The rise of GLP-1 drugs like Ozempic and Wegovy is reshaping food habits, with younger, higher-income users cutting grocery spending on calorie-dense foods like cheese and butter. As yogurt and whey protein gain traction, the dairy industry faces challenges—and opportunities—to adapt.
Summary:
GLP-1 drugs, initially developed for type 2 diabetes, are now widely used for weight loss, particularly among younger, higher-income individuals. A Cornell University study shows significant reductions in grocery spending on calorie-dense foods like cheese (-7.2 %) and butter (-5.8%). However, demand for protein-rich dairy products, such as yogurt and whey protein, is rising as users prioritize nutrient-dense options. While these trends challenge traditional dairy markets, they also present opportunities for farmers to adapt by focusing on high-protein products and exploring partnerships with processors.
Key Takeaways
- Demographics of GLP-1 Users:
- GLP-1 users tend to skew younger (Millennials and Gen Xers) and higher-income.
- A significant portion of users are adopting these drugs for weight loss rather than diabetes management.
- Spending Reductions:
- GLP-1 users show notable reductions in grocery spending, particularly on calorie-dense foods like cheese, butter, ice cream, and other indulgent dairy products.
- Impact on Dairy Industry:
- Traditional dairy categories are seeing declines in demand, while protein-rich products like Greek yogurt and whey protein are experiencing growth.
- Cornell Study Limitations:
- The study’s sample size (2,623 households) may not fully represent rural or lower-income populations, where traditional dairy consumption may remain stable.
- Opportunities for Farmers:
- Farmers can explore shifting production toward high-protein dairy products or partnering with processors to meet the growing demand for functional foods.
The rise of GLP-1 medications like Ozempic, Wegovy, and Mounjaro is reshaping consumer habits in ways that are rippling through the dairy industry. Developed initially to manage type 2 diabetes, these drugs are now widely used for weight loss and long-term weight management. A recent Cornell University and Numerator study reveals that households with GLP-1 users are spending significantly less on traditional dairy products, with cheese purchases dropping by 7.2%, butter by 5.8%, ice cream by 5.5%, and milk/cream by 4.7% (Cornell/Numerator, 2025).
While these changes reflect evolving consumer priorities, they also present challenges—and opportunities—for dairy farmers who must adapt to shifting demand.
Appetite Suppression Meets Dairy Decline
GLP-1 drugs mimic a natural hormone that suppresses appetite, delays gastric emptying, and reduces cravings for calorie-dense foods. These physiological effects have led to a 5.5% overall reduction in grocery spending among households with at least one GLP-1 user (Cornell/Numerator, 2025). The impact is particularly pronounced among younger, higher-income consumers, who are more likely to adopt these medications for weight loss.
According to Numerator data:
- 71% of GLP-1 users seeking weight loss are Millennials or Gen Xers, compared to just 24% who are Boomers.
- Higher-income households (>$125K/year) reduce food expenditures more sharply (-8.6%) than lower-income households (-4.2%).
“This isn’t just about eating less—it’s about eating differently,” says Eric Belcher, CEO of Numerator. “GLP-1 users are cutting back on calorie-dense foods while prioritizing nutrient-dense options.”
Winners and Losers in the Dairy Aisle
The shift in consumer behavior has created clear winners and losers in the dairy sector:
Declining Categories
Traditional dairy products like cheese, butter, and ice cream—often perceived as indulgent or calorie-heavy—are declining sharply. These categories rely heavily on discretionary spending, which is shrinking as GLP-1 users reduce portion sizes and snack consumption. This trend poses significant challenges for farmers whose income depends on high-butterfat milk production.
| Category | Spending Reduction (%) | Notes |
| Cheese | -7.2% | High-fat, calorie-dense category. |
| Butter | -5.8% | Decline is linked to reduced indulgence. |
| Ice Cream | -5.5% | Affected by reduced snack consumption. |
| Milk and Cream | -4.7% | General decline across dairy staples. |
Growing Segments
Conversely, protein-rich dairy products are thriving as consumers prioritize muscle retention during weight loss:
- Yogurt: Sales of Greek yogurt have surged by 40%, driven by brands like Fage and Arla (Mellentin, 2025).
- Cottage Cheese: Volumes have risen by 13.3% in markets like the UK (Mellentin, 2025).
- Whey Protein: U.S. whey protein sales reached $705 million in 2024, marking an 8.6% year-on-year increase (Spins Market Research, 2025).
“Yogurt’s functional benefits—high protein content, probiotics, and low sugar—make it a standout choice for GLP-1 users,” says Sally Lyons Wyatt, EVP at Circana and an expert in consumer insights (Circana Report, 2025).
Farm-Level Implications
For dairy farmers, these shifts in demand require careful adaptation:
| Challenge/Opportunity | Impact on Farmers | Suggested Action |
| Declining Butterfat Demand | Lower prices for high-fat milk products | Shift herd management toward higher protein production. |
| Growth in High-Protein Products | Increased demand for yogurt, whey, cottage cheese | Partner with processors specializing in protein products. |
| Regional Variations | Stable demand in rural/lower-income areas | Focus on traditional dairy markets in these regions. |
Farmers producing high-butterfat milk may face declining prices as demand for butter and cheese contracts. Diversifying herd management practices to prioritize milk optimized for protein production could help offset losses.
Demographic Shifts and Study Limitations
The Numerator survey of over 100,000 households reveals generational divides:
- 71% of weight-loss users are Gen X or Millennials versus older Boomers who primarily use GLP-1s for diabetes management.
- Gen Z users are five times more likely to take GLP-1s for weight management than for diabetes treatment.
However, the Cornell study’s sample—limited to 2,623 households—may underrepresent rural populations or those from lower-income brackets where traditional dairy products remain staples (Cornell/Numerator Study Limitations). Researchers also note that appetite suppression may weaken over time without dosage adjustments or continued compliance with the medication regimen.
Industry Challenges and Adaptations
With Morgan Stanley projecting 31.5 million U.S. GLP-1 users by 2035, manufacturers face dual pressures:
- Commodity Challenges: Reduced butterfat demand threatens farmgate milk prices in volatile markets.
- Innovation Opportunities: High-protein whey isolates and fermented products gain traction as consumers shift toward functional foods.
Danone’s Oikos Pro (20g protein/serving) saw U.S. sales surge by 40% in 2024 as it captured health-conscious consumers seeking nutrient-dense options (Danone Investor Reports). Clinical studies suggest dairy proteins like casein stimulate GLP-1 secretion up to 270% above baseline, creating a symbiotic relationship between medication use and dietary choices (PMC Research Article).
Sustainability Considerations
As consumer preferences shift toward health-conscious choices, sustainability could become a key differentiator for dairy farmers looking to maintain relevance in this evolving market:
- Reducing Waste: Farmers can work with processors to create value-added products from surplus milk.
- Grass-Fed or Organic Certifications: These labels appeal to health-conscious consumers while supporting environmentally friendly practices.
The Bottom Line
The rise of GLP-1 medications is reshaping the landscape of food consumption—and the dairy industry is no exception. While traditional categories like cheese and butter face headwinds due to changing consumer preferences for calorie-dense foods, opportunities abound in high-protein and functional food segments that align with health-conscious trends. By embracing innovation, exploring partnerships with processors focused on protein-rich products, and adopting sustainable practices where possible, farmers can navigate this transformative era with resilience.
Learn more:
- Ozempic and the Surprising Role of Dairy in Your Weight Loss Journey
- Global Dairy Market in 2025: Production Shifts, Demand Fluctuations, and Trade Dynamics
- Why 2024 Was a Game-Changer for the Protein-Packed Dairy Industry
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