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Diving overview:
- A study by Cornell University and Numerator found that households with one or more GLP-1 users reduced their grocery spending by about 6% within six months of taking the drug. The impact was more pronounced among high-income households, where spending fell by almost 9%.
- Data shows a significant decline in purchases of high-calorie processed items, including an 11% decline in savory snacks.
- Nearly 15 million American adults are taking GLP-1 drugs., The food they consume is changing. This has forced consumer goods companies to change who they sell and how they market their products.
Dive Insights:
As more consumers take GLP-1 drugs such as Ozempic and Wegovy, changes in appetite are putting pressure on sales of some food and beverage items.
A study by Cornell and Numerator found that a 6% reduction in grocery spending after GLP-1 adoption resulted in a $416 reduction in annual purchases per household. For high-income households earning more than $125,000, annual grocery spending fell by $690.
Not surprisingly, snacks are taking the biggest hit. Spending on products such as chips, baked goods, sides and cookies saw the largest decline, averaging between 6.7% and 11.1%.
Hershey CEO Michele Buck said last month that the maker of Kisses and Reese’s is seeing a “mild” impact from GLP-1.
Researchers observed a “slight increase in spending” on items such as fresh produce and yogurt among weight loss users, but found that people cut back on purchasing unhealthy items more than they added healthy items. The basket composition has become healthier.
“Our findings highlight the potential for GLP-1 drugs to significantly reshape consumer food demand, a trend that has increasingly important implications for the food industry as adoption continues to grow,” the researchers said.
As more data becomes available about how weight loss drugs affect food consumption, it’s no surprise that CPG companies are working to profit or minimize the impact.
Nestlé, which makes Hot Pocket and DiGiorno Pizza, last month launched a pre-meal drink under the Boost brand to help consumers suppress hunger and feel full. In early 2024, Nestlé launched its first major U.S. brand in nearly 30 years, Vital Pursuit, for consumers taking GLP-1 medications and other individuals focused on weight management.
Conagra Brands, maker of Slim Jim, will this month begin labeling more than two dozen of the company’s Healthy Choice products as “GLP-1 friendly.” That packaging.
Analysts at Morgan Stanley predict that the global market for obesity treatments will reach $105 billion by 2030. While questions remain about the use of GLP-1 drugs, including the long-term effects on an individual’s health and how long they should be taken. nestle and conagra It shows that food companies are taking the potential impact seriously.
