Over the past two years, the rise of GLP-1 drugs has become prominent, disrupting not only the healthcare but also the consumer markets worldwide. It was originally designed to treat patients with diabetes, however, these drugs (most commonly known under names like Ozempic or Monjaro) have been proven to significantly aid weight loss.
Its boom in the market is quite obvious from the numbers; Goldman Sachs predicts the GLP-1 market to reach $100 – $150 billion by 2030 with over millions of users globally (CNBC, 2024). The market capitalization of Novo Nordisk, a key pharma company, jumped by billions after publishing the effectiveness of their anti-obesity drugs (Financial Times, 2023). At first, the GLP-1 was just seen as a revolution within the pharma industry. However, we can now see how it is creating rippling effects through various businesses and consumer facing industries; forcing firms to adapt their business models or risk getting left behind.
Digital Health Business meets GLP-1
Numbers of digital health companies are now building programs around GLP-1 therapies. Start-ups are combining AI-driven insights with apps and gadgets that provide personalized care to consumers. With the increased users of GLP-1 drugs, there is a rising demand for preventative health care. The focus is now shifting away from weight management devices to digital therapeutics (PwC, 2024). Medtech firms are responding with diagnostic tools that are integrated with AI and remote monitoring, making an innovative shift in preventative health care.
Ripple Effects Beyond The Health Industry:
The impact of GLP-1 drugs is extending far beyond the health care sectors. With the effect of these drugs, people are now less hungry, more healthy, and more energetic. These shifts in individual brings changes that industries should not ignore:
- Food & Beverage: The marketing of the snacks and the types of food being sold in the aisles of the grocery store are starting to shift. More protein rich and functional foods are on the rise. Firms such as Unilever and P&G are implementing AI tools to accurately predict demand and to forecast consumer preferences, which is essential in this shifting dynamics.
- Fitness and Wellness: Gyms and digital fitness platforms are seeing increased engagement from people who are now capable of staying active.
- Travel & Leisure: Vacations are shifting away from food-centric experiences toward activity-driven tourism.
- Retail & Apparel: Clothing brands are forecasted to face changing demands as body images shift. There is an increased demand for fitness wear as more people are motivated to maintain active lifestyle.
Strategic Takeaways
Regarding the firms outside of the pharma industry, this boom of GLP-1 drugs poses them either an opportunity to adapt or a risk of irrelevance. The food industry must diversify their product portfolios, and apparel brands must rethink the trends and the sizing. Fitness platforms should integrate GLP-1 coaching systems that personalize across each consumer.
In order to ride this wave, firms should experiment with digital integration, AI powered analytics, and personalized services that can capitalize on this disruption into opportunity.
References:
CNBC. (2024, May 25). Digital health companies are launching programs around GLP-1s. CNBC. https://www.cnbc.com/2024/05/25/digital-health-companies-are-launching-programs-around-glp-1s-.html
Financial Times. (2023, August 10). Novo Nordisk shares jump after new anti-obesity pill shows strong results. Financial Times. https://www.ft.com/
LightIT. (2024, June 12). Beyond the hype: Where and how digital health founders should build in the GLP-1 market. LightIT Blog. https://lightit.io/blog/beyond-the-hype-where-and-how-digital-health-founders-should-build-in-the-glp-1-market/
