Is GLP-1 a threat or opportunity for manufacturers? Summary
- GLP-1 weight loss drugs reduce appetite creating major food industry disruption
- Many manufacturers see GLP-1 as opportunity for nutrient-dense products
- Companies explore high-fibre and high-protein foods to meet user needs
- Market uncertainty persists due to early adoption and unclear regulations
- Trend expected to grow as firms innovate with smaller and more nutrient-rich portions
GLP-1 weight loss drugs have taken the food industry by storm. The drugs, which reduce “food noise”, the desire to eat, and increase feelings of fullness, are seen by some as an existential risk to the food industry.
And yet, many in the industry see view the GLP-1 wave as an opportunity. Some are responding with GLP-1 companion products, others are developing formulations that aim to trigger the GLP-1 effect naturally.
So which one is it? A threat that could wipe out sales of sweet and fatty foods? Or an opportunity to innovate for a fast-growing consumer group invested in weight management?
There’s obvious uncertainty in the air
Many manufacturers are uncertain how to respond, toying with the idea of GLP-1 companion products, natural GLP-1 alternatives, or employing the “wait and see” tactic while the first-wave of innovators hit the market.
Ingredients suppliers are keeping a close eye on how their manufacturer customers are responding.
“Our customers see it as an opportunity. However, they are also still looking for how to tap into the opportunity; how to target, how to make it specific, how to make sure products are fitting well,” says Sophie Zillinger, global marketing execution lead at Friesland Campina Ingredients.
They do have some ideas, such as smaller portion sizes, yet a clear direction is still to come; companies are still trying to find the right ingredients to fit the trend. Manufacturers want to tap into the trend, but because it’s in its early stages, a lot of uncertainty remains.
Even in the US, where GLP-1s are more widespread, the market is in its early days. The current lack of regulation around GLP-1-related food products, especially on what claims manufacturers are allowed to make, is creating uncertainty.
Some big names hesitate, but now see opportunity
Some of the biggest names in food have entered the market with GLP-1 companion products, including Nestlé and Danone. Others are yet to officially dip their toe in the water, but it’s suspected there’s work going on behind the scenes.
That’s what Peter Schoew Anderson, senior director of performance nutrition at Arla Food Ingredients, expects is going on. He says larger companies were afraid of the trend when it first emerged, concerned that GLP-1s would take a big bite out of food sales.
But now, even the big companies are pursuing GLP-1-friendly products – whether that be to counter the side effects of GLP-1s, or to offer enhanced satiety.
Anderson believes highly nutritionally dense products – for example, high protein ice cream – is also an opportunity for GLP-1 users, who require more nutrients in less food due to reduced appetite.
GLP-1 research and development in F&B prevails
While it’s far from unanimous, many manufacturers have always seen GLP-1s as a chance to lean more heavily into R&D.
GLP-1 is seen as an opportunity for AFB Ingredients, says Aaron Rasmussen, head of global applications at Ohly, an AFB Ingredients company.
Responses could involve developing products rich in ingredients that certain GLP-1 users may lack, such as fibre. By adjusting taste profiles in high-fibre ingredients, such foods can also be made more palatable for consumers.
Furthermore, as taste is often affected by GLP-1s, the company sees opportunity in providing consumers with more vivid tastes to counteract this.
Ingredients company Nexira says that many of its customers see the opportunity in GLP-1s.
“We think it is going to stay,” says Julie Imperato, marketing and communication manager at Nexira. “For food manufacturers it’s a new way to formulate, to have more qualitative portions” – for example, products denser in protein and fibre.
