Weight loss pill approval - Food industry product review expected
Packaged food manufacturers and fast-food restaurants may be forced to review more of their products next year as newly approved appetite-suppressing GLP-1 pills become available in January, analysts say. More Americans are expected to try the drugs as pills instead of injections because they will be cheaper and many patients are reluctant to inject themselves.
The U.S. Food and Drug Administration approved Novo Nordisk's Wegovy GLP-1 pill on Monday, sending shares of the food company lower on Tuesday. Eli Lilly's rival drug is expected to receive regulatory approval next year.
Food companies are already facing shifts in consumer tastes toward higher protein and smaller portions due to the popularity of weight loss injections, and analysts believe that the widespread adoption of GLP-1 could mean long-term changes in demand.
To cope, businesses are promoting products with more protein, changing labels to say they are GLP-1 friendly, and working with major retailers to better market the products.
US government data shows that about 40% of American adults are obese, and about 12% of adults say they currently take GLP-1 drugs, according to a survey released last month.
Families using GLP-1 drugs reduced spending at grocery stores by 5.3% and at fast food restaurants by about 8% on average. These reductions largely faded when families stopped using the drug.
In recent months, several restaurant chains have added items to their menus for smaller, cheaper portions.
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