Last month, Walmart’s Chief Executive John Furner said that customers taking weight loss drugs such as Wegovy and Ozempic were buying less food, leading to a fall in the share price of several major manufacturers. However, a new study shows that having a household member on these glucagon-like peptide-1 (GLP-1) medications does not necessarily translate to smaller shopping baskets or fewer grocery trips.
Instead, GLP-1 households are making strategic shifts in their food and drink choices, underscoring the need for continued monitoring to stay ahead of evolving consumer preferences.
Circana carried out its research in the US, capturing food and drink purchase and consumption behaviours among consumers in households that include at least one person using GLP-1 medication.
It is projected that 7% of the US population will be taking GLP-1 medications by 2035.
“The evolving food and beverage landscape reveals not a challenge, but an opportunity for brands to develop creative solutions,” said Patty Altman, executive vice president and practice leader, Consumer and Shopper Insights, Circana.
“By adapting to changing usage occasions and by monitoring the broader health and wellness landscape, companies can proactively respond to consumer needs.”
Last month, Nestlé revealed that it had started work on products to “companion” the weight loss drugs, hoping to cash in on their growing popularity.
Key insights from Circana’s research include:
- GLP-1 households are scaling back at rates similar to the average US household, with a marginal unit sales decline of 0.1% higher than the national average in the past year.
- The presence of a household member on a GLP-1 medication does not result in smaller shopping baskets, as the number of food and beverage items purchased per trip stands at 26 for GLP-1 households and 25.1 for all households, reflecting a decline of 1.8 and 1.1 units, respectively, compared to a year ago.
- Food and beverage trips per buyer amount to eight per month for GLP-1 households, mirroring the overall average of 7.9 trips for all households.
- The disruption of GLP-1 medications is not hitting food and drink evenly across departments. GLP-1 households increasingly favour high-protein, energy-boosting, hydration, and convenient snack products.
“To navigate this journey successfully, food and beverage companies should seize the opportunity to continue innovating with healthier recipes, premium ingredients, and packaging that align with consumer needs and preferences while on the medication,” said Sally Lyons Wyatt, executive vice president and practice leader, Circana.
“The shifts in eating patterns attributed to people taking GLP-1 medications is not dissimilar to previous market disruptions. As brands and retailers define their optimal assortments for their consumer base, the potential long-term impact should be considered for both product offerings and marketing messages.”
