Embracing the Ozempic Boom: How Food and Beverage Companies Need to Adapt
Ozempic and other GLP-1 weight loss drugs like Wegovy and Mounjaro are being called “era-defining.” According to predictions, these obesity medications will become a $100 billion market, with 9% of the U.S. population on weight-loss drugs by 2030. The impact so far has shown that these drugs go beyond weight loss and provide such other benefits as lower blood sugar and improved cardiovascular health, as well as a decrease in addictive and compulsive behaviors. It’s no wonder, then, that the growing popularity of these drugs is having an impact beyond personal health.
Rise of the Ozempic Economy
As the population taking prescription weight loss drugs grows, we see something called the “Ozempic economy” emerging. The article “The Rising Ozempic Economy & Its Wide-Ranging Impact” shares that we will see various sectors responding to the changes in consumer behavior, preferences and lifestyles caused by this trend. In fact, economic impacts are already being reported, especially from grocery stores and food companies.
[RELATED: Are Grocers Changing Their Attitude Towards Weight Loss Drugs?]
Impact on Grocery Sales
In Q4 2023, we started seeing reports that grocery sales were being affected, with Walmart sharing that it was already seeing a pullback in sales of certain food categories. Earlier this year, a Morgan Stanley study revealed that monthly grocery spending fell by up to 9% in households with GLP-1 users. More recently, major food and beverage companies have experienced a marked decrease in sales of snacks and sweets. According to an MSN report, studies are finding that Ozempic takers are becoming more mindful and less frequent shoppers.
GLP-1 Users Seeking Different Foods
Those now taking the drug are seeking different types of foods from before. Side effects from the medication include nausea and upset stomach, and experts suggest limiting greasy, fatty, spicy foods; large meals; and high-carb fare to reduce gastrointestinal issues. Users are shown to be more likely to purchase whole, nutrient-dense foods, including fresh fruits and vegetables, lean proteins, whole grains, and low-fat dairy, and to avoid snack foods, sugary drinks and alcohol.
It’s important for companies that operate in these verticals to begin thinking ahead, because this population is growing. For example, alcohol brands need to put GLP-1 trends on their radar, since studies show that those taking the medication are reducing their alcohol purchases. The question is, what kinds of alternative beverages should alcohol brands create to meet these changing needs?
Other food and beverage companies operating in affected spaces, like snacks, also need to take a look at their offerings. Many larger companies are already responding.
Food Companies Respond to Ozempic Trends
Recently, Nestle revealed the launch of Vital Pursuit, a new line of portion-controlled, nutrient-rich frozen meals designed for people taking GLP-1 drugs like Ozempic for weight loss. Nestlé’s move is part of a broader trend, with companies like GNC, Costco and WeightWatchers also adapting to cater to GLP-1 users. These launches signal the race to remain relevant in this evolving market.
Consumer Insights for Product Development
It’s important to not be left behind as the Ozempic economy takes root. In light of the aforementioned prediction that 9% of the population in the United States alone will be on a GLP-1 drug by 2030, brands need to prepare, as that’s no small market share. Consumer-based market research among this group will be key to changing existing products, or developing new ones, that meet these changing needs.
Identifying, developing and launching new food products in this emerging white space to meet these changing needs will allow for relevancy and success, which companies can do by engaging in custom white-space opportunity planning. Food and beverage companies can thoroughly explore the product development cycle using various methods to consistently determine the best direction at each stage. By doing the right consumer research to support product innovation or new product launch, companies can stay ahead of the curve as the grocery shopping cart changes in the coming years.
