Market Snapshot

CAGR:6.8%
2021
2030

Source: Reports and data

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Study Period 2019-2030
Base Year 2021
CAGR 6.8%
Drug Addiction Treatment Market-companies
Drug Addiction Treatment Market-Snapshot

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Market Synopsis

The global drug addiction treatment market size was USD 16,330.56 Million in 2021 and is expected to register a robust CAGR of 6.8% during the forecast period. Market revenue growth is primarily driven by increasing prevalence of drug-dependency and deaths related to drug addiction and rising adoption of Medication-Assisted Treatment (MAT). In addition, increasing number of funding and initiatives by governments across the world and rising awareness about drug addiction are some other factors driving revenue growth of the market between 2022 and 2030.

Drug overdose is among the leading causes of mortality on a global scale. According to Centers for Disease Control and Prevention (CDC), over 91,000 individuals have died in 2020 due to drug overdose in the U.S. Data suggests that drug overdose and regular consumption of addictive substances detrimentally affect mental health of users, with highest prevalence of Intermittent Explosive Disorder and Attention-Deficit Hyperactivity Disorder (ADHD). In addition, rising number of initiatives taken by campaigns and initiatives by governments and other organizations to raise awareness against drug addiction including risks of drug use and dealing with drug related issues is also driving market revenue growth. For instance, in April 2022, Biden administration released National Drug Control Strategy to curb drug use and reduce detrimental effects elicited by drugs users. Moreover, responses of governments provide a multitude of unique perspectives on how to rehabilitate addicts, eradicate stigma associated with substance usage, and starve the underground markets. Many countries have effectively revised their drug laws and methods for enforcing them as well as their approaches to addiction. For instance, Portugal, which was the first nation in EU to legalize all drugs, has experienced a drop in both arrests and overall illicit drug use.

Rising adoption of Medication-Assisted Treatments (MATs) for treatment of Opioid-Use Disorders (OUDs) is another factor driving revenue growth of the market. Several companies are advancing use of medicinal therapy for the treatment of OUD in novel and more efficient ways. The US Food and Drug Administration (FDA) has released a draft guidance encouraging greater innovation and development of novel Medication-Assisted Treatment (MAT) medications for opioid use disorder, which has recently grown to be a serious healthcare epidemic in the U.S. In addition, FDA suggests center on outlining creative ways that pharmaceutical companies might gauge and illustrate efficacy and advantages of brand-new or current MAT medicines. Furthermore, increasing patient preference to seek medical intervention upon drug overdose and declining mental health as a consequence of addiction is another factor driving market revenue growth over the forecast period.

Market Dynamics: 
Driver: Increasing prevalence of patients with drug-dependency is a major factor driving market revenue growth

Increasing prevalence of patients with drug-dependency and rising number of deaths related to Substance-Use Disorders (SUDs) are major factors increasing preference of individuals to seek help and treatment, which is driving revenue growth of the global drug addiction treatment market. Over the past three decades, significant progress has been made in prevention and treatment of substance misuse through statistical knowledge of drug and alcohol abuse. In addition, drug overdose deaths have been increasing rapidly and are among the leading reasons of mortality across the globe due to growing dependency of users to prescription drugs and a decline in perceived toxicity of some drug classes. Estimates of Centers for Disease Control and Prevention (CDC) suggest that around 114 individuals die each day from drug overdose and 6,748 people receive Emergency Department (ED) treatment for drug abuse or misuse in the U.S. Moreover, drugs are responsible for about nine out of ten poisoning deaths. Prescription drug abuse and non-medical use are major public health issues around the world, hence prescription opioid painkillers are causing increasing number of fatalities each year. Furthermore, legal accessibility to drugs and presence of addictive substances in prescribed medications have resulted in exponential rise in visits to emergency rooms related to prescription medications and increasingly adopt drug addiction treatments and medicines, which is driving revenue growth of the market from 2022 to 2030.

Restraints: Reluctance among patients of drug-use disorder is a major factor restraining market revenue growth 

Reluctance among patients of substance-use disorder is a major factor restraining revenue growth of the market. According to statistics of National Survey on Drug Use and Health (NSDUH), over 14% of total individuals over the age of 12 with Substance-Use Disorder (SUD) sought treatment in 2020. This report further suggests that around 1.4% received any treatment in 2020 and only 1.0% received treatment as a specialty facility in 2020. In addition, slow rise in number of patients seeking help for declining mental health as a consequence of addiction and drug overuse is indicative of reluctance of patients to seek medical help due to taboo and hesitation related to consequences of substance use, which is expected to hamper revenue growth of the market to a considerable extent.

Key Takeaways:
Type of Addiction Outlook:

Based on addiction type, the global drug addiction treatment market is segmented into tobacco/nicotine vaping, alcohol, marijuana, synthetic cannabinoids, opioids, stimulants, prescription and over-the-counter medications, and others. The alcohol segment accounted for a significant revenue share in 2021. High rate of consumption, simple accessibility, legalization in majority of nations, and social acceptance of this form of drug are major factors driving revenue growth of this segment. In addition, revenue growth is further accelerated by increasing user preference to consume alcohol in various social, public, and private occasions. For instance, according to National Survey on Drug Use and Health (NSDUH), in 2019, 54.9% (59.1% of men in this age group and 51.0% of women in this age group) of people aged 18 and older reported drinking alcohol at some point in their lifetime, 69.5% reported in 2018, and 85.6% reported in 2022, which shows high consumption of alcohol that leads to addiction. This report further states that over 14 million American individuals over the age of 12 had Alcohol-Use Disorder (AUD) in 2019. Furthermore, increasing number of initiatives by government and non-profit organizations in academic institutions for support and treatment of students with substance-use disorders is driving revenue growth of this segment over the coming years.

Treatment Outlook:

Based on treatment, the global drug addiction treatment market is segmented into detoxification, counseling and behavioral therapies, rehabilitation programs, self-help groups, and medications. The counseling and behavioral therapies segment is projected to account for a significantly large revenue share during the forecast period. In the recent years, therapy through talking and conversation, known as Cognitive Behavioral Therapy (CBT) has gained attention from both patients of substance use disorders and healthcare professionals for treatment of various mental health issues brought on by addiction, substance-dependence, and alcoholism. In addition, market growth is driven by increasing prevalence of drug addiction brought on by depression, increasing awareness about therapeutic options that are available, and rising awareness of treatment approach. Moreover, product launches, mergers and acquisitions, joint ventures, and R&D activities are key strategies driving market growth of this segment. For instance, In November 2018, Sandoz and Pear Therapeutics launched reSET for treatment of patients with Substance Use Disorder. Furthermore, increasing preference among patients to undergo counseling and CBT sessions to cope up with mental issues arising as a result of substance abuse is expected to further drive revenue growth of this segment during the forecast period.

Distribution Channel Outlook:

Based on distribution channel, the global drug addiction treatment market is segmented into hospital pharmacy, online pharmacy, retail pharmacy, and other distribution channels. The hospital pharmacy segment is projected to account for a significant revenue share over the forecast period. Availability of disorder-specific medications and modalities in hospital pharmacies is a key factor driving revenue growth of this segment. Medications, such as naloxone, which is an opioid-analgesic are made available in hospital pharmacies free of cost for easier access to patients with substance use disorders. Furthermore, rising awareness about availability of medicines in hospital pharmacies is also driving revenue growth of this segment between 2022 and 2030.

End-user Outlook:

Based on end-user, the global drug addiction treatment market is segmented into hospitals, homecare, specialty, and other end-users. The hospitals segment accounted for a significantly large revenue share in 2021. Availability of healthcare professionals as well as state-of-the-art technologies and medicines with premises is a key factor increasing patient preference to receive treatment in hospitals. In addition, individuals receiving care in hospitals receive treatment for addressing addiction, mental health issues, and physical comorbidities. Moreover, hospitals provide healthcare providers to patients and substance abuse survivors to evaluate circumstance and service needs before urging patients to access the available treatment. Furthermore, hospitals offer services for monitoring and follow-up. However, integration of mental health services, normal medical care, and drug abuse therapy for enhancing treatment outcomes is also driving revenue growth of this segment over the coming years.

Regional Outlook:

Based on regional analysis, the North America market accounted for largest revenue share in 2021. Revenue growth of this region can be attributed to increasing number of individuals addicted to various addictive substances, properly maintained and well-implemented structured reimbursement policies, acceptance and regulation of marijuana as a legal drug in various states, and presence of highly developed healthcare facilities for drug addiction treatment along with availability of appropriate treatment methods and modalities. In addition, rising awareness about harmful impacts of drug addiction and increase in government supervision with implementation of several policies are some other factors driving revenue growth of the market during the forecast period. Statistics of National Center for Drug Abuse Statistics suggest that around 50% of individuals over the age of 12 have used illicit drugs with over 45% users taking marijuana once in their lifetime. The Center for Disease Control and Prevention (CDC) has recorded over 91,000 deaths due to drug overdose in 2020. Furthermore, increasing number of initiatives coupled with rising awareness is expected to significantly drive adoption of drug addiction treatment methods and revenue growth of the market between 2022 and 2030 in this region.

The Europe market is expected to register a steady revenue growth rate between 2022 and 2030. Increasing awareness with improvisation of many government preventive programs and advancements in diagnostic procedures are major factors driving market revenue growth. Major pharmaceutical companies in this region are producing drugs that assist in preventing relapse and regulate drug cravings. In addition, rise in number of healthcare centers for treatment of drug addiction along with collaborations with private drug recovery facilities is enabling patients of substance abuse to easily receive treatment and allowing treatment centers to reach out to larger number of addicted population in the society. Moreover, technological advancements in the healthcare sector and steady increase in number of individuals addicted to natural and synthetic substances are reshaping and propelling this market. According to statistics of World Health Organization, Europe has the highest prevalence of tobacco smoking among adults (28% compared to 21% globally) and smoking among European women is almost double than the global average (19% versus 7% globally).

Competitive Landscape:

The global drug addiction treatment market is fairly competitive and consists of various emerging and well-established major companies. Various strategies such as mergers, acquisitions, or collaborations are being incorporated by these market players to maintain strong footing in the market. Some major companies included in the market report are Pfizer, Inc., Indivior PLC, Novartis AG, Alkermes, Viatris, Inc., Teva Pharmaceutical Industries, Ltd., Mallinckrodt Pharmaceutical, Hikma Pharmaceuticals PLC, and Orexo AB. 

  • On 31 January 2022, Pfizer, Inc. announced a new strategic partnership with Alex Therapeutics to personalize treatment through Digital therapeutics and use AI-based platform of the latter company for providing Cognitive Behavioral Therapy (CBT) and Acceptance and Commitment Therapy (ACT) to patients of nicotine addiction. The initial stage of this initiative will be operating in the German market.
  • On 15 August 2022, Indivior PLC. entered into a collaborative agreement with Addex Therapeutics, which is a clinical-stage pharmaceutical company, for discovery and development of novel oral gamma-aminobutyric acid subtype B (GABAB) Positive Allosteric modulator (PAM) drug candidates. Under terms of this agreement, Indivior will provide the latter company with round USD 900,000 as additional research funding.

This report offers historical data points and forecasts and revenue growth at a global, regional, and country-level, and provides analysis, industry trends, and consumption pattern details for each region, major country, and segment from 2019 to 2030.

For this study, Reports and Data has segmented the global drug addiction treatment market based on type of addiction, treatment, distribution channel, end-user, and region:

Report Scope

PARAMETERS DETAILS
The market size value in 2021 USD 16,330.56 Million
CAGR (2021 - 2030) 6.8%
The Revenue forecast in 2030

USD 29,743.41 Million

Base year for estimation 2021
Historical data 2019-2020
Forecast period 2022-2030
Quantitative units
  • Revenue in USD Million

  • CAGR from 2021 to 2030

Report coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered By Type of Addiction Outlook, Treatment Outlook, Distribution Channel Outlook, End-User Outlook, Regional Outlook
By Type of Addiction Outlook   
  • Tobacco/Nicotine and Vaping
  • Alcohol
  • Marijuana
  • Synthetic Cannabinoids
  • Opioids
    • Heroin
    • Opium
    • Others
  • Stimulants
    • Amphetamines
    • Methamphetamine
  • Prescription and Over-the Counter Medications
  • Others
By Treatment Outlook  
  • Detoxification
    • Opioids
    • Alcohol
    • Benzos
    • Methamphetamines
    • Others
  • Counseling and Behavioral Therapies
  • Rehabilitation Programs
  • Self-Help Groups
  • Medications
By Distribution Channel Outlook  
  • Hospital Pharmacy
  • Retail Pharmacy
  • Online Pharmacy
  • Other Distribution Channel
By End-User Outlook
  • Hospitals
  • Homecare
  • Specialty Clinics
  • Others
Regional scope North America; Europe; Asia Pacific; Latin America ; Middle East & Africa
Country scope U.S.; Canada; U.K.; Germany; France; BENELUX; China; India; Japan; South Korea; Brazil; Saudi Arabia; UAE; Turkey
Key companies profiled Pfizer, Inc., Indivior PLC, Novartis AG, Alkermes, Viatris, Inc., Teva Pharmaceutical Industries, Ltd., Mallinckrodt Pharmaceutical, Hikma Pharmaceuticals PLC, and Orexo AB. 
Customization scope 10 hrs of free customization and expert consultation

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Key questions answered by the report