What's Happening?
The food industry is confronting a future where it may need to cater to fewer consumers with smaller appetites, according to Sylvain Charlebois, PhD, senior director of the Agri-Food Analytics Lab at Dalhousie
University. Speaking at the North American Millers’ Association annual meeting, Charlebois highlighted the issue of 'depopulation management' as many countries experience declining birth rates and aging populations. This trend is expected to impact North America, where the food industry must adapt to changing consumer needs. Additionally, the rise in the use of GLP-1 drugs, which suppress appetite, is already affecting consumer behavior, with many users reporting reduced consumption of snacks and dining out less frequently.
Why It's Important?
This development is significant as it challenges the traditional growth models of the food industry, which have relied on increasing consumer numbers and consumption. Companies may need to shift focus from volume to quality, catering to a more health-conscious and aging demographic. The rise of GLP-1 drugs could further accelerate changes in consumer habits, impacting sales of snack foods and other high-calorie products. This shift could lead to increased demand for healthier, portion-controlled, and nutrient-rich food options, prompting companies to innovate and diversify their product lines.
What's Next?
Food companies may need to explore new strategies to maintain profitability, such as developing products that cater to the health-conscious and aging populations. This could involve investing in research and development to create GLP-1-friendly products or expanding into markets with growing populations. Additionally, companies might need to engage in strategic planning to address potential regulatory changes related to health and nutrition. The industry will likely see increased collaboration with healthcare providers to better understand and meet the needs of consumers using appetite-suppressing medications.
