GLP-1 weight loss pharmaceuticals will cause equally pervasive second-order effects to functional CPG categories as AI will trigger regarding business productivity. Despite our collective ambiguity on the true extent, I believe the skyrocketing popularity of weight loss pharmaceuticals has already tangibly disrupted many aspects of the CPG industry. The problem (i.e. obesity epidemic) has reached unprecedented levels...as the most recent CDC statistics show more than 100 million people are considered obese by the U.S. government…and also candidates for weight loss pharmaceuticals. There are the obvious health-related motivating factors like managing diabetes or cardiovascular disease…but also something deeper at play involving social ideals, which has kept Americans extremely interested in weight management. Another core reason why weight management is such a mass appeal dietary outcome is that American modern life constantly messes with our ability to achieve even a fraction of the standard we set. So, it shouldn’t be surprising to learn that the United States is by far the world’s largest weight loss pharmaceuticals market, currently accounting for an estimated two-thirds of total dollars spent globally. Since its 2017 approval as a diabetes treatment, semaglutide (Ozempic and Wegovy) has become one of the most popular prescription drugs in the United States. But while their intended purpose was to moderate insulin levels in Type 2 diabetics, new users are overwhelmingly adopting these drugs for its notable weight loss side effects. These unmet medical needs are more than enough to build demand…but countless popular celebrities (like Oprah Winfrey), positively sharing their experience, has further fueled its meteoric rise. In fact, marketplace experts now estimate annual weight loss drug sales reaching $150 billion by 2033. But let’s talk about results…because within weight management categorical spending, consumers want outcomes. Users of Ozempic and similar drugs, that followed a diet and exercise program, had an average weight loss of 15 to 20 percent and significant reductions in cardiovascular risk factors. So, I've laid out the massive problem and a very probable solution, but what about predicted outcomes (and second-order effects)? Does the “Age of Ozempic” indeed continue reshaping the CPG industry or will it quickly turn into overhyped garbage after post-market surveillance showed too many public health safety questions? Regardless, I believe it’s easiest to think about “the Age of Ozempic” as being a major catalyst that fundamentally shifts consumer behavior. And although the weight loss achieved through these pharmaceuticals has been remarkable, concerns about the long-term sustainability of these results persist. Additionally, for many users…GLP-1 drugs are not a long-term commitment but rather a step along the way in their weight management journey. But that naturally sets up three adjacent opportunities for functional CPG companies to market their products as part of the onramp, during, and offramp portions of a continued healthy lifestyle change. Finally, I'll focus on the potential impacts within the intersecting categories of functional foods, functional beverages, and nutritional supplements. This includes how these functional CPG categories can bridge nutritional gaps (i.e. protein powder) and help combat against the side effects of weight-loss drugs (i.e. muscle loss and HMB).

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS