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Obesity Drugs Market: a stable and high growing segment

Anti-obesity medications are designed to support weight loss in individuals who are overweight or obese. These drugs operate through various mechanisms, such as reducing appetite, enhancing metabolism, or blocking the absorption of dietary fat.

February 20, 2025

Table of Contents

Overview of Anti-Obesity Medications and Market Dynamics

Anti-obesity medications are designed to support weight loss in individuals who are overweight or obese. These drugs operate through various mechanisms, such as reducing appetite, enhancing metabolism, or blocking the absorption of dietary fat. They are typically classified into three main categories based on their function: those that inhibit intestinal fat absorption, suppress appetite, or increase energy expenditure. These treatments are often paired with lifestyle changes for maximum efficacy.

The anti-obesity drugs market includes a variety of pharmaceutical solutions aimed at weight management and reducing related health risks. These medications achieve their effects by curbing hunger, altering neurotransmitter levels, or limiting nutrient absorption. As a result, they contribute to comprehensive obesity management strategies.

Drivers of Anti-Obesity Drugs Market Growth

  1. Rising Awareness: Growing public awareness of obesity treatments is driving demand for anti-obesity medications.

  2. Increased R&D Investments: Pharmaceutical companies are allocating significant resources toward the development of more effective and innovative drugs.

  3. Focus on Holistic Medicine: The market is benefiting from a shift toward personalized and holistic medical approaches.

  4. Rising Prevalence of Obesity: The increasing global incidence of obesity, driven by sedentary lifestyles, unhealthy dietary habits, and genetic predispositions, is fueling demand for effective treatment solutions.

  5. Advancements in Drug Development: Ongoing research and development efforts, particularly in innovative therapies like GLP-1 receptor agonists, are introducing more effective and safer anti-obesity medications to the market.

  6. Integration of Technology: The incorporation of artificial intelligence and digital health technologies is enhancing personalized treatment plans, improving drug efficacy monitoring, and supporting holistic weight management strategies.

  7. Supportive Government Policies and Healthcare Investments: Many governments and organizations are implementing policies and funding programs to combat obesity, further driving market expansion.

  8. Expanding Access to Healthcare: The proliferation of healthcare infrastructure in developing economies is improving accessibility to obesity treatments, contributing to the market's growth.

Role of Artificial Intelligence in the Anti-Obesity Market

Artificial intelligence (AI) is revolutionizing the weight loss and anti-obesity drugs market by improving treatment personalization and monitoring. AI enables healthcare professionals to predict patient outcomes, recommend tailored treatment plans, and continuously assess the efficacy of prescribed medications. Advanced technologies such as precision medicine, powered by AI, allow for real-time data collection to evaluate drug performance based on patient responses.

Machine learning and deep learning enhance the accuracy of obesity-related disease prediction through medical imaging and secure health data storage. AI tools also identify behavioral and dietary patterns, support remote monitoring, and offer personalized weight loss management solutions with standardized outcomes.

Key Developments in the Market

In May 2024, Terns Pharmaceuticals announced results from phase 1 human clinical trials of TERN-601, a glucagon-like peptide-1 receptor (GLP-1) agonist. This drug shows promise as a weight loss management solution for obese patients, marking significant progress in obesity treatment innovation.

Market Size

The global obesity drugs market was valued at ~$20.20 billion in 2024 and is projected to grow at a robust CAGR of ~27.5%, reaching an estimated value of $86.71 billion by 2030.

US Market Size

The United States dominates the global obesity drugs market, accounting for almost 50% of market share, driven by a high prevalence of obesity, advanced healthcare infrastructure, and significant R&D investments in innovative treatments.

In 2024, the U.S. obesity drugs market was valued at approximately $9.50 billion and is expected to grow at a compound annual growth rate (CAGR) of ~30.8%, reaching an estimated $47.53 billion by 2030, fueled by increasing awareness, rising adoption of novel therapies, and expanding access to weight management solutions.

Type Insights

In 2023, the prescription drug segment led the anti-obesity drugs market, largely due to the availability of effective therapeutic weight management medications targeting both central and peripheral mechanisms. The growing prevalence of obesity, fueled by factors such as high alcohol consumption, fast food diets, and sedentary lifestyles, has driven the demand for these prescription-based solutions.

Anti-Obesity Drugs Market Share by Type, 2023 (%)

The over-the-counter (OTC) drug segment is anticipated to grow significantly during the forecast period. The rise of e-commerce platforms has enhanced the accessibility and convenience of purchasing OTC anti-obesity drugs online, making them more readily available to consumers. OTC drugs encompass a variety of non-prescription treatments and healthcare products that can be bought without a doctor's prescription.

In March 2024, Taisho Pharmaceutical announced plans to market orlistat, the first anti-obesity drug to be available without a prescription in Japan. Scheduled for release on April 8 under the brand name Alli, the drug is designed to reduce visceral fat and prevent obesity-related illnesses. It is targeted at individuals aged 18 and older, with waist circumferences of at least 85 cm for men and 90 cm for women.

Obesity Market Inflection Point?

According to IQVIA, the obesity treatment landscape is undergoing a significant transformation, primarily due to the introduction of GLP-1 receptor agonists like Wegovy, which have demonstrated substantial weight loss of 10-15%.

The global prevalence of obesity is projected to increase from 14% in 2020 to 25% by 2035, affecting approximately 1.9 billion individuals and imposing an economic burden estimated at $4 trillion (Total spending related to Obesity, not only drugs) due to heightened healthcare costs and diminished productivity.

Consequently, the obesity drug market has seen rapid expansion. This growth positions obesity treatment alongside oncology, diabetes, and immunology as a "mega-therapy" area. However, challenges persist, including societal acceptance of obesity as a chronic disease, healthcare systems' capacity to fund treatments, and the emergence of new therapies addressing current limitations. Ongoing innovation and adaptation within the healthcare industry are essential to effectively manage the escalating obesity epidemic.

According to IQVIA, obesity is top growing therapy area in expected spending growth by 2028, followed by Oncology and Blood coagulation therapies.

Obesity Drugs Impact

Obesity Drugs and Healthcare Impact

Obesity medications like GLP-1 receptor agonists are expected to extend their impact beyond weight management, as obesity contributes to over half of diabetes cases and over 200 chronic diseases, including cardiovascular conditions and Alzheimer's. Landmark trials like SELECT show these drugs reduce diabetes risk by 73% and cardiovascular events by 20%. Expanding their applications will require more clinical trials and insurance coverage, but their potential to disrupt healthcare is immense. While lower obesity rates could reduce healthcare costs initially, increased longevity might lead to higher long-term healthcare spending, particularly for programs like Medicare.

Sectors such as cardiovascular device makers may benefit from increased demand due to longer lifespans, while others, like kidney dialysis, face mixed outcomes. Orthopedic procedures may also see shifts, with fewer surgeries for non-obese patients but potential increases in fall-related injuries with age.

Impact on Food, Beverage, and Consumer Goods

Weight-loss drugs, which reduce appetite, are changing consumption patterns across food and beverage industries. Patients are eating less overall and shifting away from sugary drinks, alcohol, and snacks. Packaged food companies are adapting by offering healthier options, smaller portions, and products tailored to changing consumer preferences. Restaurants, particularly fast-food chains, face long-term risks but can adapt by incorporating healthier menu options.

Soft drink and snack consumption is projected to decline by up to 4% by 2035, but this may be mitigated by innovations such as zero-sugar products and slower adoption of weight-loss drugs outside the U.S.

Opportunities in the Fitness Industry

The fitness sector is poised to benefit from behavioral shifts driven by weight-loss drug usage. Survey respondents reported doubling their weekly exercise frequency, with increased gym memberships aligning with their drug usage timelines. This trend boosts the sportswear and athleisure industries, signaling strong growth potential as consumers embrace healthier lifestyles.

Top Geographic Targets for Obesity Drugs

Countries with the Higher Obesity Rates among Adults

The chart highlights the top 20 countries with the highest obesity rates, led by American Samoa, Tonga, and Nauru, where over 70% of adults are classified as obese. Several Pacific Island nations, such as Tokelau, Cook Islands, and Niue, dominate the rankings, reflecting regional trends influenced by dietary and lifestyle patterns. Outside the Pacific, countries like Egypt, Qatar, and the United States also rank high, showcasing the global scale of obesity as a public health challenge. These statistics underscore the urgent need for targeted interventions and policies to address obesity worldwide.

Obesity Drugs Target Markets: Intersection of Obesity Rates and Healthcare Spending

The chart illustrates the relationship between adult obesity rates and average healthcare expenditure per capita (2011–2021, PPP). It highlights significant disparities between countries in obesity prevalence and healthcare investment, providing key insights into target markets for obesity drugs.

The United States stands out with a high obesity rate and the highest healthcare spending, underscoring its position as the largest market for obesity drugs. Other high-income countries like Switzerland, Norway, and Luxembourg demonstrate relatively lower obesity rates but maintain high healthcare expenditures, suggesting potential market opportunities for preventive solutions or early-stage interventions.

In contrast, countries such as Nauru, Qatar, and Argentina show elevated obesity rates but comparatively moderate healthcare spending. These markets represent a critical opportunity for expanding obesity drug access, as they face high disease burdens with constrained resources.

Emerging economies, including Brazil, Chile, and Greece, exhibit moderate obesity rates and lower healthcare expenditures, reflecting a growing need for affordable and scalable treatment options as obesity prevalence rises.

Countries with low obesity rates, such as Japan, Singapore, and Finland, demonstrate strong healthcare investments but limited immediate demand for obesity medications, highlighting the importance of focusing on prevention in these markets.

The chart underscores a key trend: high-obesity, high-expenditure markets like the United States are immediate drivers of obesity drug growth, while lower-expenditure, high-obesity nations represent untapped potential. These insights are essential for tailoring market strategies and resource allocation to maximize impact in the fight against obesity.

Conclusion

The obesity drugs market is at a pivotal moment, transforming into a high-growth sector with profound implications for healthcare, food, and lifestyle industries. With the market projected to grow from $20.20 billion in 2024 to $86.71 billion by 2030, obesity treatments are becoming a critical focus alongside traditional mega-therapy areas like oncology and diabetes. This rapid expansion is driven by innovative medications, such as GLP-1 receptor agonists, which not only support weight loss but also reduce the risk of associated chronic conditions, including diabetes and cardiovascular diseases.

The United States leads the global market due to high obesity rates and advanced healthcare infrastructure, while other high-obesity, moderate-expenditure nations, such as Qatar and Argentina, represent untapped opportunities. Technological advancements, particularly the integration of artificial intelligence, are enabling personalized treatments and monitoring, further accelerating the market's growth.

Beyond healthcare, the ripple effects of obesity medications are reshaping the food, beverage, and fitness sectors. Reduced calorie intake and shifting dietary habits are prompting industries to adapt with healthier offerings and tailored services. Meanwhile, the fitness industry is poised to benefit from increased gym memberships and exercise rates among individuals using these medications.

Despite this progress, challenges remain. Expanding access to obesity drugs will require robust insurance coverage, clinical trials, and greater societal acceptance of obesity as a chronic condition. Additionally, as longevity improves, healthcare systems must prepare for higher long-term costs associated with aging populations.

In conclusion, the obesity drugs market is not only addressing a critical public health challenge but also creating substantial opportunities for innovation, investment, and global impact. By continuing to innovate and adapt, stakeholders across industries can play a pivotal role in combating the obesity epidemic and improving quality of life worldwide.

Sources & References

IQVIA. (2024). The global use of medicines 2024. https://www.iqvia.com/library/publications/the-global-use-of-medicines-2024 

IQVIA. (2024). 2024: The Obesity market`s inflection point? http://iqvia.com/locations/emea/blogs/2024/10/2024-the-obesity-markets-inflection-point 

JP Morgan. (2023). The increase in appetite for obesity drugs.  https://www.jpmorgan.com/insights/global-research/current-events/obesity-drugs#section-header#0 

Morgan Stanley. (2024). Scaling Up the Impact of Obesity Drugs. https://www.morganstanley.com/ideas/obesity-drugs-market-expanded-opportunity 

Morgan Stanley. (2023). Obesity Drugs Boost Pharma`s Growth Outlook. https://www.morganstanley.com/ideas/obesity-drugs-investment-opportunity 

Precedence Research. (2024). Anti-Obesity Drugs Market Size, Share and Trends 2024 to 2034. https://www.precedenceresearch.com/anti-obesity-drugs-market#:~:text=The%20global%20anti%2Dobesity%20drugs,5.53%25%20from%202024%20to%202034

World Bank. (2024). Current health expenditure per capita (current US$). https://data.worldbank.org/indicator/SH.XPD.CHEX.PC.CD 

World Health Organization. (2024). Age-standardized prevalence of obesity among adults (18+ years). https://data.who.int/indicators/i/C6262EC/BEFA58B 

World Obesity. (2023). Economic impact of overweight and obesity to surpass $4 trillion by 2035. https://www.worldobesity.org/news/economic-impact-of-overweight-and-obesity-to-surpass-4-trillion-by-2035