Is Ozempic leading food companies to consider healthier alternatives?
It seems the tables may be turning when it comes to consumer choices, as the very same companies responsible for the obesity epidemic are now considering better options.
Sorry to my readers. I haven’t found a proper balance for my full work week and research, and unfortunately I haven’t had time to put things together. There have been a few things that I have worked on, and hopefully I can get something out before Halloween. But in the meantime I will try to work on these smaller pieces and provide some commentary on some of the things that are going on.
There’s a lot to be concerned about when it comes to this new age of weight-loss medications. It’s just another symptom of a growing trend in medicalizing every aspect of our lives.
That being said, the increasing prevalence of these medications appears to be causing a stir-up for food manufacturers. Along with the use of these medications appears to come with changes in consumer options, with people appearing to choose less processed, healthier alternatives while on these medications, which also appears to be affecting the likes of large retailer stores and the food industry.
Within the past few days several articles have come out detailing how companies are eyeing this new change in consumer behaviors, as these medications are leading to a decline in sugar consumption as well as the overall consumption of processed foods, as noted in an article from Newsweek:
Morgan Stanley's analyst Michelle Weaver highlights that individuals on these medications are observing a 10 to 20 percent decline in body weight alongside a noticeable dip in appetite, leading to a meaningful reduction in calorie consumption of 20 to 30 percent. It's a narrative echoed across the board, with individuals reporting lesser cravings for high-calorie, high-fat, and sugary foods.
Weaver said the ripple effect of the dietary shift is apparent in various market sectors. In the packaged food industry, companies need to brace for potential headwinds as consumers cut back on sugary drinks, baked goods, and salty snacks. Fast food restaurants, known for their high-calorie offerings, are perceived to be at risk. However, fast casual brands with healthier offerings and restaurants with flexible menu options could stand to benefit.
On the flip side, some executives are saying the data already proves that the drugs are having an effect on consumer behavior. Recently, Walmart's U.S. CEO, John Furner, told Bloomberg that the company is beginning to notice a trend among customers taking Ozempic—they are buying less food. By mining its own pharmacy and grocery data, Walmart pinpointed customer buying patterns specific to this demographic.
It’s a bit concerning to think about how retailers are collecting information on people in order to even be able to make such an analysis…
And not only does this effect seem to be occurring with retailers, but restaurants are even noticing a change in consumer behaviors as well.
Granted, all of this may be associated in some degree to inflation and increasing prices across the board, although retailers may be taking into account these factors when considering their analysis.
But what’s interesting is that companies seem to be using this new era to consider offering healthier alternatives- ones that GLP-1 RA users may consider more appealing, as noted in an article from CBS News:
"The food, beverage and restaurant industries could see softer demand, particularly for unhealthier foods and high-fat, sweet and salty options," Morgan Stanley tobacco and packaged food analyst Pamela Kaufman said in the report on the impact of obesity medications on consumer demand and the food ecosystem.
Given the newness of the drugs, any impact on consumer spending will likely be minimal in the immediate-to-near future, according to the report.
"We acknowledge that the impact in the near term is likely to be limited given drug adoption will grow gradually over time, but we could see a longer-term impact as drug prevalence increases," Kaufman said in a note. "Moreover, we expect companies to adapt to changes in consumer behavior through innovation and portfolio reshaping efforts."
I guess it’s true that companies will try to follow whatever trend is becoming more popular.
At the same time, all of this appears rather baffling, and rather hypocritical. For the most part, a large chunk of the blame in regards to the obesity epidemic, as well as the prevalence of overall disease in the world lie at the food of many of these food manufacturers which pump foods full of additives, flavorings, sugar and fat, all in an attempt to get us to eat more of what they offer.
It’s the food companies themselves that are causing much of modern day’s maladies, and it’s even more telling that the people taking these medications are now foregoing the very same foods that likely put them in the position to seek out these drugs in the first place.
But for many of these companies to now consider better, healthier alternatives is a slap in the face to consumers, since it at least suggests that these companies are capable of researching and designing healthier food items. So rather than follow the trend of healthier, better eating-something we should be doing in the first place, why does it take a supposed “miracle weight-loss drug” for companies to consider pivoting towards alternative options?
It’s rather telling that several articles have also come out asking whether people should sell their PepsiCo stocks, as well as other stocks related to the food industry. In contrast, the CBS News article mentions the possibility of increased use of gyms and fitness centers in the near future, likely correlating with increased use of GLP-1 RAs. Maybe people should invest in Gold’s Gym or Planet Fitness instead in the coming years…
I don’t know about anyone else, but I find this entire situation to be completely ironic. We have been forced poor dietary choices and options for many years, likely influencing the obesity epidemic as well as all of the other issues of cancer, diabetes, and heart disease that are now commonplace. We are now given wonder drugs which are supposed to help us lose weight caused by poor eating, and now in response those same companies who have made these foods may now be offering items that we probably should be eating in the first place (not too sure on this one as I have no idea what alternatives are being concocted).
I guess it goes to show that these industries are far more closely associated than we normally think about, and more importantly they have a far greater impact on public health.
Rather than take a miracle weight-loss drug, and rather than invest in healthier alternatives offered by the same corporations that have caused so much ill health, it may be better to just take our health into our own hands and forego all of these industries altogether.
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Just a data point. Eating "unprocessed" and "only healthy" foods is NOT a guarantee of normal weight.
I am overweight (not obese), dieting for the last 20 years, and I know that if I did not limit how much I eat, I would weigh double my current weight just by eating as much of "healthy" and unprocessed foods.
I spent 8 years on low carb. Now I eat carbs, but not a lot.
I have not eaten junk food (candy, soda, cakes etc) in many years.
I am also pre-diabetic.
"It's the economy." Just as times past, snack foods weren't/aren't found in the house. In addition, the price of a semaglutide reduces other discretionary spending which will reverse when the Med is disconnected and appetites return. Eating correctly requires knowledge, discipline and adequate funds.