OC&C Technique Consultants has launched a brand new perception into the affect of ‘weight reduction’ medication corresponding to Ozempic on the buyer items market, with potential ramifications for the native suppliers.
In response to a analysis survey performed by the US group of OC&C Technique Consultants, over 15 p.c of American adults are presently utilizing GLP-1 medicines corresponding to Ozempic and Wegovy or have executed so up to now, triggering important adjustments in dietary behaviour.
Crunching the numbers, the worldwide technique consulting agency analysts estimate that such shifts are already leading to an mixture discount of between 1 and a pair of p.c in total meals & beverage volumes, which might pose an issue for producers and retailers ought to GLP-1s achieve even additional traction.
And whereas OC&C’s Australian client & retail group – led by managing director Jeremy Barker and fellow co-founder Maurice Violani – are nonetheless at the moment analyzing the native market, many preliminary insights can nonetheless be drawn from the shocking US research, because the decline in consumption isn’t being felt evenly throughout all classes and demographics.
Supply: OC&C Technique Consultants
Notably, GLP-1 use, particularly amongst these taking the treatment for weight reduction functions moderately than to deal with diabetes, is highest among the many 35-55 age-bracket, with over 40 p.c of the general weight reduction section on family incomes of above $100,000. OC&C dubs these ‘super-users’, high-frequency, high-value consumers whose altered behaviour might trigger the best market disruption.
As a quick clarification courtesy of OC&C, GLP-1 medicines, which have demonstrated potential weight reduction by as a lot as 20 p.c inside twelve to eighteen months, scale back caloric consumption by mimicking satiety hormones, slowing gastric emptying, and – maybe most significantly right here – by modulating mind reward alerts associated to high-fat and high-sugar meals.
Psychological elements apart, respondents in earlier research have been discovered to have lowered their spending on chips and different savoury snacks and baked candy items by a mean of 10 p.c or extra six months into taking GLP-1, with the acquisition of frozen meals, tender drinks, chocolate, ice cream and pasta among the many class gadgets additionally considerably diminished.
Supply: OC&C Technique Consultants
Together with greater than quarter of GLP-1 customers testifying to consuming more healthy meals, different analysis findings of notice embrace virtually one third who say they’d diminished their portion sizes subsequent to adoption. In the meantime, an extra 23 p.c claimed to be eating out much less typically, notably for dinner, along with the 16 p.c who indulged in fewer late night time snacks.
Right here, OC&C quietly notes that over 100 million US adults are categorised as overweight, with altogether 70 p.c of the nation’s inhabitants deemed obese; ergo, the consultancy expects GLP-1 uptake to proceed rising because of the huge underlying demand, together with different elements such ongoing product growth which might dampen unwanted side effects and make the idea of a magic skinny capsule much more enticing.
Supply: OC&C Technique Consultants
Whereas the agency considers the affect on consumption to be reasonable thus far – a ‘structural headwind’ moderately than an outright ‘paradigm shift’ – the rising reputation of medication like Ozempic might have far-reaching implications throughout the meals & beverage business, from branded producers by to grocery shops and ‘fast service’ eating places.
Naturally, with disruption comes the potential to capitalise, and right here the OC&C report authors conclude; “For traders and executives, GLP-1s characterize a persistent headwind, not a brief blip. Nevertheless, in addition they sign a chance to reposition manufacturers, restructure portfolios, and innovate product choices aligned with evolving client wants.”
