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As the use of GLP-1 weight-loss drugs rises, food companies face sales pressure and are beginning to launch smaller portions and high-protein, high-fiber products. General Mills, Nestlé, Danone, and others have already positioned themselves, but the industry remains divided on the drugs' long-term impact.
Food makers warn GLP-1s will have ‘lasting influence’ on sector
Weight loss medications, such as Ozempic or Wegovy, are already impacting sales and prompting companies to roll out smaller portions and more offerings with protein and fiber.
Food companies are repositioning their products to address expanding use of GLP-1 drugs for weight loss, with executives beginning to acknowledge the "lasting influence" the medications will likely have on sales.
About one in eight adults say they are taking GLP-1s such as Ozempic and Wegovy for weight loss or another chronic condition, a KFF poll found. More than half of U.S. adults — or 137 million people — are eligible to take these medications, and usage is expected to only grow as the drug becomes cheaper and more widely available.
For food companies, these medications are potentially an existential threat: Consumers on weight loss drugs not only eat less, but also tend to avoid processed foods and snacks. Grocery spending shrank by 6% in households containing at least one person taking weight loss drugs, a Cornell study found.
“Anti-obesity drugs will have a lasting influence on the food market,” General Mills CEO Jeff Harmening told analysts at the Consumer Analyst Group of New York onference in Orlando last week.
General Mills and other food giants are reformulating or claunching new products with these consumers in mind, offering smaller portion sizes or adding ingredients such as protein or fiber. Since GLP-1s suppress appetite, it's even more important for consumers on these medications to maximize nutrients and vitamins in order to maintain muscle mass and support their health.
The weight-loss drugs are “nudging some consumers toward smaller portions and more nutrient-dense protein and fiber-forward foods,” Harmening said. The cereal and snacks maker is leaning in with smaller pack sizes and new products, including Honey Nut Cheerios Protein, Ghost performance nutrition bars and new lines of granola.
Indulgence reigns supreme
Households with users of GLP-1 medications for weight loss are set to account for more than a third of food and beverage sales during the next five years and are likely to reshape consumer preferences and purchasing patterns, according to a Circana report released in November.
Other food companies have also moved aggressively to position their businesses for a GLP-1 world.
Nestlé launched its first major U.S. brand in nearly three decades in 2024, called Vital Pursuit, for consumers taking GLP-1 medications and other individuals focusing on weight management. A year later, Danone rolled out an Oikos yogurt drink aimed at users of GLP-1 drugs that helps people build and retain muscle mass.
Still, there are questions among food companies about whether GLP-1 medications will fade like other diet trends, such as Atkins or South Beach, according to Erin Lash, a senior director of consumer equity research at Morningstar. At the same time, little is known about how long GLP-1 users will take the drugs. A study found 50% to 75% of people who start taking these medications stop using them within a year.
“Most [food companies] don't seem overly concerned to this point” about GLP-1 drugs, Lash said. “Consumers are still indulging.”
Nonetheless, Lash said it’s prudent to prepare for a world where GLP-1s are a permanent part of the landscape, though companies should take care not to alienate their core group of consumers who won’t take the medications.
Frozen and snack food company Conagra Brands, which has added a “GLP-1 friendly" label to some of its Healthy Choice frozen meals, sees the medications as an opportunity, even if consumers don't continue taking them.
Bob Nolan, Conagra’s senior vice president of demand science at Conagra, said if the company can attract consumers while they're on GLP-1 medications, then they're likely to stick around even if they stop taking the drugs.
Conagra has portion-controlled frozen meals, vegetable offerings and protein-laden meat sticks, like Fatty and Slim Jim, that cater to the GLP-1 and weight management crowd. It has also introduced products such as Birds Eye veggie sides and a Banquet Mega XL Buffalo-Style Chicken Mac ‘N Cheese with extra protein.
“We want to have products that are there for them when they're getting on to GLP-1s,” said Nolan. “And then … once you've achieved your target weight, what's your new goal? Your new goal is to maintain.”
Even as experts forecast a major expansion of the drug, particularly once it's more widely available in pill form, some executives still aren't buying into the hype.
Dirk Van de Put, CEO of Oreo maker Mondelēz International, said GLP-1s are likely to have a “minimal” effect on his company’s volumes. Even with oral medications coming on the market, there is no indication “that’s going to change in a substantial way.”
Consumers have already been gravitating toward protein and fiber as they prioritize their health. The demand for protein, for example, is benefiting some of Mondelēz’s products, such as Clif and Builders protein bars.
“There will be a shift and effect on our business, but it's not because of GLP-1,” Van de Put said.