We see the ads everywhere: Ozempic. WeGovy. Rybelsus. Mounjaro. They are on our televisions. Filling up our social media feeds. In Super Bowl spots. Relative newcomers like Ro and Hers – low cost versions from the two telemedicine giants – are plastered on billboards and ads in the trains I take regularly in NYC.
Even South Park has featured them. In a recent episode titled, “The End of Obesity,” Kyle and the other South Park kids turned a garage into a compounding pharmacy to create an affordable version of semaglutide to meet the huge demand from the locals.
You know that something has become part of the zeitgeist when South Park pokes fun at it.
At last year’s ECRM Vitamin, Weight Management & Sports Nutrition Session, there was not one mention of GLP-1 in all of the conversations I had with buyers and sellers. At this past September’s Session, however, it was the main topic of conversation.
GLP-1’s impact on retail
The reason for all the buzz this past year is that this GLP-1 use is exploding, resulting in a noticeable impact on how consumers are shopping at retail. And while this impact hits all areas of the store, the vitamin and supplement category stands to benefit the most from it – aside from the pharma folks, of course.
“About 12 percent of U.S. households are using GLP-1 today,” says NIQ’s Yvonne Buisson, who gave a presentation on the topic during the Session. “That group consists of two key components: people who are taking GLP-1s to treat diabetes – which account for 65 percent of users, and those others who are using it for weight management.”
According to NIQ data, those using the drug to treat diabetes tend to skew a bit older, with lower incomes, while consumers using GLP-1s for weight management tend to be younger and have a higher level of income – not surprising as these users typically are not covered by insurance and GLP’1s are expensive. This increasing popularity of GLP-1s, along with the lower-cost options available from compounding pharmacies will drive tremendous growth in their use in the coming years, with NIQ expecting use to double by 2030.
Decreased appetites = less food purchases
While the decreased appetite of GLP-1 users means they are eating less, particularly when it comes to sweets and snacks, they are buying more products that help address some of the side effects of using the drugs, such as muscle loss, gastrointestinal problems, and skin issues.
“Initially, when users start on GLP-1s, there is some growth in volume and unit sales in stores,” says Buisson. “That is due to these consumers shifting away from dining out and purchasing food to eat at home. Over time, though, food purchases start to decrease due to suppression of the appetite. People who have been on this medication for seven months or more drive a decrease in overall sales. Those using GLP-1s for diabetes account for a 4 percent decrease, and those for weight management are driving a 14 percent decrease.”
Both groups are purchasing fewer items in the deli and bakery departments and avoiding cookies, crackers and salty snacks. However, within the snacks category, they are buying more products that have high protein, such as meat snacks, to address the side effect of muscle loss.
GLP-1 side effects driving growth in supplement sales
The opportunity created by GLP-1 use lies within the vitamin and supplement categories. “What retailers and brands can do to participate in this space fits into two categories,” says Don Leonard, Product Development Manager for Vitamin World, which has 58 stores in 18 states. “First, for those customers who don’t qualify for a prescription, don’t want to take it because of side effects, or can’t afford it, is to provide them with other natural ways in which they can achieve the weight loss experience. The other side of it is what can you provide for those using GLP-1s to help mitigate the side effects that they may experience.”
Indeed, potential side effects of GLP-1 use, which can include nausea, GI problems, nutrient deficiencies, skin issues and muscle loss are a big concern for consumers taking the medications. And consumers are doing their homework online to learn what they may be getting into.
“We have found that consumers are going a bit deeper in their research on GLP-1s,” says NIQ’s Ryan Harkey. “They are searching for what kind of natural alternatives are available that they might want to consider before getting prescribed a GLP-1. They are looking for what their diet would look like on GLP-1s, or how they impact the appetite. The biggest thing we’ve noticed is the amount of searches related to GLP-1 side effects.” (Click here to watch my interview with Harkey)
Opportunities for retailers and brands
The key opportunities for retailers and brands in the vitamin and supplement category are in the development, positioning, messaging and merchandising of products aimed at these two cohorts of weight management consumers around GLP-1s: those consumers who are taking GLP-1s and are seeking solutions that will address the potential side effects of the drugs, and those consumers who want to avoid GLP-1s but are seeking other non-pharmaceutical solutions for weight loss.
Solutions for consumers using GLP-1s
For retailers, making it easier for consumers in the first group to find these products is key. “We’re looking for clever ways to merchandise what we currently have in inventory to address these needs,” says Vitamin World’s Leonard. “We already have probiotics for gut health. We already have protein powders for muscle loss. What can we do in the short term to effectively position these products while the trend is hot? It’s a lot easier to do this digitally with segmented landing pages, but as a retailer with a brick and mortar presence, we’re looking to build a section specifically around GLP-1 solutions.”
Brands are helping too. Many are highlighting the fact that their products help with the side effects of GLP-1 use, and some are even going so far as to develop customized sets aimed at these consumers.
SoWell is a great example of this. The company has several supplements aimed at addressing these side effects, which are bundled in a shipper displays that merchandise the products together with messaging and supported with education for consumers and pharmacists.
“We have a hydrating electrolyte blend that is formulated with B6 for nausea,” says SoWell COO Peter McPartland. “We have a whey protein isolate and collagen blend that helps with skin elasticity and muscle loss. And then we have a triple-fiber blend to help with GI upset. All three are gut-healthy. You take your electrolytes in the morning, the protein mid-day and the fiber in the early evening.” (Click here to watch my video interview with McPartland)
Solutions for consumers NOT using GLP-1s
Not all consumers are keen on using GLP-1s, however, but the halo effect of the drug’s popularity has spurred interest in other non-pharmaceutical means of weight loss. Joe Geier, HBA Category for Nutrition Smart, which operates two natural grocery and vitamin stores in Pembroke Pines, Fla., says their shoppers are older, consumers who are very well educated about health from podcasts and social media.
“They are asking for products that are a natural answer to those types of prescription drugs, products that don’t have the side effects,” says Geier. “For example, one of their primary concerns is glucose control, so the berberine category has definitely seen an increase. One that has been a sleeper for us is sucontral, which is an A1c balancer backed by clinical studies. That’s been doing really well at our locations.”
Berberine is also doing well at Vitamin World, as are fat-burners, according to Leonard. “Products that can increase metabolism naturally are of interest,” he says. “They can help give them the weight loss experience without having to take GLP-1s.”
Weight management here to stay
One thing is clear. Whether it’s via GLP-1s, supplements or plain old healthy eating, the focus on weight management is stronger than ever. And with 40.3% of adults classified as obese, according to a CDC data, and an increased focus on metabolic health as a preventative measure for a variety of chronic illnesses, we can be sure that consumer interest in products that address weight management will have a healthy future.
Next year’s GLP-1, Weight Management, Nutrition, and Vitamin Session will be held February 11 to 13, 2025, and will have a heavy focus on education around GLP-1s and weight management. For more information and to register, click here.
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