Food giants race to build a market around weight-loss drug users

AI is helping companies design products for the side effects of rapid weight loss

Food giants race to build a market around weight-loss drug users

Nestle is racing to build a consumer-products business around the side effects of GLP-1 weight-loss drugs, a pivot that lands while Canadian plan sponsors grapple with the same medicines reshaping their drug-plan costs. 

The Swiss food maker is using artificial intelligence and nutritional science to develop products for people taking glucagon-like peptide-1 (GLP-1) medicines such as Ozempic and Wegovy, Reuters reported, treating a trend that many packaged-food investors read as a threat as a fresh source of demand.  

Chief technology officer Stefan Palzer told Reuters the company was analysing clinical research, identifying nutrient combinations, and tailoring products to weight-loss drug users.  

"We are well positioned with the portfolio. It's a huge opportunity for our company," Palzer said. 

The products target the physical consequences of rapid weight loss, among them muscle loss and the loss of facial fat sometimes called "Ozempic face."  

Nestle has begun adding collagen protein to its Vital Proteins line to address skin, hair, and nail concerns, and its US business created a Boost shake marketed with 35 grams of protein to protect muscle during weight loss, according to Reuters.  

"A big part of weight loss is that people lose lean muscle mass," Palzer said.  

The company has also patented ingredient combinations meant to curb appetite among people who regain hunger after stopping treatment, he told Reuters

Around 16 million Americans now take GLP-1 medicines, according to Boston Consulting Group, a figure the firm expects to climb sharply by the end of the decade.  

Nestle is leaning on AI throughout development, Reuters reported, including an internal platform called Food Genie that helps developers navigate a database of roughly 120,000 recipes and predict how reformulations will perform. 

Amanda Avery, associate professor in nutrition and dietetics at the University of Nottingham, told Reuters it was disappointing that consumers reach for pricier products when meat, fish, eggs, dairy, beans, nuts, and pulses deliver the same protein and nutrients more cheaply.  

Still, she expected the products to sell. "Sadly, we are quite influenced by marketing," Avery said. 

Nestle is not alone in the repositioning.  

Conagra Brands has added a "GLP-1 friendly" label to some Healthy Choice frozen meals, and demand science senior vice-president Bob Nolan told Food Dive the company wants products in place for consumers "when they're getting on to GLP-1s," on the bet they stay even after stopping the drugs.  

Danone moved in March 2026 to acquire meal-replacement brand Huel, subject to regulatory approvals, while PepsiCo has added higher-protein and fibre variants across brands including Doritos and SunChips. 

The same drug wave that is spawning these products is already showing up at renewal.