Retail and CPG businesses are still waiting to see where the rise of popular GLP-1 weight-loss drugs like Ozempic will take the industry.
Grocery Doppio hosted a webinar to discuss the findings of its recently released State of Digital Grocery Performance Score study, which found that nearly all users of the drug have reduced their grocery spending by an average of 11% this year.
Doug Baker, vice president of industry relations at the Food Industry Association, said he hasn’t seen any significant strategies yet from CPG companies or retailers.
“There could potentially be 12 million to 36 million people taking this drug over the next few years,” Baker said, noting that FMI is aware of 70 different trials of new GLP-1 drugs underway at the Food and Drug Administration.
Insiv’s chief customer officer, David Weinand, said the report found that roughly 6.5 million Americans currently use some form of GLP-1 drug.
“Sol, as these drugs become more available, as their prices come down, and as we gain a better understanding of their potential side effects, I think we have to think about what the implications are for the industry,” Baker said.
Snack foods, baked goods and sugary drinks are likely to be hit hardest by the widespread use of GLP-1 drugs, according to the report.
The big question, Baker said, is whether consumers are snacking less or just eating less. “There are still a lot of unknowns that we’re trying to work through and understand,” he said.
According to Barry Croghan, chief product officer at WinShop, this trend could spur product innovation, which means partnering with manufacturers to develop lower-sugar and lower-carb options depending on the size of the product.
