Nestle is launching a range of foods tailored to people using weight-loss drugs, in a bid to capitalise on a market expected to reach $30 billion over the next six years.
Under the new Vital Pursuit brand, the global food giant plans to launch 12 products ranging from frozen protein pasta to sandwich melts and pizza, all packed with more protein and iron. Made with essential nutrients such as , vitamin A, and potassium. They are also “portion-sized to suit the appetite of weight-loss drug users,” the company said.
This is the first time the company, known for brands such as DiGiorno Pizza and Nesquik, has launched a food brand specifically aimed at glucagon-like peptide 1 (GLP-1) users.
GLP-1 agonists are a class of type 2 diabetes drugs that improve blood sugar control, but may also lead to weight loss. Semaglutide, the active ingredient in Novo Nordisk’s Wegovy and Ozempic, and tirzepatide, the active ingredient in Eli Lilly’s Mounjaro and Zepbound, are considered GLP-1 drugs.
Its popularity has skyrocketed in recent years as people tout the drug’s weight loss benefits. Meanwhile, food company executives are noticing that some shoppers’ habits are changing.
For example, Walmart US CEO John Furner said on the company’s earnings call in November that while it was too early to tell how this would impact customers and the business, the company was seeing “some category shifts.”
Before that, Furner acknowledged in an interview with Bloomberg that the company sees “a slight pullback across the basket.”
“Just fewer units and slightly fewer calories,” he said.
At the same time, Nestlé sees an opportunity to be at the “front line” of what it calls “growing market opportunities.”
Novo Nordisk told FOX Business earlier this month that at least 25,000 Americans are starting treatment with Wigoby each week, and that number is growing.
The Danish pharmaceutical giant, which has been ramping up production capacity to meet demand, said “four times as many” patients are starting the drug in the US now compared with December 2023.
According to the American Pharmacists Association, one in 60 adults will be prescribed a GLP-1 drug by 2023.
By 2030, the number of GLP-1 users in the United States could reach 30 million, or about 9% of the population, according to JPMorgan. The market is expected to exceed $100 billion by the same year, and is “equally driven by diabetes and obesity use,” the company noted.
“As the use of medicines to support weight loss continues to increase, we see an opportunity to serve these consumers,” said Nestlé North America CEO Steve Presley. “We leverage our deep understanding of consumers and nutritional science to stay ahead of trends shaping consumer behavior and innovate across our portfolio to deliver products people love.”
Nestlé said it plans to sell the product for less than $5, but prices may vary by retailer.
It is expected to be in stores in the fourth quarter of 2024.
