The global substance abuse treatment market has witnessed robust growth attributable to rising drug abuse globally. Substance abuse disorders impose heavy health and economic burden on individuals and society. Consequently, the demand for effective treatment and management options has increased substantially.
Substance abuse treatment involves therapies and medications to help patients overcome addiction and prevent relapse. Some common treatments include inpatient or outpatient counseling, behavioral therapies, group therapy, medication-assisted treatment, rehabilitation programs, intensive outpatient, and medically-supervised withdrawal. Addiction is a complex brain disease and most patients require long-term, sustained treatment and recovery support.
The Global substance abuse treatment Market Demand is estimated to be valued at US$ 11.8 BN in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period 2024 to 2031.
The increasing rate of drug abuse combined with growing awareness about effective treatments is primarily driving the market. In addition, the ongoing shift from inpatient to outpatient and telehealth models is supporting market growth.
Key Takeaways
Key players operating in the substance abuse treatment market are Indivior PLC, Pfizer, Inc., Johnson & Johnson Inc., Alkermes., Mallinckrodt Pharmaceuticals, Teva Pharmaceuticals, Inc., Par Pharmaceutical, Inc., USWM, LLC, Valeant Pharmaceuticals, Greenyard Pharmaceutical Ltd. Cipla Health Limited. Perrigo, Haleon Group of Companies, Ventus Medical, Glenmark and other prominent players.
The growing drug abuse epidemic globally is generating significant demand for substance abuse treatment therapies and medications. According to recent surveys, over 20 million Americans aged above 12 years battled with addiction issues in 2020 alone. Effective treatment can help reduce drug use, prevent health issues, improve social functioning and work productivity.
Major market participants have undertaken initiatives to extend their geographic presence by collaborating with regional players. In addition, telehealth and digital therapies are witnessing higher adoption to ensure treatment accessibility. Big players are focusing on expanding telehealth services in collaboration with regional providers and payers.
Market Key Trends
One of the key trends gaining traction in the substance abuse treatment market is virtual care options like telehealth and digital therapeutics. They enable patients to access treatment from the comfort of their homes using teleconferencing, thereby overcoming challenges of travelling for in-person appointments. This reduces absenteeism from work/education and chances of relapse. Major players are increasingly integrating telehealth with traditional in-person programs to enhance outcomes at lower costs.
Porter’s Analysis
Threat of new entrants: The substance abuse treatment market has moderate threat from new entrants given the high capital requirement for R&D and clinical trials.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are many established product options available from different manufacturers.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many raw material suppliers for this market.
Threat of new substitutes: There is low threat from new substitutes given the sensitive nature of substance abuse and established treatment protocols.
Competitive rivalry: The competitive rivalry is high given the large number of manufacturers competing for market share.
Geographical regions:
North America region accounted for the largest share of the global substance abuse treatment market in terms of value in 2024 owing to high awareness levels and availability of treatment facilities in the US and Canada.
The Asia Pacific region is expected to witness the fastest growth during the forecast period till 2031 driven by rising substance abuse disorders, growing healthcare expenditure, and increasing focus of manufacturers on emerging markets in China and India.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
