GLP-1 drugs like Wegovy, Ozempic and Mounjaro are reshaping the food industry. As more consumers turn to these medications for weight management, some food brands are feeling the impact, blaming sales declines on shifting eating habits, while others are reporting new opportunities.
But before diving into the “winners” and “losers” of this trend, let’s cover the basics of how GLP-1 drugs work and why they’re changing the way people eat.
What’s a GLP-1 drug? Glugacon-like peptide-1 (GLP-1) drugs were originally developed to help manage diabetes, but they’ve since gained popularity for their ability to promote weight loss. They mimic a natural hormone in the body that regulates appetite and blood sugar levels.
How do they affect eating habits? These drugs work by signaling to the brain that you’re full, leading to a significant reduction in hunger. They also slow digestion, keeping food in the stomach longer and prolonging satiety. As a result, users tend to consume fewer calories.
How are they taken? Most GLP-1 drugs are administered via weekly or monthly injections, but the arrival of pill versions is expected to expand access and adoption in the near future.
Currently, estimates suggest that up to 12% of the U.S. population is using GLP-1 medications, and early reports indicate these consumers are spending less on groceries and eating out less frequently. If the use of these drugs continues to grow, the ripple effects across the food industry could be massive.
We’re already seeing evidence of this shift in food company earnings reports, with some brands citing GLP-1 drugs as a sales benefit, and other companies reporting a negative impact. Here’s how we see things shaking out for the next couple of years.
Winner: High-Protein Foods
Protein is the most satiating macronutrient in our diets. It keeps us fuller longer with smaller portions. This makes high-protein foods and beverages perfect for GLP-1 users who need nutrient-dense foods to maximize their reduced calorie intake. We expect these categories to benefit from GLP-1 use:
- Protein bars and snacks
- Greek yogurt
- Lean meats
At Osage Food Products, we’ve seen the increased interest in protein firsthand. Because we supply both dairy and plant protein ingredients, we’re uniquely positioned to help guide your high-protein formulations, whether you want to use a whey protein in a snack bar or a plant protein blend in a bakery food.
Winner: Functional Beverages and RTM Nutritional Drinks
As GLP-1 users experience reduced appetites, they need to maximize nutritional intake with smaller food volumes. Functional beverages, such as protein shakes and meal replacement drinks, offer a convenient way to easily consume essential nutrients. Plus, these beverages can be formulated to address specific functional needs of GLP-1 users, such as increased electrolytes or ingredients that support digestive health.
The market for functional beverages and ready-to-mix nutritional drinks is booming, and our Osage Flavors team has been busy on two fronts. First, masking any off flavors from nutritional ingredients, and then developing exceptional flavor profiles for these products.
Loser: Indulgent Sweets
Many GLP-1 users report that they no longer crave sweet, indulgent treats like muffins, ice creams and candy bars. You can pretty much lump all impulse buys into this category as GLP-1 users don’t have the cravings they used to, especially for “empty calories.” It’s also been widely reported that GLP-1 users don’t crave sweet foods as much as they used to, and instead gravitate toward savory and umami-rich profiles.
Loser: The Status Quo
The GLP-1 era has the potential to affect the appetites, metabolism and eating behaviors of a large segment of the U.S. population, impacting every food brand, ingredient supplier and grocery store in America. Those taking a wait-and-see approach may find themselves behind the eight ball as usage increases.
Osage Food Products’ team of formulation experts can help optimize your formulas for the GLP-1 era. Do you make an indulgent muffin? We can add protein to amplify the nutritional value. Do you have an idea for a functional beverage, and want to make sure the flavor stands out? We can help. Contact us to learn how we can collaborate on new product development for the GLP-1 era.
