GLP-1 misconceptions and market opportunities: summary
- GLP‑1 drugs represent a long term lifestyle trend for food companies
- Many brands underestimate rigorous R&D needed for nutrient dense formulations
- Clinical trials show GLP‑1s may address multiple conditions beyond weight management
- Ex GLP‑1 users present the biggest emerging opportunity for food brands
- Future GLP‑1 companion products may expand significantly as indications grow
These days, food and drink companies largely fall into two camps: those launching products for the growing wave of GLP‑1 users, and those closely watching the trend from the sidelines. The number of players pretending not to care is rapidly shrinking.
And yet, despite this intense interest in the impact of appetite suppressants on business bottom lines, there’s a lot that food and drink companies don’t understand about GLP-1 drugs. Here are the top four misconceptions.
1. Food companies think GLP-1s are a fad
One of the biggest false impressions about GLP-1 drugs is that they’re a fad.
That’s according to Gary Stibel, founder and CEO of New England Consulting Group – the marketing management consultancy with the foresight to set up a dedicated GLP-1 Center of Excellence well over a decade ago.
“We knew this was going to be big,” says Stibel. “It’s going to be with us for the rest of our lives.”
And yet, many if not most food companies don’t see it that way. Why? They remember the surge in popularity for other rapid weight-loss drugs, whether that’s the since-withdrawn prescription cocktail Fen-phen of the 90s or the more recent appetite suppressant Meridia, withdrawn in 2010.
But GLP-1s aren’t a fad, says Stibel. And they’re not a quick-fix diet, either. “Most diets are fads, because most of them don’t work.” But this new wave of drugs, which mimic a natural hormone to curb appetite and reduce blood sugar, is a long-term trend.
“The analog shouldn’t be other diets, it should be other lifestyle products that change behaviour.”
2. Food companies misjudge the true R&D workload
As the consultancy behind some of the biggest food and drink releases of our time – ranging from Coca-Cola’s launch of Diet Coke through to Nestlé’s GLP-1 companion products – New England Consulting Group gets a front row seat to new product launches.
But in the GLP-1 space, Stibel fears far too many companies are paying far too little attention to product recipes. “They’re adding a little more protein to the formulation, slapping something on the label that says ‘30g of protein’.
“They’re putting Band-Aids on a problem, rather than capitalising on an opportunity.”
That may work in the short-term, but in the long-term, those brands will fail. And it’s all because food companies underestimate the amount of rigorous science-led R&D work required to develop nutrient-dense products for GLP-1 users, believes Stibel.
But the same is not true for everyone: there are exceptions, ranging from Nestlé Health Science to Danone and Simply Good Foods. New England Consulting Group also has some private label clients on its books, and they’re all going back to the drawing board: studying consumer behaviour, looking at how people’s tastes change, and what they can do to improve the likelihood of a good GLP-1 experience.
3. GLP-1s are about much more than diabetes and weight loss
When GLP-1 drugs first came on the market, they were prescribed to treat type 2 diabetes. Now, many are prescribed to reverse overweight and obesity, too. But food companies would be wrong to expect the indications to stop there. They won’t.
Clinical trials have yielded promising results for GLP-1 drugs on Alzheimer’s disease, kidney disease, and even some cancers. “There are more clinical trials going on in the field as we speak,” says Stibel.
And then, there are the unexpected health benefits associated with weight management, whether that’s improvements in snoring or sleep.
So for food companies solely viewing GLP-1s through the diabetes and weight loss lens, think again, suggests the consultant. The more indications are approved, the more people will be taking these drugs – and the bigger this trend will be.
4. The biggest opportunity in food? Catering to ex-GLP-1 users
For food and beverage brands right now, the focus appears to be on catering to shoppers taking GLP-1 drugs. And that’s where consumer focus is; people are “rushing in” for GLP-1 prescriptions, says Sibel.
But many of those same consumers will taper off GLP-1 drugs, or simply stop abruptly. That’s just human nature, suggests the consultant. For as long as diet culture has existed, people have sought to lose a few kilograms for a special event, and then reverted to old eating habits.
That exists now, too. But so does the question of medical insurance. If someone living with obesity reverses their condition, they may no longer be eligible for health cover – and so they, too, will come off the drug.
All that means that the biggest opportunity in food and drink is not in developing products for GLP-1 users. But in developing for people who want to maintain a healthy weight after GLP-1s.
How brands intend to market these products remains unclear, and new launches will be scrutinised closely. If today’s activity marks the first wave of GLP‑1 companion innovation, then the next could arrive with significantly greater scale – and greater impact.
Want to learn more about the GLP-1 disruption?
Don’t miss our Positive Nutrition broadcast series and dedicated session on GLP-1 Disruption. Hear from experts at Lifesum, Circana, Cornerstone Nutrition, Släcka and more – available to watch on-demand now.
