How GLP-1 Weight-Loss Drugs Are Reshaping the Food and Beverage Industry, How Manufacturers Can Adapt

Impact of GLP-1 drugs on consumer food trends The last couple of years have witnessed America’s radical new approach to obesity: weight-loss drugs. The use of glucagon-like peptide-1 (GLP-1) drugs has reached new heights, with 2% of the American population, or roughly 6 million adults, relying on Ozempic, Wegovy, and Mounjaro to lose weight quickly and efficiently.

The rest of the world appears to have followed suit, with countries such as the U.K., Australia, and Canada widely using these drugs to counter obesity. With GLP-1 sales predicted to hit $126 billion by 2029, one thing is clear: these agonist drugs aren’t a passing fad. They’re bringing about a major shift in the way people eat, perceive nutrition, and even shop for groceries.

As a result, the food and beverage manufacturing sector is seeing a significant ripple effect. Industry players are reforming their product and manufacturing strategies to better cater to changing consumer habits.

In this article, we’ll explore the effects of GLP-1 drugs on consumer spending and eating habits, what these changes mean for the food industry, and how the food and beverage (F&B) sector can adapt to these changes and innovate.

What Are the Effects of GLP-1 Medications on the F&B Industry?

GLP-1 drugs weren’t originally developed to cause weight loss. Instead, they were used to manage Type 2 diabetes by regulating blood sugar and appetite. This led to users feeling fuller sooner and craving less food, which boded well for those wanting to manage their weight.

However, clamping down on specific cravings means users are cutting back on food products they would have ordinarily consumed. This poses a unique problem for food manufacturers. GLP-1 drug impact on food and beverage manufacturing

Here are some striking statistics that highlight the trend of shifting food consumption:

According to a Morgan Stanley study, a new class of obesity medicines could reduce calorie intake by 20% to 30% daily, with survey participants claiming to cut back on foods “high in sugar and fat.” The consumption of sugary drinks and baked goods has also drastically reduced among people using GLP-1 drugs.
By 2035, the consumption of indulgent and calorie-dense foods, such as high-sodium snacks, baked goods, and soda drinks, may fall up to 3%.
Grocery spending habits are also flattening, as GLP-1 drugs suppress hunger and cravings in millions of people worldwide. A Cornell study found that grocery spending declined by up to 6% in homes where at least one person had adopted weight-loss drugs in the past six months.
A survey conducted by the Arkansas Agricultural Experiment Station among GLP-1 users revealed that 50% of the respondents are consuming less beef, refined grains, and soda. However, the consumption of natural food groups, such as water, leafy greens, and fruits, has increased.

Notably, respondents also reported that their desire to consume these foods hasn’t diminished, offering food manufacturers a chance to create more balanced products that combine nutrition and taste.

There is another surprising pattern and effect of GLP-1 drugs worth noting. In an email conversation with CNBC, Jura Liaukonyte, professor of marketing and applied economics at Cornell University, stated that “the pattern is less about switching to ‘better’ foods and more about simply buying less food.” Obesity drug users are also increasingly preferring to cook healthier food at home instead of spending on fast food or casual dining, according to a report by Bloomberg Intelligence.

How Food and Beverage Manufacturers Can Adapt and Innovate

Food and beverage manufacturing The growing user base of GLP-1 drugs has been disruptive for food and beverage manufacturers. However, this development has also provided an excellent opportunity for F&B companies to innovate their production strategy in a way that supports the evolving eating habits of GLP-1 users. It also means that food manufacturers need to rethink how they market their products. Some companies have already tapped into this trend by offering vitamin-fortified products and nutrient-dense options to this emerging demographic.

For example, Nestlé specifically launched a frozen product line in 2024 that caters to the nuanced needs of GLP-1 users. The food company rolled out cauliflower-crust pizzas and White Cheddar Mac & Broccoli Bowls. These products are labeled as “high-protein” and “portion-aligned,” supporting a growing base of weight-loss drug users who want to increase their nutrient intake.

Food manufacturers also realize that selling volume alone may no longer be a sustainable strategy. Instead, the current weight loss-driven market encourages the food and beverage sector to build customer loyalty through wellness-first features and innovation.

PepsiCo proved this to be true when it bought SodaStream in 2018, following a dip in demand for sugary drinks. Its goal was to secure a share of the health-conscious beverage market by selling the zero-calorie alternative “Bubly” instead of relying on high volumes of cola drink sales alone.

Let’s look at some more challenges and opportunities for food manufacturers who want to align their brand with health-conscious customers:

1) Product Reformulation

The fact remains that GLP-1 users still crave comfort foods, although in smaller and healthier portions. Essentially, there’s a demand for nutrient-rich and portion-controlled versions of classic indulgences, which food manufacturers could use as a springboard to develop and market products. Take a look at how Coca-Cola reformulated Diet Coke variants or how Japanese KitKats are selling lighter versions of the favorite treat with nine to 10 fewer calories.

For example, instead of a 200-gram bag of chips, manufacturers could launch balanced “mini packs” with naturally salted flavors. Alternatively, manufacturers could fortify existing food products, especially those dubbed “comfort foods” by health-conscious groups, with added fiber, probiotics, or high protein.

2) Diversifying Product Lines

Manufacturers relying on revenues from high-calorie, low-nutrition items need to recalibrate and diversify in light of the growing demand for healthier foods. Adding healthier variants that focus on functional food ingredients, such as plant-based proteins or hydrating beverages, could hedge some of the falling demand for standard processed fare.

For example, studies show that 45% of GLP-1 users are consuming less beef than they did before, providing food manufacturers with an opportunity to introduce plant-based alternatives or hybrid products that may appeal to “flexitarians.” Soda producers could also unveil healthier daily options, such as flavored water and infused teas.

3) Premium-ization of Products

The world is no stranger to artisanal and organic products, but current consumption trends favor food products that can demonstrate high quality and responsible sourcing. A KPMG report identified a type of GLP-1 user known as the “Premium Purchaser.” People in this demographic tend to consume less, saving their dollars for high-quality foods that offer the perfect trifecta of taste, nutrition, and experience.

This trend suggests that it may be time for food manufacturers to consider developing more premium products that are transparent about sourcing and appeal to GLP-1 users’ “less volume, more value” mindset. Examples include single-origin coffee and portion-controlled grass-fed beef jerky, or seasonal and artisanal products that justify higher prices, despite the small quantity.

Aligning with consumption demands also means that the food sector must expect shifts in sourcing and adjustments in its supply chain processes, and pivot accordingly. They also need to build trust quickly with this new generation of health-conscious consumers by adopting nutritional storytelling initiatives that create transparency and trust.

How Alpha Software Can Help

The new wave of weight-loss-led consumption is already upon us, and manufacturers need to quickly adapt to the change with precision and speed. This is where Alpha Software can help food and beverage manufacturers turn disruption into opportunity by creating smart software that:

Constantly analyzes consumption data so that food brands can predict trends and adjust their processes preemptively, instead of being reactive
Adjusts supply chain models based on categories that are declining—whether beef or soda—and those that are rising, e.g., leafy greens or plant-based proteins
Synchronizes R&D teams with real-time insights on GLP-1 trends that help speed up product development
Validates wellness-first claims on packaging labels and ensures compliance with regulatory criteria