Global Expansion in Obesity and Diabetes Therapeutics: Emerging Markets and the Power of Public-Private Partnerships

The global markets for obesity and diabetes therapeutics are undergoing a seismic shift, driven by surging prevalence of metabolic disorders and breakthroughs in pharmacological innovation. According to a Grand View Research report, the obesity treatment market, valued at USD 15.92 billion in 2024, is projected to reach USD 60.53 billion by 2030, growing at a compound annual growth rate (CAGR) of 22.31%. Similarly, the diabetes drugs market, valued at USD 88.32 billion in 2024, is expected to expand to USD 233.84 billion by 2032, with a CAGR of 12.67% according to a Fortune Business Insights report. These figures underscore a critical inflection point for investors, particularly in emerging markets where unmet medical needs and evolving healthcare ecosystems present both challenges and opportunities.

The Dual Drivers: Innovation and Prevalence

The rise of GLP-1 receptor agonists (GLP-1 RAs) has been a game-changer. These drugs, which accounted for 80.19% of the obesity therapeutics market in 2024 according to the Grand View Research report, offer dual benefits for weight management and metabolic health. Novo Nordisk and Eli Lilly, with products like Wegovy and Zepbound, are projected to dominate the market, generating combined sales of $46 billion by 2031, as detailed in a BioSpace deep dive. However, the true potential lies in their application beyond North America, where the diabetes drugs market holds 49.95% of the global share per the Fortune Business Insights report. Emerging markets in Asia-Pacific and Latin America are witnessing rapid growth, fueled by rising awareness, urbanization, and the adoption of novel therapies such as oral GLP-1 formulations, highlighted in an Asia-Pacific report.

Barriers to Access in Emerging Markets

Despite this optimism, significant hurdles persist. High treatment costs, limited insurance coverage, and regulatory complexities hinder market penetration in low- and middle-income countries (LMICs). A Nature review highlights that hospitalization costs dominate the economic burden of obesity in LMICs, with direct and indirect costs varying widely across regions. For instance, in India, obesity-related medical costs reached 23.3 billion USD in 2022, projected to rise further without intervention according to a population-level study. Additionally, undiagnosed patient populations-particularly in rural areas-remain a critical gap, as noted in a Malawi PPP study.

Public-Private Partnerships: A Pathway to Scalability

Public-private partnerships (PPPs) are emerging as a vital strategy to bridge these gaps. In Thailand, a collaboration between Thammasat University Hospital and Novo Nordisk is promoting holistic obesity and diabetes care, emphasizing prevention and equitable access, as reported in a ScandAsia report. Similarly, Denmark's Lighthouse Life Sciences program, a multi-sector PPP, integrates employer-based weight management initiatives and virtual reality interventions in schools, offering a replicable model for other regions in a World Economic Forum article.

In Latin America, the Athero Alliance in Colombia-a partnership involving Novartis, ACMI, and Synlab-has introduced a cholesterol-testing protocol to identify high-risk patients and guide personalized treatment (the World Economic Forum article also describes this initiative). Meanwhile, the Cities Changing Diabetes Bogotá program, led by Novo Nordisk, has tested urban interventions to combat sedentary lifestyles and improve diabetes outcomes, further illustrating how PPPs can address structural barriers while fostering innovation.

The Investment Imperative

For investors, the confluence of market growth and PPP-driven scalability presents a compelling case. The Asia-Pacific diabetes devices and therapeutics market, for example, is projected to reach USD 35.43 billion by 2029, driven by digital health technologies like continuous glucose monitoring (CGM) systems, as summarized in an Asia-Pacific digital health review. Similarly, Latin America's focus on cardiovascular risk reduction through PPPs aligns with the expanding therapeutic pipeline of GLP-1 RAs, which are increasingly used for weight management and cardio-renal benefits, according to a LinkedIn article.

However, success hinges on navigating regulatory landscapes and ensuring affordability. As noted in a Morningstar analysis, pricing pressures in emerging markets could intensify as competition grows, with Roche, Amgen, and Pfizer entering the GLP-1 space. Investors must prioritize partnerships that integrate cost-effective solutions, such as oral formulations and telehealth, to enhance accessibility.

Conclusion

The global expansion of obesity and diabetes therapeutics is not merely a medical imperative but a strategic investment opportunity. Emerging markets, with their untapped potential and growing healthcare expenditures, are poised to become key battlegrounds. Yet, sustainable growth requires more than product innovation-it demands collaborative models that address systemic inequities. Public-private partnerships, as evidenced by case studies in Thailand, Colombia, and Denmark, offer a blueprint for scaling impact. For investors, the message is clear: align with stakeholders who prioritize accessibility, leverage technological advancements, and navigate regulatory complexities to unlock long-term value in this transformative sector.