Semaglutide Drugs and the Food Industry
Prescriptions for semaglutide drugs like Wegovy and Ozempic have been on the rise, leading to increased speculation about the potential impact on people’s eating habits. These drugs, known for reducing appetite, have seen a 40-fold increase in prescriptions in the past five years, with 1.7% of the U.S. population prescribed them in 2023.
Food sellers are closely monitoring this trend, considering ways to adjust their products and offerings in response to potential changes in consumer behavior. While the food industry is accustomed to adapting to various diet trends, the widespread adoption of appetite-reducing drugs like semaglutides may require a more significant response.
Companies like Conagra are prepared to modify their products if customers start eating less or seek different types of food. This adaptive approach is not new in the food industry, as companies continually evolve their products to align with consumer preferences, especially those related to health and wellness.
However, semaglutide drugs may have a more substantial and lasting impact on food consumption than previous diet fads. While change won’t happen overnight, Bernstein analyst Alexia Howard suggests that the real question is how many people are willing to try these drugs and whether they will continue using them. Companies should plan for different scenarios to adapt to potential shifts in consumer behavior.
Walmart’s internal data indicates that customers taking Ozempic buy slightly less food, although it’s too early to draw definitive conclusions from this data. Morgan Stanley analysts have warned that anti-obesity medications like semaglutides could lead to a lasting behavioral shift in a sizable demographic group, impacting food consumption.
Companies may need to adjust their product offerings in response to the adoption of these drugs, particularly those heavily reliant on less healthy foods like snacks, confectionery, and sweet baked goods. Brands like Hostess, known for products like Twinkies, Ding Dongs, and HoHos, could face challenges in this changing landscape.
However, it’s worth noting that circumstances could mitigate the impact of these drugs on the food industry. Interest in these medications could wane, demand might outstrip supply, or individuals taking these drugs may not significantly alter their diets.
Ultimately, the rise of semaglutide drugs presents both challenges and opportunities for the food industry, emphasizing the need for adaptability and readiness to cater to changing consumer preferences.
