Growing obesity
problem generates new industries to seek to slim them down
At a time when the Food and Agriculture Organization and World Health
Organization are warning that nearly a billion people are starving, countries
across the world are awakening to the fact that far too many of their people
are too fat.
That has spawned industries that seek to help people restore or/and
maintain normal weight, according to a new report by the Seoul-based Samsung
Economic Research Institute (SERI). The industries, according to the report,
fall into two categories: management of body weight and anti-obesity products
and related products.
The related products include the changes in clothing and furniture
related industries due to change in body size and shape, according to the
report, titled “Obesity: Socioeconomic Risks and Opportunities,” and written by
research fellow Lee Seung-chul.
It doesn’t appear that diet is necessarily the answer, the SERI report
says, pointing out there are estimated to be 26,000 diet plans out there today,
most of them developed more than a century ago, between 1900 and 1925 “but most
of them reportedly have failed within two years of implementation.”
Nor does there appear to be any other easy solution, according to the
report. Instead, it will require “integrated solutions for overall mental and
physical health,” going beyond obesity, and in many cases lasting a lifetime.
Curing obesity demanding management on an integrated and long-term basis, the
report says, with comprehensive programs that identify an individual's
awareness of obesity and prevention and providing methods for management.
Prevention is particularly crucial for managing and elimination of
obesity since the disease has high recurrence rate, the so-called "yo-yo
effect" that results from dieting and then giving it up, the report says,
and as just about everybody who has ever gone on a diet has learned.
The fattest country among the 32-member Organization for Economic
Cooperation and Development, as has been printed far and wide, is the United
States, with the average American with a body mass index of 25 or more. Some
35.7 percent of American adults aged 20 or over are considered to be obese.
However, the rest of the world isn’t far behind. By 2015, 23.4% of the world
population will be obese, with the numbers of obese people swelling by 50
percent over the next 10 years, the WHO forecasts. Already, an estimated 17
million people worldwide are suffering annually from heart disease due to
overweight and obesity.
Anti-obesity
Industry Development
The anti-obesity drug market in the US, Japan and Europe grew by
US$51.9 million between 2004 and 2008 to reach US$513.7 million and is
projected to expand considerably in the next few years to reach US$10.5 billion
in 2018, SERI forecasts.
The growth of the anti-obesity industry is offering companies new
business opportunities as well as a chance to enhance employee welfare services
through obesity management, which can ultimately lead to boosting corporate
competitiveness, the report notes.
Advanced companies have employee obesity management and diet support in
their corporate welfare programs. Many companies offer both incentives and
penalties. In the US, 62 percent of its employers provide US$50-$1,400 a year
per individual for weight reduction, quitting smoking, exercise and health
check-ups. Some employers have also developed wellness programs that cut
insurance premiums for employees who stay healthy and fit. At the same time, 19
percent of 248 major companies in the US impose penalties to employees who are
obese or smoke, a two-fold increase in the past two years, the report
continues.
With safety concerns about anti-obesity drugs emerging and the
well-being trend with focus on exercise and healthier diets spreading,
anti-obesity industry for healthy lifestyles is also growing. Sales of diet and
dietary supplement foods in the US are projected to grow to US$77 billion in
2013, up from US$54 billion in 2006.
The diet-related market is also growing in Korea in line with rising
interest on health and beauty, estimated to have topped KRW3 trillion (US$2.68
billion) alone in 2010. Such interest is partially related to strong overweight
consciousness, or many people thinking they are overweight regardless of the
medical definition of obesity. Ninety-five percent of Korean women think they
are fat, while their weight-loss efforts are known to be one of the most
intense in the world.
Development of
Anti-Obesity Industry
Understanding the causes and types of obesity is essential to the
growth of the anti-obesity industry. The fundamental cause of obesity is an
energy imbalance between calories consumed and expended, the report says. But
the energy imbalance results from influences and interactions of a number of
factors over a long period of time, including changes to the economic, social
and physical environments. It is the interactions among these factors -- rather
than any single factor -- that is thought to cause obesity.
There are also various types of obesity which are determined by causes,
time of occurrence, adipose tissue composition and fat distribution: visceral
fat obesity, subcutaneous fat obesity, upper body obesity and lower body
obesity, etc.
Given the complexity and multiplicity of the forces driving the obesity
epidemic, the report continues, treatment requires the establishment of
reasonable targets and comprehensive, preventive and long-term management.
Short-term and fragmentary prescriptions have proven to have little positive
impact.
Against this backdrop, the anti-obesity industry is expected to develop
toward tailored weight management, preventive management and integrated and
long-term management.
Tailored weight management refers to identifying each person's
individual genetic predisposition and body type as well as social and economic
environment factors, to offer an ideal and healthy weight range to each
individual while prescribing him or her with medical devices, food and exercise
programs.
The criteria for judging obesity for each individual, obesity awareness
of each person and symptoms are different according to age and gender,
demanding a customized weight management, the report notes. For example, for
people aged 64 and over, men should be slightly overweight while women need to
maintain normal weight range. For young women and working people too, many of
whom are so-called "skinny fat," tailored programs for each cause
will be needed.
Along with medical service industry's business model pursuing
specialization on each sector, the number of obesity clinics is also expanding,
which lends support to the increasing need for tailored weight management.
The report describes preventive obesity management as offering constant
education for obesity prevention to people by connecting them via network with
obesity service specialists (obesity clinics, etc.) or offering them customary
visits by these specialists. This is crucial especially considering high social
costs to obesity treatment as well as high recurrence rate.
“The importance of preventing chronic health problems like obesity is
growing along with the recent shift in healthcare paradigm from diagnosis and
treatment to preventive management,” the report notes. The Korean government
has become aware of the obesity problem despite the fact that the country’s
citizens are considerably skinnier than those of most other OECD countries.
However, the 2012 budget includes more spending on preventive healthcare
management, and “preventive obesity management will likely be promoted along
this government initiative,” the report notes.
The causes of obesity are various while social, economic, cultural and
physical environments will continue to change, meaning obesity should be
managed lifetime. Fortunately, the development of U-healthcare has made
possible healthcare regardless of time and space, paving a road for a long-term
management.
Companies not only can advance into obesity management, but can also
make inroads into new industries such as clothing and furniture that fit into
wellness, anti-aging, stress and body type changes. To meet various obesity
management needs for various ages, genders and jobs, companies are developing
health-oriented products converging bio, medical and well-being home
electronics technologies. For instance, Japan's Sharp Corporation has developed
an oven that bathes food in a spray of superheated steam to provide low-calorie
cooking as well as removing excess fat and salt from foods.
Asia Sentinel
Business & Investment Opportunities
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