Specialty Makers Well-Positioned for GLP-1 Trend
As more and more consumers turn to drugs known as GLP-1 agonists to help lose weight, some food companies with better-for-you offerings said they expect a positive impact on their sales.
The drugs, originally used as a treatment for type 2 diabetes because of their ability to lower blood-sugar levels, are sold under various brand names including Ozempic, Rybelsus and Wegovy. They work as weight-loss medications because they also suppress patients’ appetites, and may also reduce other cravings, such as for caffeine and alcohol, according to some reports.
Walmart last year said that its pharmacy patients who have subscriptions to these types of drugs were buying “slightly less” food at its stores.
A recent report from research firm Grocery Doppio found that 97 percent of consumers said they reduced their grocery spending after taking the medications, with an average reduction in spending of 11 percent. Their biggest spending cuts were in snacks and confectionary products, where consumers said they reduced spending by 52 percent. Meanwhile, GLP-1 users increased spending by 27 percent on lean proteins such as seafood, lean meats, and eggs. They also bought more healthy snack alternatives, whole fruits and vegetables, and sports and energy drinks.
Some food manufacturers have also commented on the potential impact of the drugs, including Nestlé and Danone. Executives from both companies said they think more people will eat healthier diets while taking the drugs, which could have a positive impact on sales of certain healthy products.
Opportunities for Specialty Food Makers
David Lockwood, primary researcher for the Specialty Food Association’s State of the Specialty Food Industry report, 2024-2025 Edition, said he thinks the impact of the drugs on the food industry could be significant, citing research predicting that 10-20 percent of U.S. adults could be taking the drugs by 2030.
“This is going to be a trend that impacts the industry,” he told Specialty Food News, noting that many specialty food makers are likely well-positioned for the dietary changes that might arise.
These trends include a migration toward higher-quality foods. As people cut back on portion sizes, they are going to look for the kinds of higher-quality, healthier alternatives that specialty food makers offer, Lockwood said. In addition, consumers will be seeking to eat more clean-label products as they pay closer attention to the nutritional value of the foods they eat and reduce their intake of food additives.
Specialty food makers should be taking a close look at their product portfolios and positioning to ensure they can optimize this evolving shift in consumption patterns, he said.
“If you are not acting soon, you are going to miss an opportunity that could put you out of business,” Lockwood said.
Kevin’s Natural Foods Aligns With Healthy-Eating Trend
Some specialty food companies have been closely following the GLP-1 trend.
Becky Graham, chief marketing officer at Kevin’s Natural Foods, said she expects that the growth in the use of weight-loss medications will lead to an increased focus on healthy eating, with an emphasis on protein-rich foods and an avoidance of foods that are high in sugar, calories, and unhealthy fats.
Although the company has not been able to attribute specific sales data directly to the trend, Kevin’s posted record sales last year and has seen strong consumer interest overall in eating healthier foods, she told Specialty Food News.
The company’s marketing efforts don’t specifically target GLP-1 users, but instead highlight the health benefits and convenience of Kevin’s products, Graham said.
“Kevin’s line of sous vide entrées, marinated meats, and new frozen meals serve as easy sources of protein and are free from gluten, soy and refined sugar, which positions our products as a go-to choice by consumers who are leaning towards healthier lifestyles or using GLP-1 medications,” she said.
Similarly, although Kevin’s did not develop its new line of portioned, frozen entrée bowls with GLP-1 users in mind, the items, which contain up to 33 grams of protein, “are a great fit for a wide variety of health-minded consumers, especially those looking to add protein-rich meals to their diet,” Graham said.
Kevin McCray, the company’s co-founder and chief operating officer, suffered from an autoimmune disorder for years that led him to launch the company, based on clean ingredients and whole foods. Last year Kevin’s was acquired by diversified food company Mars Inc., which added Kevin’s to its Food and Nutrition family of brands.
“As more consumers read ingredient labels and seek out better-for-you options, our commitment to providing high-quality protein and meal options has resonated well in the market,” said Graham. “Regardless of GLP-1 use, consumers need convenient options that make healthy eating an achievable, long-term goal, and based on our consumer feedback, we believe Kevin’s Natural Foods is well-positioned to compete.”