GLP-1s might not be the existential threat to the food and beverage industry that some experts predicted as consumers on the weight-loss drugs largely returned to CPG spending levels after a year on the drug, according to separate reports.
In a recent report, market research firm Circana outlined how consumers who were on GLP-1 drugs like WeGovy, Ozempic and others changed their shopping behavior throughout the year on the drug. Separate research from International Food Information Council (IFIC) shows that consumers are skeptical on taking the drug altogether.
“Consumption during the first three months of GLP-1 weight-loss medication usage is very different than the other months,” Sally Lyons Wyatt, EVP and chief advisor of consumer goods and foodservice insights at Circana, shared in a webinar on the report.
CPG food and beverage spending declined in the first three months when someone was on GLP-1 drugs, with the household spending index dropping 2 percentage points in the first and second month and 3 percentage points in the third month, according to Circana Complete Consumer data.
However, shoppers on GLP-1 drugs increased their spending on CPG foods and beverages by 1 percentage point in the next 10–12-month period. Additionally, consumers' spending on CPG foods and beverage only dropped 1 percentage point after a year on the drug, Circana reported.
GLP-1 shoppers ‘continue to over-index non-users’ across channels
Consumers on GLP-1 drugs are more likely to shop e-commerce, value grocery stores and club stores with each channel, growing by 8.2, 5.6 and 2 percentage points, respectively, after a full year on the drug. Convenience, mass, traditional grocers and natural food channels dropped by 3.9%, 1.1%, 1% and 0.5%, respectively.
“These GLP-1 households tended to be heavier than average spenders at most channels before starting GLP-1 drugs, and they still continue to over-index non-users at these channels on a per household basis while they are taking the drugs. They are just not outspending non-users by the same margin as before they started,” Daniel Joyner, consultant of Complete Consumer at Circana, shared in the webinar.
From fiber-rich foods to mints: What do GLP-1 shoppers crave?
Consumers on GLP-1 are turning to CPG products for relief from the drug’s side effects, including gastrointestinal issues and bad breath, while shoppers not on the drugs are trying to tap into the body’s ability to make GLP-1 antagonist with nutrient-dense foods like eggs for protein as well as fiber-rich grains and vegetables, Wyatt explained.
“Consumption during the first three months of GLP-1 weight-loss medication usage is very different than the other months.”
Sally Lyons Wyatt, EVP and chief advisor of consumer goods and foodservice insights at Circana
Gastrointestinal issues and bad breath are two common side effects of GLP-1 drugs, spurring demand for beans and gum, respectively, she noted. Gum, non-fruit drinks, dry beans and vegetables, refrigerated coffee and tea and rice grew by 14.6, 10.9, 9.8, 9.3 and 8.7 percentage points, respectively, off a pre-GLP-1 baseline, according to Circana Complete Consumer data.
IFIC report highlights consumers seek a range of weight-loss solutions
Despite the effectiveness of these weight loss drugs, many consumers are split on how best to address the global obesity epidemic, with some focusing more on what and how they eat, according to a recent report from IFIC.
Almost a third (31%) of 1,000 consumers surveyed for the report said they heard a lot about GLP-1 drugs, while only 11% said that they heard nothing about the medication at all. Most consumers (59%) heard a mix of both positive and negative things about the drug, while 26% only heard positive and 14% only negative.
Positive Nutrition Broadcast Series: Weight Management
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However, 47% of consumers said they are not interested in taking the drug, while 40% of consumers were interested in taking the medication, IFIC reported. Nearly half (48%) of consumers are trying to lose weight, while 42% are trying to maintain weight and 10% are trying to gain weight.
Almost a third of consumers (31%) said what they ate and drank and 24% of respondents said how much they ate or drank has the biggest impact on their body weight. Additionally, 13% of survey respondent said how much exercise was the biggest influencer on their weight, while 9% said the same for the type of exercise, IFIC reported.
