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Nestle is working to convert the rapid rise of GLP-1 weight loss drugs from a business threat into an opportunity, deploying artificial intelligence and nutritional research to develop products aimed at the millions of consumers now taking medications like Ozempic and Wegovy. The fast growing adoption of drugs made by Novo Nordisk and Eli Lilly has raised concerns among investors that appetite suppressing medications could permanently dent demand for packaged foods, snacks and beverages. Nestle sees the same trend differently, believing the drugs are creating a new market for products that address the side effects associated with rapid weight loss. Chief Technology Officer Stefan Palzer told a foreign news agency that Nestle is using artificial intelligence and other technology to analyze clinical research, identify effective nutrient combinations and build products tailored specifically to GLP-1 users. He said the company believes its existing product portfolio positions it well to capture what he described as a major opportunity. Materials shown to reporters outlined side effects tied to rapid weight loss, including muscle loss and the loss of facial volume sometimes referred to informally as Ozempic face, along with areas where Nestle believes its products could help address those issues. The GLP-1 drug market remains dominated by Eli Lilly’s Mounjaro and Zepbound alongside Novo Nordisk’s Wegovy and Ozempic. Roughly 16 million Americans currently take GLP-1 medications, according to Boston Consulting Group, a number expected to grow significantly by the end of the decade. Nestle’s strategy centers on developing products suited to the needs of weight loss drug users while relying on AI to speed up research, product development and consumer analysis. Addressing side effects directly Palzer said Nestle scientists have spent time studying the downstream effects of rapid weight loss and building products intended to help consumers manage them. The company uses AI tools to process large volumes of clinical research and identify nutrient combinations that may support muscle health, hydration and overall nutritional intake. Nestle has already begun adding collagen protein to products under its Vital Proteins brand to address concerns about skin, hair and nail health linked to rapid weight loss. In the United States, Nestle’s business created the Boost Advanced Nutrition Shake, marketed as containing 35 grams of protein to support muscle health during weight loss. In Asia and Australia, the company introduced a higher protein version of its Milo malt drink called Milo PRO High Protein. Rival ice cream makers are grappling with similar pressures, shifting toward higher protein products, smaller portions and simpler ingredient lists. An AI powered recipe database Artificial intelligence plays an increasingly central role throughout Nestle’s product development process. The company has built internal systems to analyze scientific literature, simulate consumer behavior, spot emerging trends and help product developers navigate a database containing roughly 120,000 recipes. One such tool, an internal platform called Food Genie, helps scientists and developers predict how recipes might perform and identify opportunities for reformulation, according to Palzer. He said the scale of Nestle’s recipe database gives the company an advantage, noting that a smaller company with only a thousand recipes would struggle to model and predict outcomes using AI, since the technology depends heavily on large volumes of data. Nestle is also testing AI driven consumer simulations designed to predict how shoppers will respond to new products and health claims before they reach store shelves, and the company uses AI to monitor social media activity and identify emerging consumer trends. Palzer said the technology helps distinguish genuine, lasting trends from short term noise around particular topics, and said he expects AI to play a growing role in that kind of trend analysis going forward. Skepticism remains among some experts Not everyone is convinced specialized products offer meaningful advantages over conventional food. Amanda Avery, an associate professor of nutrition and dietetics at the University of Nottingham in central England, said it is unfortunate that consumers keep turning to new, more expensive products that often contain the same protein and nutrients found in whole, fresh foods. She noted that meat, fish, eggs, dairy, beans, nuts and pulses remain relatively affordable sources of protein and other nutrients. Even so, Avery said she expects products marketed specifically to GLP-1 users to find a ready customer base, acknowledging that marketing exerts significant influence over consumer choices and suggesting Nestle has likely done its homework before entering the space.