UK consumers reduced their purchases of food and alcohol during the Christmas season, a trend attributed to the increasing popularity of weight loss injections. Despite a 2.5% increase in total grocery sales to £19.6 billion in the four weeks leading up to December 27 compared to the previous year, sales on a volume basis declined by 0.2%, as reported by market researcher NielsenIQ.
Retail experts suggest that the connection between lower food and alcohol purchases and the rise in GLP-1 injections usage, which replicate a hormone that induces early satiety, is significant. The NHS prescribes weight loss injections like Mounjaro and Wegovy, and diabetes treatment Ozempic, with recent estimates from University College London indicating that approximately 1.6 million UK adults have utilized these injections in the past year.
Jonathan De Mello, a retail analyst at JDM Retail, highlighted the impact of the “Ozempic effect” on grocery trends, noting a decline in year-on-year grocery volume among users of GLP-1. He emphasized the need for grocers to adjust their product offerings to cater to the increasing preference for “less but better” consumption patterns.
Clive Black, a consumer analyst from Shore Capital, pointed out that the drop in grocery volume sales during the Christmas period reflects the influence of GLP drugs on eating habits. In response, major retailers have introduced new initiatives, such as Co-op’s launch of “mini meals” for individuals with smaller appetites, Marks & Spencer’s nutrient-dense range, and Iceland’s expansion of frozen meal options.
Acknowledging the impact of weight loss medications on consumer behavior, Greggs’ CEO noted a shift towards smaller portions and a demand for information on nutritional content. Other supermarket leaders, including Tesco’s Ken Murphy and Sainsbury’s Simon Roberts, indicated a close monitoring of changing consumer trends influenced by weight loss medication.
Overall, the market is witnessing a shift towards healthier and more informed consumption patterns, prompting retailers to adapt their product offerings to meet evolving consumer preferences.