Allergy rates climbing fast and costing billions

One in three Australians now live with allergic disease, costing $18.9 billion in financial losses and $44.6 billion in non-financial impacts each year, as the country faces unprecedented demand for help with their allergies.

The new Deloitte Access Economics report ‘Costly Reactions: The economic and social cost of allergic disease in Australia’, reveals that more than eight million Australians are directly affected, with the associated annual financial burden rising markedly since $7.8 billion in financial burden was reported in 2007.

The report was developed with 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.’

Problem accelerating

Allergic disease is one of Australia’s fastest growing chronic conditions with hay fever (24 per cent), food allergy (7 per cent) and drug allergy (5 per cent) among the most common, according to new research by the National Allergy Centre of Excellence (NACE), which helped underpin the Costly Reactions report.

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; lifestyle factors like sanitisation and antibiotic use; 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. The burden isn’t just physical; for many families allergic disease disrupts daily life and brings financial and emotional strain,’ said Professor Perrett, a paediatric allergist.

‘Through national research collaboration, we’re now better placed than ever to understand these complex conditions and deliver more targeted, effective responses.’

Key findings include:

• An estimated 8.2 million Australians (30 per cent) live with allergic disease, up from 4.1 million (19.6 per cent) reported in 2007.
• Many people – and households – manage at least two allergic conditions at the same time
• The estimated annual financial cost of allergic disease is $18.9 billion, and a further $44.6 billion in wellbeing losses.
• There is an average financial cost of $2,318 and a further $5,470 of non-financial costs per person living with allergic disease.
• Living with the risk of anaphylaxis has a significant impact on health and wellbeing of both the individuals and their families due to anxiety, isolation, and poor mental health.
• 68.9 per cent of those affected are of working age, with 80 percent of financial costs linked to lost productivity.
• Food allergy peaks in childhood, hay fever in teens and young adults, and drug allergy in older adults.
• Ongoing investment in the NAC and NACE programs is essential to reduce the burden of allergic disease for millions of Australians.

National response

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.

These are the National Allergy Council (NAC), a partnership between ASCIA and A&AA, which delivers public education, prevention and policy initiatives, and the National Allergy Centre of Excellence (NACE). Hosted at MCRI, this is Australia’s peak allergy research body building critical research infrastructure and collaboration to transform allergy care.

‘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 Australian Capital Territory recorded some of the highest rates of allergic disease, according to the NACE research, which analysed data from 17,093 households.

More than statistics

For ACT mum Bek Gillespie, those numbers are more than statistics. One of her identical three-year-old twins lives with life-threatening egg anaphylaxis.

‘When Abigail had her first serious reaction as a baby, we didn’t know where to turn,’ she said. ‘Getting answers took time and came at a cost – financially and in missed opportunities for earlier help. We needed timely, consistent advice, backed by the latest research, to keep our daughter safe, especially with plans to move to the country. I just wish I’d known about these resources from the very beginning.’

The Costly Reactions report confirmed allergic disease is ‘a significant public health burden’ in Australia and future work should focus on clinical and public health programs that reduce the cost of allergies, upskilling health professionals, identifying ways to address allergy data gaps and accelerating allergy prevention and management research.

It recommended ongoing investment in the NAC and NACE programs was essential to improve the lives of millions of Australians living with allergic disease.

The full report is available here.

The National Allergy Council and the National Allergy Centre of Excellence is presenting the report findings to federal MPs and senators at a national showcase in Canberra this week, alongside families, clinicians and researchers.