The snack aisle is having an identity crisis.
According to a Reuters article about the effects of GLP-1 drugs on snacks, PepsiCo just launched a reformulated Lay’s line with shorter ingredient lists and smaller bags. Coca-Cola ramped up production of protein-infused Fairlife milk. General Mills released higher-protein Cheerios. Kraft Heinz scrapped a planned corporate split and poured $600 million into reviving Oscar Mayer cold cuts.
The reason? GLP-1 drugs — appetite suppressants like Ozempic and Wegovy — are reshaping American eating habits so quickly that Big Food is scrambling to keep pace.
And the numbers are brutal.
The $12 Billion Snack Apocalypse
EY-Parthenon estimates that the impact of the GLP-1 food industry could erode snack sales by up to $12 billion over the next decade.
Twenty percent of U.S. households now include at least one GLP-1 user — more than double the rate from a year ago. These users consume 40% fewer calories on average, with dessert consumption down 84% and alcohol consumption down 33%.
Fresh produce intake? Up 70%.
Translation: the era of mindless munching is over — and the companies that built empires on impulse snacking are now staring into the void.
Peter ter Kulve, CEO of Magnum Ice Cream, put it plainly: GLP-1 users still eat treats, but they’ve stopped binge eating. Family grocery baskets have shrunk by 4% to 6%. Single-person households? Down as much as 9%.
The wait-and-see crowd is gone. This year alone, nearly three dozen companies outside healthcare have mentioned GLP-1 drugs on earnings calls — up from 14 last year and just five two years ago .
The Great Reformulation Panic
Capital expenditure is spiking across the packaged food sector — up as much as 23% for General Mills.
PepsiCo’s new “Simply NKD” line strips artificial colors and flavors from Lay’s and Gatorade while embracing smaller portion sizes. CEO Ramon Laguarta admitted there are “more opportunities than threats, but there are both”—corporate-speak for “we’re not sure how this ends.”
Conagra Brands is betting on Slim Jim meat sticks, nuts, and seeds. General Mills CEO Jeffrey Harmening told analysts at the CAGNY conference that GLP-1 drugs will have “a lasting influence” on food demand, pushing consumers toward “smaller portions and more nutrient-dense protein and fiber-forward foods”.
Coca-Cola’s incoming CEO called for faster innovation. Kraft Heinz reversed course on a corporate split to focus on reviving neglected brands.
Even smaller players are pivoting. Snap Kitchen — a private Austin-based meal service — expanded its menu with higher-fiber, higher-protein options designed to promote satiety. CEO Mitchell Raisch said the GLP-1 shift “sharpened our focus and accelerated our pipeline”.
Peter Mangan, managing director at Portage Point Partners, summed it up: “There’s no one out there that’s not designing, putting R&D dollars against this trend”.
What This Actually Means
The GLP-1 food industry impact isn’t just about shrinking snack sales — it’s about a fundamental shift in consumer behavior.
Desserts are collapsing. Alcohol is declining. Fresh produce is surging. Protein is the new currency.
Ali Furman, PwC’s consumer markets leader, framed it as a physiological disruption: “We’re just starting to scratch the surface on the ripple effects” .
And the stock market agrees. Packaged food stocks have lagged the S&P 500 over the past year.
The companies that built fortunes on impulse purchases and supersized portions are now racing to reinvent themselves as purveyors of “nutrient-dense, portion-controlled” snacks.
Whether they can pull it off — or whether this is just expensive panic spending — remains to be seen.
But one thing is clear: the age of mindless munching is over, and Big Food is betting billions that it can survive the hangover.
Source: Reuters