Global Childhood Obesity: Retailers and CPG on Notice

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Childhood and adolescent overweight and obesity have emerged as critical global health concerns, garnering the attention of health professionals, researchers, and policymakers alike. A new study published in June, Global Prevalence of Overweight and Obesity in Children and Adolescents: A Systematic Review and Meta-Analysis is a wakeup call for grocery retailers and CPG brands to take this situation very seriously and develop products and programs that can alleviate and reverse this situation. The World Health Organization (WHO) reports that in 2022, 43 percent of global adults aged 18 years and over were overweight and 37 million children under the age of 5 were overweight.

Grocery retailers and CPG brands are in a unique position to influence dietary habits and health outcomes on a large scale. The findings of a comprehensive study paint a clear picture: Childhood obesity is a growing global epidemic with severe implications for future health outcomes. It is likely that our health and financial infrastructures can’t afford this epidemic.

WHO also reports that over 390 million children and adolescents aged 5-19 were overweight in 2022 and 160 million were living with obesity. The new study goes a step further than the facts reported by WHO with the objective of not just estimating the worldwide prevalence of overweight and obesity among children and adolescents from 2000 to 2023, but also assessing potential risk factors and identifying associated comorbidities.

Trending Data

The study, which included data from 2,033 studies spanning 154 countries and involving 46 million individuals, highlights alarming trends and offers insights for addressing this escalating issue. The analysis identified 11 risk factors that significantly correlate with higher obesity rates among children and adolescents. Among these, dietary habits, physical inactivity, and genetic predisposition were paramount. Behavioral and environmental influences, such as increased consumption of high-calorie, low-nutrient foods and sedentary lifestyles exacerbated by the advent of technology, were also significant contributors.

The study reports that the overall prevalence of obesity among children and adolescents is 8.5 percent. This rate varied significantly by region, ranging from as low as 0.4 percent in Vanuatu to a striking 28.4 percent in Puerto Rico. These variations underscore the influence of regional socioeconomic factors. Higher prevalence rates were notably reported in countries with Human Development Index (HDI) scores of 0.8 or greater, which are typically high-income countries or regions. The study also highlights a concerning trend: compared to the 2000-2011 period, the prevalence of obesity increased by 1.5-fold from 2012 to 2023.

The study emphasizes that children and adolescents with obesity are at a heightened risk of multiple comorbidities. Particularly, they have a higher propensity for depression and hypertension—a finding corroborated by numerous other studies. The study Obesity and psychiatric disorder: developmental trajectories concluded that childhood obesity is significantly linked to an increased risk of depressive symptoms, while the Bogalusa Heart Study reported a strong association between obesity and hypertension in children.

Taking Action

We have a serious problem that must be addressed now, and grocery retailers and CPG brands have a responsibility, and an opportunity, to take the lead in helping our shoppers and their families combat obesity and its implications for our society.

There has been much reporting and speculation about how new weight loss drugs like Wegovy and Mounjaro will solve the obesity problem, and some CPG brands have already started reformulations to accommodate the nutritional needs of these shoppers taking the drugs. By the end of 2023, Wegovy was projected to generate approximately $1.2 billion in sales globally. Analysts predict that Wegovy sales could reach $3 to $4 billion annually by 2025. Projections for Mounjaro suggest it could generate $3 to $5 billion annually within the next five years. Companies such as Jefferies have estimated that the global market for obesity treatments could exceed $100 billion within the next decade.

But these weight loss drugs are just a part of the solution as they have limited availability and are expensive; some question if they will change long-term behavior or if they are just a temporary quick fix. While clinical trials for Wegovy and Mounjaro report high adherence rates of over 80 percent, real-world adherence tends to be lower, typically around 60-75 percent after six months – suggesting these drugs are more of a fad or temporary solution for some people.

While the study called upon primary care professionals, clinicians, health authorities, and the public to adopt a multifaceted approach to addressing childhood obesity, grocery retailers and CPG brands play an equally important role. This dramatic rise calls for urgent public health interventions to curb this growing epidemic and underscores the role of grocery retailers and CPG brands both of whom could have a faster and more impactful effect.

Here is what needs to be done – and now.

  • Grocery retailers should expand their selection of healthier foods, fresh fruits and vegetables, whole grains, lean proteins, and low-fat dairy products.
  • CPG brands can develop and promote new products that are nutritious, lower in calories, and free of excessive sugars, sodium, and unhealthy fats.
  • It’s time for CPG brands to reformulate their most popular products to reduce unhealthy ingredients. Lowering sugar, salt, and saturated fat content in snacks, beverages, and ready-made meals can be accomplished easily these days without compromising taste.
  • Retailers should strategically place healthier options at eye level, at the end of aisles, and near checkout counters, where they are more likely to attract attention. Less healthy options can be placed in less prominent locations. Raley’s supermarket chain, for example, redid their shelves and signage to place healthier options at eye level and those less healthy ones on the bottom shelves.Sales for healthier products increased.

Plain Talk

Yes, these days we are on hold for the FDA’s effort to create a new ‘healthy’ label for foods and beverages – but in the meantime, both grocery retailers and CPG brands can adopt clear, easy-to-understand nutritional labeling on their products and on shelving. Retailers should use the new digital shelf labels to highlight these healthier products with green flashing lights and other nutritional information.  Retailers should also offer promotions and discounts on healthier food items, making them more affordable – and not simply rely on CPG promotional dollars to decide which products to promote. With today’s tech, it’s easy for grocers to use customer purchasing data to provide personalized nutrition recommendations through their loyalty programs and mobile apps – suggesting healthier alternatives, or swaps, based on purchase history is an easy way to change behavior and frankly to upsell shoppers.

Grocery retailers and CPG brands are in a unique position to influence dietary habits and health outcomes on a large scale. The findings of this comprehensive study paint a clear picture: Childhood obesity is a growing global epidemic with severe implications for future health outcomes. It is likely that our health and financial infrastructures can’t afford this epidemic.

With one in five children or adolescents carrying excess weight, immediate and sustained interventions are essential. The collaboration of CPG brands and grocery retailers is vital in reversing this trend and ensuring a healthier future for our future generations who are also our customers.

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