Retail and CPG operations are still waiting to see which direction 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, which shows that nearly all users of the drug have reduced their grocery spending by an average 11% this year.
Doug Baker, VP of industry relations for FMI – The Food Industry Association, said that he has yet to see a significant strategy from CPG and retail companies.
“In the next few years, we could see anywhere from 12 to 36 million people that could be potentially on this,” Baker said, noting that FMI has knowledge of 70 different trials in the works at the Food and Drug Administration for new GLP-1 drugs.
David Weinand, chief customer officer for Incisiv, said the report revealed that roughly 6.5 million U.S. citizens are currently using some kind of GLP-1 drug.
“Sol, as more of this becomes available, and the price comes down, as more understanding of the potential side effects of it become understood, I think we’ve got to consider what the implication is to the industry,” Baker said.
Snacks, baked goods, and sugary drinks would likely be the biggest losers from the rise of GLP-1 drugs, according to the report.
A big question is whether consumers are eating fewer snacks or just smaller portions, Baker said. “There’s just still so many unknowns that we’re trying to address and understand,” he said.
The trend could spur product innovation, according to Barry Clogan, chief product officer of Wynshop. That innovation means partnering with manufacturers around the size of products and developing lower-sugar and lower-carbohydrate products.