GLP-1 receptor agonists, a class of medication designed to mimic the effects of hormone GLP-1 to regulate blood sugar levels and appetite, first surged in popularity for weight management in the US, where one in eight adults has tried variants such as Ozempic, according to a KFF poll.
Now, European consumers are cottoning on to the appeal of a drug solution to weight loss.
In the EU, the European Medicines Agency has grappled with shortages of the class of drugs since 2022 due to ballooning demand for the medication as a weight loss aid – a demand that is only expected to grow in 2025.
And in the UK – where Wegovy has recently been made available for weight management free via specialist NHS services – a quarter (24%) of people say they would use GLP-1 drugs if offered, according to a November 2024 poll by Ipsos.
Such is the appetite for GLP-1 drugs that Danish Wegovy manufacturer Novo Nordisk has become Europe’s most valuable company, with a market capitalisation of around $600bn.
So, where does that leave food and drink manufacturers focused on weight loss via more conventional means, such as calorie control, meal plans and meal replacements, to name a few ‘traditional’ solutions?
On the one hand, there will always be a place for traditional diet or weight loss products within food and drink points out Chloe Depiesse, EVP – head of digital strategy at Havas Health & Creative’s Innovation Hub. “While GLP-1s are highly effective, they’re also expensive, and they’re historically prescribed for people living with type 2 diabetes or serious weight-related comorbidities,” she points out.
How have GLP-1s affected diet food brands like WeightWatchers?
“That’s combined with the fact that some people are just not necessarily keen to take pharmaceutical or pharmacological solutions and prefer natural lifestyle-based solutions. So that still leaves a significant portion of the market open to traditional diet brands.”
Although still up for grabs, there’s little doubt the growing impact of GLP-1 drug consumption is narrowing that market and leaving manufacturers grappling more fiercely than ever to protect their share, with many major global players already feeling the impact.
Global diet brand WeightWatchers, which sells its low-caloric soups and shakes in several European supermarket chains, has seen its share price plummet (falling to below $1 as of August 2024, according to MarketWatch) amid declining sales, significant leadership changes and the departure of high-profile brand ambassadors like Oprah Winfrey.
Earlier this year, Glanbia also admitted that poor sales of its Slimfast brand were ‘dragging’ the manufacturer’s overall performance as dieters switched to weight loss drugs.
“There’s definitely going to be a lot of movement in the more traditional weight loss industry” as manufacturers navigate the rapidly transforming weight loss landscape, believes Depiesse. “Clearly with the rise of these drugs, those companies will need to adapt. There is a place for them, but they will need to adapt.”
This adaptation is likely to take one of two approaches, she believes.
“The first is to truly reframe their value proposition to position themselves as complementary to GLP-1 therapies rather than competitors,” says Depiesse. “There’s an opportunity for diet brands to develop new products or adapt their existing offering with innovations that can meet both the nutritional needs, the metabolic needs, and even the aesthetical new needs [of GLP-1 drug users.]”
For example, GLP-1 drug users can lose significant muscle mass, with some studies suggesting muscle loss can account for between 25-39% of total weight lost, versus 10-30% via traditional weight loss methods, driving demand for high-protein pre-portioned meal solutions.
What are diet food brands doing to future-proof against GLP-1s?
In May last year, Nestlé launched Vital Pursuit, a frozen ready meal range high in protein and portioned to suit GLP-1 users’ reduced appetite. And at UK-based nutrition brand FuelHub the team has focused on refining its own pre-prepared meals to cater to users’ nutritional needs and appetite, says co-founder and CEO Michelle Laithwaite.
“F&B brands have the opportunity to significantly support customers on GLP-1 drugs by offering products and services tailored to their unique needs,” she says. “These customers often experience changes in appetite, digestion, and dietary preferences, so products with this in mind can enhance their experience and help them achieve their health goals. Through making this our USP, we have been able to differentiate ourselves in the increasingly competitive market.”
There are also opportunities to tap into the need for increased fibre in products to counter the impact of GLP-1 on gut health and metabolism, suggests Depiesse, as well as collagen-enriched products to help users tackle sagging skin, also known as ‘Ozempic Face.’
Increasingly, manufacturers are openly marketing such products for GLP-1 users, she adds. For example, in December, US food manufacturer Conagra Brands added a ‘GLP-1 friendly’ claim to its high-protein, low-calorie Healthy Choice frozen meals. And in October soft drinks brand Smoothie King launched its GLP-1 support menu, a five-item menu openly explicitly designed for users of the weight loss drug, with smoothies that contain 20 grams of protein or more, zero added sugar and are rich in fibre. Until now, “a lot of the brands have just been changing perhaps their ingredients or catering their product range without calling out GLP-1, but it’s now becoming more front and centre,” says Depiesse.
Second, brands can “adapt to stay relevant by pivoting from a traditional weight loss [message] to one focused on longer-term sustainability,” she adds.
There is compelling evidence that GLP-1 users see weight loss reverse quickly once they stop taking the drugs. In one clinical trial, people who had been taking Wegovy regained two-thirds of the weight they had lost within one year of coming off the drug.
“If diet brands can emphasise their role in fostering sustainable lifelong habits, such as education on portion controls, mindful eating, or how people can maintain a consistent exercise regimen for example, then they can really remain relevant,” says Depiesse. That may include manufacturers diversifying beyond weight loss to a more holistic portfolio of functional foods that support areas such as cognition, sleep and immunity, as well as providing consumers guidance on longer-term weight management.
The bottom line is that diet food manufacturers looking to survive the rise of GLP-1 drugs for weight loss can’t afford to sit still. As more and more consumers are drawn to the convenience of pharmaceutical solutions for weight management, traditional low-caloric ranges will need to rethink product development and overall brand positioning to remain relevant and avoid an unintentional drop in size.