Here’s a breakdown of the data provided, focusing on the impact of GLP-1s on consumer purchasing habits:
Categories most Affected by Consumers Considering GLP-1s:
Toaster pastries: 11.4%
Protein bars: 11%
Snack/granola bars: 10.5%
Coffee: 10.2%
Lunch meat/cold cuts: 9.8%
Loose granola: 8.6%
Cold cereal: 8%
Carbonated soft drinks: 7.8%
Key Findings and Implications:
Future Risk: The report highlights that consumers considering GLP-1s,but not yet using them,represent a “further risk” to sales in these categories,along with the existing declines from current GLP-1 users.
Downsizing of Package Sizes: GLP-1 users are trading down to smaller package sizes across all eight categories. Coffee: Saw the biggest impact, with 39.6% of GLP-1 users buying smaller packs.
Soft drinks: Had the smallest impact, with 29.1% of GLP-1 users buying smaller packs.
Financial Implications: While not all downsizing is solely due to GLP-1 usage (financial implications are also at play), the behavior is meaningful enough to warrant attention.
Shift in Manufacturer Strategy: This trend is expected to motivate food manufacturers to reduce package sizes, reversing a long-standing trend of increasing volume for the same price.
* Assortment Reallocation: Retailers and manufacturers will likely need to diversify their product offerings by placing a greater emphasis on smaller sizes, rather than discontinuing larger packs entirely. This is described as an “assortment reallocation” driven by GLP-1 usage.
In essence, the widespread adoption and consideration of GLP-1 medications are influencing consumer purchasing behavior, leading to a preference for smaller package sizes and possibly impacting sales volumes in various food categories. This is prompting a strategic shift for food manufacturers and retailers.
