GLP-1 agonist drugs like semaglutide (brand: Ozempic, Rybelsus) and tirzepatide (brand: Mounjaro) have been making waves in western markets, particularly the United States, over the past year as weight loss drugs, with major impacts expected for the food industry due to their appetite-suppressing capabilities.
These GLP-1 agonists mimic the natural gut hormone GLP-1 and were originally developed as diabetes medications, but are now increasingly being recognised for not only weight loss benefits but also potential roles in cardiovascular and central nervous system benefits.
However, despite its impact in the west, GLP-1 has not made a very big splash here in Asia just yet mainly due to costs and accessibility issues.
“There are relatively high levels of obesity in various Asian markets, averaging at an overall 20% or so,” NielsenIQ Regional Executive Director Craig Houliston told us.
“As such, it is considered a key public health concern, so in essence there is willingness and openness by consumers here to try it, but also much higher concerns over the costs and side effects than in the west which pose a tougher challenge for the drug’s use to become widespread.”
The penetration of GLP-1 drugs into Asia will undoubtedly determine the access of GLP-1 companion foods here, so here we list some of the key challenges and opportunities that GLP-1 drugs – and companion foods – are seeing here in this region.
GLP-1 drug costs and accessibility
Many GLP-1 drugs are covered by insurance in the United States for diabetic patients, and there is increasing coverage emerging for these to cover obesity as well, though the latter is more restricted and tends to require patients to have a BMI above 30 or above 27 with comorbidities like hypertension or high cholesterol.
This includes coverage by national insurance Medicare which covers Ozempic for diabetes, and Medicaid which covers GLP-1 drugs for obesity in 13 states.
Coverage is crucial, as presently the drugs are mostly available as injections that must be temperature-controlled and can cost anywhere between US$350 to US$1,400 per month. The cost depends on the patient’s insurance scheme, the brand of drug and possible payment programmes.
This treatment needs to be taken long-term, which means that total costs can be anywhere between US$4,200 to US$16,800 per year – no small sum if converted to local currencies in Asia.
“GLP-1 consumption is still very much a niche thing here even due to the prohibitive costs, even though it is more or less already a mass market in the US – and this has major impacts on accessibility as well,” Houliston added.
“Prescriptions are still required but in the US these drugs can be obtained at common pharmacies like Costco and CVS, even online via Amazon – there are still no such platforms here in Asia and the only way to access these is via hospitals or clinics, so accessibility is low.”
All this could change soon though with the recently released pill format – This semaglutide GLP-1 agonist drug was released under the Wegovy brand, and is the world’s first oral GLP-1 oral pill specifically approved for weight loss.
“The pill can make a major difference as it does not require refrigeration and has a longer shelf life, making it both cheaper and more accessible to the average Asian consumer,” he added.
At present prices of the Wegovy pill range from US$149 to US$299 per month for uninsured patients in the US, significantly cheaper than the injection format.
“If the drug becomes widely available and commonly used, the companion foods market will certainly grow as well, so it will be crucial to observe if GLP-1 drugs also make the transition from diabetes drug to weight loss drug in this region before food firms can look at GLP-1 companion foods as a big category here,” he said.
There are other factors that also indicate potential rapid cost-lowering and market penetration in the near future, such as the patent for major GLP-1 compound semaglutide set to expire in China and India this year.
China and India
The expiration of patents suggests that a wave of biosimilar or generic GLP-1 agonist drugs could be on the way from China and India, and if history is anything to go by this would majorly cut costs in the region.
“Take the electric car for example: Initially there was just Tesla and it was a very niche category, but today it is a massive one with many different players in the market including China’s BYD which is now a mainstay in the industry,” Houliston said.
“What China did for the electric car sector was to really make electric cars affordable in the region as soon as they saw the demand for this – who’s to say they won’t do this for GLP-1?”
Indeed, it looks like China is well on the way to doing just that: The government has been adding GLP-1 drugs to its National Drug Reimbursement List (NDRL), a list of drugs that are eligible for patients to claim government reimbursement. This list is considered a crucial pillar of drug affordability in China.
The catch at the moment is that this reimbursement is still strictly limited to diabetes treatment, so patients still need to fully pay out-of-pocket for obesity or weight loss.
That said, there is a rapid rise of local companies that are making generic GLP-1 drug options targeting obesity. China’s Innovent Biologics recently launched the country’s first locally-developed weight-loss drug mazdutide, and many more are on the way.
Similarly, India is all set to see a potential rapid boom as well, with Ozempic, WeGovy and Mounjaro all having entered the market in 2025.
Local players have launched these drugs under their own local brands and many are gearing up to manufacture for sale to markets with no patents, as well as lying in wait for large-scale generic manufacturing for the local market as well once the India semaglutide patent expires in March 2026.
As the number of players and drug options grow, this could potentially open up the floodgates for mass usage of these GLP-1 drugs or biosimilars in the world’s largest markets, and accordingly for a flood of GLP-1 companion foods to follow.
Challenges remain: Side effects and cost-income ratios
However, there is one major challenge GLP-1 drugs and companion foods face in Asia which is not so easily solved, namely that of local concerns over side effects – or rather rebound effects.
Over the past two years, several studies have indicated that patients who took GLP-1 for weight loss tend to put on weight quicker than before once they stop the drug – and this is a big no-no in markets like Taiwan and China where slimness is considered the cornerstone of beauty.
“This is very much linked back to the cost of the drugs as well, given that there is already a lot of concern over maintaining job security and a stable paycheque in this economic climate,” Houliston added.
“So the question now really is, I might be able afford the treatment now but will I be able to continue it long-term, and what will happen if I am forced to stop halfway? The thought of weight rebounding back is probably one of the biggest fears that will stop Asian consumers taking the leap initially.”
“So the question now really is, I might be able afford the treatment now but will I be able to continue it long-term, and what will happen if I am forced to stop halfway?”
Craig Houliston, Regional Executive Director, NielsenIQ
This does not yet take into account some of the other risks that have been associated with the drugs and are still under investigation. These include thyroid tumour formation, risks to the pancreas, kidneys, gallbladder and eyes, as well as potential interference with the absorption of other medications.
Another key point to remember is the positioning of GLP-1 drugs as a weight loss aide means that this may not be on top of the list of priorities for Asian consumers, in a time when economic stability and making ends meet are not certainties.
For example, even though the patent expiry in India has been reported to possibly drive prices down below US$50 a month at an estimated INR4,000 (US$44.36) or so monthly, this means little in a market where the average salaried female worker only earns INR16,671 (US$184.86) and the average salaried male worker earns INR22,520 (US$249.72) a month, according to National Statistics Office data.
This is not counting unsalaried casual or self-employed workers in the market which make up some 77% of the workforce and earn even less, between INR6,063 (US$67.23) to INR16,032 (US$177.78) a month.
This means that consumers making non-insured purchases would need to use between 17.8% to 66% of their income
As such, there is certainly still a significant market for these drugs in richer, urban areas like Delhi and Maharashtra where most salaried workers are located, but it is likely to take much longer before the GLP-1 drug boom, and corresponding companion food products, really reach the average mass consumer in India.
What will it take for GLP-1 foods to work here?
Innovation in this area is rapidly advancing though, with a potential India-China collaboration that could yield a GLP-1 drug that only requires fortnightly administration – and it is newer products like this that could really change the game for GLP-1 all over the world.
In Asia, Houliston believes there is an additional need to ensure complete consumer comfort with these products before the boom will reach this region.
“The key to getting through to Asian consumers is really ensuring that GLP-1 drug and companion food brands that enter the market are able to really crack both trust and affordability challenges,” he said.
This translates to a trifecta of concerns that need to be addressed: The drugs must work up to the standard of consumer demands; the problem of side effects must be fully cracked; and they must feel comfortable that they will have continued access to GLP-1 drugs for the long-term.
“Companies will need to ensure the science is solid, the efficacy of products are properly proven, and consumers are able to feel fully comfortable that they have long-term access to the products, if they want to thrive in this market where consumers are very discerning about where and how they spend,” he concluded.
Want to know more about the impact of GLP-1s on F&B?
Join us at Positive Nutrition, a series of broadcast events spotlighting the innovations and technologies central to the evolution of better-for-you food and drink.
Our session on Global GLP-1 disruption discusses this topic in much more detail.
Weight-loss jabs are taking the world by storm, reshaping everything from consumer habits to product innovation. Their impact is being felt across regions and across categories, but the effect in one sector isn’t always mirrored in another. From soft drinks to alcohol, confectionery to snacks, we dissect the disruption and ask what’s next.