Wegovy GLP-1 pill could reshape Britain's £220bn food market, warns brokers
Published: 07:14 12 Jun 2026 EDT
The approval of a tablet version of the GLP-1 drug Wegovy in the UK could mark a turning point for Britain's food industry, according to Shore Capital, as weight-loss drugs move from a healthcare trend to a force capable of changing consumer spending habits.
Retail analyst Clive Black said the Medicines & Healthcare products Regulatory Agency's decision to approve an oral version of the Novo Nordisk (NYSE:NVO) obesity treatment was "a notable moment for the UK food system" because pills are likely to be more accessible than injections.
The warning comes as evidence mounts that GLP-1 drugs are reducing demand for food and drink.
Shore Capital estimates that households using the treatments cut grocery spending by 5-10%, while spending at quick-service restaurants can fall by as much as 10%.
According to Kantar data cited by Black, nearly two million Britons were using weight-loss drugs in the year to February 2026, reducing spending in the £220 billion grocery market by almost £800 million.
"The expansion of the diet suppressant drug supply ... is likely to mean that aggregate average calorific intake is going to further ease in future years," Black said.
The impact is unlikely to be evenly spread across the sector.
Shore Capital expects demand for protein-rich foods such as meat, poultry and fish as produced by the likes of Cranswick PLC (LSE:CWK) and packed by Hilton Food Group PLC (LSE:HFG) should prove more resilient.
Confectionery, snacks, sweet processed foods and alcohol face greater pressure, particularly as consumers become increasingly wary of ultra-processed foods. Mr Kipling maker Premier Foods (LSE:PFD), Diageo PLC (LSE:DGE) and US giants Kraft Heinz Co (NASDAQ:KHC), PepsiCo Inc (NASDAQ:PEP), Mondelez International Inc (NASDAQ:MDLZ) and Hershey Company (NYSE:HSY) fit into those categories.
Black believes the implications extend beyond product sales. Food manufacturers may need to reformulate ranges, retailers could adjust shelf space, and mergers and acquisitions may increasingly be shaped by changing consumption patterns.
"There are ongoing processes at play here, but we are clear that market behaviour is adjusting from a demand side, lower calorific intake, so a downward force on volumes perhaps offset by better mix through premiumisation," he said.
"We do feel that we shall look back on this tablet approval being a notable threshold for the British food system."
