May 23, 2025 • 8 mins
Hundreds of thousands of people around the world are now on weight loss drugs like Wegovy, known as GLP-1s. The food industry is taking notice too, with big companies leaning into more nutritional products to complement the effects of the drug. Deirdre Hipwell, who leads Bloomberg's team covering healthcare and consumer companies in Europe, joins Stephen Carroll to discuss.
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. I'm Stephen Carroll and
this is Here's Why, where we take one new story
and explain it in just a few minutes with our
experts here at Bloomberg.
Speaker 2 (00:19):
After decades of research, basically over finds the molecules that
changes everything in terms of weight loss drugs.
Speaker 1 (00:26):
The potential size of this market is massive.
Speaker 2 (00:29):
Right in the obesity and diabetes market. One of the
most transformative drugs on the market today are anti obesity drugs.
Speaker 1 (00:35):
They're game changers for those who take them, and they're
earning millions of dollars for pharmaceutical companies. The demand for
obesity drugs like ozepic and zep bound, collectively known as
GLP one, has skyrocketed. A study published in May twenty
twenty four found one in eight American adults had tried them.
As that's likely to rise. Food companies have been taking
notice of shifting eating habits and making changes too. It's
(00:59):
actually helping business, but in sort of surprising ways, this
side economy has sort of formed alongside the drugs. So
when you are under GP one medication, what you need
is high quality protein. The high pautein low FETL sugar
is flying off the shed. They've gone into Hummus space,
peda chips, and also low calorie and diet sodas. They've
(01:22):
been introducing a lot of low calorie, low sugar products.
So here's why obesity drugs are changing the food we buy.
Theatre Hipwell, who leads our team covering consumer and healthcare companies,
joins me. Now for more, theator, you're perfectly placed to
tell us about the two sides of this story. First
of all, how widespread is the use of GLP one drugs?
Speaker 2 (01:44):
Well, certainly in the US, we're talking about hundreds of
thousands of people. I mean, it's quite hard to give
an exact number because more and more people are taking
it in prescription rates are just on the rise. So
it is a very big market in the US. But
even in places Europe where the drugs are starting to
be rolled out, that's you know, we go via Zempeg
(02:04):
Manjaro as Eli Lilly's drug is known in Europe are
rolling out. So you know, I think in a few
years time we could be talking about millions of people,
but for now we're in the hundreds and thousands.
Speaker 1 (02:17):
Erritry and those names evolving as well as you point
out more of them to add to the list. What
effect do these drugs have on people's eating habits.
Speaker 2 (02:26):
It's pretty dramatic. I mean a lot of people talk
about just the removal of food noise. So for some
people they just completely lose their appetite to the point
where they actually have to force themselves to eat. People
are eating smaller portions, They're eating foods that previously may
not have appealed to them. People are eating less high
calorie foods. People even report struggling to drink water sometimes
(02:50):
because the way these drugs work is they slow down
the movement of the food through the system and they
reduce your appetite, so you just have a feeling of
continual fullness, and so sometimes that can actually be quite
difficult to eat or even drink. And people talk about
changing taste, for some people saying that they no longer
like the taste of alcohol, so this is really pretty dramatic. Also,
(03:11):
these drugs have some quite unpleasant gastro intestinal side effects,
including nausea, constipation, diarrhea, which, of course, if you're feeling
those effects, will further reduce your desire to eat. So
that's why we're seeing such dramatic weight loss.
Speaker 1 (03:24):
Now, food companies have been reacting to this as well,
some of them announcing some of the changes that they've made.
What are they doing?
Speaker 2 (03:32):
If we go right back to twenty twenty three, when
these drugs were really entering the public consciousness, Walmart kind
of freaked everyone out a bit when they said that
they could already see reduced demand for food from their data, because,
of course Walmart has a pharmacy line, so they were
able to see that people on these drugs were making
different shopping choices and were buying less. Since then, there's
(03:56):
been this talk that this is going to affect food companies.
Of course it will, and they're all aware of it
and they're all talking about it. One thing I would
say a slight caveat is to be honest, consumer groups
have faced a lot of challenges in the last few years, inflation,
returning inflation in some markets, tariffs now dipping consumer sentiments.
So it's quite hard to necessarily pin this entirely on
(04:19):
GLP one drugs, but it's certainly something that they have
to think about, and some see it as an opportunity.
We have some companies who think that they have products
that could cater to people on these drugs.
Speaker 1 (04:31):
What sort of products are we talking about what I
suppose would be of interest to somebody who's taking one
of these drugs.
Speaker 2 (04:35):
Well, for example, if we look at Nesle, the world's
biggest food company, they have some products and supplements that
they think help with areas such as muscle loss, which
is a problem for people on these drugs. You don't
only lose fat, you can lose muscle too, So they
have a product it's like a boost product that you
take before a meal and it'll help increase apparently the
(04:56):
absorption of proteins in the food. They also have some
high protein ten lines. Then you have the French group
dan On, which makes probiotic yogurts, which obviously they are
marketing as will help with the gastro side effects. So
there's a lot of companies that are talking about their
products and how they could help people who are facing
(05:16):
quite significant changes to what they like and what they
like to eat, because people's tastes are changing on these drugs.
Speaker 1 (05:23):
And are they preparing for this trend then to accelerate
we're talking about the increased development of these drugs. There
are more brands coming on the market as well. Is
it something that I suppose is going to be a
gearshift down the line.
Speaker 2 (05:33):
It's definitely something that that's only going to accelerate. Like,
these drugs aren't going to go away. There's going to
be more and more people taking them in Europe and
in other markets. Plus, the market is getting bigger in
terms of the drugs available. It's no longer just a
race between Novo Ordis, the maker of we Govi, and
Eli Lilly, the maker of zip Bound. We have more
companies coming with more products, and that will make it
(05:56):
easier for people to get onto these drugs. So I
think it's definitely a trend. They're going to have to
think about what.
Speaker 1 (06:02):
Are the next key changes that we're watching for in
this sector.
Speaker 2 (06:06):
Moving slightly aside from the drugs, the biggest change in
the sector, particularly in the US, is probably going to
be the impact of RFK, you know, and his Make
America Healthy Again, because in the short term that might
be more of an immediate challenge for food companies because
he wants to move away from ultra processed food manufacturing.
He wants less use of colorant and seed oils and
(06:31):
high fructose syrup. So those companies are facing an immediate
challenge there because he's going to be probably pushing for
some quite significant changes, Whereas what's happening with the GLP
on drugs is significant, but I think it could still
take some time before it's really starting to affect the
bottom line of these companies, because I mean these are
companies with like tens of billions of revenue, and as
(06:54):
I said at the start, you know, we still only
have hundreds of thousands of people on this drug. There's
still a pretty big addressable market for for the food companies,
but it's just one more thing that they have to
think about.
Speaker 1 (07:04):
And what we're thinking about the development of the GLP
one drugs as well, the next generation of these drugs
is a lot to talk about. The pill form of
these versus an injection that they are currently. Is that
seen as another big game change or a shift coming
down the line?
Speaker 2 (07:17):
Definitely, I think the obesity pill will be a big,
big shift in the market. For the first reason is
easier to take. I mean, at the moment, these drugs
aren't necessarily pleasant to take right you're having to inject
yourself weekly, whereas a pill, you know, it's something you
could take with your your morning breakfast. It's easier to take.
But there's also a growing view that the pill format
(07:39):
has fewer side effects, which I think is a big
factor because the one other point to mention on these
these drugs are transforming the way we eat and the
way we treat obesity, but there is for some people,
there can be quite a high drop off rate from
these drugs because it's so unpleasant to be on them.
So I think that's why the moment, I I still
(08:00):
think food companies are in a kind of wait and
see before they make any dramatic shifts, because these drugs
are still relatively new phenomenon. I mean, it's really only
been in the last two or three years, So I
think in the coming years we'll see exactly how many
people are staying on these drugs and if these shifts
that the companies are seeing now are permanent. But definitely,
if I was a food company CEO and the obesity
(08:22):
drugs keep coming out with easier to take and to
handle drugs, I'd be a bit worried.
Speaker 1 (08:27):
Deeter here, well, thank you for bringing us your expertise
on the consumer and healthcare sectors. For more explanations like
this from our team of three thousand journalists and analysts
around the world, go to Bloomberg dot com slash explainers.
I'm Stephen Carroll. This is here's why. I'll be back
next week with more. Thanks for listening.
Bloomberg Audio Studios, podcasts, radio news. I'm Stephen Carroll and
this is Here's Why, where we take one new story
and explain it in just a few minutes with our
experts here at Bloomberg.
Speaker 2 (00:19):
After decades of research, basically over finds the molecules that
changes everything in terms of weight loss drugs.
Speaker 1 (00:26):
The potential size of this market is massive.
Speaker 2 (00:29):
Right in the obesity and diabetes market. One of the
most transformative drugs on the market today are anti obesity drugs.
Speaker 1 (00:35):
They're game changers for those who take them, and they're
earning millions of dollars for pharmaceutical companies. The demand for
obesity drugs like ozepic and zep bound, collectively known as
GLP one, has skyrocketed. A study published in May twenty
twenty four found one in eight American adults had tried them.
As that's likely to rise. Food companies have been taking
notice of shifting eating habits and making changes too. It's
(00:59):
actually helping business, but in sort of surprising ways, this
side economy has sort of formed alongside the drugs. So
when you are under GP one medication, what you need
is high quality protein. The high pautein low FETL sugar
is flying off the shed. They've gone into Hummus space,
peda chips, and also low calorie and diet sodas. They've
(01:22):
been introducing a lot of low calorie, low sugar products.
So here's why obesity drugs are changing the food we buy.
Theatre Hipwell, who leads our team covering consumer and healthcare companies,
joins me. Now for more, theator, you're perfectly placed to
tell us about the two sides of this story. First
of all, how widespread is the use of GLP one drugs?
Speaker 2 (01:44):
Well, certainly in the US, we're talking about hundreds of
thousands of people. I mean, it's quite hard to give
an exact number because more and more people are taking
it in prescription rates are just on the rise. So
it is a very big market in the US. But
even in places Europe where the drugs are starting to
be rolled out, that's you know, we go via Zempeg
(02:04):
Manjaro as Eli Lilly's drug is known in Europe are
rolling out. So you know, I think in a few
years time we could be talking about millions of people,
but for now we're in the hundreds and thousands.
Speaker 1 (02:17):
Erritry and those names evolving as well as you point
out more of them to add to the list. What
effect do these drugs have on people's eating habits.
Speaker 2 (02:26):
It's pretty dramatic. I mean a lot of people talk
about just the removal of food noise. So for some
people they just completely lose their appetite to the point
where they actually have to force themselves to eat. People
are eating smaller portions, They're eating foods that previously may
not have appealed to them. People are eating less high
calorie foods. People even report struggling to drink water sometimes
(02:50):
because the way these drugs work is they slow down
the movement of the food through the system and they
reduce your appetite, so you just have a feeling of
continual fullness, and so sometimes that can actually be quite
difficult to eat or even drink. And people talk about
changing taste, for some people saying that they no longer
like the taste of alcohol, so this is really pretty dramatic. Also,
(03:11):
these drugs have some quite unpleasant gastro intestinal side effects,
including nausea, constipation, diarrhea, which, of course, if you're feeling
those effects, will further reduce your desire to eat. So
that's why we're seeing such dramatic weight loss.
Speaker 1 (03:24):
Now, food companies have been reacting to this as well,
some of them announcing some of the changes that they've made.
What are they doing?
Speaker 2 (03:32):
If we go right back to twenty twenty three, when
these drugs were really entering the public consciousness, Walmart kind
of freaked everyone out a bit when they said that
they could already see reduced demand for food from their data, because,
of course Walmart has a pharmacy line, so they were
able to see that people on these drugs were making
different shopping choices and were buying less. Since then, there's
(03:56):
been this talk that this is going to affect food companies.
Of course it will, and they're all aware of it
and they're all talking about it. One thing I would
say a slight caveat is to be honest, consumer groups
have faced a lot of challenges in the last few years, inflation,
returning inflation in some markets, tariffs now dipping consumer sentiments.
So it's quite hard to necessarily pin this entirely on
(04:19):
GLP one drugs, but it's certainly something that they have
to think about, and some see it as an opportunity.
We have some companies who think that they have products
that could cater to people on these drugs.
Speaker 1 (04:31):
What sort of products are we talking about what I
suppose would be of interest to somebody who's taking one
of these drugs.
Speaker 2 (04:35):
Well, for example, if we look at Nesle, the world's
biggest food company, they have some products and supplements that
they think help with areas such as muscle loss, which
is a problem for people on these drugs. You don't
only lose fat, you can lose muscle too, So they
have a product it's like a boost product that you
take before a meal and it'll help increase apparently the
(04:56):
absorption of proteins in the food. They also have some
high protein ten lines. Then you have the French group
dan On, which makes probiotic yogurts, which obviously they are
marketing as will help with the gastro side effects. So
there's a lot of companies that are talking about their
products and how they could help people who are facing
(05:16):
quite significant changes to what they like and what they
like to eat, because people's tastes are changing on these drugs.
Speaker 1 (05:23):
And are they preparing for this trend then to accelerate
we're talking about the increased development of these drugs. There
are more brands coming on the market as well. Is
it something that I suppose is going to be a
gearshift down the line.
Speaker 2 (05:33):
It's definitely something that that's only going to accelerate. Like,
these drugs aren't going to go away. There's going to
be more and more people taking them in Europe and
in other markets. Plus, the market is getting bigger in
terms of the drugs available. It's no longer just a
race between Novo Ordis, the maker of we Govi, and
Eli Lilly, the maker of zip Bound. We have more
companies coming with more products, and that will make it
(05:56):
easier for people to get onto these drugs. So I
think it's definitely a trend. They're going to have to
think about what.
Speaker 1 (06:02):
Are the next key changes that we're watching for in
this sector.
Speaker 2 (06:06):
Moving slightly aside from the drugs, the biggest change in
the sector, particularly in the US, is probably going to
be the impact of RFK, you know, and his Make
America Healthy Again, because in the short term that might
be more of an immediate challenge for food companies because
he wants to move away from ultra processed food manufacturing.
He wants less use of colorant and seed oils and
(06:31):
high fructose syrup. So those companies are facing an immediate
challenge there because he's going to be probably pushing for
some quite significant changes, Whereas what's happening with the GLP
on drugs is significant, but I think it could still
take some time before it's really starting to affect the
bottom line of these companies, because I mean these are
companies with like tens of billions of revenue, and as
(06:54):
I said at the start, you know, we still only
have hundreds of thousands of people on this drug. There's
still a pretty big addressable market for for the food companies,
but it's just one more thing that they have to
think about.
Speaker 1 (07:04):
And what we're thinking about the development of the GLP
one drugs as well, the next generation of these drugs
is a lot to talk about. The pill form of
these versus an injection that they are currently. Is that
seen as another big game change or a shift coming
down the line?
Speaker 2 (07:17):
Definitely, I think the obesity pill will be a big,
big shift in the market. For the first reason is
easier to take. I mean, at the moment, these drugs
aren't necessarily pleasant to take right you're having to inject
yourself weekly, whereas a pill, you know, it's something you
could take with your your morning breakfast. It's easier to take.
But there's also a growing view that the pill format
(07:39):
has fewer side effects, which I think is a big
factor because the one other point to mention on these
these drugs are transforming the way we eat and the
way we treat obesity, but there is for some people,
there can be quite a high drop off rate from
these drugs because it's so unpleasant to be on them.
So I think that's why the moment, I I still
(08:00):
think food companies are in a kind of wait and
see before they make any dramatic shifts, because these drugs
are still relatively new phenomenon. I mean, it's really only
been in the last two or three years, So I
think in the coming years we'll see exactly how many
people are staying on these drugs and if these shifts
that the companies are seeing now are permanent. But definitely,
if I was a food company CEO and the obesity
(08:22):
drugs keep coming out with easier to take and to
handle drugs, I'd be a bit worried.
Speaker 1 (08:27):
Deeter here, well, thank you for bringing us your expertise
on the consumer and healthcare sectors. For more explanations like
this from our team of three thousand journalists and analysts
around the world, go to Bloomberg dot com slash explainers.
I'm Stephen Carroll. This is here's why. I'll be back
next week with more. Thanks for listening.
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