novo Nordisk, the maker of Ozempic, pulled in about $2.9 billion from the drug. Consumers are reallocating money that used to go towards food towards pharmaceuticals instead.
These changes hit product categories hard, especially snack foods, sweets, and soft drinks—foods that people consume on impulse. Alcohol sales are also feeling the pinch in both grocery stores and restaurants.
Even staple items like fresh meat are seeing reduced demand, but it’s not that people want to avoid protein; they’re just consuming less overall.
Interestingly, consumers on GLP-1 drugs aren’t necessarily opting for cheaper food. They’re often buying less but choosing higher-quality items. This shift toward nutrient-dense, intentional purchases signals a move from a quantity-driven food economy to one focused on quality.
For the restaurant scene, these changes are important. Diners are ordering fewer appetizers and desserts, leading to lower overall bill amounts. With Canada’s foodservice sector hitting over $100 billion in sales yearly, even small shifts could lead to hundreds of millions in lost revenue.
This might just be the tip of the iceberg. With generic semaglutide entering the market, prices are expected to drop, possibly driving even more people to use these drugs. Analysts believe that if usage reaches 10% of the adult population, the economic impact could double, permanently altering entire product categories.
Despite the enormity of these changes, policy discussions have largely overlooked this shift. Current debates often focus on food prices, carbon pricing, and supply chain issues, but a fundamental change in demand is happening that could redefine the agri-food system.
This isn’t just a temporary disruption; it’s a long-term adjustment. The agri-food sector has adapted before, but this time the driving force is consumer biology, not just preferences or price changes.
So, if Canada wants a resilient food system, it’s crucial to understand not just what food costs but how much people will actually want to eat in the future. The answer is becoming clearer: less.
For more insights on the economic impact of health trends, check out the Canada Food Price Report.
