Wegovy, Ozempic and Mounjaro have done more than help millions of people shed unwanted pounds: They’ve spurred development of nutrient-dense products, especially in the dairy industry.
The RAND research organization estimates 12% of Americans, some 30 million people, have tried GLP-1 drugs, which first were developed to help treat diabetes. On average, they’ve lost as much as 20% of body weight, pushing obesity rates down by about 5 points to 42.8%.
Emma Cahill, marketing director for sweeteners and fibers at Tate & Lyle, told The Food Institute the demand for healthier foods is intensifying and will continue to do so as appetites shrink along with waistlines.
“This shift opens a meaningful growth opportunity for CPG manufacturers ready to reframe indulgence as functional,” Cahill said. “And as product developers know, balancing sugar reduction with added fiber, protein, and other functional ingredients can be a challenge.
“What’s more, not all fibers, proteins, and sweeteners are created equal. Each plays a unique role in a product’s texture, mouthfeel and taste.”
When it comes to dairy, Cahill said, “yogurt, protein shakes, and frozen dairy offer an ideal balance: smaller portions that still feel indulgent, textures that satisfy with balanced sweetness, and nutrient density that supports metabolic wellness, all in a convenient package.”
Modern consumers associate dairy with gut health, helping to position dairy to make major gains.
In a variety of studies, the number one reason that consumers ceased GLP-1 medication treatment was side effects, beating out insurance and cost.
“There’s a great opportunity to double down on the gut health halo and highlight additional benefits for current GLP-1 users across yogurt and other dairy formats,” Cahill said.
Natural Sweeteners, Prebiotics Meet GLP‑1 User Needs
Precedence Research said the global fortified dairy products market size was estimated at $131.9 billion last year and is expected to grow to $222.8 billion by 2034, with North America accounting for 35% of the market in 2024 and the U.S. accounting for 77.8% of that portion. Yogurt was the biggest winner globally, accounting for 48.2% of the market in 2024, Grand View Research found.
“Dairy innovation today is all about balancing indulgence with intention. The industry as a whole is starting to use more natural sweeteners – think stevia, monkfruit – for retaining taste, high quality milk proteins for muscle retention and prebiotic fibers for satiety and digestive comfort,” Meena Sriram, product development and commercialization manager at Darigold told FI.
“Companies are also leveraging lactose reduction as an easy win to achieve sweetness in products without added sugar. The demand is being refocused on smaller, cleaner, protein rich and low sugar products that deliver real satiety, and that’s exactly what the industry is delivering.”
Just Food reported households with just one GLP-1 user reduced their grocery bills by 6% within six months, with higher-income households bumping that up to 9%, largely because of reduced appetites. The biggest reductions were among ultra-processed foods like chips, cookies and baked goods.
Conversely, spending on nutrient-dense foods increased.
“Dairy products like milk, cottage cheese and kefir can be great protein sources, particularly used as snacks,” registered dietician Fiorella DiCarlo told FI. ”They’re often easy to ingest for those suffering from nausea and side effects. In addition, calcium and vitamin D, found in dairy products, will help prevent bone loss.”
Dhriti Batra, director of brand marketing at Lactalis Heritage Dairy, said the reason it makes sense for dairy to take advantage of this trend is that people “want protein in the foods they already reach for – not a bar or a shake. This is partially what drove the development of Kraft Natural Cheese Protein Sticks, a new product innovation that delivers 17 grams of protein per stick – taking a snack people already love and making it work a lot harder nutritionally for their busy lives.”
The Food Institute Podcast
This Episode is Sponsored by: City National Bank
John Linehan, president of Irresistible Foods Group, explains how organizational charts are being supplanted in the Capability Era and how a new vision of leadership is growing within the food and beverage industry in this episode guest hosted by City National Bank’s Shahe Kassardjian.
