The buzz around Ozempic—alongside its counterparts Mounjaro, Zepbound, and Wegovy—is more than just a fleeting trend; it’s shaping the future of consumer behavior and, consequently, your business strategy. With projections from JP Morgan indicating that 30 million Americans could be using these GLP-1 medications by 2030 to manage diabetes and obesity, it’s crucial to understand their potential impact on the convenience-store sector.
Recent analysis highlights a significant shift: Ozempic users have cut their food consumption by approximately 8% over the past year, affecting categories like snacks, soft drinks and high-carb products. This trend suggests a potential 3% decrease in overall food intake in North America by 2030, with an even sharper decline expected in consumer packaged goods, according to J.P. Morgan Research.
Despite its growing prominence, Ozempic’s accessibility remains a challenge. Without insurance coverage, the drug costs around $936 per month, though recent legislative changes, like Illinois' new coverage for state workers, may alter this dynamic. Such changes underscore the need for convenience-store operators to proactively adapt to evolving consumer needs.
How to Stay Ahead of the Curve
So what key strategies should you be taking to stay ahead of the curve? To be clear, I am not recommending you trade out leading performers like pizza, dispensed beverage and fried chicken for a store filled with vegetables and grilled chicken. We often say we want to eat healthy, but our actions show otherwise. This has best been demonstrated to me many times when operating convenience stores on the path of a hurricane evacuation. The shelves of beer and potato chips are long gone, but the healthy to go products often remain. However, you want to be ready to adapt to the trend. Here’s what you can do:
1. Expand Healthy Options: Increase your assortment of low-calorie and high-protein products, such as protein bars and nutritional drinks. This aligns with the shift toward healthier eating and meets the demand of health-conscious consumers.
2. Reassess Space Allocation: Evaluate the space dedicated to traditional high-calorie and sugary items. Adjusting this allocation can help mitigate the impact of declining sales in these categories.
3. Revamp Foodservice Menus: Adapt your foodservice offerings to include smaller portion sizes and higher protein content. This will cater to changing consumer preferences for healthier options.
4. Capitalize on Specialty Beverages: Many convenience stores are underdeveloped in the prepared-for-you and specialty beverage category. Consider including protein additives as upsells to attract health-focused customers.
5. Focus on Freshly Prepared Foods: While packaged goods may face declining sales, freshly prepared foods continue to see growth. Emphasize this category to leverage its current momentum.
There is one more effect that Ozempic could have on convenience stores that you may not be considering. United Airlines could save $80 million a year in jet fuel costs as planes occupied by lighter passengers require less fuel, according to Sheila Kahyaoglu, a Jeffries analyst. While I haven’t seen a study related to passenger vehicles, lighter passengers could surely affect fuel efficiency.
As we move forward, the Ozempic effect could significantly alter the financial landscape for convenience stores and quick-service restaurants. By adapting your strategies to align with these changing consumer behaviors, you can position your business for sustained growth and success in an evolving market.
Peter Rasmussen is an industry advocate, convenience and energy veteran, and CEO and founder of Convenience and Energy Advisors (www.convenienceandenergyadvisors.com). He can be reached at peter@convenienceandenergyadvisors.com.
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