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The future of food in a weight loss drug era

02 October 2024

See how the increase in weight loss drug popularity change consumer habits and potentially reshape demand for many food products.

In recent years, weight loss drugs like Ozempic and Wegovy have grown in popularity, helping people achieve healthier lifestyles. Ozempic is a medication primarily for type 2 diabetes, while Wegovy is for weight loss.

However, Ozempic has been gaining attention more recently for weight loss in non-diabetics. By 2030, it’s estimated that around 9% of the U.S. population*, roughly 35 million people, could be using weight loss medications. These drugs reduce appetite and change how the body processes food, leading to weight loss. This trend has big implications for the food industry, as changes in consumer habits could reshape demand for many food products.

Changing consumer demand and food choices

The most immediate impact of weight loss drugs is the potential shift in consumer demand. As people use these medications, their reduced appetite may lead to lower consumption of certain foods, especially high-calorie and indulgent products like snacks, desserts, and fast food. Sales of "guilty pleasure" items may decline, particularly among consumers focused on managing their weight.

On the other hand, nutrient-dense foods, those that provide more nutrients per calorie, may see increased interest. Companies like Nestlé are already innovating to meet this demand by creating healthier options that appeal to consumers looking to enjoy their food while managing their weight. However, smaller suppliers might struggle to adapt if they lack the resources to create healthier alternatives.

Reformulation, portion sizes, and functional foods

Many food companies are already reformulating their products to fit these new demands. The focus is on reducing calories and sugar while maintaining taste. Smaller portion sizes could also become more popular, as those using weight loss drugs prefer snack-sized portions that better match their reduced appetite.

The rise of functional foods, those designed to provide health benefits, may also play a key role. Consumers may look for foods high in protein, fibre, or other nutrients that support overall health. Brands that invest in these kinds of products will likely gain an edge as more people shift towards healthier eating.

Companies are responding

Many food manufacturers and retailers are acting in response to shift towards healthier foods. Suppliers have been acquiring healthier brands and launching new products that cater to health-focused consumers. For example, Mondelez has purchased several healthier snack brands like Clif Bar, Hu, and Perfect Snacks. Similarly, Hershey has begun offering healthier options, recognising that consumer preferences are evolving towards more nutritious choices.

Nestlé is introducing its new "Vital Pursuit" product line, designed for people using GLP-1 weight loss drugs. These products are high in protein, a good source of fibre, and portion-sized to match the appetites of weight loss medication users.

Retailers are also adjusting. Albertsons, for instance, has launched the "Sincerely Health" platform, offering nutrition insights that help customers make better food choices to support their weight management goals. By offering personalised health and nutrition advice, they are leading the way in connecting food retail with healthcare.

Shifting marketing messages

As consumer habits change, marketing strategies will need to follow suit. The days of promoting indulgence may be numbered. Instead, brands will likely emphasise balance, moderation, and health benefits. Food marketing will shift to promote products as part of a balanced, nutritious lifestyle rather than just focusing on indulgence.

Retailers and suppliers could also benefit from partnerships with healthcare providers. By offering products that support weight management and hosting related services, like classes or events on healthy living, retailers can strengthen their role in helping consumers on their health journeys.

What the future holds

Looking ahead, we’re likely to see more personalised solutions that address specific health needs. As more consumers use weight loss drugs, retailers will need to offer services and products tailored to individual health goals, particularly around weight management.

There may also be a growing focus on gut health, as weight loss medications can cause digestive side effects. This could drive demand for foods that promote gut health and digestion. Supplements and functional foods that support appetite control or digestive health may become more popular, as people look to maintain the benefits of their weight loss drugs over the long term.

As consumer habits change due to these drugs, the food industry will need to adapt quickly. While some product categories may face declining demand, there are opportunities for growth in nutrient-dense, functional, and health-focused foods.

Actions to take now

While awaiting the full impact of weight loss drugs on the food industry, retailers and suppliers can take these practical steps:

1. Monitor consumer behaviour closely

Track purchasing patterns and customer preferences to detect early shifts in demand, particularly in categories like indulgent snacks, desserts, and functional foods. Using customer data and insights, retailers can stay agile, quickly adapting product ranges and promotions

2. Experiment with product innovation on a small scale

Test reformulated or health-focused products in limited markets or stores to gauge consumer interest. Smaller trials of reduced-calorie, nutrient-dense items or gut-health-friendly foods can help retailers and suppliers identify successful innovations before committing to large-scale changes

3. Strengthen partnerships with healthcare providers

Start building relationships with healthcare professionals and wellness programs to position food products as part of a broader health and weight management solution. Offering nutrition classes, consultations, or online tools to support customer health goals can establish retailers as proactive leaders in the health-food space.

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Stewart Samuel
Director of Retail Futures

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