Since the invention of mirrors, concern about weight loss has been a cultural fixture. Whether it was the Scarsdale Diet in the 1980s, the South Beach Diet in the early 2000s, or the more recent intermittent fasting, these plans all focused narrowly on weight loss and healthier eating. But glucagon-like peptide-1s (GLP-1s) are different. A large percentage of Americans are taking or want to take them, and their impact is reshaping entire industries, often unpredictably and frequently in industries previously untouched by dieting trends.
C-level teams in all consumer-facing industries need to create a comprehensive GLP-1 action plan. Failure to act quickly and decisively can become the difference between catching the GLP-1 wave or remaining lost at sea.
A recent PwC survey reveals that 8% to 10% of the U.S. population currently takes GLP-1s, while 30% to 35% are interested in taking them. Grand View Research reports the GLP-1 market totaled $26.6 billion in 2023 sales and is anticipated to grow to $133.2 billion by 2030, a compounded annual growth rate (CAGR) of 25.9%. The popularity of these medications dramatically outstrips any previous dieting or well-being trend.
If Weight Watchers was a ripple, GLP-1s are a tsunami. Unlike dieting programs, consumers are turning to GLP-1s not just to lose weight, but to improve their physical, mental and social journeys, or what Circana calls harmonized well-being.
Significant changes in consumer goods purchases by GLP-1 users have led to a profound shift in where and what shoppers buy. These changes represent their attempts to improve their physical journey, whether the goal is weight loss, improved diabetes control or other objectives. There are several obvious changes: GLP-1 shoppers are spending more on foods that support GLP-1 balance, increasing their fiber intake, and reducing their consumption of spicy foods and fatty proteins.
And then there are the counterintuitive changes. Circana data shows GLP-1 shoppers are buying more gum and breath mints to offset the GLP-1 side effect of halitosis. They are also purchasing more drinkware and water filtration systems relative to non-users to ensure adequate hydration. Surprisingly, GLP-1 shoppers outspend non-GLP-1 shoppers for food and beverages, and those using GLP-1s for weight loss specifically outspend non-GLP-1 shoppers even more. In foodservice (restaurants and takeout), the skew is even stronger.
Apparel and beauty purchase shifts among GLP-1 users are equally dramatic and reflect shoppers’ mental journeys. Manufacturers in these sectors have witnessed a bump in demand spurred by the impact of GLP-1 medications on their industry. In their first year on the medication, we observed measurable growth in lip cosmetic sales, jean sales and skin care, among GLP-1 users over non-users.
GLP-1 users buy more than non-users, and not just in fast-moving goods. Within consumer electronics, we see sales of wearable and health technology products, handheld devices and portable audio products skew more than two times those of non-GLP-1 users.
Why do C-level teams at all consumer-facing corporations need a GLP-1 action plan? Because it’s impossible to know which industries GLP-1s will impact and how. Take Krispy Kreme: short sellers bet Krispy Kreme customers who used GLP-1s would lose interest in doughnuts, shorted the stock mercilessly, and the company’s shares suffered. Soon after, Krispy Kreme announced a nationwide partnership with McDonald’s that allowed the Golden Arches to sell doughnuts in their stores. Krispy Kreme’s shares jumped 39%.
The GLP-1 action plan will be different for every company in every industry, but there are several key strategies any plan in any sector should include.
Start by understanding your consumers’ motivations. Recent Circana research revealed that 44% of adults who take GLP-1s were motivated to lose weight, 37% to stay healthy and 30% to feel better. In the beauty industry, for example, these trends might drive a cosmetics company to offer promotions on lipsticks and face creams, since people who feel better often want to look better.
Continue by developing strategies to assist consumers in their weight loss, health and wellness journeys. Then, focus innovation pipelines on meeting the attributes and benefits consumers need.
Once these innovations are in place, create messaging that highlights growing trends among GLP-1 users, such as the switch to healthier recipes or increased interest in fitness-related wearables. Extend these innovations by identifying new, seemingly counterintuitive sectors where potential growth opportunities exist. In addition, seek out cross-sector opportunities to execute promotions. For example, a fitness app company might partner with a vitamin supplement manufacturer to expose their products to a new audience.
In an environment where consumer opinions can shift quickly, it’s important to continuously monitor the broader health and wellness landscape for evolving trends and changing motivations. For example, consumer sentiment among younger, middle-income consumers might shift away from weight loss to feeling better, while the primary focus on weight loss remains in place among other cohorts.
The knock-on effects don’t stop there. A recent report from Jefferies Financial noted that if passengers were only 10 pounds lighter on average, United Airlines, for example, could save $80 million annually on fuel costs. It’s time for C-level teams across America to think expansively about how GLP-1s are impacting their industries and get creative to take advantage of these new opportunities.
Sally Lyons Wyatt is executive vice president and chief advisor at Circana.
