Slim pickings: grocery sales down as Brits turn to weight-loss jabs
The growing use of weight-loss drugs like Ozempic could be having an impact on supermarkets’ bottom lines as Brits shy away from more than just unhealthy food.
Four per cent of households in the UK now have at least one member using GLP-1, the active ingredient in weight-loss drugs.
The share of UK households with at least one GLP-1 user has almost doubled in size from 2.3 per cent to 4.1 per cent in the last year, according to retail experts at Kantar which has drawn a link between a decline in grocery sales volumes and an uptick in the popularity of weight-loss jabs.
Overall grocery volumes fell by 0.4 per cent in the last four weeks, the first year-on-year decline this year.
Weight loss is “definitely a trend that the industry should keep an eye on, as these drugs have the potential to steer choices at the till,” Kantar analyst Fraser McKevitt said, warning that “supermarkets and grocery brands are entering new territory as weight-loss drugs become more popular.”
He added that “four in five of the users we surveyed say they plan to eat fewer chocolates and crisps, and nearly three quarters intend to cut back on biscuits.”
Even categories like peanut butter are being affected, head of public sector and nutrition at Kantar, Chantel Kennaugh, said. Such categories “rely on these ‘host’ foods that people may drop,” she said.
Voy, the weight management service, has found that people naturally eat between 25 per cent and 35 per cent fewer calories when taking weight-loss drugs.
Young people flock to Ozempic
Revenue for Ozempic is expected to grow by 14 per cent to 16 per cent this year, despite Novo anticipating periodic supply constraints for the drug.
The market for weight-loss drugs hit around $50bn (£36bn) by the end of 2024 and is expected to double by the end of the decade, according to Morgan Stanley.
But according to the latest Mintel research, it is young consumers aged 18-34 who are showing the highest interest in weight-loss drugs.
Almost nine in ten of Britain’s 18-34s are actively managing their weight compared to an average of 73 per cent of all Brits, with almost half having either used or showing interest in taking prescription weight-loss drugs.
This suggests the downward pressure on grocery volumes is likely to be a long-term trend, although much depends on whether those who begin Ozempic keep up their eating habits in the long-term – not just when they’re taking the drug.
Francesca Smith, Mintel research analyst, also warned that the increased exposure and availability of these drugs for young people may have a long-term negative effect: “Brands must avoid capitalising on body image anxieties and continue to promote sustainable lifestyle behaviours.”
“[There is a] critical need for brands to communicate clearly and responsibly on this topic, including warnings of potential risks and side effects,” she added.
Additional reporting by Eliza Bruce-Jones