Around one in 10 Americans now take GLP-1 drugs: and this figure is only set to rise. Medications like Ozempic, Wegovy, and Mounjaro are transforming the world: helping control blood sugar and promote weight loss by slowing digestion and reducing appetite.
They work by mimicking the natural GLP-1 hormone: making users feel fuller for longer. That’s a big deal for the food industry: but what about beverages?
Here’s five ways GLP-1 drugs are affecting the industry.
1) Drop in soda sales
GLP-1 medications are changing consumer food demand. Households with at least one GLP-1 user reduce grocery spending by 5.3% within six months of adoption, with high-income households seeing spending down 8.2%, according to data from Cornell University and Numerator.
The largest reductions are in concentrated, calorie-dense, processed categories: notably a 10% decline in savory snacks.
But sugary drinks are also strongly affected: down around 7%.
So far, beverage giants have downplayed the effect of GLP-1 drugs on their portfolios: pointing to the work they’ve already done in building up low and no calorie options over the last couple of decades.
2) Drop in alcohol sales
GLP-1 users are drinking less alcohol. Morgan Stanley research has suggested that nearly a quarter of GLP-1 users stopped drinking alcohol completely.
“GLP-1s are the biological accelerant to an existing ‘sober curious’ moderation trend, that’s been driven by social shifts and cost of living challenges,” says Tom Ellis, CEO of innovation consultancy, Brand Genetics.
“GLP-1s now sound the death knell of the ‘volume growth’ model for mainstream alcohol: brands banking on session drinking are heading into a headwind that marketing alone cannot fix.”
It’s not, however, game over for alcohol. There are still promising opportunities for brands that focus on premium options and value quality over quantity.
3) Functional beverage boom
But it’s not all bad news. While soda and alcohol sales might be down, there are opportunities for other beverage categories.
With appetite suppressed, GLP-1 users need to be hyper-focused on ensuring that what they do eat and drink provides the right nutrition.
That opens up opportunities for functional and fortified beverages.
Protein drinks are a particularly key area: GLP-1 drugs can cause rapid weight loss, including the loss of muscle tissue (studies show that nearly 40% of weight loss on GLP-1s can be lean mass without proper nutritional support).
But it’s not just about protein. “The rise of GLP-1 adoption is accelerating consumer interest in drinks that offer satiety, balanced blood sugar, and nutrient density with digestive health as a core part of that value proposition,” said Ravi Jhala, VP of commercialization at US private label manufacturer, Fedup Foods, which focuses on functional and fermented beverages.
4) Growth in hydration and electrolyte drinks
GLP-1 medications can cause dehydration: so drinking lots of water (2-3 liters a day) is essential. That opens up opportunities for waters and flavored waters.
Hydration drinks, powdered hydration sticks and drinks with added electrolytes were already booming. Now, GLP-1 drugs are pushing more consumers to these categories.
“One of the most common side effects of GLP-1 regimens is dry mouths: and therefore you’re seeing a new surge in hydrating and refreshing beverages,” notes Ananda Roy, senior vice president and industry advisor, consumer goods, at Circana.
5) Smaller portions and fewer calories
The prime function of GLP-1 drugs is to reduce hunger and suppress appetite. That means that large portion sizes are now completely unappealing: and consumers are looking for compact, low calorie beverage formats.
Data from consumer analytics platform CivicScience shows that 33% of GLP-1 users say they are ordering smaller portions or sharing food; while 29% order fewer alcoholic drinks.
Reduced sugar content and fortifying drinks are way to win in this mini-but-mighty category.
Beverage giants had already been innovating with smaller soda formats to reduce calories (see for example 7.5oz mini cans from Coca-Cola, Sprite and Fanta): expect to see more miniature formats on shelves.
