The GLP-1 effect: How weight-loss drugs are changing food and drink

GLP-1 innovation overview

• GLP-1 drugs are driving significant food and beverage innovation
• Manufacturers are reformulating products with more protein and fibre
• Portion-controlled formats are gaining traction among health-conscious consumers
• Price remains crucial despite growing demand for healthier products
• GLP-1 trends could reshape mainstream food development long term

The rise of GLP-1 drugs is no longer a fringe trend for food and beverage.

Suppliers are driving ingredient innovation, brands are accelerating product development, and retailers are embracing new opportunities to engage increasingly health-conscious shoppers.

And while questions remain over exactly how appetite-suppressing medications will impact overall food and beverage consumption, industry observers say the trend’s opening up a whole host of new and exciting NPD opportunities.

The GLP-1 effect

“There’s a growing trend for smaller packs, or smaller portions in resealable packaging, of nutrient dense foods with high protein, fibre and functional claims and re-formulated products with low fat, salt, sugar and calories,” says Ananda Roy, senior vice president of industry analysts at Circana. “These are the clearest signs yet that GLP-1 and weight-management trends are changing the industry.”

But the clearest sign that GLP-1s are reshaping the sector came from the world’s biggest CPG this summer.

In August, Nestlé revealed it is developing a new generation of nutrition products specifically for consumers using GLP-1 weight-loss medications, using artificial intelligence and nutritional science to identify nutrient combinations that support muscle health, hydration and nutritional intake. The industry giant is also exploring reformulation opportunities across its existing portfolio and developing solutions designed to address some of the nutritional challenges associated with eating less.

The announcement underscores just how quickly the conversation around GLP-1s has evolved. What initially appeared to be a potential threat to food and beverage sales is increasingly being viewed as a major opportunity, with manufacturers focusing on how to deliver more nutritional value in smaller portions.

As Nestlé’s chief technology officer Stefan Palzer put it: “It’s a huge opportunity for our company.”

That said, some categories are proving more vulnerable to changing consumer habits than others.

“Traditional beer, wine and spirit categories are showing clear signs of disruption with volumes down, despite high levels of promotion,” says Circana’s Roy. “In comparison, categories that provide high nutrient density, or make functional health and wellness claims, even if consumed as an indulgence or are an occasional food like snacks, are most likely benefit from the consumer’s desire for healthier dietary choices.”

For confectionery manufacturers, however, the shift presents challenges and opportunities. While appetite suppression may reduce impulse purchasing and large-format consumption, it’s also fuelling demand for portion-controlled products, protein-enhanced snacks and treats that deliver functional benefits alongside indulgence. As a result, many companies are exploring how to offer consumers greater nutritional value without compromising on taste or enjoyment.

For manufacturers, where the opportunities are often as significant as the challenges, the response has been swift.

Reformulation and NPD accelerate

Across the industry, the challenge has prompted a dual strategy – enhancing existing products through reformulation while creating entirely new offerings aligned with evolving consumer needs.

“Brands are doing both,” Roy says. “In some established snack and beverage categories, we’re seeing reformulation of existing products with lower sugar, fat and calorie content, coupled with added protein and fibre. Similarly, confectionery and baking products are being formulated with more protein and fibre.”

At the same time, there’s been huge growth in the number of products specifically developed for consumers using weight-management medications. From high-protein snacks and meal replacements to fibre-enriched foods and portion-conscious formats, brands are increasingly targeting shoppers seeking satiety, nutrition and convenience in smaller servings.

That shift reflects a broader change in how manufacturers are approaching product development. Rather than viewing GLP-1 users as a niche audience, many are now treating them as an early indicator of wider consumer demand for foods and beverages that deliver more nutritional value.

As a result, the changes taking place today could have implications far beyond the consumers currently using the medications, influencing product formulation, packaging strategies and innovation pipelines across the wider food and beverage industry.

The sentiment is echoed by nutrition professor Marion Nestle, who believes companies are already moving quickly to adapt.

“They’re already making products high in protein, vitamins, and fibre, and low in sugar and calories.”

What’s more, she’s confident GLP-1 adoption will strengthen wider health-focused innovation trends. In fact, she says it’s “already happening”.

Yet even as product development ramps up, price remains a defining issue in purchasing decisions.

The GLP-1 price challenge

According to Circana’s Roy, one of the strongest indicators of changing market dynamics is affordability.

“Average price premiums for new food and beverage products have dropped,” he says. “Previously, a newly launched food or drink product could typically cost about 15% more than an existing alternative. Now, that premium is only around 6%.”

In other words, shoppers still want innovation, but they’re increasingly reluctant to pay significantly more for it.

This, Roy says, underscores how the cumulative impact of inflation is weighing heavily on household budgets.

That means the next generation of products must deliver both health benefits and value. Meeting that challenge will be central to the next phase of GLP-1-driven innovation.

The future of GLP-1 innovation

If the first wave of GLP-1 innovation has focused on reformulation, portion control and protein enrichment, the next phase is likely to centre on more personalised nutrition solutions, functional ingredients and products designed to support long-term health and wellbeing.

As consumers place greater emphasis on satiety, nutrient density and overall wellness, manufacturers are being challenged to deliver more nutritional value in every bite and sip.

That’s expected to drive further investment in high-protein formulations, fibre fortification, functional ingredients and products designed to support hydration, muscle maintenance and metabolic health.

At the same time, packaging formats are likely to continue evolving, with greater emphasis on portion guidance, resealability and convenience.

And the impact could extend well beyond the consumers currently taking weight-management medications. Many of the attributes associated with GLP-1-focused products, including higher protein, lower sugar, enhanced nutrition and controlled portions, already align with broader health and wellness trends that have been gaining momentum for years.

As a result, the innovations emerging today may ultimately influence the direction of mainstream food and beverage development, regardless of whether GLP-1 adoption continues to accelerate.

The challenge now is balancing nutrition, taste, convenience and affordability. Those able to deliver all four stand to benefit from a market increasingly focused on quality over quantity. And as GLP-1 adoption continues to reshape consumer expectations, the innovations being developed today could help define the future of food and beverage tomorrow.