Nestlé Bets on GLP-1 Side Effects as Next Nutrition Frontier

Nestlé is seeking to transform the rise of GLP-1 weight-loss drugs from an existential threat into a commercial opportunity, using artificial intelligence and nutritional science to develop products aimed at the growing cohort of consumers taking medicines such as Ozempic and Wegovy.

The rapid adoption of drugs made by Novo Nordisk (NVO) and Eli Lilly (LLY) has stoked investor concern that appetite-suppressing treatments could permanently erode demand for packaged foods, snacks and beverages. Nestlé, however, believes the same medicines are creating a distinct new market for products designed to address the consequences of rapid weight loss.

Stefan Palzer, the company's chief technology officer, said Nestlé was using AI and other technology to analyse clinical research, identify nutrient combinations and develop products tailored to GLP-1 users. "We are well positioned with the portfolio. It's a huge opportunity for our company," he said.

Internal presentation materials detail side effects associated with rapid weight loss — including muscle atrophy and the loss of facial fat commonly referred to as "Ozempic face" — and outline the areas where Nestlé believes its products can intervene.

Approximately 16 million Americans are currently taking GLP-1 medicines, according to Boston Consulting Group, a figure expected to rise sharply by the end of the decade. The market is dominated by Eli Lilly's Mounjaro and Zepbound and Novo Nordisk's Wegovy and Ozempic.

Palzer said Nestlé's scientists have been studying the metabolic consequences of rapid weight loss and developing products to help consumers manage them. The company is using AI to process large volumes of clinical research and identify nutrient combinations that may support muscle health, hydration and nutritional intake. It has begun adding collagen protein to products under its Vital Proteins brand to address concerns around skin, hair and nail health.

"A big part of weight loss is that people lose lean muscle mass," Palzer said. "We found a combination of two micronutrients which we industrialized that stimulate the growth of muscle tissue. On one hand you provide protein, on the other hand you stimulate the muscle tissue to grow back faster."

Nestlé has also patented combinations of proprietary ingredients designed to curb appetite among consumers who frequently experience renewed hunger after discontinuing GLP-1 treatments. Products already on the market include a Boost Advanced Nutrition Shake in the US, marketed as containing 35 grams of protein, and a higher-protein version of its Milo malt drink — Milo PRO High Protein — in Asia and Australia.

AI is playing a growing role throughout the development process. The company has built internal systems to analyse scientific literature, simulate consumer behaviour and help product developers navigate a database of roughly 120,000 recipes. One such tool, an internal platform called Food Genie, helps scientists predict how recipes might perform and identify opportunities for reformulation. Nestlé is also testing AI-driven consumer simulations to gauge how shoppers may respond to new products before launch, and monitoring social media to identify emerging trends.

Not all nutrition experts are persuaded that such products offer meaningful advantages over conventional foods. "It's quite sad that we turn to new products all the time that are more expensive than whole, fresh food that also contain the same protein and nutrients," said Amanda Avery, associate professor in nutrition and dietetics at the University of Nottingham. She noted that meat, fish, eggs, dairy, beans, nuts and pulses remain relatively inexpensive sources of equivalent nutrition.

Avery nonetheless acknowledged that products specifically marketed to GLP-1 users were likely to find buyers. "Sadly, we are quite influenced by marketing," she said. "Nestlé will have done their research."