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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, changing consumer preferences and purchasing patterns, according to a new Circana report.
According to the report, approximately 23% of U.S. households now have a member who uses GLP-1 drugs such as Ozempic or Wegovy. By 2030, these households are expected to account for 35% of all food and beverage units sold.
The findings have important implications for food and beverage companies beginning to explore how GLP-1 influences consumer preferences and purchasing behavior. Weight loss drugs suppress appetite and lead consumers to seek healthier, more convenient products with high protein, fiber, energy or hydration benefits, Circana said.
Consumers with GLP-1 are more likely to avoid items high in carbohydrates and sugar, making them less likely to choose a traditional soda or a bag of chips.
“The rise of GLP-1 drugs is a tremendous moment for the consumer products industry,” Sally Lyons Wyatt, global vice president and chief counsel at Circana, said in a statement. “Our research shows that shoppers’ priorities are changing quickly and dramatically.”
Changing preferences have led some food giants to position their products to capture a fast-growing group of consumers. Companies like Conagra, Danone, and even ramen maker Nissin have begun creating products to help consumers achieve their weight loss goals.
Importantly, GLP-1 users buy less groceries but still spend more compared to non-users, according to Circana. The ADM report found that 80% of consumers taking these medications are willing to pay more for food and beverage products that offer additional health benefits, and 67% said GLP-1-friendly characteristics were an important factor in their purchasing decisions.
Companies are also beginning to consider how to support consumers starting and stopping these medications. Although many consumers are able to maintain healthy eating habits after stopping medication, 76% may regain some of the weight they lost and end up starting GLP-1 again, according to ADM.
About 65% of consumers would consider restarting GLP-1 to limit food cravings or “noise,” ADM said. ADM said that to reach consumers who have discontinued GLP-1, companies should focus on foods with ingredients that increase the perception of fullness.
According to Circana, half of former GLP-1 users are likely to use the drug again in the future, which could have major implications as consumers move in and out of active drug use while trying to maintain the health-conscious behaviors they have adopted.
“The key to future success will be adapting our product selection and marketing to the new health-focused mindset of this growing group of shoppers,” said Lyons Wyatt.
