Staying Ahead In A Rapidly Evolving Obesity Market
By Edward Wallace and Laura Carlin
The obesity market is witnessing unprecedented growth and transformation. This market, which was valued at nearly $16 billion in 2024, is projected to reach $60 billion by 2030.
There are several forces at play that continue to disrupt the obesity market. Non-traditional players, such as compounders and telehealth, have driven access and pricing evolution. Significant demand is putting pressure on manufacturing and supply chain capabilities. New entrants and next generation medication launches are looming and will drive further disruption.
To stay ahead, biopharmaceutical companies need to innovate their commercial approach so they can improve patient outcomes and increase market share. This includes developing a value proposition for ‘beyond medicine’ and playing a bigger role in the broader healthcare and wellness journey (e.g., prevention, behavioral change, lifestyle, nutrition etc.). There are three actions pharmaceutical companies should take to win in this market:
1. Build value proposition to go beyond weight loss to position for success in a crowded market.
As the weight loss market continues to evolve and expand, success will hinge not on a single metric (i.e. percentage of body weight loss), but rather on a myriad of performance factors that depend on the target audience. We anticipate a shift toward more nuanced segmentation, where value propositions go beyond weight loss and access is tailored to specific consumer needs.
As more products enter the market with similar weight loss percentage claims, differentiation based solely on weight loss will become unsustainable. Instead, companies must ask: What makes our product better? Is it the quality or sustainability of weight loss? Better tolerability and fewer side effects? Greater accessibility or affordability? Superior patient experience?
When the next generation of products hits the market, we expect to see scientific innovation in formulation and administration: oral formulations, triple agonists, and once-monthly injections are all not too far from sight. With this scientific innovation in gut hormone treatments, we will see variation in weight loss claims. We also will start to see an acceptable weight loss range form, with clear upper and lower limits. Some products will fall toward the lower end of the range and may be more suitable for a lower severity population. Some products will fall toward the higher end of the range and may be more suitable for a population with greater weight loss needs.
The question for manufacturers will become: as the weight loss market evolves, how do we develop a more sophisticated value proposition? Next generation products are on the horizon, and as more products enter companies must ask what makes our product better. Manufacturers that win the race will recognize that as the market matures, “better” is in the eye of the beholder — what is viable/preferable for one consumer may not be for another — and we will likely see an acceptable range of weight loss form vs previous incarnations of “most weight loss wins,” thus companies that can anticipate this shift will look to innovate both in the lab and beyond it, aiming to fulfil other needs beyond weight loss as a singular goal.
2. Treat the patient, not just the weight, by developing partnerships to strengthen your value proposition.
It is imperative that pharmaceutical companies develop capabilities and build partnerships to support the full patient experience. One goal is to improve ease of access and diversify reach to consumers. Novo Nordisk for example, recently announced their partnership with Weight Watchers to broaden Wegovy access for patients. Similarly, Eli Lilly announced their partnership with Amazon Pharmacy in 2024 to offer home delivery for diabetes, migraine and obesity medications.
Another goal for pharmaceutical companies is to increase adherence by creating a better overall patient experience and improve health outcomes through healthier habits. There is opportunity for pharmaceutical companies to partner with nutrition and fitness businesses that support patients along the weight loss and management journey. Smoothie King for example, the fast smoothie chain, launched a new "GLP-1 Support Menu" made specifically for people who take GLP-1 receptor agonists for weight loss and diabetes, such as Ozempic and Wegovy. Similarly, luxury fitness brand Equinox has created a personal training program designed for its members who take GLP-1s, offering fitness and nutrition advice to help them form long-term, healthy habits around weight loss and fitness. Partnering with nutrition and fitness companies will enable pharmaceutical companies to strengthen their value proposition, broaden their reach and deliver improved outcomes.
Another opportunity is for pharmaceutical companies to collaborate with digital health companies across the full weight loss journey. The goal is to improve outcomes for patients on a specific medication by integrating fitness, nutrition, and educational support alongside the drug. Novo Nordisk for example, is seeking digital health partners to boost GLP-1 weight loss outcomes.
This phenomenon has been seen across markets. For example, the pandemic saw a surge in investment and innovation in mental health, leading to a proliferation of digital solutions aimed at addressing a wide spectrum of mental health conditions. As the market matured, a clear segmentation began to take shape along the severity continuum; from general wellness solutions targeting mild symptoms to clinically validated treatments designed for more severe needs. The ‘improving mental health’ offer became ubiquitous across most solutions and those that won developed a compelling ecosystem — they extended their value offering to include price, accessibility, and quality. The most successful players in this space didn’t just push innovation, they understood the evolving external context, clearly defined their target patient group, understood their evolving needs and how they want to access healthcare, and aligned their product positioning, channels, and pricing.
3. Harness AI to stay ahead and capitalize on the evolving obesity market.
As we look to the next generation of obesity treatments, combinations of Glucagon-like peptide-1 (GLP-1) with other hormones with complementary actions (e.g., glucose-dependent insulinotropic polypeptide (GIP), glucagon, and amylin) are under investigation to enhance patient outcomes. Capitalizing on the evolving obesity market can fail without building innovative sales teams. Sales teams need the confidence to understand the rapid developments in the obesity market and have compliant, impactful, and effective customer conversations while recognizing that every customer is unique (e.g., cardiologist vs endocrinologist).
There is an opportunity for pharmaceutical companies to leverage AI to enhance sales rep conversational skills while ensuring compliance with the complex pharmaceutical regulatory environment. This can include balancing the desire to promote obesity products with the need to disclose risks and potential side effects. AI-powered tools can accelerate time to competence for sales representatives, boost their confidence in customer interactions, and provide a safe environment for learning and development.
By embracing these three actions, pharmaceutical companies can navigate the complexities of the obesity market, differentiate themselves from competitors, and ultimately improve patient outcomes. This should all be underpinned by building a winning culture through continuous learning, fostering clear expectations and accountability across the organization.
About The Authors:
Edward Wallace is a healthcare expert at PA Consulting. Edward has experience working on major organizational design programs with a focus on capability and people development across the public and private sector.
Laura Carlin is a health and life sciences strategy expert at PA Consulting, who partners with pharmaceutical companies to develop and execute winning strategies that optimize market position and accelerate growth.