Nestlé Targets GLP-1 Drug Users with AI-Driven Nutritional Products, Expands Asia Offerings

Nestlé is strategically adapting to the growing market of GLP-1 weight-loss drug users, turning a potential threat to packaged food sales into a new business avenue. The company is employing artificial intelligence and advanced nutritional science to create products designed for millions of consumers globally who use medications such as Ozempic and Wegovy.

The rapid uptake of drugs from pharmaceutical giants like Novo Nordisk and Eli Lilly has raised concerns among investors about a potential long-term decrease in demand for traditional packaged foods, snacks, and beverages. However, Nestlé views this shift as an opportunity to cater to the specific needs of these consumers, particularly in managing the side effects of rapid weight loss.

Addressing Side Effects With Targeted Nutrition

Chief technology officer Stefan Palzer noted that Nestlé is well-positioned to serve this emerging market. The company is using AI and other technologies to analyse clinical research, pinpoint optimal nutrient combinations, and develop products specifically for GLP-1 users. Presentation materials highlighted side effects such as muscle loss and the reduction of facial fat, known as “Ozempic face,” indicating areas where Nestlé’s products can offer support.

With an estimated 16 million Americans currently using GLP-1 medicines, a number expected to grow significantly, Nestlé’s response includes accelerating research and product development through AI. Its scientists are focusing on the consequences of rapid weight loss, developing items to help consumers manage muscle health, hydration, and overall nutritional intake.

For example, Nestlé has incorporated collagen protein into products under its Vital Proteins brand to address concerns about skin, hair, and nail health. The company has also patented combinations of proprietary ingredients aimed at reducing the increased hunger some consumers experience after discontinuing GLP-1 treatments. In the United States, Nestlé introduced Boost Advanced Nutrition Shake, containing 35g of protein for muscle health. Crucially for the Asian market, Nestlé has launched Milo PRO High Protein, a higher-protein version of its popular malt drink, in Asia and Australia.

AI’s Role in Product Innovation

Artificial intelligence is becoming integral to Nestlé’s product development cycle. The company has created internal systems to sift through scientific literature, simulate consumer behaviour, identify market trends, and assist product developers in navigating a vast database of approximately 120,000 recipes.

One such tool, an internal platform named Food Genie, helps scientists and developers predict product performance and identify opportunities for reformulation. Palzer explained that AI thrives on data, which a large company like Nestlé possesses in abundance. Nestlé is experimenting with AI-driven consumer simulations to forecast how shoppers will react to new products and health claims before they reach retail shelves. The company is also using AI to monitor social media for emerging consumer trends, helping to distinguish fleeting fads from lasting market shifts.

Despite Nestlé’s efforts, some nutrition experts, such as Amanda Avery, associate professor in nutrition and dietetics at the University of Nottingham, question the significant advantages of specialized products over whole, fresh foods. Avery pointed out that meat, fish, eggs, dairy, beans, nuts, and pulses remain relatively inexpensive sources of protein and nutrients. However, she acknowledged that marketing often influences consumer choices, suggesting that Nestlé’s targeted products are likely to find a receptive audience.