Japan Diabetes Drug Market Overview, 2030

Japan’s diabetes drug market is witnessing significant growth, primarily driven by the country’s rapidly aging population, increasing prevalence of diabetes, and strong advancements in pharmaceutical and digital healthcare technologies. The prevalence of diabetes is growing among all ages in Japan, which can be attributed to the growing obese population, unhealthy diets, and sedentary lifestyles. Diabetes mellitus is of wide concern with its high prevalence, resulting in increased financial burdens for clinical systems, individuals, and governments. The aging demographic is a major contributor to the rise in type 2 diabetes cases, further amplifying demand for antidiabetic medications. In terms of expenditure, the Japanese healthcare system, supported by national insurance, typically covers around 70% of treatment costs for diabetes, including insulin, oral drugs, glucose monitoring devices, and hospital visits. For a typical patient, the out-of-pocket expense for a month's supply of medications and glucose monitoring ranges from USD 75 to 220, depending on the use of CGMs or insulin pumps. The total annual diabetes-related expenditures in the Japan reached $33.96 billion in a year. The Japanese healthcare system includes a few disease management programs conducted by the Japan Association for Diabetes Education and Care. Japan is one of the regional leaders in Asia-Pacific in terms of diabetic public health policies. The country promotes public awareness and embraces preventive policies focusing on lifestyle and dietary adjustments, which can lessen the likelihood of adult-onset diabetes. Additionally, smart insulin delivery devices, continuous glucose monitor (CGMs), and AI-based digital health platforms are gaining traction, enhancing personalized care and real-time glucose management. National policies have further supported this shift by expanding reimbursement for CGMs and insulin pump users, and over 45% of diabetes patients now use teleconsultation services.

According to the research report ""Japan Diabetes Drug Market Overview, 2030,"" published by Bonafide Research, the Japan Diabetes Drug market is anticipated to grow at more than 7.04% CAGR from 2025 to 2030. The market is also seeing rising momentum due to government-backed initiatives promoting early detection and intervention, including annual health checkups under the “Specific Health Check and Guidance” program, which encourages lifestyle modifications and pharmacological intervention at earlier stages. Parallel to this is the rapid growth of digital health integration. Japan's highly tech-savvy population is increasingly using mobile apps, wearables, and AI-powered devices for glucose monitoring and medication reminders, creating a surge in demand for digital-friendly medications and smart insulin pens. In March 2023, Health2Sync announced that its latest version of the Health2Sync app integrates insulin data from Mallya Cap, the connected device dedicated to insulin pens developed by Biocorp and marketed in Japan by Novo Nordisk. Major cities such as Tokyo and Osaka serve as hubs for diabetes care and pharmaceutical development, with both global giants like Novo Nordisk, Eli Lilly, and Sanofi and domestic players such as Astellas and Takeda driving the market. Recent product launches like Mounjaro (a dual GIP-GLP-1 agonist) in 2023 highlight the shift toward novel once-weekly injectable therapies. Japan's unique Kouchi-shinsei route allows off-label drug coverage if the medication is approved in other advanced nations, thereby accelerating access to global treatments. Looking ahead, regenerative medicine is showing promise, with Japanese institutions like Tokushima and Kyoto Universities developing stem-cell-based therapies for type 1 diabetes. These initiatives aim to achieve clinical application by 2030. In July 2022, Eli Lilly Japan and Mitsubishi Tanabe Pharma Corporation signed a sales collaboration agreement in Japan for GIP/GLP-1 receptor agonist “Tirzepatide”.

Insulin remains a foundational therapy, especially for type 1 diabetes and advanced type 2 diabetes cases. Due to Japan's high aging population where nearly 30% are over 65 there is significant demand for long-acting and ultra-long-acting insulin analogs like insulin degludec and insulin glargine, which help simplify treatment regimens and reduce hypoglycemia risk, a serious concern among elderly patients. GLP-1 receptor agonists are seeing rising uptake, owing to their dual benefits in glycemic control and weight reduction. This is particularly relevant in Japan, where even modest excess weight can lead to insulin resistance. GLP-1 drugs such as dulaglutide and semaglutide are in high demand due to their once-weekly dosing and cardiovascular benefits, which align with the national emphasis on holistic and preventive healthcare. DPP-4 inhibitors dominate the oral antidiabetic drug market in Japan and have a unique position here compared to Western countries. Their widespread use driven by local clinical guidelines and excellent tolerability among elderly patients reflects Japan's cautious approach toward adverse effects. Drugs like sitagliptin and linagliptin are commonly prescribed due to their minimal risk of hypoglycemia and ease of use in renal-impaired patients, a growing concern in aging diabetics. SGLT2 inhibitors are gaining popularity rapidly for their efficacy in reducing cardiovascular and renal risks, which are prioritized in Japanese treatment protocols. Drugs like dapagliflozin and empagliflozin have carved out a niche for themselves as ideal add-ons in multi-drug regimens, particularly in patients with heart failure or CKD (chronic kidney disease). Moreover, Japan’s proactive regulatory stance has facilitated the early approval of such novel drugs, accelerating their market penetration.

Japanese patients with Type-1 diabetes primarily rely on basal-bolus insulin regimens and continuous subcutaneous insulin infusion (CSII) systems. Innovations such as ultra-rapid-acting insulin analogs, insulin pumps, and continuous glucose monitoring (CGM) devices are in demand for this group to enhance glycemic control and reduce hypoglycemic episodes. In recent years, Japan has seen increased adoption of digital health technologies and smart insulin delivery systems, driven by its aging but tech-literate population and robust healthcare infrastructure. The treatment landscape for Type-2 diabetes in Japan is multifaceted, involving oral antidiabetic drugs (OADs), injectable therapies, and increasingly combination therapies. Among OADs, DPP-4 inhibitors are the most widely prescribed due to their efficacy, safety profile, and low risk of hypoglycemia. These agents account for a large share of prescriptions, reflecting physician preference and patient adherence patterns. In addition, SGLT2 inhibitors have gained significant traction, not only for glucose control but also for their cardiovascular and renal benefits, which align with the high prevalence of comorbidities in the aging Japanese population. GLP-1 receptor agonists, although more costly and injectable, are increasingly used for obese patients with Type-2 diabetes due to their weight-reducing effects—a concern for many Japanese patients.

Japan has been a pioneer in DPP-4 inhibitor development, with local pharmaceutical companies like Takeda and Ono Pharmaceutical leading the global market. The ease of administration, patient compliance, and the strong presence of domestic companies offering innovative oral therapies have contributed significantly to the dominance of this segment. Moreover, the government supports outpatient care over hospital stays, further encouraging the use of oral medications for long-term disease control. Subcutaneous administration, primarily involving insulin and GLP-1 receptor agonists, plays a vital role in the treatment of both Type 1 and advanced Type 2 diabetes in Japan. With increasing obesity among younger adults and the elderly requiring tighter glycemic control, there has been a rising demand for long-acting insulin analogs and once-weekly GLP-1 therapies. Subcutaneous drugs are essential for Type 1 diabetes patients, who depend on daily insulin injections. Notably, Japanese pharmaceutical companies have also introduced user-friendly insulin pens and devices to improve adherence among elderly patients. The government’s reimbursement policies support newer, more convenient subcutaneous drugs, encouraging their uptake. Intravenous administration remains a smaller segment in the diabetes drug market and is primarily used in hospital settings for emergency glycemic control, such as in cases of diabetic ketoacidosis or during surgical procedures. This route is limited to acute care and is not commonly used for chronic diabetes management due to its invasive nature. However, Japan’s advanced healthcare infrastructure and availability of tertiary care facilities ensure that intravenous therapies are readily available when needed. Though not a high-demand segment in outpatient diabetes care, its presence is critical in managing severe complications.

Hospital pharmacies in Japan are significant for initial diabetes diagnosis and treatment plans, especially for patients with complications or that requiring insulin therapy. These institutions are generally associated with public or private hospitals and are entrusted with managing more severe or complex diabetes cases. A large portion of insulin and injectable GLP-1 receptor agonists is prescribed through these pharmacies, given the need for specialized handling and administration guidance. Japanese hospitals often have integrated care models, allowing endocrinologists and pharmacists to work closely, ensuring better medication compliance and adjustments based on periodic glucose monitoring. Retail pharmacies are the most prevalent and accessible distribution channel across urban and suburban Japan. Retail pharmacies in Japan often incorporate pharmacist-led counseling, especially since the government mandates medication guidance to ensure proper adherence among elderly patients. Moreover, patients with Type 2 diabetes who constitute over 90% of diabetes cases in Japan commonly rely on these pharmacies for ongoing treatment. Community pharmacies also frequently partner with primary care clinics, enhancing continuity of care and enabling frequent blood sugar monitoring services on-site. Online pharmacies, although still emerging in Japan due to strict pharmaceutical distribution regulations, have grown in relevance particularly after the COVID-19 pandemic. The Japanese government relaxed certain telemedicine rules, allowing more leeway for prescription renewals and digital health consultations, thereby boosting demand for online pharmacy services. These platforms are especially appealing to tech-savvy working adults and elderly patients in rural areas where mobility is an issue. Online pharmacies are particularly used for repeat prescriptions and non-insulin oral medications, with SGLT2 inhibitors and DPP-4 inhibitors being among the commonly ordered classes due to their once-daily dosing and minimal need for in-person titration.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Diabetic Drug Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Drug Class
• Insulin
• GLP-1 Receptor Agonists
• DPP-4 Inhibitors
• SGLT2 Inhibitors
• Others (metformin, sulfonylureas, and combination therapies)

By Diabetes
• Type-1
• Type-2

By Route of Administration
• Oral
• Subcutaneous
• Intravenous

By Distribution Channel
• Hospital Pharmacies
• Retail pharmacies
• Online Pharmacies Show more