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Impacts: Health impacts

Cost impacts of obesity and of obesity prevention measures

Last updated 03-04-2025

Obesity imposes substantial economic costs on individuals, health systems, and societies, both directly and indirectly. Based on current trends, it has been estimated that overweight and obesity will cost the global economy over USD$4 trillion (AUD$6 trillion) in 2035, approximately 3% of current global Gross Domestic Product (GDP). Although preventing and treating obesity requires financial investment, the long-term costs of inaction will be significantly greater. Sufficient economic evidence exists to support action by governments at all levels and society to implement cost-effective interventions to address the high burden of obesity.

Key Evidence

01

In Australia, the total economic cost of overweight and obesity has been estimated at USD$ 27 billion (AUD$39 billion), or 1.9% of GDP in 2019. This is projected to rise to over USD$43 billion (AUD$62 billion) by 2030, and over USD$158 billion (AUD$228 billion), or 3.5% of Australian GDP by 2060.

02

Economic costs of obesity include direct healthcare costs related to treatment of overweight and obesity and its related comorbidities, as well as indirect costs including reduced quality of life, stigmatisation and reduced workforce participation and performance. Indirect costs often surpass direct healthcare costs. These costs are borne by individuals, families, businesses, governments and society.

03

Robust evidence shows that obesity prevention interventions are cost-effective. Population-level regulatory interventions are more likely to be cost-effective as they have higher population reach, result in higher health gains and are likely to cost less than program- or settings-based interventions. Cost-effective obesity prevention strategies include taxation on sugar-sweetened beverages, community-based interventions and restricting unhealthy food marketing.

Economic costs associated with obesity

The economic impacts of obesity are substantial and include direct healthcare costs and indirect costs.1234567 Direct healthcare costs include costs related to treatment of overweight and obesity and its related comorbidities, such as type 2 diabetes, cardiovascular diseases, and several cancers.124 Indirect costs of obesity include reduced quality of life, stigmatisation and reduced workforce participation and performance (through absenteeism and presenteeism among school-aged and working-aged people, or early retirement of those within the labour force).13489 Indirect costs also include impacts on unpaid labour, such as reduced capacity for household and volunteering activities.1011 Indirect costs often surpass direct healthcare costs.57


These costs are borne by multiple stakeholders, including:

  • individuals (for example, out of pocket healthcare expenses for managing and treating obesity and its associated comorbidities, reduced paid or unpaid labour),
  • their carer(s) and families (for example, out of pocket costs related to healthcare, absenteeism related to caring),
  • employers (for example, costs related to absenteeism (time away from work due to illness) and presenteeism (reduced productivity while at work) of employees with obesity and its associated comorbidities),
  • health systems (for example, costs of medical care to manage and treat individuals with obesity, specialist hospital equipment),
  • governments at all levels (for example, subsidised health goods and services, lower tax revenue from reduced productivity of those within the labour force), and
  • society (for example, lower economic growth).512

While some economic costs (such as costs of treatment, visits to allied health professionals, or absenteeism and presenteeism) can be quantified, others (such as stigmatisation or reduced educational attainment) are more difficult to measure.2513 As a result, the full costs of overweight and obesity are likely underestimated.25

Despite this potential for underestimation, the costs of overweight and obesity are high. Without significant advancements in preventive and treatment measures it has been estimated that the global economic impacts of obesity will surpass USD$4 trillion (AUD$6 trillion14) by 2035.6 In Australia, the direct and indirect economic costs of overweight and obesity were estimated at approximately USD$27 billion (AUD$39 billion14), or 1.9% of GDP in 2019.17 These costs are projected to increase to over USD$43 billion (AUD$62 billion14) by 2030, and over USD$158 billion (AUD$228 billion14), or 3.5% of Australian GDP by 2060 if current trends in the prevalence of overweight and obesity continue.17 To alleviate the economic burden of obesity and improve public health, prevention is essential.151617

Evidence of cost-effective interventions to prevent obesity

Sufficient economic evidence exists to support action by governments at all levels and society to implement cost-effective interventions to address the high burden of obesity.1518192021 The most robust evidence for cost-effectiveness is for:

Other initiatives that have been found to be cost-effective in the Australian context include:

Priority-setting studies comparing the cost-effectiveness of multiple interventions using a consistent methodology have found that regulatory interventions are likely to impact large populations, result in higher health gains and cost less than program- or settings-based interventions.2037 Sustained and coordinated interventions over the life course also deliver greater health benefits than individual interventions.2021 These studies have shown that although initial investment is required to implement effective interventions and policies to reduce the prevalence of overweight and obesity, over the long-term, many of these interventions result in cost-savings. Successfully addressing obesity requires a comprehensive approach, incorporating the spectrum of cost-effective interventions, across all age groups, sectors and society.152021

Content for this page was reviewed and updated by Michelle Tran, Jaithri Ananthapavan and Vicki Brown at Deakin Health Economics at Deakin University. For more information about the approach to content on the site please see About | Obesity Evidence Hub.

References

1. World Obesity Federation 2022, The Economic Impact of Overweight & Obesity in 2020 and 2060. Available from: https://data.worldobesity.org/publications/WOF-Economic-Impacts-2-V2.pdf
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