Daily Briefing (Insiders Only): Younger GLP-1 Users Mean More Meal Delivery
GLP-1 adopters are shifting to a younger and more affluent crowd, according to a webinar hosted by data analytics firm Numerator, in partnership with Morgan Stanley.
Numerator’s consumer surveys have tracked the impact of GLP-1 on spending habits and believes it can dispel a few early concerns within the industry while forecasting where the next wave of weight management consumers may come from.
Although Gen Z and millennials still make up a small portion of GLP-1 users, it’s growing. There has been a 40% increase among Gen Z households using the drugs since last October. This has implications for how grocery dollars are spent.
“This new wave… means new ways of shopping for groceries such as meal kit deliveries and third-party delivery apps,” said Numerator senior consultant Katya Kazantseva.
Meal-delivery brands like Daily Harvest, GOLO or FuturHealth have already hopped on the trend. Yet, the fears that the rise of GLP-1 usage would decrease basket size and grocery spending appear to have been overblown so far.
Numerator found that the younger cohort of survey respondents are not necessarily cutting back on grocery budgets but instead are “redistributing it towards other family members or more premium products despite their diminishing appetites,” Kazantseva said.
That’s not to say that GLP-1 users aren’t changing some of their shopping habits. Grocery trip frequency among users was only up 1.3% in the last six months compared to a year ago. Non-users tracked an 8.7% increase in grocery trip frequency.
What does this all mean? Behavior is changing in the Ozempic Era, but it is not as straightforward as lower eating or spending habits. Shoppers are finding different ways to eat and searching for products that can supplement their weight loss journey which might spell an influx of new product lines similar to Nestlé’s new GLP-1 supporting meal brand Vital Pursuits.
