The impact of GLP-1 medications on consumer behavior is becoming increasingly significant, with new research indicating that the shopping and eating habits of individuals taking these weight-loss drugs are poised to influence grocers in various ways. A recent report from Circana revealed that GLP-1 users alter their food purchases and consumption patterns during the initial three months of medication use, with distinct differences observed in their behavior compared to later months. Notably, individuals using GLP-1 drugs for weight loss purposes tend to spend less on food and beverages than those using them for other medical reasons such as diabetes management.
In a positive development for grocers, the research found that GLP-1 users increase their spending on grocery foodservice while reducing expenditures on quick-service restaurants and convenience store food during their first year on the medication. A survey cited by Circana indicated that 12% of adults have taken a GLP-1 drug, with the current market share of GLP-1 users in food and beverage purchases estimated at nearly 8%, a figure projected to rise to around 13% by 2034 if current trends persist. This trend is driven by the increasing availability, accessibility, and affordability of GLP-1 medications, as highlighted by Sally Lyons Wyatt, global executive vice president and chief advisor of Circana.
The growing usage of GLP-1 drugs is reflective of a larger consumer trend towards connecting food choices with health goals. Retailers and brands are urged to recognize this shift and innovate to cater to the needs of consumers seeking healthy benefits from the products they purchase. This evolving landscape presents opportunities for grocers to tailor their merchandising and marketing strategies to appeal to the expanding population of GLP-1 users.
One key takeaway from the report is the emphasis on weight loss as a primary motivator for GLP-1 usage, with a majority of users not being diabetic. Circana’s research indicates that individuals using GLP-1 drugs for weight loss purposes exhibit distinct demographic characteristics and spending patterns compared to those using the medication for other reasons. It is crucial for consumer-facing companies to adapt their product offerings and marketing strategies in response to the evolving usage patterns of these weight-loss medications.
Furthermore, the impact of GLP-1 usage extends to grocery shopping behaviors, with users demonstrating a preference for recommended foods and items that help alleviate side effects of the medication. Nonfood categories such as oral care, drinkware, fitness trackers, cosmetics, and apparel also see increased spending by GLP-1 users. Purchase behaviors may evolve over time, with fluctuations observed in spending on various food categories both at home and away from home during the initial months of GLP-1 usage.
In conclusion, the rise in GLP-1 medication usage presents both challenges and opportunities for grocers to cater to the changing needs and preferences of consumers seeking to improve their health through dietary choices. By understanding the unique behaviors and preferences of GLP-1 users, grocers can adapt their offerings to meet the evolving demands of this growing consumer segment. Recent data has shown a significant increase in purchasing behavior among departments throughout the first year, indicating sustained growth rather than just a temporary spike in sales. Additionally, there is a growing demand for high-protein, ready-to-eat meals and portion-controlled snacks among GLP-1 users, presenting a lucrative opportunity for category expansion.
It is important to note that most GLP-1 users experience side effects such as abdominal pain, constipation, diarrhea, nausea, or pancreatitis, depending on the type of medication. This opens up opportunities for marketers to develop innovative product offerings that cater to consumers dealing with these adverse effects. For instance, there has been an uptick in spending on products like gum for bad breath or tea to soothe stomach discomfort among GLP-1 users.
Furthermore, individuals using GLP-1s for weight loss tend to alter their shopping habits within the first year of medication use. They tend to increase spending at club retailers, value grocers, drug stores, and e-commerce channels while decreasing purchases at traditional grocers, mass retailers, and convenience stores. Despite this shift, GLP-1 households continue to spend more than non-users across various retail channels.
To better appeal to GLP-1 users, retailers and consumer packaged goods companies should develop strategies tailored to the specific needs of these consumers. Understanding the different medications and reasons for use, whether for diabetes management or weight loss, is crucial in catering to their preferences. Offering products that support weight management, provide nutritional value, come in smaller portion sizes, and address side effects can create new revenue opportunities for retailers and brands.
CPGs can align their product innovation and marketing efforts with the dietary preferences of GLP-1 users, focusing on protein-rich foods, vegetables, fruits, and reduced sugar, carb, and sodium content. Collaborations between beauty, wellness, pharmaceuticals, and the food and beverage industry can lead to promotions and discounts on products that meet the dietary needs of GLP-1 users. Personalized messaging and targeting are also essential, considering the diverse lifestyles, health conditions, and goals of individual consumers.
In conclusion, the increasing purchasing behavior among GLP-1 users presents a unique opportunity for retailers and CPGs to cater to the specific needs of this consumer segment. By offering products that align with weight-management goals, provide relief from side effects, and promote healthy eating habits, companies can tap into a growing market and drive revenue growth in the long term. Collaborative efforts across different sectors can further enhance the offerings available to GLP-1 users, creating a more holistic approach to meeting their dietary requirements and enhancing their overall well-being.
