Market Size of Substance Abuse Treatment Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR (2024 - 2029) | 5.40 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Substance Abuse Treatment Market Analysis
The Substance Abuse Treatment Market is expected to register a CAGR of 5.40% during the forecast period.
The substance abuse treatment market is expected to grow, driven by increasing drug awareness campaigns, a surge in prevention programs, and a rising number of addiction cases among the population.
The growing consumption of drugs and substances across the world is expected to increase demand for its treatment, thereby boosting the growth of the market during the forecast period. For instance, according to the European Drug Report published in 2023, around 83.4 million adults, accounting for 29% of the European Union's (EU) population aged 15-64, are believed to have experimented with illegal drugs. Notably, cannabis stands out as the predominant illicit substance in Europe. Data from national surveys indicates that approximately 8% of European adults used cannabis in 2022. Thus, a high number of the population consumes drugs, which impacts the lives of individuals and is likely to increase demand for treatment, thereby boosting the segment's growth.
Campaigns and initiatives are heightening awareness about substance abuse treatment among those struggling with addiction, bolstering the market's growth. For instance, in November 2023, The Ad Council, alongside the CDC, National Council for Mental Wellbeing, and Shatterproof, spearheaded the "Start With Hope" campaign. This national public service advertisement (PSA) initiative targets individuals affected by substance use disorders (SUDs), especially Black and Hispanic/Latinx communities. The campaign's primary goal is to instill hope and provide crucial support, emphasizing harm reduction strategies and access to treatment resources for those on the path to recovery. Such a campaign leads to increased awareness of substance abuse treatment, which is anticipated to boost the market's growth during the forecast period.
Moreover, market players' pivotal moves in the substance abuse treatment sector are expected to propel the expansion of the market. For instance, in January 2022, Pfizer Inc. entered a strategic commercial partnership with Alex Therapeutics. The collaboration aims to leverage Alex Therapeutics' AI-based platform for cognitive behavioral therapy (CBT) and acceptance and commitment therapy (ACT) in treating nicotine addiction.
Therefore, due to rising drug awareness and significant strides made by key market players, the substance abuse treatment market is expected to grow during the analysis period. Additionally, challenges like individual reluctance toward treatment, discontinuation of behavioral therapies, and poor treatment compliance in certain regions are expected to hinder this growth.
Substance Abuse Treatment Industry Segmentation
As per the scope of the report, substance abuse refers to the abusive use of psychoactive substances, including illicit drugs, tobacco, and alcohol. Substance abuse treatment helps the patient to rid the body of any drugs and alcohol that are left in the system and reduces drug cravings.
The substance abuse treatment market is segmented by treatment type, distribution channel, and geography. By treatment type, the market is segmented into alcohol addiction treatment, tobacco/nicotine addiction treatment, drug abuse treatment, and other treatment types. By distribution channel, the market is segmented into hospital pharmacies, retail pharmacies, and other distribution channels. The report also covers the estimated market sizes and trends for 17 countries across major regions globally. The report offers the market size in value terms (USD) for all the abovementioned segments.
By Treatment Type | |
Alcohol Addiction Treatment | |
Tobacco/Nicotine Addiction Treatment | |
Drug Abuse Treatment | |
Other Treatment Types |
By Distribution Channel | |
Hospital Pharmacies | |
Retail Pharmacies | |
Other Distribution Channels |
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Substance Abuse Treatment Market Size Summary
The substance abuse treatment market is poised for significant growth, driven by increasing awareness and demand for treatment options globally. The COVID-19 pandemic initially disrupted treatment services, but it also led to a surge in demand as telehealth solutions were implemented to maintain access to care. This shift has contributed to a steady recovery and growth in the market. The rise in drug awareness campaigns and prevention programs, supported by both public and private sectors, is further propelling market expansion. Initiatives like India's "Drug-Free India" campaign and the CDC's educational efforts in the United States are enhancing awareness and reducing stigma, thereby increasing the demand for substance abuse treatment. Key developments by market players, such as strategic partnerships and the introduction of new treatment options, are also expected to bolster market growth.
The tobacco/nicotine addiction treatment segment is anticipated to experience robust growth due to the high prevalence of tobacco use and ongoing clinical trials for smoking cessation therapies. The market in North America is particularly poised for significant expansion, fueled by the high rates of substance abuse and government initiatives aimed at reducing addiction. Funding and programs in the United States, such as the opioid relief fund and SAMHSA grants, are expected to drive demand for treatment. The competitive landscape is marked by the presence of several global and regional players, with companies like Alkermes PLC and Indivior PLC leading the charge. Recent FDA approvals and strategic partnerships, such as those involving Pfizer Inc. and Alex Therapeutics, highlight the dynamic nature of the market and its potential for continued growth.
Substance Abuse Treatment Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Rising Drug Awareness Campaigns and Prevention Programs
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1.2.2 High Number of Addicted Population
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1.3 Market Restraints
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1.3.1 Reluctance of Individuals for Accessing Treatment and Discontinuation of Behavioral Therapies
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1.3.2 Poor Treatment Compliance in Some Countries
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value - USD)
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2.1 By Treatment Type
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2.1.1 Alcohol Addiction Treatment
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2.1.2 Tobacco/Nicotine Addiction Treatment
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2.1.3 Drug Abuse Treatment
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2.1.4 Other Treatment Types
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2.2 By Distribution Channel
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2.2.1 Hospital Pharmacies
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2.2.2 Retail Pharmacies
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2.2.3 Other Distribution Channels
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Italy
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2.3.2.5 Spain
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2.3.2.6 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 South Korea
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2.3.3.6 Rest of Asia-Pacific
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2.3.4 Middle East and Africa
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2.3.4.1 GCC
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2.3.4.2 South Africa
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2.3.4.3 Rest of Middle East and Africa
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2.3.5 South America
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2.3.5.1 Brazil
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2.3.5.2 Argentina
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2.3.5.3 Rest of South America
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Substance Abuse Treatment Market Size FAQs
What is the current Substance Abuse Treatment Market size?
The Substance Abuse Treatment Market is projected to register a CAGR of 5.40% during the forecast period (2024-2029)
Who are the key players in Substance Abuse Treatment Market?
Alkermes PLC, Mallinckrodt LLC, Cipla Ltd, GlaxoSmithKline PLC and Indivior PLC are the major companies operating in the Substance Abuse Treatment Market.