Unlocking Opportunities: Adapting food production to the rise of weight-loss medications

According to a recent study published in the Lancet, over 1 billion people worldwide struggle with obesity. This makes it the most common form of malnutrition. In Canada, about one in four adults, around 26.6 per cent, live with obesity. So, it’s not surprising that the global market for weight-loss drugs like Ozempic is booming and expected to reach $100B by 2035. These medicines are known to reduce food cravings. An early study by Numerator in the U.S. found that consumers using glucagon-like peptide 1 (GLP-1) medicines for weight-loss were spending less on packaged bakery, snacks, prepared foods, and beans & grains.

Are we seeing the end of growth as we know it or is there an opportunity for F&B manufacturers? This question was the focus of our recently concluded webinar on “The Ozempic Effect.”

Moderated by Food in Canada’s editor, Nithya Caleb, webinar attendees heard from industry experts such as Jo-Ann McArthur, president and founding partner, Nourish Food Marketing; Ricky Silver, CEO, Daily Harvest; and Jane Dummer, RD, food consultant.

Speakers

Jo-Ann McArthur, President and Founding Partner, Nourish Food Marketing

Jo-Ann spent her first career client-side, successfully connecting brands with consumers and retailers at Procter & Gamble, Unilever, and Cadillac Fairview. As a divisional president of Molson Coors, and a member of its North America Management Board, she led the charge to sell more beer more profitably.

Now leading the agency she co-founded, Jo-Ann continues to build powerful strategies for food and beverage products in Canada, the U.S., and Europe. She works hands-on with the Nourish Team, guiding the creation of marketing plans that move products off shelves, into consumers’ shopping baskets, and, perhaps most importantly, into their hearts.

Ricky Silver, CEO, Daily Harvest

Ricky Silver is the CEO of Daily Harvest, the company on a mission to improve human and planetary health by making it convenient to eat more sustainably grown, organic fruits and vegetables every day. Previously, Ricky was Daily Harvest’s president and chief supply chain officer, managing teams and work streams spanning new product development, food safety and quality, sourcing, manufacturing and fulfillment operations. Prior to joining Daily Harvest, Ricky was the director of innovation at Vita Coco, the global leader in ready-to-drink coconut water where he led the development of the brand’s portfolio diversification into new categories including coconut milk, coconut oil, sparkling waters and more. Ricky started his career at PepsiCo where he leveraged his chemistry and food science backgrounds to manage multiple R&D platforms across the business. Ricky received his MBA from New York University’s Stern School of Business and his master’s in chemistry from NYU. His passion for food stems from his years as a personal chef in Manhattan.

Jane Dummer, RD, Food Consultant

With over 60 successful projects, Jane Dummer, RD, and her team partner with North American food and beverage companies in the agriculture, nutrition and health sectors to build creative solutions that deliver results. As an industry thought leader, author and writer, Jane is a frequent speaker, guest and commentator with over 250 insightful presentations, interviews, podcasts, articles and blogs.

Webinar Summary

Nithya kicked off the webinar with a check in with Jo-Ann about the 2024 Nourish Trend Report, which spoke about the end of growth because of overall population decline as well as the Ozempic effect.

Jo-Ann explained that in the near future, we’re going to hit peak population because of a number of reasons. Further, there’s a shift in how we view obesity. It is now seen as a chronic condition that can be treated with drugs. This is going to change the way people think about food. Up to 64 per cent of people in Canada are either overweight or obese, so most of the population is consuming too many calories.

“We think that with increased availability of these drugs, total calorie consumption will start to go [down]. F&B manufacturers need to at least have it on their radar and do some scenario planning. I’ve been in this business long enough to remember when gluten-free first started and everybody talked about that being a fad. But it’s here to stay, and I think it could be the same thing here,” she added.

Food consumption trends

Ricky said convenience really matters for consumers. For a long time, the industry worked on developing foods that were easier and more convenient to consume. He believes people are connecting the dots between their medical realities and the foods they eat. They want something that’s objectively good for them. He felt there will be overall growth, but it’ll come in different ways.

If you’re not offering convenience and not connecting back to how consumers feel after eating your food, them it’s going be harder to win in this industry, he warned.

From a wellness perspective, Jane highlighted consumers desire for better-for-you products as well as nutrient-dense foods, especially snacks that are convenient, delicious, and affordable.

Jo-Ann said consumers are looking for foods that have a second function or offer a little bit more for them. For instance, Annie’s has launched Super Mac products with additional protein.

Companion meals

Ricky’s company Daily Harvest offers ready-to-eat chef-crafted meals with organic fruits and vegetables. They cater to a range of nutritional needs. Recently, they launched a series of companion meals for GLP-1 medication users. Since these medicines suppress cravings, Daily Harvest’s meals tend to be high in fibre, low in saturated fat, free of cholesterol, and have no added sugars.

Impact on food consumption

A registered dietitian, Jane offered a holistic picture of how these medicines work and their impact on food consumption. While originally designed for diabetes, we’re seeing people use GLP-1 medicines for weight-loss. These medicines actually mimic the GLP-1 hormone that’s naturally secreted in our bodies to help release insulin and suppress hunger. She added in her 30-years as an RD, she hasn’t seen such an effective drug for weight loss.

“If the medicine is working, people will be consuming less. They’ll be craving less [food] as their stomachs will be emptying at a slower pace,” she said.

Jo-Ann urged people to be more mindful of what they’re consuming, as they’re eating less. You’ve got to make sure “every one of those calories does almost double duty” as well as getting rid of empty calories such as sugary or alcoholic beverages.

Concerns

Jo-Ann mentioned there’s a role for manufacturers to play not only when consumers are having GLP-1 medicines, but also during the pre- and post- medicine use phases. In her view, people may use these drugs occasionally to get their weight within recommended limits.

Jane stressed that obesity is a chronic disease that has many factors. It’s not just related to food consumption or lack of exercises. It’s related to genetics, your biological sex as well as age. Further, food cravings can change at different life cycles, so manufacturers need to be aware of this class of drugs.

Product innovations

The focus must be on “palatable, nutrient-dense foods that people can afford,” said Jane. Manufacturers should consider offering hi-protein products with a good mix of amino acids to counteract muscle waste due to rapid loss of weight with these medicines, she recommended.

Jo-Ann spoke about creating foods with a function especially protein-rich products to preserve/increase muscle mass. She also felt portion sizes are going to be important. Hence, there’s an opportunity for frozen foods because you can offer portion-controlled meals in that format.

“Food is also about joy. So how do you preserve the joy in eating? There’s this tiny treat culture, which we first saw in Tik Tok. How can you serve up those tiny treats that still bring the joy in food because eating should not be a chore,” she stressed.

“Certainly brands and manufacturers should look at it as an opportunity. Not as an endpoint to something, but rather as a new opportunity to support consumers in a different way,” added Ricky.

This webinar series on “Trends and Innovations in Food” is sponsored by BioMérieux.

The next webinar is on “AI’s Role in F&B Processing,” which will be held on Thursday, April 11, 1-2 pm ET. The final session will be on “The Next Wave of Food Packaging: Are You Ready?” This will be on Thursday, May 2, 1-2 pm ET. Registrations are ongoing. For more information and to register, click here.