Food companies will look to ramp up prices to make up for huge losses in sales due to the rapid uptake of GLP-1 weight-loss drugs, a new report claims.
The Food Foundation suggests that with figures showing a huge uptake of the new drugs, the food industry could seek new ways to protect profits with higher prices and premium ranges aimed at GLP-1 users.
Today’s report by the foundation reveals an astonishing 8.25 million people in the UK have either taken, are taking, or are considering taking, GLP-1 weight-loss medications.
It said while some were optimistic that GLP-1s would catalyse a shift in dietary patterns by forcing businesses to shift away from energy-dense, ultra-processed foods towards more nutrient-dense foods to meet changing demand, the huge shift to use of the drugs risked a range of “unintended consequences”.
“Businesses may look to increase the price of food to recoup any profits lost with a decline in volume sales,” it said, which “would have a disproportionate impact on low-income households, with just under six million adults currently living with food insecurity.”
It added: “Businesses may look to cater to existing GLP-1 users by launching premium versions of preprepared meals and products that are designed and marketed to GLP-1 users. This may potentially risk a further widening of dietary inequalities and the creation of a two-tier system if reformulation is then halted on standard range options.”
The foundation pointed to new products and ranges targeting GLP-1 users from the likes of Marks & Spencer, Morrisons, Asda, Ocado and the Co-op.
The report also warns that the government may “deprioritise” policies and regulation aiming to shift the food environment to healthier food because of the update of GLP-1 drugs, “instead focusing on treatment over prevention”.
“In such a scenario those not on GLP-1s in the wider population may be disadvantaged by a failure to progress the broader regulatory agenda to change the food environment, while those coming off prescriptions would simply return to food environments not optimally set up to support a healthy diet.”
The report also warned the the rapid surge in demand was easily outstripping NHS capacity and raising concerns about health equity and long-term outcomes.
The foundation estimated 29 million people people in England are technically eligible to receive the drug on the NHS.
Yet NHS plans are to reach 220,000 people over three years from June 2025, and with a target of reaching 3.4 million people over 12 years.
Research estimates that around 90% of UK patients are now accessing GLP-1s privately or off-label.
Rebecca Tobi, head of food business transformation at the Food Foundation, said: “While there can be no doubt that GLP-1 drugs are a highly effective treatment option for those living with obesity and related conditions, significant questions remain about their long-term impact.
”There remain a number of gaps in the evidence base, wider unanswered questions around the potential impact on health inequities, and the risk of unintended consequences from unregulated online prescription of the drugs and their long-term use.
”The government must remain focused on the wider prevention agenda. And food businesses and investors must continue to ensure wholesale shifts in portfolios towards food offerings that are both healthy and affordable.”
Katharine Jenner, executive director, Obesity Health Alliance, said, “There is a real risk that those who would benefit most are the least able to access these medicines – either at all, or as intended alongside the wraparound support needed to sustain weight loss.
“Expanding NHS access is necessary, but only part of the answer. These medicines should be a reset moment to improve the food environment, while also supporting the health of people living with obesity. Lasting progress will depend on doing both.”
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