Ozempic changed consumer habits; now retail is ready to win them back

GLP-1 medications, such as Ozempic or Wegovy, have presented a unique set of challenges to retailers, primarily supermarkets. 

These medications are designed to help obesity through appetite reduction, increased satiety, and decreased food cravings – but one side effect that supermarkets did not foresee was a noticeable reduction in trade.

Now, both breakout and heritage brands are seizing the shift in consumer eating habits to carve out a new category of nutritional supplements and weight-loss foods.

A new category 

Nutrabalance has launched its first product with Ozempic and Wegovy users in mind and has partnered with TerryWhite Chemmart Pharmacies for a national rollout across 600 stores.

“Nutrabalance nutritional protein drink has been specifically formulated to offer nutritional support to individuals on their GLP-1 journey,” explained Cara Mead, chief commercial officer of Nutrabalance.

“A reduced appetite may be experienced from these medications, and could lead to a deficiency in essential nutrients, vitamins and minerals,” she added.  

Nutrabalance contains 15.5 grams of protein from collagen peptides to help maintain muscle mass, up to 2g of fibre and prebiotics to aid digestive comfort and gut health, as well as vitamins and minerals in every serve. 

“At Nutrabalance, we believe optimal health and wellness are within everyone’s reach and specialising in nutritional support for GLP-1 patients, we’re committed to helping everyone to achieve a healthy, balanced lifestyle,” concluded Mead.

“We have a very exciting and relevant range of products coming towards the end of this year to continue to support people on their journey.”

Nutrabalance is not the only brand catering to GLP-1 users, Nestlé is launching a frozen food brand to specifically target customers on Ozempic and Wegovy.

While Nestlé’s Vital Pursuit packaging will not specifically mention GLP-1 medications, as reported by CNBC, the food giant will use social media to make the connection for consumers.

“As the use of medications to support weight loss continues to rise, we see an opportunity to serve those consumers,” said Steve Presley, CEO of Nestlé North America, in a statement.

“Vital Pursuit provides accessible, great-tasting food options that support the needs of consumers in this emerging category,” he added.

According to the American Pharmacists Association, one in 60 adults was prescribed a GLP-1 medication in 2023 and the number is only expected to jump in 2024 and beyond. JP Morgan Research predicts that 9 per cent of the US population will use GLP-1.

“We’re leveraging our deep understanding of consumers and nutritional science to stay ahead of the trends that are shaping consumer behaviours, and innovating across our portfolio to deliver products people will love,” said Presley.

Challenge turned opportunity 

The retail sector is looking for ways to evolve as consumer habits change, and with GLP-1 medications currently shaping the weight loss market, brands and supermarkets alike are looking for ways to grow alongside this market opportunity.

But it’s not all hits to the retail sector as GLP-1 consumers look to redirect their budgets to categories outside of food.

Categories that complement weight-loss drugs are experiencing a period of growth alongside the rise of Ozempic and Wegovy.

GLP-1 households within the US were found to be spending almost 36 per cent more than the average consumer on beauty categories, according to Circana.

Circana’s research also found that products within the stomach remedy space have noticed a 15 per cent uplift for GLP-1 users vs non-users.

Retailers and brands are looking at new ways to combat GLP-1 medications from eating into their profits – beauty products, nutritional supplements and snack-sized meals could be the way forward.

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