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US snack sales dip as GLP-1 and health trends reshape consumption

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• Major US food companies are facing declining snack sales, with sweet snacks down 6.1% and salty snacks down 1.2% (see graph below), as consumers shift away from calorie-dense, ultra-processed products due to economic pressures and health concerns.

  

• The adoption of GLP-1 drugs and shifting wellness priorities are driving demand for smaller portions and healthier options like nutrition bars, yoghurt, and better-for-you chips, with grocery spending falling by up to 8.6% among higher-income users and purchases of speciality and health foods rise by nearly 50%.

• Food giants like Campbell’s, JM Smucker, and Mondelez, who heavily invested in snack brands, are now adjusting strategies with smaller formats, flavour innovation, and value offerings to respond to shifting consumer behaviours.

Financial Times

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Gen Z and millennials reshape $2trillion wellness market

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• McKinsey’s 2024 “Future of Wellness” report finds the $2 trillion wellness market increasingly driven by millennials and Gen Z, who make wellness a daily, personalised priority.

• Gen Z associates wellness more strongly with beauty and appearance, ranking it in their top three priorities, which boosts demand for functional ingredients supporting skin, hair, and glow, while millennials place greater emphasis on mindfulness (see image below).

  

• The report also highlights six core wellness priorities: functional nutrition, longevity, beauty, experiences, weight management, and mental health.

McKinsey & Company

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CPGs face pressure to reformulate amid health-led consumer shifts

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• A new report highlights that consumer demand for healthier options, reinforced by regulation on ultra-processed foods and the rise of GLP-1 drugs, is slowing traditional CPG growth (~0.5%) while small brands grow ~4.9%.

• Consumers are shifting from big brands to smaller players in “better-for-you” segments like granola bars, and to private labels in less-processed, cost-sensitive categories (see graph below).

  

• CPGs are urged to reformulate with less-processed ingredients, use AI to accelerate product development, and adapt strategies by category, balancing taste, price, and health.

BCG

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Plant-based retail reaches $28.6B in 2024, driven by dairy

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