Once a niche treatment for Type 2 diabetes, glucagon-like peptide-1 (GLP-1) receptor agonists are rapidly evolving from therapeutic agents to a transformative force across multiple industries. In 2024, an estimated 1 in 8 American adults, translating to over 30 million individuals, reported using GLP-1 medications such as Ozempic, Wegovy, and Mounjaro, according to data from the Kaiser Family Foundation. This widespread adoption has captured the attention of investors and businesses across the food, supplement, and healthcare sectors, signaling a fundamental market shift that is creating new categories and investment opportunities. This phenomenon, termed the "Economy of Transformation" by venture capital leaders, signifies a permanent alteration in consumer behavior and physiological needs, demanding a re-evaluation of existing products and the development of entirely new ones.
The Dawn of the "Economy of Transformation"
Brian Sugar, co-founder and managing partner of San Francisco-based venture capital firm Sugar Capital, has been a vocal proponent of this emerging economic paradigm. Having personally experienced a 40-pound weight loss on Ozempic, Sugar believes he has gained a unique perspective on the profound opportunities presented by the widespread use of GLP-1s. His central thesis is that companies should not aim to compete with these medications but rather to "accessorize" them. He dismisses pitches for products marketed as "nature’s Ozempic," such as berberine or metabolic teas, as fundamentally misunderstanding the impact of these drugs.
Sugar highlights several common physiological changes and side effects associated with GLP-1 use, including muscle loss, protein malabsorption, magnesium depletion, and hair thinning. He argues that these are not temporary inconveniences to be "solved" to return to a previous state, but rather "permanent conditions of transformation." This perspective shifts the focus from addressing temporary weight loss challenges to supporting individuals living with altered metabolic states and nutritional requirements.
Sugar Capital’s investment strategy exemplifies this "Economy of Transformation." The firm participated in both the $1.8 million pre-seed funding round in 2023 and the $35 million Series B round in 2026 for Grüns, a celebrity-backed brand offering gummies formulated with 60 ingredients, including whole foods, adaptogens, and prebiotics. Grüns aims to address critical nutrient gaps, particularly for individuals whose caloric intake has significantly decreased. "We’re not selling to people on diets," Sugar stated. "We’re selling to people in different bodies." This approach underscores the recognition that GLP-1 users represent a distinct consumer segment with unique, ongoing nutritional needs.
Emerging Investment Categories in the GLP-1 Landscape
The burgeoning GLP-1 market has spurred significant investment activity, coalescing around three primary categories: nutrition support platforms, healthier food initiatives, and specialized supplement development. Investors are actively seeking to serve this expanding population by addressing their evolving needs.
Nutrition Support Platforms: Bridging Healthcare and Consumer Needs
The venture capital market has responded with substantial funding for services designed to connect individuals with registered dietitians and nutritionists. These platforms aim to provide accessible and often insurance-covered nutritional guidance.
Berry Street, a company offering "nutrition therapy, covered by insurance," secured $50 million in funding earlier this year from investors including Northzone, Sofina, and FJ Labs. Similarly, Fay Nutrition, an AI-powered "preventative care platform" that pairs users with licensed nutrition professionals, announced in October 2025 that it had raised $50 million in Series B funding. Key investors in Fay Nutrition included Goldman Sachs, General Catalyst, and Forerunner Ventures.
Noah Kotlove, CEO of Berry Street, co-founded the company in 2023 after his own experience losing 65 pounds with the help of a nutritionist. He observed that while most insurance companies cover nutrition consultations, many individuals remain unaware of or fail to utilize these benefits. The Berry Street platform streamlines this connection and payment process. "Insurance companies are happy to pay for [nutrition consultations] because it’s preventing more costly treatment," Kotlove explained. "GLP-1s have hastened this prioritization as they’re becoming such an unwieldy cost for insurers."
Michele Rager, Berry Street’s head of clinical nutrition, reported that over 20% of their platform’s patients are currently taking GLP-1s and actively engaging with registered dietitians daily. Rager has witnessed the significant evolution of GLP-1s over the past five years, from their initial use for Type 2 diabetes to their widespread popularization for weight loss by celebrities like Chrissy Teigen, Kelly Clarkson, and Kathy Bates, and ultimately to their broad prescription for weight management. "GLP-1s are now something I hear and talk about from a higher leadership level every day," she noted.
While acknowledging that GLP-1s are not a "magic bullet," Rager emphasized their synergistic effect when combined with lifestyle and behavioral changes, including dietary adjustments and potentially vitamin and supplement supplementation. "Some nutrition supplements have shown small, statistically significant benefits," she stated. "But the lion’s share of impact you can make, other than with these prescribed medications, is with lifestyle and diet, making sure you’re eating the right things, moving properly and supporting all these healthy lifestyle factors."
The Healthier Food Push: "Food as Medicine" Gains Momentum
Marcia Hooper, a partner at Branch Venture Group, an angel investment network focusing on food and beverage CPG, foodtech, and agtech ventures, indicated that while her group has not yet invested in GLP-1-specific companies, they are closely monitoring the space due to GLP-1s’ potential to drive the "food as medicine" (FAM) movement. FAM programs, which include medically tailored meals and produce prescriptions, aim to provide nutrient-dense food to individuals managing chronic illnesses or experiencing food insecurity. Historically, these initiatives have been championed by charitable organizations and publicly funded health insurance programs, but private insurers are increasingly piloting FAM programs for eligible patients.
Hooper noted the effectiveness of GLP-1 drugs in facilitating weight loss, but cautioned about the accompanying loss of muscle mass and bone density. "Since most people feel like eating less," she said, "what they consume needs to be nutrient dense to keep muscle tissue vibrant." This has created a demand for new products designed to meet these specific nutritional challenges.
Larissa Zimberoff, author of "Technically Food: Inside Silicon Valley’s Mission to Change What We Eat," observes that major food companies are paying close attention to the GLP-1 trend. She connects this trend to a growing consumer sentiment against ultra-processed foods (UPFs). "Consumers on GLP-1s are buying less junk food but still snacking. They’re looking for healthier options," Zimberoff stated. "Because they’re eating far less, getting the right nutrients in the right amounts becomes critical."
Both Hooper and Zimberoff point to evolving strategies by corporate food companies in response to the GLP-1 trend, including:
- Reformulation of existing products: Companies are exploring ways to enhance the nutrient density of their offerings while reducing processing and unhealthy ingredients.
- Development of new product lines: The demand for nutrient-dense, low-volume, and palatable food options is spurring innovation in product development.
- Focus on whole foods and minimally processed ingredients: A shift towards ingredients that support satiety and provide essential nutrients without excessive calories is becoming more prominent.
Specialized Supplement Development: Addressing Nutritional Gaps and Side Effects
Beyond the broader food industry, there is a "big opening" for vitamin and supplement manufacturers, according to Zimberoff. She cited GNC’s dedicated GLP-1 supplement section as an example, featuring products designed to support GLP-1 production, metabolic health, and gut microbiome function. These include supplements for nutrient replacement, high-protein formulations with minimal volume, and sports nutrition products aimed at preserving muscle mass.
Companies are also developing fiber and prebiotic products to address digestive changes experienced by GLP-1 users. Zimberoff also identified inflammation as "another area that might grow with this GLP-1 audience," suggesting further opportunities for specialized supplement development.
Foodtech Innovation Pipeline: Concentrated Nutrition for Evolving Needs
The broader demand for "better-for-you" products, amplified by the GLP-1 trend and consumer aversion to UPFs, is driving innovation within the food technology sector. Ingredient companies are actively responding to these evolving consumer preferences.
Mista, a San Francisco-based food laboratory with investors such as Givaudan and Ingredion, plays a crucial role in identifying and nurturing early-stage companies with disruptive technologies in the food system. "We help connect these start-ups to big companies, so they can begin to incorporate them into portfolios," explained Mista co-founder and chief innovation officer, Scott May. "Overall, the goal is to highlight the potential of combining new ingredient technologies with existing solutions."
In March 2026, Mista’s Healthy Nutrition Symposium brought together representatives from 60 companies to address challenges posed by the GLP-1 and UPF trends. One particular focus group was tasked with developing a product for GLP-1 users experiencing reduced appetite and struggling to meet their protein and nutrient intake. The resulting prototype was a 125-milliliter beverage containing 21 grams of protein and 5 grams of fiber, fortified with encapsulated vitamins A, D, and E to provide 100% of the daily value without any perceptible "vitamin taste." This concentrated nutrition solution, mimicking the format of energy shots commonly found in convenience stores, represents the type of product the GLP-1 market is actively seeking.
Investment Implications: A Paradigm Shift in Health Management
Marcia Hooper offers a compelling analogy for the impact of GLP-1s: "I think of GLP-1s like eyeglasses for the gut. If you’re nearsighted or farsighted, corrective lenses really help you. And if your gut doesn’t digest food at a speed that can work with your metabolism, a GLP-1 can be really helpful." This analogy underscores a crucial insight: GLP-1s are increasingly viewed as permanent health management tools rather than transient diet solutions. This permanence fosters sustainable market opportunities for investors who can look beyond traditional weight-loss categories.
The GLP-1 trend presents a multifaceted investment landscape with distinct opportunities across different time horizons:
- Immediate Opportunities: These lie in the realm of nutritional support services, particularly those with established insurance reimbursement models, such as Berry Street and Fay Nutrition.
- Medium-Term Opportunities: These involve the development of specialized supplements designed to address the specific side effects and nutritional gaps that arise from GLP-1 use. This includes products focused on muscle preservation, nutrient absorption, and gut health.
- Longer-Term Opportunities: These are rooted in food technology innovations, specifically the creation of nutrient-dense, minimal-volume products that cater to reduced appetites and evolving dietary needs.
The supplement industry, in particular, faces a fundamental shift. The focus is moving from serving individuals striving for weight loss to supporting those living with permanently transformed metabolisms. This requires a strategic reorientation towards products that facilitate ongoing health and well-being within this new physiological reality. The "Economy of Transformation" is not a fleeting trend but a foundational shift that will continue to reshape markets and drive innovation for years to come.
This article originally appeared in the Nutrition Business Journal Investment and Finance Issue. Subscribe today to the Nutrition Business Journal.
