Weight Loss Medications Disruption on Consumer Eating Habits.

By: Richard Baker, February 2025

As we step into 2025, consumers are making more intentional choices about their health:

1. 82% of consumers consider wellness a top or important priority in their lives,
2. 14M Canadians aim to lose weight in 2025, ^and
3. 76% of consumers are limiting or avoiding sugars.

Though weight management is a key resolution, obesity is a major concern in Canada. Obesity Canada reveals

1. One in four (25%) adults, and
2. One in ten (10%) children live with excess weight.

Most recently, consumers have embraced the Paleo and Keto diet. Today, consumers are turning to weight loss medications (GLP-1 Drugs). Goldman Sachs estimates the size of the GLP-1 market in the US will reach $100B by 2030. ^{Yet, what impact if any have they had on consumers eating habits?}

GLP-1 Medications Available in Canada.

GLP-1 drugs were initially intended for treating type 2 diabetes yet are now being used more frequently for weight loss. The two most equivalent drugs available in Canada are Ozempic, and Wegovy. Regardless of the drug used, research reveals those who have a regular exercise program are more inclined to keep the weight off.

The Use of GLP-1 Medications Among Consumers

In the US, close to 33% of consumers are inclined to pay for weight loss medications, ^{as compared to 22% of Canadians. Taking a closer look at the demographics, Millennials}

earning more than $100,000 per year (47%) are more inclined to use the drug as compared to 26% for Gen X and 14% for Baby Boomers.

Consumer Eating Habits for Those on GLP-1 Medications.

As the market for GLP-1 drugs draws more users, Global business consultancy PwC revealed, “The bottom line: Food and beverage suppliers, retailers, restaurant and foodservice operators are likely to see consumers’ volume of purchases and caloric consumption meaningfully decrease.” ^{As part of their study, they disclosed that 29% of GLP-1 users have cut back on their food and beverage spending. They spent on average 11% less on most food categories, with the top 3 categories impacted: 1. Sweet bakery goods (30.6%), 2. Sweet snacks / candy (30.4%), and 3. Packaged cookies (29.7%). On the other hand, “The frozen foods aisle, which offers a wide variety of options and convenience for health-focused consumers, is of particular interest to GLP-1 users.” “Frozen food categories that are experiencing the most spending include single-serve meals, multi-serve meals, and appetizers.}

What Can Brands Do to Mitigate the Ripple Effects of Weight Loss Medications?

The common thread for brands impacted by weight loss drugs is the ability to adapt and innovate based on consumers’ changing food and beverage spending and consumption habits.

Here are just three ways food and drink companies can prepare for the impact of weight loss medication on consumer behaviour:

1. Portion-Controlled Packaging: Smaller pack sizes appeal to people on the drug as they report feeling full after consuming less food and drink.
2. Provide Targeted Solutions: Brands can offer tailored products for people using GLP-1 drugs. For example: Abbott Nutrition announced the launch of Protality, a line of protein shakes for those taking weight loss drugs.
3. Appeal to Weight-Conscious Consumers Who Aren’t on These Drugs: Brands that prioritize high protein / fibre, lower sugar / salt, and energy boosting products have the most to gain.

Richard Baker is the Founder of Food Distribution Guy.