UK consumers reduced their purchases of food and alcohol during the holiday season, with industry experts attributing this trend to the increasing use of weight loss injections. According to data from market researcher NielsenIQ, grocery sales reached £19.6 billion in the four weeks leading up to December 27, marking a 2.5% increase compared to the previous year. However, sales in terms of volume experienced a slight decline of 0.2%.
Analysts suggest that the connection between decreased food and alcohol sales and the rise in GLP-1 injections is significant. These injections, such as Mounjaro and Wegovy for weight loss and Ozempic for diabetes, are being increasingly utilized in the UK. Recent estimates from University College London indicate that approximately 1.6 million adults in the UK have used these injections in the past year.
The effect of these weight loss injections, particularly Ozempic, is becoming a noticeable trend in the grocery sector. Retail analyst Jonathan De Mello noted that as GLP-1 usage surges, there is a corresponding year-on-year decrease in grocery volume among users, impacting high-calorie categories like snacks and alcohol. He emphasized the need for grocers to adapt their product offerings to align with the shift towards “less but better” consumption patterns.
Notably, major retailers are responding to changing consumer preferences by introducing smaller meal options. Co-op has rolled out new “mini meals” tailored for individuals with smaller appetites, while Marks & Spencer launched a “nutrient-dense” range, and Iceland expanded its frozen ready meal selection with 38 new products.
Industry leaders are acknowledging the influence of weight loss medications on consumer behavior. Greggs’ CEO highlighted the impact of weight loss injections on sales performance, emphasizing a growing demand for smaller portions and healthier choices. Tesco’s CEO mentioned closely monitoring consumer trends amidst the rise of weight loss treatments, while Sainsbury’s CEO emphasized the importance of observing evolving shopper habits.
Overall, the food and beverage industry is witnessing a shift in consumer preferences driven by factors like weight loss interventions, prompting retailers to adjust their product offerings to cater to changing demands.