GLP-1 Drugs Are Eating $12B Worth of Snack Sales, and Big Food Is Desperate For A Win

Ozempic isn’t just shrinking waistlines — it’s gutting Big Food’s bottom lines. GLP-1 drugs are altering eating habits, and EY-Parthenon estimates they could cut up to $12B from snacking sales over the next decade. Adoption is rising quickly, with use more than doubling in the past year and ~20% of US households now including at least one GLP-1 user, according to PwC.

• PwC data shows GLP-1 users consume about 40% fewer calories, with dessert intake down 84%, and grocery baskets shrinking by up to 9% for single-person households.
• To adapt to smaller appetites, PepsiCoPEP
  is rolling out its “Simply NKD” line, reformulating Lay’s and Gatorade, and testing mini-meal formats through its Sabra and Siete brands.

The appetite for change: Nearly three dozen non-healthcare companies mentioned GLP-1s this year, up from just five two years ago, per LSEG. Companies are rebranding themselves to reduce the impact — with General MillsGIS

planning a ~23% jump in capex, Kraft HeinzKHC

spending $600M to revive neglected brands, while Coca-ColaKO

ramps production of protein-infused Fairlife. As PwC’s Ali Furman puts it, “We’re just starting to scratch the surface on the ripple effects of this type of physiological disruption.”