Snack manufacturers are reducing ingredients and packaging due to weight loss drugs

Global food and beverage companies are focusing on shorter ingredient lists and smaller packaging sizes in 2026 as more people take appetite-suppressing weight-loss drugs.

According to Reuters, dietary changes linked to the use of GLP-1 could mean a loss of up to $12 billion in snack sales over the next decade.

Use of GLP-1, an appetite-suppressing drug primarily used to treat diabetes and weight loss, has more than doubled in a year, and about 20% of U.S. households now have at least one such user.

Corporate spending

Capital spending is expected to rise for most major food companies this year, jumping as much as 23% for snack maker General Mills.

PepsiCo has launched a line called Simply NKD to reformulate its snack foods, and is rebranding products like Lay’s chips and Gatorade drinks to remove artificial colors.

Coca-Cola increased production to meet growing demand for its high-protein Fairlife milk late last year, and General Mills launched higher-protein Cheerios cereal in December 2024.

“We expect GLP-1 and other anti-obesity drugs to have a lasting impact on the food landscape, prompting some consumers to eat smaller portions and foods with higher nutrient content, such as protein and fiber,” said General Mills CEO Jeffrey Harmening.

Reduced consumption

Those taking GLP-1 consumed 40% fewer calories on average, according to a data analysis by PwC.

Dessert consumption has fallen by 84% and alcohol consumption by 33%, while fresh food consumption has increased by more than 70%.

Family grocery baskets have become 4-6% smaller, while single-person households have seen a decrease of up to 9%.

As reported earlier in February, global sugar prices fell to their lowest level in more than five years as weight loss drugs accelerate the decline in demand, forcing consumers to abandon sweets in favor of protein products.

Tags: agri-food