Obesity crisis costs $11 billion a year
October 15, 2006
THE nation's obesity crisis is costing the country $11 billion a year in health-care costs and absenteeism.
Australia is the world's second fattest country after the United States, with about 7 million adults and one in five children overweight or obese.
Business forecasters IBISWorld said by taking direct and indirect health-care costs, the company had estimated the obesity epidemic to cost close to $11 billion a year” about 1.3 per cent of annual gross domestic product.
The World Health Organisation says obesity is a major contributor to the four most prominent non-communicable diseases: cardiovascular disease, diabetes, cancer and chronic obstructive pulmonary disease.
"The health implications for overweight and obese people are dire," said IBISWorld general manager Jason Baker.
"For instance, Type 2 diabetes, which is directly linked to being overweight or obese, affects 1 million Australians — four times as many as 20 years ago."
IBIS estimates physical inactivity contributes to 7 per cent of the country's total disease cost, while obesity accounts for 4 per cent. Insufficient fruit and vegetable intake accounts for 3 per cent of the total disease cost.
It warns that if the crisis is not tackled and obesity continues to spread at its present rate, obesity-related costs could rise to 20 per cent within the next 15 years.
The estimate of the ballooning cost of treating obesity comes amid growing calls by doctors and health professionals for a "fat tax" and subsidies for healthy foods.
"Unhealthy foods are much cheaper than healthy foods and it's becoming more of a problem," said Aloysa Hourigan, senior nutritionist with Nutrition Australia.
"The cost of healthy foods in rural and remote areas is particularly high."
Despite public health campaigns warning of the dangers of over-eating and fast foods, a recent study revealed that 10 per cent of 12 to 17-year-olds drank more than three cans of soft drink per day, while 35 per cent drank two cans.
A US study found that teenagers who drank one can daily are up to 6.4 kilograms heavier than those who drink unsweetened drinks.
Mr Baker said in economic terms, resolving the obesity epidemic was problematic as it was difficult to devise policies to tackle human vices such as overeating.
He rejected suggestions of a fat tax, citing US research that found it would disproportionately hit society's poor. He said subsidies for healthy foods could breach World Trade Organisation agricultural rules.
Mr Baker said the key to ending the crisis may lie with the free market and food scientists who are developing new food additives that replicate the taste of certain diet staples, such as sugar and salt, by activating or blocking receptors in the mouth.
"Customers are demanding food items that address their health concerns, and increasingly they have the disposable income to pay a premium for what they want," he said.
Obesity in Australia
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