As more consumers start GLP-1 treatments, some CPG brands must work harder to stay in shopping carts. As many GLP-1 users eat less and change their diets, it opens new challenges and opportunities for retailers and marketers.

• 11.2% of US adults currently use a GLP-1 treatment, and another 8.3% are considering it in the next 12 months, per a Big Chalk report.
• The drug reduces caloric intake by 16% to 39%, per the report.

“Food and beverage is by far the biggest market being impacted by the number of people on weight loss drugs,” said our analyst Rajiv Leventhal in a “Behind the Numbers” episode. “It’s not just a reduction in quantity. People want to eat healthier…and there are some CPG brands that are not too happy about this."

• Food spending among GLP-1 users has declined by over $6.5 billion, according to Big Chalk.

As retailers grapple with these losses, they can maintain a consumer base by focusing on healthier options, offering smaller portions, and communicating nutritional value.

“The goal has long been ‘Give me more product for close to the same price,’ and that’s going to flip now,” Rick Miller, partner at Big Chalk Analytics. “The brands that figure out the pack size game are going to have a huge advantage.”

More sales come in smaller packages

While selling less isn’t the trajectory CPG brands have been on, they must adjust to cater to these consumers.

• GLP-1 users are 65% more likely than non-users to buy smaller packs of cold cereal, according to the Big Chalk report.
• They are 48.5% more likely to buy smaller packets of lunch meats, per the report.

“If people don’t need the 16-ounce bag of chips, sell them the 12-ounce bag," said Miller. "As a brand, you can margin up a little bit on smaller pack sizes.”

GLP-1 users want healthier options

Selling less isn’t always enough to please consumers looking to improve their diet. Beyond reducing pack sizes, brands are focused on ingredients and positioning.

• About half of GLP-1 users pay more attention to food labels since starting the medication, according to a January Dentsu report.
• Most Gen Zers and millennials feel more connected to health brands, per the report.

Danone has changed its narrative to cater to this growing population, launching high-protein, low-sugar products. “GLP-1 drugs significantly reduce appetite and food intake,” reads their website. “When eating less, choosing nutrient-dense foods becomes more important than ever.”

Nestlé has joined this trend by introducing Viral Pursuit, a line of high-protein, nutrient-rich foods for GLP-1 users, according to their website.

“Many are not shying away from it, and I actually think it’s forward thinking,” said Leventhal. “It is going to be a bigger market over the years, so why not be proactive?”

Repackaging first, branding second

Pepsi’s North America food and beverage volumes declined 1% YoY and 2% YoY, respectively. While economic uncertainty likely contributes to this dip, the greater theme of snack and sugar reduction is something all marketers and retailers should pay attention to, said Miller.

• 84.4% of US consumers shop for carbonated soft drinks, compared to 11.9% of GLP-1 buyers, per Big Chalk.

“Whether it’s financially driven or driven by GLP-1 usage, if you’re a brand, it kind of doesn’t matter,” said Miller. “You just want to make sure you have the right pack sizes for your product, and then you can get into the nuance of messaging.”

After evolving their products based on this need, marketers can then dig into their positioning, he said.

“Messaging to someone on a GLP-1 that doesn’t need the food, versus messaging to someone who is cash strapped and can’t afford the food…Those are two very different marketing messages,” he said, “but at the end of the day, they accomplish the same goal.”

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