The way millions of consumers eat, exercise and monitor their health is undergoing major metamorphosis —and it’s all due to GLP-1. The appetite-reducing drugs are both culturally divisive and seriously in demand, poised to transform a wide array of sectors, from garment sizing in fashion to the items in your grocery cart. Valerie Jacobs, Chief Marketing Officer and trend forecaster, looks ahead at the impacts of GLP-1 consumer behavior.
Not to be dramatic, but in the case of GLP-1s, you’d really need to be living under a rock to not know that the weight-loss drugs are taking the world by storm. (When Oprah hosts an impromptu television special, you know it’s infiltrated pop culture.) GLP-1 drugs like Wegovy and Ozempic have seen unprecedented growth, with 15 million Americans (and counting) using them to shed pounds and improve their health. These drugs belong to a class of medications called glucagon-like peptide-1 (GLP-1) receptor agonists, which were originally developed to treat type 2 diabetes by stimulating insulin release and suppressing glucagon release.
“15 million Americans (and counting) are using GLP-1s to shed pounds and improve their health.”
But GLP-1 drugs also have a powerful effect on appetite, as they make people feel full faster and longer, and reduce cravings for certain foods and beverages. The results can be dramatic: studies have shown that GLP-1 drugs can help people lose an average of 10% to 15% of their body weight in a year, compared with 2% to 4% for people who get a placebo. Among those taking them, 74% state their goal is to lose at least 15 pounds.
GLP-1 Benefits Beyond Weight Loss
Moreover, GLP-1 drugs are proving to have several benefits beyond weight loss, such as lowering the risk of cardiovascular events, improving blood pressure and cholesterol levels, and protecting the heart and kidneys. A cardiologist and scientist from Yale, Dr. Harlan Krumholz, calls the implications “profound” and life-altering for consumers: “We have not encountered a drug with such a breadth of heart benefits.” Fascinatingly, because GLP-1s impact cognitive receptors that control reward pathways and addictive behaviors, we’ll likely see a diminishment of “cravings” at large. Consumers will experience less appetite for alcohol, extreme sports, even gambling.
“What’s especially compelling is the profound implications GLP-1s may hold for so many industries.”
Sounds great, right? GLP-1 drugs can be truly life-changing for people struggling to improve their health, but they are not without drawbacks, including high costs, limited insurance coverage, potential side effects, and general uncertainty about their long-term safety and efficacy.
How GLP-1 Consumer Behavior Will Impact Various CPG Sectors
As a marketer in consumer strategy and a longtime trend forecaster, what’s especially compelling is the profound implications GLP-1s may hold for so many industries and aspects of society. After all, these drugs are changing the way people relate to food, exercise, health and well-being at large, pushing brand and business leaders to revise their strategies to account for these GLP-1 consumer behavior shifts—be it in food, beverage, baby and family, beauty or OTC. Let’s explore some of the trends and implications to anticipate for CPG:
Food Category
The food industry is facing a challenge as GLP-1 drugs reduce the demand and consumption of many food products, especially those that are high in sugar, fat and calories. According to a survey by JPMorgan, GLP-1 users purchased around 8% less food over the prior year, compared with consumers who were not on these drugs. Some food companies are worried about losing sales and market share, and are looking for ways to adapt to the changing consumer preferences and needs. Take Nestlé, the world’s biggest food company, which is investing more in nutritious products that provide benefits to people on GLP-1 treatments, like its Optifast high-protein shakes and new Vital Pursuit meal range.
According to Mike Proctor, Director of Client + Category Partnership and food and snacking CPG expert, “The brands that have best responded to the GLP-1 pivot are not only offering healthier alternatives with vitamins, supplements, and other functional ingredients but are also communicating their relevance via customized websites and social, explaining to consumers why they deliver value in this new world.”
“GLP-1 users purchased around 8% less food over the prior year.”
Other food companies are developing products that cater to the specific nutritional needs and challenges of GLP-1 users, such as preventing muscle loss, supporting gut health and providing low-glycemic options. Some food companies are also trying to appeal to the “GLP-1 curious” consumers, who are interested in trying the drugs or natural alternatives, by offering products that claim to suppress appetite, boost metabolism or mimic the effects of GLP-1.
Beverage Category
The beverage industry is also facing a disruption as GLP-1 drugs affect the taste and desire for many drinks, especially those that contain alcohol, sugar or caffeine. Many GLP-1 users report that they lose interest in drinking alcohol, soda, coffee and other beverages that they used to enjoy, as they find them too sweet, bitter, or just generally unpleasant. This could have a significant impact on the sales and profits of the alcohol, soft drink, and coffee industries, which rely on consumer demand and loyalty and are already seeing dips in sales. In 2023, beer drinking fell to its lowest levels in a generation.
“We’ll likely see a diminishment of ‘cravings’ at large. Consumers will experience less appetite for alcohol, extreme sports, even gambling.”
The effect isn’t just hurting CPGs, it’s affecting the service industry, too. According to a Morgan Stanely study, GLP-1 users reported 63% of GLP-1 users are spending less on restaurant dining and takeout since starting the drugs—partially due to lower alcohol consumption. Some beverage companies are trying to adapt to the changing consumer behavior by offering alcohol-free, sugar-free, or low-glycemic alternatives that are compatible with GLP-1 treatments and offer additional functional benefits. One example comes from the world’s largest brewer, Anheuser-Busch InBev, which is actively investing in the expansion of its portfolio of non-alcoholic beers and hard seltzers, while Coca-Cola is launching new “clean” products like Coca-Cola Zero Sugar and Topo Chico Hard Seltzer.
Baby + Family Category
The baby and family sector is also experiencing some changes as GLP-1 drugs affect the fertility and parenting of some users. Some GLP-1 users, especially women, have reported that they became pregnant after taking the drugs, despite being infertile or using birth control pills. This phenomenon, dubbed as “Ozempic babies,” is not fully understood, but it may be related to the hormonal, metabolic, or gut microbiome effects of GLP-1 drugs. “With the weight loss from these drugs, many women who are anovulatory start to have regular ovulation and menses,” Dr. Jamie Grifo, Program Director at NYU Langone Fertility Center in New York City and Chief Executive Physician at Inception Fertility, told Healthline. “[This] takes them from a low fertility situation to a more normal fertile state,” he explained.
Some GLP-1 users, especially parents, have also reported that they face challenges in maintaining their family routines and relationships, as they lose interest in cooking, eating, or dining with their children or spouses. This could have implications for the sales and marketing of baby and family products, such as infant formula, baby food, children’s snacks, family meals, and parenting books and magazines. Some baby and family companies are trying to address the needs and concerns of GLP-1 users, by offering products that are convenient, nutritious, and appealing for both parents and children. For example, Danone, the world’s largest yogurt maker, is shifting its focus from babies to older consumers, as it sees a demographic opportunity in positioning its products as complementary to healthy aging and weight management.
Beauty Category
It’s not food, but the connections between the beauty industry and GLP-1 are tightly intertwined and undeniable. The beauty sector is seeing both opportunities and challenges as GLP-1 drugs affect the appearance and self-esteem of some users.
“The connections between the beauty industry and GLP-1 are tightly intertwined and undeniable.”
Some GLP-1 users, especially those who lose a lot of weight quickly, have reported that they experience facial hollowing, skin sagging, hair loss, and bone density loss, which make them look older or less attractive. This could increase the demand for beauty products and procedures that help restore facial volume, tighten skin, prevent hair loss, and strengthen bones. Meanwhile, many consumers will parallel their newfound confidence with deeper engagement in the beauty category. “As confidence grows, consumers may be more willing to invest in luxury beauty products or personalized skincare that keeps them feeling and looking good,” says Caroline Dunn, Director of Client + Category Partnership at LPK and beauty CPG expert. “There’s big opportunity for premiumization here.”
Some beauty companies are developing products and services that cater to the specific aesthetic needs and challenges of GLP-1 users, such as hyaluronic acid fillers, fractional CO2 lasers, collagen supplements, and biotin shampoos. We’re also seeing a spate of new service-driven brands targeting GLP-1 users with products that celebrate their achievements—think customized cosmetics and skincare, reward programs and curated online communities.
“With the GLP-1 movement, there are highs and lows,” Dunn explains. “Consumers will develop newfound confidence but may also become wary of unrealistic beauty standards that overtake the industry. In beauty, creating balance and sustainable, realistic routines for consumers will be the sweet spot. My guidance is to stray away from ‘one-hit wonder’ offerings and complex regimens. Focus on promoting healthy body images, physical diversity and longevity in life.”
Over-the-Counter Supplement Category
Suffice to say, the wellness industry is also witnessing major shifts as GLP-1 drugs affect the health and lifestyle of consumers. Consumers who lose a lot of weight quickly have reported that they experience muscle loss, nutrient deficiencies, dehydration and gastrointestinal disorders—all of which are driving demand for supplements that address these concerns.
Expect to see dramatic spikes in protein supplements, vitamin injections, hydration drinks, probiotics and fiber supplements, which are projected to grow to a market size of $5.7B by 2030. But it’s not just CPGs seeing the benefits of GLP-1 lifestyles. Services like nutritional counseling, medical monitoring, fitness programs and wellness clinics will also see growth. Take Costco’s new weight loss program for members, which could include both Ozempic and Wegovy. It’s not hard to make additional leaps as consumers adopt generally healthier habits, such as exercising more, eating better, sleeping well, and managing stress.
This could increase the demand for wellness products and services that support these habits—from gym memberships to fitness equipment, sleep aids to meditation apps. Take it a step further and consider the correlation between physical confidence and sexual health, driving demand for supplements that enhance sexual wellness and libido.
Guidance for CPG Leaders to Embrace GLP-1 Consumer Behavior
The opportunities for growth in a GLP-1 world are numerous. As you look forward, consider the implications and let them inspire future-fluent strategies:
- Are there short-term strategies to better position your offerings for GLP-1 users, connecting your benefits to their emerging wants and needs? Consider how refreshed messaging and packaging can drive persuasion at shelf.
- Are GLP-1 users included in your current consumer segmentation? How do these new findings alter your audience strategy and marketing tactics?
- Is a semaglutide strategy influencing your product pipeline? Consider ways to tap whitespace and drive growth with a focus on these emerging consumer behaviors.
Want to start a deeper conversation about your business in the GLP-1 landscape? Reach out here.
