Nestlé is repositioning to turn the rise of GLP‑1 weight‑loss drugs from a threat into a business opportunity. Using artificial intelligence and nutrition science, the company is developing products aimed at consumers taking medications such as Ozempic and Wegovy.
The rapid adoption of GLP‑1 drugs produced by Novo Nordisk and Eli Lilly has heightened investor concerns that appetite‑reducing medicines could depress long‑term demand for packaged foods, snacks and beverages. Nestlé argues, however, that the treatments also create new consumer needs — notably for products that address side effects of rapid weight loss.
What Nestlé says it can address
In presentation materials shared with Reuters, Nestlé detailed side effects commonly associated with rapid weight loss, including loss of muscle mass and reduction of facial fat — sometimes referred to in media coverage as “Ozempic face.” Citing Boston Consulting Group data, the company noted that about 16 million Americans are taking GLP‑1‑based drugs and said that number is likely to grow significantly by the end of the decade.
Nestlé sees market opportunities for products that mitigate these effects.
Products and R&D efforts
- The company has added collagen protein to Vital Proteins products to address concerns about skin, hair and nail health linked to rapid weight loss.
- Nestlé's U.S. business launched the Boost Advanced Nutrition Shake, marketed as containing 35 grams of protein to support muscle health during weight loss.
- In Asia and Australia, Nestlé introduced Milo PRO High Protein, a higher‑protein version of the Milo malt drink.
Stefan Palzer, Nestlé's chief technology officer, said muscle mass loss is a major consequence of weight loss. He stated the company developed an "industrial‑scale micronutrient combination" intended to stimulate muscle tissue growth: supplying protein while encouraging faster muscle rebuilding. Palzer also said Nestlé has patented proprietary ingredient combinations designed to help reduce appetite in consumers who may experience increased hunger after stopping GLP‑1 treatment.
Reactions from nutrition experts
Not all nutrition experts are convinced that specially formulated products provide substantial benefits over traditional whole foods. Amanda Avery, associate professor in nutrition and dietetics at the University of Nottingham, said it is regrettable that consumers repeatedly turn to new, often more expensive products when whole, fresh foods supply comparable amounts of protein and nutrients. She listed meat, fish, eggs, dairy, legumes and nuts as relatively inexpensive protein sources.
At the same time, Avery acknowledged that products marketed specifically to GLP‑1 users will likely find buyers. Her remarks point to the influence of marketing and price on consumer choices, even when nutritional needs can be met by existing food options.
Outlook
Nestlé's strategic shift illustrates how a major food company is adapting to a rapidly changing pharmaceutical landscape by combining technology and nutrition science to develop products for GLP‑1 treatment users. How these initiatives affect consumer habits and demand for packaged foods will depend on continued growth of GLP‑1 treatments and how consumers respond in the coming years.
