Channel dynamics are shifting, and the convenience-store industry “has opportunity to shine with GLP-1 shoppers,” said Sherry Frey, Chicago-based NielsenIQ’s vice president of Total Wellness.
“C-store and dollar [stores] are winning a greater share of GLP-1 user spending,” Frey said Monday at CSP’s Center Store Forum in Lombard, Illinois.
GLP-1s work through multiple pathways, influencing hunger and taste perception, making them more effective than many past anti-obesity medications, Frey said.
NielsenIQ data for the 52 weeks ending Sept. 28, 2024, shows how people taking GLP-1 medications solely for weight loss have shifted their spending habits across different channels:
- Up 1.1% at c-stores
- Up 0.2% at dollar stores
- Down 0.1% at club stores
- Down 0.4% at grocery stores
- Down 0.4% at drugstores
- Down 1.6% at mass retail/super centers
Frey added that GLP-1 users taking the drug for weight loss make 7.7% more trips than non-users to all retail outlets—and that convenience stores lead all the outlets listed above. The change in trips to convenience stores per GLP-1 shopper increased 34% in the one-year period above while decreasing 3.4% for non-users. The next closest outlet, dollar stores, saw trips per GLP-1 shopper rise 11.1% and 3.5% for non-users.
In addition, comparing GLP-1 users to non-users at all retail outlets, the users spend 11.7% more dollars per shopper, spend 8.5% more dollars per trip and make 2.9% more trips per shopper.
“GLP-1s are not a weight-loss fad,” Frey said. “Their growth will change the way consumers eat, prioritize health and self care.”
Until late last year, most GLP-1 versions were on the FDA shortage list, driving a market for compounded formulations, Frey said, adding that NielsenIQ fall 2024 research indicates Ozempic has the largest share of GLP-1 users, followed by Mounjaro, Trulicity, Wegovy, generic/compound, and Zepbound.
“These new medications are able to drive substantial weight loss in patients,” Frey said.
Reshaping decisions
GLP-1s are reshaping food and beverage decisions, Frey said, and while sales in some segments are shrinking, others are growing.
Among GLP-1 weight-loss users, their ounce consumption change 90 days after starting the medication was down 3% in salty snacks but up 12% in meat snacks, according to numbers for the 52-week period ending Sept. 28, 2024, Frey said.
After 180 days, salty snack consumption was down 13% while meat snacks were up 31%.
And after 270 days, salty snacks were down 4% but meat snacks were up 89%.
In low-calorie soft drinks, NielsenIQ saw a shift from diet to zero sugar soda—with ounce consumption down 12% in diet but up 19% in zero sugar 90 days after starting the medication.
After 180 days, diet consumption was down 15% while zero sugar was up 21%.
After 270 days, diet was down 29% while zero sugar was up 22%.
Categories of opportunity
Categories c-stores might want to consider growing include hydration powders and sports drinks (especially those without sugar and calories); caffeinated beverages (especially energy drinks and coffee); high-protein drinks; beverages including water, soft drinks and tea; and meatless protein (dairy cheese, eggs, low-fat yogurt and beans).
Other products include high-protein, low-fat prepared foods (including convenient and healthy fully cooked meat) and meat snacks; fruits, vegetables and dried fruits; candy, gum and mints; and personal care items including deodorant, gastrointestinal care (anti-nausea, anti-diarrhea), lotion, breath fresheners, lip balms, digestive aids/supplements and sleep aids.
“GLP-1 weight-loss shoppers seem to be increasingly intentional,” Frey said, noting that heath-needs states, nutrition and clean label all are showing strong growth.
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