United States: The rapid growth of weight loss drugs indicates a shift in consumers’ nutritional needs, creating fresh opportunities for food companies, according to Nestle CEO Mark Schneider in an interview with CNBC.
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Initially, investors were concerned about the impact of drugs like Wegovy and Ozempic, assuming that users would significantly reduce their food consumption, as noted by CNBC’s Silvia Amaro, quoting Schneider.
However, such a perspective have been long changed, as he added “I think what since has emerged is that nutritional needs don’t go away. They’re just shifting. So, you know before, during, after GLP-1 therapy — consumers still have nutritional needs, but they may be different from someone who is not on a weight loss regimen.”
Moreover, Schneider explained that nutritional needs do not disappear but rather change. Consumers on weight loss medications, including GLP-1 drugs, need to focus on protein intake to maintain muscle mass and ensure they are getting enough vitamins and micronutrients.
Therefore, it also appears as an opportunity for Nestle to bring science to the table and then “work on what we call companion products, products that really then address some of the specific consumer needs during that treatment,” added Schneider.
Shift in nutritional needs
This shift in nutritional needs presents an opportunity for Nestle to develop companion products that cater to these specific needs during weight loss treatment, Schneider added.
And, the GLP-1 drugs would “certainly be an interesting addition to all the other needs that we’re trying to meet in the food industry,” said Schneider, while talking about the growing importance of the drugs, which would not become the sole aim for companies manufacturing food and drinks.
As Schneider noted, “Remember, there’s going to be a lot of consumers out there that are not on a GLP-1 diet. And there are lots of situations where a snack and a chocolate product may still be of a lot of interest. So it doesn’t go away,” as CNBC reported.
Since different ages require different amounts of nutrition in the body, different products would be required to meet different needs, he added.
Despite concerns about the long-term effects and side effects of GLP-1 weight loss treatments, Schneider views it as a significant consumer trend. Nestle recently announced its new frozen food collection, Vital Pursuit, targeting consumers on GLP-1 medications. These meals will contain key nutrients such as calcium or iron, catering to the specific needs of this consumer group.