The Rise of GLP-1 Drugs: Reshaping the Food and Beverage Landscape
In recent years, a pharmacological revolution has swept through healthcare and consumer lifestyles, propelled by glucagon-like peptide-1 (GLP-1) drugs. These medications, originally developed to manage type 2 diabetes, have exploded in popularity for their potent weight-loss effects. Brands like Ozempic (semaglutide), Wegovy, and Zepbound (tirzepatide) have become household names, endorsed by celebrities and amplified through social media platforms.
What began as a small segment has skyrocketed into a multi-billion-dollar market. According to Research and Markets, the global GLP-1 market is estimated to grow from US$62.2 billion in 2026 to US$157.5 billion by 2035, at a CAGR of 9.7% during the forecast period, till 2035. This surge has not just transformed the human body; it is altering how people eat and drink.
The implications are profound. As millions adopt these drugs, consumer appetites have shifted towards nutrient-dense, low-calorie options, while cravings for indulgent snacks, sugary beverages, and alcohol continue to record a decline. Industry giants like Nestlé, Danone, and Coca-Cola are fighting to adapt, launching functional products and reformulating classics.
With increasing GLP-1 adoption, sales in calorie-heavy categories are dipping, and overall spending on groceries among users has dropped by about 5-6% within months of starting treatment. This article explores the rise of GLP-1 drugs, their effects on consumer behavior, and the arising opportunities in food and beverage innovation.
From Diabetes Aid to Weight-Loss Phenomenon
GLP-1 drugs tend to imitate the natural hormone glucagon-like peptide-1, which regulates blood sugar, slows gastric emptying, and signals fullness to the brain. First approved in 2005 for diabetes, their shift to obesity management accelerated with Saxenda in 2014 and Wegovy in 2021.
Off-label use of Ozempic for weight loss skyrocketed driven by viral testimonials and a global obesity crisis. It is estimated that over one in five U.S. adults is obese, and 90% of diabetes cases are type 2. The market’s exponential growth is a clear reflection of their demand. In the U.S., prescriptions doubled in 2023 to over 5 million users and is forecast to reach 31.5 million (9% of the population) by 2035. Globally, the weight-loss supplement market hit US$33.14 billion in 2024, with a 14.17% CAGR projected through 2030.
Image 1: GLP-1 Agonists Weight Loss Drugs Market (2025 – 2030)
Euromonitor forecasts that patent expirations on semaglutide in 2026 will flood the market with generics, slashing costs and expanding access, potentially adding tens of millions of users worldwide.
Erik Fyrwald, CEO of IFF, noted in a report on GLP-1 innovation: “We aim to bring back the joy of eating and drinking by offering more healthy, great-tasting nutrition choices for all consumer segments, including GLP-1 users.”
Beyond weight loss, emerging research has revealed broader applications of GLP-1 drugs, including curbing addictions to alcohol, nicotine, and drugs. This versatility, combined with approvals for cardiovascular and sleep apnea benefits, is positioning GLP-1s as a superdrug class. However, side effects like nausea, constipation, and dehydration have shown to affect up to 85% of users, influencing dietary needs and creating opportunities for supportive products.
Rewiring Consumer Habits
With most users resulting to GLP-1 drug to aid in appetite suppression, users are showing dramatic behavioral changes. Users have reported reduction in caloric intake of up to 39%, with disinclinations to fatty foods, sweets, deli meats, coffee, alcohol, and sticky or dense textures. This has reulted to an increase in adoption rates, with U.S. users projected to reach 12-15 million by 2030, representing up to 35% of food and beverage sales.
A Cornell University study found that households with GLP-1 users cut grocery spending by 5.3% within six months, rising to 8.2% for high-income groups. Sugary drinks decline by 7%, savory snacks by 10%, and overall food consumption drops by around 30%. These shifts have extended to dining out with over 63% of users spending less on restaurants and takeout, and 33% opting for smaller portions or shared meals. Additionally, alcohol consumption is plummeting with nearly a quarter of users quitting drinking entirely, accelerating the sober curious movement.
Although proof of the impact of GLP-1 drugs on alcohol consumption is not definitive yet, investors are unwilling to wait much longer for more evidence. UK fund manager, Terry Smith, said in a recent annual shareholder letter that he had sold his stake in Diageo, maker of Guinness and Johnnie Walker whisky. He wrote: “[…] we suspect the entire drinks sector is in the early stages of being impacted negatively by weight-loss drugs. Indeed, it seems likely that the drugs will eventually be used to treat alcoholism, such is their effect on consumption”.
Data from Doon Insights reveals taht GLP-1 users consume 55% more fruits and vegetables, 65% fewer sugary drinks, and 62% less alcohol. As a result, caloric intake has dropped 21-39%, leading to a potential US$48 billion annual reduction in U.S. consumer spending by the end of the decade.
Seizing Opportunities in the GLP-1 Era
A user in a Morgan Stanley survey revealed that the drugs foster precision eating, prioritizing quality over quantity. This aligns with broader wellness trends. Users are increasing consumption of nutrient-dense options by 55% for fruits and vegetables, driving demand for avocados (up 198%), frozen fruit (145%), and non-alcoholic beverages (e.g., non-alcoholic wine up 1,158%).
The precision eating mindset is prioritizing protein, fiber, hydration, and gut health to combat side effects like muscle loss (up to 40% of weight shed), nausea, dehydration, and digestive issues.
For beverage manufacturers, these dynamics have unlocked significant opportunities in functional and companion products. The functional beverage segment is booming, with protein and meal replacement sales rising 11.1% to US$4.7 billion in 2024, and hydration-focused drinks surging to address dry mouth and increased water needs (2-3 liters daily).
Brands can innovate around satiety, blood sugar balance, digestive support, and sensory appeal, reformulating for lower sugar, added prebiotics/probiotics, and high-protein profiles. Smaller formats cater to reduced appetites, while “GLP-1-friendly” labeling appeals to health-conscious consumers without alienating non-users.
As PwC notes, companies with diversified portfolios in wellness can mitigate risks, viewing GLP-1s as a catalyst for long-term consumer relationships.
Beverage giants are already adapting with practical innovations. Coca-Cola is emphasizing its zero-sugar and low-calorie lines like Coke Zero and Sprite Zero, which align with reduced sugar cravings. The company has also introduced 7.5oz mini cans for portion control and launched prebiotic sodas to support gut health, capitalizing on the sober-curious movement and digestive side effects.
CEO James Quincey stated during a 2025 earnings call: “So far, our take is [GLP-1 drugs] aren’t a big aggregate factor for the beverage industry, but the firm is monitoring trends and innovating in hydration and functional spaces.”
Similarly, PepsiCo has categorized the effects of GLP-1 drugs as negligible. However, to cushion itself, the beverage giant is shifting focus to fiber and hydration solutions, including small-portion multipacks for snacks and beverages.
In 2025, the company acquired Poppi, a prebiotic soda brand, for nearly US$2 billion, and is launching prebiotic Pepsi variants to address gut health. CEO Ramon Laguarta highlighted in a 2025 interview: “We’re approaching it as an opportunity… with a sense of urgency to adapt the portfolio.”
On the other hand, Nestlé CEO Mark Schneider said it views the rise of GLP-1 drugs as an opportunity rather than a threat. Nestlé has identified a particular opportunity in serving the protein, vitamin and gut health needs of GLP-1 patients and is investing heavily in brands such as Boost, Vital Protein and Orgain. At the end of last year, it launched its Boost Pre-Meal Hunger Support protein drink aimed at individuals taking GLP-1 drugs or other weight-loss medications.
Looking Ahead
The rise of GLP-1 drugs marks a pivotal shift, challenging the food and beverage industry to evolve from volume-driven models to ones centered on nutrition. While sales in indulgent categories continue to lose momentum, the path forward lies in human-centered innovation seeking to restore joy in eating.
However, challenges like side effects, high costs, and potential demand slowdowns could moderate the growth of GLP-1 drugs. As a result, beverage manufacturers that accelerate wellness shifts through AI-driven concepts, pharma partnerships, and broad-appeal products, stand to thrive. Circana’s Sally Lyons Wyatt notes, users remain high value despite reduced spending, urging brands to align with evolving needs across weight-loss journeys.
