The day of reckoning for the food & beverage industry in the constant push-and-pull between eating healthy and overconsumption may be here, parading in on the backs of drugs originally designed to combat Type 2 diabetes: GLP-1 drugs.
GLP-1 drugs were originally used to help in the treatment of Type 2 diabetes; today, some are approved to help treat obesity as well. They work by mimicking the GLP-1 hormone, which is produced in the small intestine, in effect, “tricking” the body into slowing digestion, releasing more insulin and reducing appetite, hunger and ultimately the amount of food consumed. And that last point is why food & beverage processors need to evolve.
For years, food manufacturers have had to adjust to the discovery and demand for healthier ingredients and diet fads, and the consumer demand changes they brought along — even misinformation around how food choices do (or do not) contribute to obesity and poor health. Most of those challengers have come and gone, sometimes for better or worse, but almost always impacting the food and beverage products on the shelves.
GLP-1 drugs are the “next big thing,” but this time, things appear to be different. Yes, it’s still somewhat early in the process. In a December 2024 report, Circana addressed the impact of these drugs on food & beverage spending, noting several barriers still in the way of more widespread use of GLP-1s — from the fact that they’re costly and not covered by most insurance companies to some gastrointestinal side effects for some users.
Nevertheless, the industry has reached the point where denial must only be a river in Egypt. Nobody knows for certain what the long-term effects of these drugs will be on health or whether consumer interest will fade in them. Right now, things are looking up for these medications: They very well may prove to be something of an obesity silver bullet, and at this point, companies that are not planning for reduced appetites and consumption, as well as different palatability demands, are falling behind.
The impact of GLP-1 drugs on grocery bills and eating out has already begun to show up. A research paper published in December 2024 (and updated in February 2025) by the Cornell SC Johnson College of Business and Numerator put the writing on the proverbial wall for processors. Researchers found significant shifts in food demand in households with at least one GLP-1 user. Grocery spending decreased by 5.5% within six months of starting on GLP-1 drugs, with higher-income households with a GLP-1 user having reduced their spending even more (8.6%).
Additionally, Circana’s report found a decrease in relative household spending on foods that are recommended to be avoided by GLP-1 users — spicy foods, fatty proteins, added-sugar beverages. Meanwhile, spending on vegetables, eggs, nuts and other foods that support GLP-1 balance increased in comparison to non-GLP-1 users — and gum, mints and non-chocolate candy also got a boost, presumably to help users battle the side effects of bad breath and dry mouth.
What can ‘big food’ do?
Fortunately, as with any sea change, there are pioneers willing to step out and attempt to tame the wilderness before others. Numerous publicly traded food & beverage companies have commented on the anticipated effects of GLP-1 drugs in their annual reports, for example.
In January, Conagra Brands planned to roll out an “On Track” badge for 26 specific items in its Healthy Choice Café Steamers and Simply Steamers lines, visually indicating to consumers that those products were “GLP-1 friendly.” Without having made any changes to the products, the company will call out attributes such as high in protein, low in calories and good sources of fiber, all of which make them good choices for GLP-1 consumers.
Food manufacturers need to act quickly if they haven’t already, and especially the larger ones who often need extra time to make adjustments. Meanwhile, mid-sized to small processors already are responding to what’s ahead due to the impact of GLP-1 drugs, particularly in the snacks category, which is battling headwinds elsewhere.
In the GLP-1 consumer world, snack foods appear to be falling out of favor with some — with the Cornell research paper showing an 11% decline in savory snacks in GLP-1 households. Misty Skolnick, co-owner of Uncle Jerry’s Pretzels, can see the significance of what’s changing in consumer demand for snack foods.
“Whether its causation or correlation or just a parallel phenomenon, we see people taking GLP-1 drugs and also paying much more attention to the food they’re putting into their bodies,” she says. “Then you have the food-labeling changes and prohibition of certain additives, and it becomes clear that the snack food industry really needs to respond to these changes.”
Uncle Jerry’s makes handmade sourdough pretzels out of its processing plant in Lancaster, Pa., selling them in retail stores nationwide. The all-natural pretzels are hand-braided and include just water, flour, yeast, sourdough starter and salt, with each individual pretzel (about the size of your fist, Skolnick says) checking in at less than 90 calories. That profile bodes well for the product’s attractiveness to consumers who are taking GLP-1 drugs.
“People on GLP-1 eat smaller portions and their tastes change, to where very sweet or salty or very processed foods become somewhat unpalatable to them,” Skolnick adds. “They tend to gravitate toward foods that aren’t as heavy on the flavor — not covered in butter, sauces, sugars or oils.”
Uncle Jerry’s Pretzels don’t use added sugars or oils, and a consumer can eat one or two pretzels, feel satisfied and still only have consumed less than 200 calories. For other snack manufacturers, the time to sit up and notice the changes in what these consumers want is now.
Skolnick says, as a small business, they are nimble enough to make changes — but she believes there’s still time, if the bigger companies truly dedicate themselves to evolving to meet these new demands.
“You can’t be unable to pivot,” she warns. “It’s just not going to work in the face of a reality like the changes coming from these GLP-1 drugs.”