The evidence of new obesity and diabetes drugs' smashing success can now be seen in grocery store aisles.
Why it matters: Food giants are rolling out new and reformulated products appealing to the changing appetites of the fast-growing number of people prescribed drugs like Novo Nordisk's Ozempic and Wegovy — and experts say this could shift American diets more broadly.
The big picture: It's thought the drugs known as GLP-1 agonists help patients lose weight by slowing down stomach emptying, allowing them to get full faster and for longer.
- But that can also make it harder to get necessary nutrients, experts say.
- GLP-1 users also have reported changing tastes, with high-fat and sweet foods becoming less appealing for some.
- A Morgan Stanley report last year that projected consumption of sweet and salty snacks could drop as much as 3% through 2035 raised anxieties throughout the food industry.
Driving the news: Nestlé, which owns brands like Stouffer's and DiGiorno Pizza, recently announced a new line of frozen foods with smaller portions and more protein to fight the loss of muscle mass associated with GLP-1s.
- The Nestlé move was a "logical reaction" to the GLP-1 boom and competitors "will likely follow suit," predicted TD Cowen food and beverage industry analyst Robert Moskow.
- General Mills is already selling a high-protein version of its Annie's Mac and Cheese, as well as Betty Crocker baking mixes with lower sugar and sodium, Reuters reported.
- Conagra, which owns such brands as Healthy Choice, Slim Jim and Boom Chicka Pop, is also considering frozen foods with smaller portions and sees growth opportunity for its protein- and fiber-filled snack foods, CEO Sean Connolly told CNBC.
Nutrition experts said the new offerings generally appear responsive to GLP-1 users' needs.
- "If you're not as hungry, you kind of want like the best bang for your buck with something that's more nutrient dense," said Grace Derocha, a registered dietician and spokesperson for the Academy of Nutrition and Dietetics.
- These products may also prove helpful for the relatively high number of patients who go off GLP-1s within a year and then struggle to keep off weight.
- They may also be attractive to consumers who aren't prescribed GLP-1s but want to cut back on calories and sugar or increase their protein consumption.
Between the lines: Changing perceptions of appropriate portion sizes could be a valuable shift for the American diet, said Hank Cardello, a former food executive who is now a consumer health expert at Georgetown University.
- It was among the top trends he spotted at the recent Sweets & Snacks Expo, where companies marketed a much broader range of products as "minis" or "bites."
Yes, but: Consumers can easily be misled by marketing claims and may assume anything tagged for GLP-1 users is "healthy."
- Experts stressed that the drugs are meant to work with exercise and proper diet.
Our thought bubble: This calls to mind other massive shifts in food trends, like the Atkins diet that spawned branded foods and a low-carb craze that's persisted.
- Food companies and nutritionists say they don't see the GLP-1 diet as a fad, but something with real staying power, as some estimates suggest upward of 10% of the U.S. population may wind up taking these medications.
- "I think once it gets up in that neighborhood, food companies have to pay attention. They have to, otherwise they're walking away from business," Cardello said. "You're not gonna be able to sell king size X, Y and Z to this crowd."
