Dairy Industry Adapts to Rising Trend of GLP-1 Medication Use
According to Circana, a market intelligence company, 56% of individuals using GLP-1 medications – drugs primarily prescribed to manage type-2 diabetes – are doing so for weight loss. This number is projected to rise as the medication becomes more affordable and widely covered by insurance.
Research by Morgan Stanley suggests that by 2035, 7% of the US population will be using GLP-1s. This trend is already having notable effects on consumer behavior, particularly concerning diet and food choices. A survey conducted by Circana in 2024 highlights the shift, with 59% of respondents drinking more still water, 66% consuming less soda and alcohol, and 38% increasing their intake of protein beverages. A significant 93% reported reducing portion sizes.
A surprising category that remains largely unaffected by these changes is dairy. The survey found that 57% of users are consuming the same amount of dairy, with 28% eating less and 15% consuming more. This suggests that dairy products, especially those with functional benefits such as yogurt, are well-positioned to support consumers on their GLP-1 journey.
Sally Lyons Wyatt, Global EVP & Chief Advisor Consumer Goods & Foodservice Insights at Circana, emphasizes the importance of educating consumers about the benefits of dairy products. "The opportunity is to educate consumers about the range of benefits across the dairy ‘doors’," Wyatt notes. Strategies such as social media campaigns, improved packaging, and targeted promotions can help in this regard.
For the high-protein category, which is crucial for GLP-1 users seeking more protein intake, there are still gaps. Offering higher grams of protein and communicating these benefits clearly can elevate the segment further.
As GLP-1 users' spending patterns evolve, with an initial decrease in food and beverage spending in the first three months before returning to baseline within a year, dairy brands have a window of opportunity to adapt and innovate. Wyatt advises examining product portfolios to ensure they meet new consumer habits, such as improving offerings in deli and refrigerated sections.
However, there are challenges. Some consumers are not fond of the taste or texture of products like kefir and cottage cheese, suggesting a need for innovation to enhance appeal and functionality. Nevertheless, the functional benefits of these dairy staples, like fermentation and high protein content, position them well for success as the market adapts to the increasing use of GLP-1 medications.
