The rising use of GLP-1 medications for weight loss is influencing consumer behaviors, with notable implications for the dairy industry. Dairy companies must adapt to new dietary trends as consumer preferences shift.
The growing use of GLP-1 medications, primarily prescribed for type-2 diabetes management, is having a profound impact on consumer behavior, especially concerning food and beverage choices. According to market intelligence company Circana, 56% of individuals using these medications are doing so for weight loss, with projections suggesting that by 2035, 7% of the U.S. population will be using GLP-1s.
This shift in medication use is reshaping consumer habits, particularly in the areas of diet and food preferences. A 2024 survey by Circana revealed that many individuals are drinking more still water, consuming fewer sugary beverages, and increasing their protein intake. However, one category that has remained relatively stable is dairy. The survey found that 57% of GLP-1 users are consuming the same amount of dairy, with 28% consuming less and 15% consuming more. This trend suggests that dairy products, especially those with functional benefits, continue to be a vital part of consumers’ diets, even as they adapt to new weight management approaches.
Key Opportunities for Dairy Products
Sally Lyons Wyatt, Global EVP & Chief Advisor for Consumer Goods & Foodservice Insights at Circana, emphasized the importance of educating consumers on the broad benefits of dairy products. She suggests that social media campaigns, improved packaging, and targeted promotions could be effective in conveying these benefits to GLP-1 users. Moreover, there is an opportunity to focus on high-protein dairy products, as these are particularly relevant to those on GLP-1 medications who are seeking to increase their protein intake.
While many dairy products have retained their popularity, challenges remain in certain categories. Products such as kefir and cottage cheese are not favored by all consumers due to taste or texture concerns. Therefore, innovation in product development is essential to enhance the appeal and functionality of these dairy staples.
As spending patterns evolve, with a decrease in food and beverage spending in the initial months followed by a return to baseline within a year, dairy brands have a unique window to adapt. Wyatt recommends examining product portfolios to ensure they align with new consumer habits, particularly in the deli and refrigerated sections.
Despite challenges, the functional benefits of dairy—such as high protein content and fermentation—position it well for continued success as the use of GLP-1 medications rises. As the market continues to adapt, dairy companies will need to innovate and educate consumers to stay ahead of this emerging trend.