With prevalence doubling since 2007, allergy is now one of the nation’s most costly chronic health conditions, according to a new report.
Allergic disease has quietly become one of Australia’s most expensive and fastest-growing health burdens, according to new analysis from Deloitte Access Economics.
One in three Australians are now affected by allergic disease and costs the nation $18.9 billion in financial losses each year, the report revealed.
However, the true impact extended far beyond the balance sheet, with a further $44.6 billion lost annually in wellbeing, underscoring the daily reality of living with allergic disease.
Costly Reactions: The economic and social cost of allergic disease in Australia was commissioned by the Australasian Society of Clinical Immunology and Allergy (ASCIA) and the National Allergy Council (NAC).
“For too long, the everyday impact of allergic disease has been invisible. Allergies don’t just disrupt health – they reshape lives. Millions of families are living with constant vigilance and fear,” said Maria Said AM, co-chair of the NAC and CEO of Allergy & Anaphylaxis Australia (A&AA).
“This report gives us the clearest evidence yet of how allergic disease affects Australians – clinically, socially and economically.”
More than 8.2 million Australians – double the prevalence reported in 2007 – are now living with conditions ranging from hay fever (24%), food allergy (7%) and drug allergy (5%). Many households manage multiple conditions at once, according to new research published by the National Allergy Centre of Excellence (NACE), which contributed to the Deloitte report.
The report found that in 2024, there were an estimated 16.4 million cases of allergic conditions.
The most common allergic conditions include allergic rhinitis, atopic dermatitis, asthma, food allergy and drug allergy.
Collectively, these allergic conditions account for 92.9% of all allergic disease. The prevalence of allergic disease is known to vary by allergic condition, gender, age and geographical location. For example, food allergy and eczema tend to be more common in young children whereas allergic rhinitis and drug allergy are more common in adults.
The report details 16.4 million cases of allergic conditions in 2024, across 8.2 million people and the health costs. The breakdown included:
- Allergic rhinitis – 6.4 million ($112.7 million)
- Asthma – 2.5 million ($858.3 million)
- Food allergy – 1.9 million ($42.5 million)
- Drug (medication) allergy – 1.4 million ($17.2 million)
- Allergic chronic rhinosinusitis – 500,000 ($34.9 million)
- Insect and tick allergy – 400,000 ($40.7 million)
- Atopic dermatitis – 300,000 ($37.3 million)
- Chronic spontaneous urticaria – 200,000 ($10.6 million)
- Eosinophilic oesophagitis – 200,000 ($46.5 million)
- Anaphylaxis not otherwise specified – 100,000 ($11.8 million)
The cost of allergic disease has a substantial impact not only on people living with allergic disease but also on their families and carers, government and society as a whole.
In 2024, the total financial cost of allergic disease in Australia was estimated to be $18.9 billion. Loss of productivity (such as increased absences from work and reduced efficiency while working) accounted for $15.1 billion or 80% of these losses.
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This reflects the demographics of those experiencing allergic disease, with 68.9% of affected people being of working-age (15 to 64 years).
Efficiency losses accounted for $2.6 billion (14%), followed by health system costs ($1.2 billion, 6%).
Beyond the financial impact, allergic disease also created a substantial loss in wellbeing. In 2024 this non-financial cost was estimated to account for an additional $44.6 billion.
The report also estimated the total health system costs attributable to allergic disease in Australia in 2024 to be $1.2 billion.
This included:
- Public hospital admissions – $98.3 million
- Public hospital emergency department admissions – $145 million
- General practitioner costs – $384.6 million
- Pathology – $8.5 million
- PBS prescriptions – $501.6 million
- Over-the-counter medications – $62.3 million
- Immunotherapy – $12.1 million
Paediatric allergist Professor Kirsten Perrett, director of the NACE and Murdoch Children’s Research Institute (MCRI) Population Allergy group leader, said possible drivers of the increase in allergic disease were environmental changes such as urbanisation and air pollution, modern lifestyle factors like sanitisation, and increased awareness.
“Australia has some of the highest allergy rates globally, including the world’s highest reported rate of infant food allergy, affecting one in 10 babies,” she said.
“The burden isn’t just physical; for many families, allergic disease disrupts daily life and brings financial and emotional strain.
“Through national research collaboration, we’re now better placed than ever to understand these complex conditions and deliver more targeted, effective responses.”
The report highlighted the importance of:
- Clinical care and public health programs that reduced the economic and societal cost of allergic disease.
- Supporting and upskilling health professionals to enable earlier intervention and improved access to care for allergic disease.
- Improving the quality and availability of data related to allergic disease.
- Further allergic disease prevention and management research.
- Recognition of allergic disease as a chronic health condition.
Australia’s coordinated national response to allergic disease is led by two peak bodies established in 2022 following a bipartisan parliamentary inquiry and subsequent Walking the Allergy Tightrope report.
“The strength of this work lies in collaboration,” said Dr Michael O’Sullivan, ASCIA president and clinical immunology/allergy specialist.
“We’ve made progress, but more work is needed to make sure Australians can access the quality, research-driven, allergy care they desperately need now, and in the future.”
The full report is available here.
