Daijiworld Media Network - New York

New York, Dec 25: Packaged food manufacturers and fast-food chains may be forced to revamp more of their offerings next year as newly approved appetite-suppressing GLP-1 weight-loss pills enter the market, analysts said.

The US Food and Drug Administration has approved Novo Nordisk’s Wegovy GLP-1 pill, which is expected to be available from January. Analysts believe the pill form will attract more users as it is likely to be cheaper than injections and more acceptable to patients hesitant to self-inject. Rival drugmaker Eli Lilly is also expected to receive regulatory approval for a similar pill next year.

Following the approval, shares of several food companies declined, reflecting concerns over long-term shifts in consumer demand. Food makers such as Conagra Brands and Nestle are already adapting to changing preferences driven by the growing use of weight-loss injections, with consumers opting for smaller portions and higher-protein foods.

Analysts said wider adoption of GLP-1 drugs could accelerate these trends. Companies are increasingly promoting high-protein products, highlighting fibre content and marketing items as “GLP-1 friendly” in collaboration with large retailers.

According to US government data, around 40 per cent of American adults are obese, while a recent survey found about 12 per cent are currently using GLP-1 drugs. A Cornell University study published last week showed households using GLP-1 medications reduced grocery spending by over 5 per cent and fast-food spending by around 8 per cent, though spending returned to normal levels once the medication was discontinued.

The study’s authors noted that the easier access and lower cost of pills could lead to longer-term use, potentially broadening the impact on food consumption patterns. While only limited increases in spending were seen in categories such as yoghurt and fresh fruit, companies are responding proactively.

Conagra has begun labelling some Healthy Choice frozen meals as high in protein and fibre and “GLP-1 friendly,” reporting stronger sales for these products. Danone said it is seeing double-digit growth in its high-protein offerings, a trend that has accelerated with GLP-1 adoption. Nestle has also launched frozen meals tailored to GLP-1 users under its Vital Pursuit range.

Restaurant chains are adjusting too. Chipotle has introduced a high-protein menu, while others such as Olive Garden have added smaller portion options, reflecting changing consumer appetites as weight-loss medications gain popularity.