
By Jessica DiNapoli and Waylon Cunningham
NEW YORK, Dec 24 (Reuters) - Packaged food makers and fast-food restaurants may be forced to overhaul more of their products next year as newly approved, appetite-suppressing GLP-1 pills become available in January, analysts say.
More Americans are expected to try the drugs as a pill rather than as a shot because the medication will be cheaper and many patients are hesitant to inject themselves.
The U.S. Food and Drug Administration approved Novo Nordisk's (NVO) Wegovy GLP-1 pill on Monday, sending shares of food companies down on Tuesday. Eli Lilly's (LLY) rival medication is expected to gain approval from regulators next year.
Food companies including Conagra Brands and Nestle are already dealing with shifts in consumer tastes toward higher protein and smaller portions due to the popularity of weight-loss injections, and analysts believe widespread GLP-1 adoption could mean long-term changes in demand.
To cope, businesses are promoting products with more protein, tweaking labeling to say they are GLP-1 friendly and working with large retailers to better market products.
"We are seeing people cut (back) specifically on salty snacks, liquor, soda, drinks, and bakery snacks, and more focused on protein and fiber, so we expect food companies and also restaurants to cater to this audience that is growing," said JP Frossard, consumer foods analyst at Rabobank.
"We'll see more access to those drugs and a higher addressable market for products that have in mind the needs of the GLP-1 user," he said.
Andrew Rocco, stock strategist at Zacks Investment Research, called Novo's approval "groundbreaking" because the pill would be cheaper than the injectable version of Wegovy and deliver the same weight-loss metrics. "High protein, smaller portions, and functional food innovation will be necessary," he said.
FOOD COMPANIES ARE TAKING NOTE
Some 40% of American adults are obese, U.S. government data shows, and around 12% of adults say they currently take GLP-1 drugs, according to a poll published last month by health policy research organization KFF.
Households using GLP-1 medications cut spending at grocery stores by 5.3% and fast-food restaurants by about 8% on average, according to a Cornell Research study published last week that used purchase data collected by Numerator from about 150,000 households.
Those reductions largely faded when households stopped using the medication.
"The decreases we saw will likely show up in a much broader slice of the population" because of weight-loss pills, said Sylvia Hristakeva, one of the study's co-authors. She said the cheaper price and ease of use of pills will also make it likely that people use the medication for longer.
latest_posts
- 1
The Main 15 Powerful Business Heads of Today - 2
Most loved Amusement Park Firecrackers Show: Which One Lights Up Your Evening? - 3
Drenched in Pixels: A Survey of \Vivid Interactivity Experience\ Game - 4
Dancing through the crackdown: The satirical song soundtracking post-Khamenei Iran - 5
Figure out How to Explore Your Direction to the Best Dental Embed Trained professional: A Far reaching Manual
Instructions to Guarantee Kids Foster Solid Dental Propensities
The most effective method to Begin Your Excursion in Gold Venture
Jenny & Dave Marrs Mourn Loss of Former ‘Fixer to Fabulous: Italiano’ Guest
Figurine of a woman and a goose offers peek at prehistoric beliefs
Iran war drives global fertilizer prices up, raising food cost fears
Startled Venezuelans express relief but also fear after Maduro arrest
Israeli tourist data from 2025 misrepresented as mass exodus to Thailand
German Court Rejects Bid To Force BMW and Mercedes-Benz To Stop Selling New Combustion-Engine Cars After 2030
What do scientists hope to learn from NASA's historic Artemis 2 moon flyby?













