All NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Nestle develops products for weight-loss drug users

Created at 17 Aug · 6:04 AM1 source↑ Market-relevant
IN SHORT

Nestle is leveraging AI and nutritional science to create products for consumers using weight-loss drugs like Ozempic and Wegovy. The company aims to address side effects such as muscle loss and "Ozempic face," turning a potential threat to packaged food demand into a business opportunity.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

16 millionAmericans taking GLP-1 medicines
120,000recipes in Nestle's database
35 gramsprotein in Boost Advanced Nutrition Shake

Who's Involved

Nestle
food and beverage company developing products for weight-loss drug users
Stefan Palzer
Nestle Chief Technology Officer
Novo Nordisk
maker of Ozempic and Wegovy
Eli Lilly
maker of Mounjaro and Zepbound
Boston Consulting Group
provided data on GLP-1 medicine users
Amanda Avery
Associate Professor in Nutrition and Dietetics at the University of Nottingham

↳ Why This Matters

Nestle's strategic pivot to develop specialized products for the growing GLP-1 drug user market highlights a significant shift in consumer behavior and demand within the food industry, potentially reshaping product development and marketing strategies for packaged goods companies.

Key facts

  • Nestle is developing new products to cater to users of GLP-1 weight-loss drugs.
  • The company is utilizing AI and nutritional science to identify nutrient combinations and address side effects.
  • Products aim to support muscle health, hydration, and nutritional intake, and potentially reduce appetite after discontinuing GLP-1 treatments.
  • Nestle has launched products like Boost Advanced Nutrition Shake and a higher-protein Milo drink.
  • AI tools are being used for research analysis, consumer behavior simulation, and trend identification.

Nestle is actively developing new products to serve the growing market of consumers using GLP-1 weight-loss drugs, such as Ozempic and Wegovy. The company views the rise of these appetite-suppressing medications, which have raised concerns about reduced demand for traditional food products, as a significant business opportunity.

Nestle's Chief Technology Officer, Stefan Palzer, stated that the company is employing artificial intelligence and advanced nutritional science to analyze clinical research and identify nutrient combinations that can address side effects associated with rapid weight loss. These side effects include muscle loss and changes in facial fat, often referred to as "Ozempic face."

The company's strategy involves creating specialized products designed to support muscle health, hydration, and overall nutritional intake for users of these drugs. Nestle has already introduced products like the Boost Advanced Nutrition Shake, containing 35 grams of protein, and a higher-protein version of its Milo drink in Asia and Australia. They are also exploring proprietary ingredients to help manage increased hunger after discontinuing GLP-1 treatments.

AI plays a crucial role in Nestle's product development process, assisting in analyzing scientific literature, simulating consumer behavior, identifying trends, and navigating a vast database of recipes. Tools like "Food Genie" help predict recipe performance and identify reformulation opportunities. AI is also used to monitor social media for emerging consumer trends.

However, some nutrition experts, like Amanda Avery from the University of Nottingham, question the necessity of specialized products, suggesting that whole, fresh foods offer similar nutritional benefits at a lower cost. Despite these reservations, Avery acknowledges that products specifically marketed to GLP-1 users are likely to find a market due to consumer influence by marketing.

Frequently asked questions

GLP-1 drugs are a class of medications, such as Ozempic and Wegovy, primarily used for weight loss and managing type 2 diabetes by suppressing appetite.

Nestle is focusing on side effects like muscle loss and loss of facial fat, often termed "Ozempic face," associated with rapid weight loss from these drugs.

Nestle uses AI to analyze clinical research, simulate consumer behavior, identify trends, and optimize recipes, accelerating the development of new products.

Some nutrition experts believe that whole, fresh foods offer comparable nutrients and protein at a lower cost than specialized products.

What Happens Next

01Nestle will continue to launch and market products tailored to GLP-1 users.
02Further research and development into AI-driven consumer simulations and trend monitoring will likely continue.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

How It Developed

Nestle is developing products for users of weight-loss drugs.
The company is using AI and nutritional science to create these products.
Nestle aims to address side effects like muscle loss and "Ozempic face".
Products include added collagen protein and high-protein shakes.
Nestle is using AI to analyze research, simulate consumer behavior, and identify trends.
Some nutrition experts question the advantage of specialized products over whole foods.

Sources

T1
Nestle looks to develop new products to serve users of weight-loss drugsReuters

Related Stories

Brands Race to Capture China's Growing Burger Market Amid Shifting Consumer Habits
17 Aug · 12:12 AM
Alibaba to sell Lingxi Games for over $2 billion to Trustar Capital
17 Aug · 6:20 AM
Japanese restaurant payments firm Zentoshin faces $700m loss after fraud discovery
17 Aug · 3:41 AM
Amundi Technology CEO Benjamin Lucas Departs for Aztec Group
16 Aug · 11:31 PM
Geely's Q2 profit grows 36% as exports increasingly power sales
17 Aug · 7:06 AM