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Food companies are repositioning their products to respond to the expanding use of GLP-1 drugs for weight loss, and executives are beginning to acknowledge the “lasting impact” the drugs will have on sales.
About 1 in 8 adults He said he was taking GLP-1. Like Ozempic and Wegovy for weight loss or other chronic conditions, according to a KFF poll. More than half of American adults, or 137 million people If you are eligible to take this medicationAnd as the drug develops, usage is expected to increase. cheaper and more widely available.
For food companies, these drugs pose a potentially existential threat. Consumers who take weight loss medications not only eat less; Avoid processed foods and snacks. Households with at least one person taking weight-loss medications had a 6% decrease in grocery spending. Cornell Study Finds.
“Anti-obesity drugs will have a lasting impact on the food market,” General Mills CEO Jeff Harmening told analysts at the New York Consumer Analyst Group conference in Orlando last week.
General Mills and other food giants are reformulating or launching new products with these consumers in mind, offering smaller portions or adding ingredients like protein or fiber. GLP-1 suppresses appetite, making it even more important for consumers taking these medications to maximize their nutrients and vitamins to maintain muscle mass and stay healthy.
Weight-loss drugs are “driving some consumers toward smaller portions and more nutrient-dense protein and fiber foods,” Harmening said. The cereal and snack maker is rolling out smaller pack sizes and new products, including Honey Nut Cheerios Protein, Ghost Performance nutrition bars and a new granola line.
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Households using GLP-1 drugs for weight loss are expected to account for more than a third of food and beverage sales over the next five years, and consumer preferences and purchasing patterns are likely to change. According to Circana report: Released in November.
Other food companies have also moved aggressively to position their businesses for the GLP-1 world.
Launched by Nestlé In 2024, the first major U.S. brand in nearly 30 years; It’s called Vital Pursuit.Intended for consumers taking GLP-1 medications and other individuals focused on weight management. A year later Danone released the following products: Oikos Yogurt Drink Targeted at GLP-1 Drug Users This helps people gain and maintain muscle mass.
But there are questions among food companies about whether GLP-1 drugs will go away like other diet trends like Atkins and South Beach, according to Erin Lash, senior director of consumer equity research at Morningstar. At the same time, little is known about how long GLP-1 users will take the drug. research It has been found that 50 to 75 percent of people who start taking this medication stop using it within a year.
“Most food companies don’t seem overly concerned about GLP-1 drugs at this point,” Lash said. “Consumers are still indulging.”
Still, Lash said it would be wise to prepare for a world where GLP-1 is permanent. However, companies must be careful not to alienate a key group of consumers who do not take their medications.
Frozen and snack food company Conagra Brands “GLP-1 friendly” Label some of them. Healthy Choice Frozen Food, Even if consumers don’t continue to take their medications, they see them as an opportunity.
Bob Nolan, Conagra’s senior vice president of demand science, said that if a company can attract consumers while they are taking a GLP-1 drug, they are likely to stick with it even after they stop taking the drug.
Conagra has portion-controlled frozen meals, vegetable products, and protein-packed meat sticks such as Fatty and Slim Jim that satisfy GLP-1 and weight management customers. It also launched products like the Banquet Mega XL Buffalo-Style Chicken Mac ‘N Cheese with Birds Eye vegetable sides and added protein.
“We want to have a product for people who use GLP-1,” Nolan said. “And… what’s your new goal after you reach your goal weight? Your new goal is to maintain it.”
Even though experts are predicting a massive expansion of the drug, especially once it becomes more widely available in pill form, some executives still aren’t buying the hype.
Dirk Van de Put, CEO of Oreo maker Mondelēz International, said GLP-1 was likely to have a “minimal” impact on the company’s volumes. There is no indication that oral medications will “change in any significant way” once they hit the market.
Consumers are already favoring protein and fiber as they prioritize their health. For example, demand for protein is benefiting some of Mondelēz’s products, such as Clif and Builders protein bars.
“There will be changes and impacts on our business, but not because of GLP-1,” Van de Put said.
