The global substance abuse treatment market covers prevention and rehabilitation services for substance addictions like alcohol, tobacco, and drug abuse. Substance abuse treatment helps patients by addressing physical, psychological, social and spiritual aspects through detoxification, counseling, and behavioral therapies. The market deals with products and services for treatments utilizing medication or therapies depending on the type and severity of substance abuse.
The Global substance abuse treatment Market Demand is estimated to be valued at US$ 11.8 billion in 2024 and is expected to exhibit a CAGR of 8.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the global 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.
Growing demand for substance abuse treatment is being witnessed due to rising awareness and reducing social stigma associated with addiction disorders. According to WHO, globally around 276 million people used drugs worldwide in 2016 and around 36 million people suffered from drug use disorders.
The substance abuse treatment market is expanding globally with market players focusing on emerging economies of Asia Pacific and Latin America for new opportunities. Key players are focusing on development of generic medications, digital therapies and online counseling to tap the opportunities in developing markets.
Market drivers
One of the key driver for global substance abuse treatment market is the steep rise in opioid addiction. Opioid addiction has reached epidemic proportions in many developed countries like the US which is driving the demand for new and effective treatment solutions. Easy access to prescription opioids and increasing misuse has resulted in rise of addiction and overdose deaths involving opioids. This has compelled governments globally to increase focus and funding on substance abuse prevention and treatment programs. Improving access to treatment under healthcare reforms is further supporting the market growth.
The current geopolitical instability across various regions is negatively impacting the growth of the global substance abuse treatment market. The ongoing Russia-Ukraine war has exacerbated economic challenges in Eastern European countries. This has restricted the access to advanced substance abuse therapies in these economies due to lower healthcare spending and budget constraints. Similarly, political disturbances in parts of Asia Pacific and Middle East & Africa are exacerbating substance abuse disorders as people resort to drugs and alcohol to cope with stress. This has increased the burden on mental health and addiction services. Moreover, international trade restrictions and sanctions imposed on few nations are disrupting supply chains of key pharmaceutical companies. This has led to shortages and price increase of certain substance abuse drugs in the affected markets. Overall, the geopolitical uncertainties have created an environment of uncertainty which is deterring new investments and innovations in substance abuse therapies. To sustain growth, key market players must consider diversifying their manufacturing footprints and strengthening supply resilience to counter geopolitical risks. Partnering with local players can also help ensure steady access and affordability of treatment services.
North America currently dominates the global substance abuse treatment market and accounts for the largest share in terms of value. According to estimates, the North America substance abuse treatment market was valued at US$ 5.8 billion in 2024. Factors such as high awareness, favorable reimbursement policies, rising healthcare spending, and presence of advanced healthcare infrastructure have supported the growth of substance abuse treatment market in the region. However, Europe is the second most lucrative market with Germany, United Kingdom and France holding majority of the regional market share. In Europe, increasing consumption of opioids and growing adoption of novel therapies are driving the demand for substance abuse treatments. Meanwhile, the Asia Pacific region is projected to witness the fastest growth during the forecast period owing to rising substance abuse prevalence, growing medical tourism, and improving access to therapies. Countries like China, India, Japan, and Australia are expected to offer high growth opportunities for leading market players in the coming years.
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