Obesity drugs to reshape global food — UCC report

Ultra-processed food makes up 35% of Irish diets

The emergence of the GLP1 family of anti-obesity drugs combined with increased consternation regarding UPFs and growing regulations creates risks and opportunities for the food and beverage sector.

Medical developments such as the widespread availability of obesity drugs will be a major disruptor for the food and beverage sector with a potential decrease in demand for ultra-processed food (UPF).

A new report examining the global food & beverage sector launched in UCC on Wednesday found that UPFs account for approximately 60% of US, 57% of UK and about 35% of Irish diets.

The emergence of the GLP1 family of anti-obesity drugs combined with increased consternation regarding UPFs and growing regulations creates risks and opportunities for the food and beverage sector. 

"The best performers will be those who position their portfolios to complement or play into the trends over the medium term," the report states.

It also found that price remains the main driver of choice for Irish food shoppers with the demand for food produced to higher sustainability standards slipping since the recent cost of living crisis. 

While up to 60% of consumers in Ireland want more sustainable products, only 30% are prepared to pay a higher price. Only 3% of shoppers identify sustainability credentials as the primary influence on product choice with 56% identifying price as the most important influencer.

This Irish data is mirrored in global trends also as food price increases in 2023/24 met with backlash from shoppers and politicians alike across Europe and the US.

The research also found that European food and beverage companies are set to invest €33bn this year and the sector is a global powerhouse with a combined market capitalisation of over €1 trillion.

However, supply chain disruptions, due to geo-political unrest and pirate activity in the Red Sea and problems in the Suez and Panama Canals, are prompting food and beverage companies to restructure their supply chains.