GLOBAL SUBSTANCE ABUSE TREATMENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Global substance abuse treatment market was valued US$ 11.8 Bn in 2023 and is expected to reach US$ 22.8 Bn by 2031 exhibiting a compound annual growth rate (CAGR) of 8.6% from 2024 to 2031.

Global Substance Abuse Treatment Market - Regional Insights

• North America is expected to be the largest market for substance abuse treatment during the forecast period, accounting for over 43.7% of the market share in 2023. North America has established itself as the dominant region in the global substance abuse treatment market. A significant driver is the escalating prevalence of substance abuse cases, particularly concerning issues like opioid addiction. Government initiatives that are aimed at addressing substance abuse, coupled with increased funding for treatment programs, contribute to the market growth. Ongoing technological advancements in treatment methods, such as innovative therapeutic approaches and digital solutions, are playing a role in enhancing the efficacy of substance abuse treatments.
• Asia Pacific is expected to be the second-largest market for substance abuse treatment market, accounting for over 25.2% of the market share in 2023. A notable driver is the increasing recognition and acknowledgment of substance abuse issues in the region. Rising awareness campaigns and government initiatives that are focused on curbing substance abuse are fostering the demand for treatment services. The burgeoning population and urbanization contribute to the escalation of substance abuse cases, further propelling the market growth. Advancements in treatment methodologies, including the adoption of evidence-based practices and technology-driven interventions, play a pivotal role in enhancing the effectiveness of substance abuse treatments.

Figure 1. Global Substance Abuse Treatment Market Share (%), By Region, 2023

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Analyst’s Views:

Global substance abuse treatment market is expected to grow significantly over the next decade driven by rising addiction rates across the world. Factors like widespread easy availability of drugs, increasing social acceptance, and cultural normalizing of substance use are fueling the consumption. Rising binge drinking among adults and young population is also driving the need for rehabilitation services. North America  dominates the market owing to relatively higher spending on healthcare and presence of major providers. However, Asia Pacific region is expected to emerge as the fastest growing market led by China and India. In these nations, rising disposable incomes, growing awareness about treatments, and decreasing social stigma are boosting the demand. The market faces challenges from lack of health insurance coverage in developing countries limiting access to costly specialty treatments. Shortage of trained professionals and infrastructure in smaller cities and towns also acts as a restraint. Optimizing service delivery through digital health solutions presents major opportunities. Telehealth and telemedicine can bridge geographical and financial barriers. Artificial Intelligence (AI)-based personalized treatment planning and remote patient monitoring also have scope to improve outcomes. Partnerships between mainstream providers and online therapy services can help expand reach.

Overall, widespread societal issues, improving awareness, and increasing prioritization of mental health indicate healthy future growth prospects for the global substance abuse treatment market.  

Global Substance Abuse Treatment Market- Drivers

• Increasing consumption of drugs and alcohol: The rising trend of substance abuse worldwide has become a major public health concern. According to the data published by the United Nations Office on Drugs and Crime (UNODC) in 2021, around 275 million people globally used drugs at least once during the year and 36 million people suffered from drug use disorders. There has also been an increase in the use of other mind-altering substances such as alcohol in recent times. This increasing consumption of various substances, both legal and illegal, has mainly been driven by factors such as stress, mental health issues, peer pressure and easy availability. The ongoing pandemic further exacerbated issues that are related to social isolation, unemployment, and financial troubles, thus pushing many to resort to substance abuse. According to a survey conducted by the World Health Organization (WHO), in 2020, the sales of alcohol increased substantially in many countries during the nationwide lockdowns.
• Growing support from government and NGOs: Government policies and intervention programs play a crucial role in addressing substance abuse issues. In recent (2020-2022) years, many countries have recognized substance abuse as a serious public health problem and have increased funding for prevention and treatment services. For example, the U.S. government passed the Comprehensive Addiction and Recovery Act (CARA) in 2016, to address the growing opioid epidemic by expanding access to evidence-based treatment and recovery support services. As a result of initiatives like Comprehensive Addiction and Recovery Act (CARA), federal funding for substance abuse treatment in the U.S. increased from US$25 Bn in 2017 to over US$30 Bn in 2021. The additional funding has allowed for expansion of community-based treatment programs, medication-assisted treatment, and widespread distribution of naloxone to combat overdoses. Non-governmental organizations are also contributing significantly to greater access to treatment services globally. In 2022, according to a report provided by the United Nations Office on Drugs and Crime, non-governmental organization (NGO) led or supported over 8,500 drug abuse prevention, treatment, and rehabilitation programs across 150 countries in 2021 alone. Groups like the American Addiction Centers and the National Council for Behavioral Health are actively partnering with local providers to set up affordable treatment options in underserved communities. The World Health Organization's Information Series on School Drug Abuse Prevention aims to assist educators and social workers in early identification of at-risk youth and thus guiding them towards intervention or clinical treatment programs.

Global Substance Abuse Treatment Market- Opportunities

• Untapped markets in developing countries: Untapped markets in developing countries could provide substantial opportunities for growth in the global substance abuse treatment market. Many developing nations still have relatively low treatment rates compared to needs. For example, only an estimated 10% of those needing treatment in Latin America receive it, in 2021, according to a  report provided by the Inter-American Drug Abuse Control Commission. Expanding access to innovative, culturally-sensitive treatment solutions can help address this gap while fueling the market expansion. As developing economies grow and standards of living increase, substance abuse issues also tend to rise reflecting global trends. This represents a chance for early intervention and prevention. Partnerships between international organizations, local providers and social welfare systems will be important to build sustainable treatment infrastructure and programs where they are lacking. Telehealth and virtual services also show promise to reach remote and underserved populations. However, any initiatives must take local beliefs, capacity, and socioeconomic factors into careful consideration to maximize impact and acceptance.

Global Substance Abuse Treatment Market – Trends

• Focus on opioid dependence treatment: Growing trend of opioid dependence is significantly influencing the global substance abuse treatment market. According to the United Nations Office on Drugs and Crime (UNODC), around 36 million people globally suffer from drug use disorders that are related to opioids. The intake of prescription and non-prescription opioids like oxycodone, hydrocodone, fentanyl, and others has been rising sharply over the years, thus leading to dependence issues. This presents a massive patient pool requiring effective treatment solutions. Pharmacological treatments involving medicines like buprenorphine and methadone for medically assisted therapy are witnessing higher demand. According to World Health Organization (WHO), opioid agonist maintenance therapy should be an integral part of the comprehensive package of services in substance abuse care. The therapy aims to stabilize dependency on opioids and prevent relapse into illicit drug use. As a result, major players in the global substance abuse treatment market are investing significantly in new opioid dependence therapies and novel drug delivery formulations of existing options. For instance, manufacturers are developing extended release injections of buprenorphine to overcome issues of non-adherence to daily oral medications.  

Global Substance Abuse Treatment Market - Restraints

• Social stigma associated with substance dependence: Social stigma continues to be one of the largest barriers for individuals struggling with substance dependence to seek treatment. The social perceptions of substance users being "morally weak" or "criminals" deters many from openly admitting they need help. As a result, millions of people worldwide are suffering from addiction who are not receiving the clinical support and resources that are required to overcome substance abuse disorders. This perpetuates vicious cycles of relapse and prevents the global substance abuse treatment industry from identifying and engaging all those in need of care. Countries where social attitudes remain deeply judgmental of those with substance dependence issues have witnessed treatment rates continue to lag. For example, data provided by the United Nations Office on Drugs and Crime shows treatment demand and uptake in Asia Pacific countries remains very low as compared to other regions of the world. Some of the lowest rates are observed in East and Southeast Asian nations where social stigma carries heavy social weight. The fear of losing jobs, families or social status if a substance issue is revealed prevents many from pursuing treatment options, regardless of availability or affordability.
• Lack of adequate rehabilitation facilities: Lack of adequate rehabilitation facilities is significantly restraining the growth of the global substance abuse treatment market. The demand for substance abuse treatment is increasing worldwide as drug addiction is rising rapidly among all age groups and across all regions. However, most countries do not have enough rehabilitation infrastructure and resources to cater to this growing demand. According to the report by the United Nations Office on Drugs and Crime (UNODC) in 2022, only 1 in 7 people globally who need treatment for drug use disorders receive it. The report highlights that many countries lack basic services for drug dependence treatment or have only a few specialty treatment centers located in major cities. Even developed nations like the U.S. face shortages, with only 10% of those who need treatment are able to access it. The lack of community-based and outpatient facilities force many patients to opt for unauthorized or informal treatment approaches. This gap between demand and access to care negatively impacts the uptake of evidence-based substance abuse treatment services significantly. It prevents people from seeking timely medical help for their conditions and increases the risk of drug overdose. According to the World Health Organization (WHO), around 450,000 people died as a result of drug use in 2019. More than half of these deaths could have been prevented with access to proper treatment and care. The shortage of specialized healthcare infrastructure discourages pharmaceutical companies and medical device manufacturers from further investing and introducing novel solutions in this space. This lack of capacity-building ultimately slows down the long-term growth of this market.
• Counterbalance – Destigmatizing substance dependence and promoting understanding of addiction as a medical condition can significantly reduce social prejudices. In addition, crucial steps involve making investments and implementing initiatives to expand and enhance rehabilitation infrastructure, by addressing the shortage of facilities. Collaborations between governments, non-profit organizations, and the private sectors are vital for developing accessible and effective treatment facilities. Creating an environment of empathy and education, coupled with increased allocation of resources, is the key in overcoming the challenges posed by insufficient rehabilitation facilities and social stigma. This comprehensive approach contributes to improved outcomes for individuals seeking substance abuse treatment.

Figure 2. Global Substance Abuse Treatment Market Share (%), By Age Group, 2024

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Global Substance Abuse Treatment Market- Recent Developments

Acquisition and Partnership

• On November 29, 2023, World Health Organization (WHO) designates a new Collaborating Centre on Substance Use, Noncommunicable Disease and Policy Impact which will focus on reducing substance use as a means of reducing the burden imposed by noncommunicable diseases (NCDs).
• On May 23, 2023, Camurus announced that the US Food and Drug Administration (FDA) has approved Brixadi (buprenorphine) extended release injection for subcutaneous (SC) use, a weekly and monthly medication for the treatment of moderate to severe opioid use disorder (OUD), in patients who have initiated treatment with a single dose of a transmucosal buprenorphine product or who are already being treated with a daily buprenorphine product.
• On January 4, 2023, Tempero Bio, a clinical-stage biopharmaceutical company received approval from the U.S. FDA for its investigational new drug (IND) application for TMP-301, a lead candidate that is used for indication of treatment of cocaine use disorder.
• In January 2022, Pfizer Inc., one of the global pharmaceutical company, entered into a strategic partnership with Alex Therapeutics, a company providing digital health solutions. This collaboration is set to leverage Alex Therapeutics' AI-driven digital platform which integrates techniques from cognitive behavioral therapy (CBT) and acceptance and commitment therapy (ACT), to aid those battling nicotine addiction.

Top Companies in the Global Substance Abuse Treatment Market

• Indivior PLC
• Pfizer, Inc.
• Johnson & Johnson Inc.
• 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
• Other Prominent Players

Definition: Substance abuse treatment refers to a set of therapeutic interventions, medical services, counseling, and support that are aimed at helping individuals who are struggling with substance abuse or dependence on psychoactive substances such as alcohol or drugs. The primary goal of substance abuse treatment is to assist individuals in overcoming their addiction, addressing the physical and psychological aspects of substance use disorders.

Substance abuse treatment primarily focuses on therapeutic approaches to help people overcome addiction and prevent relapse. There are various types of treatment options that are available based on the severity of addiction.

The most common types of treatment include detoxification, counseling, and medication-assisted treatment. Detoxification which is also known as detox provides medically supervised withdrawal from substances and helps the body to adjust in functioning without drugs or alcohol. Counseling, either individual or group therapy, helps patients work through underlying issues, learn coping strategies, and social support. Medication-assisted treatment uses U.S. Food and Drug Administration (FDA)-approved medications, along with counseling and behavioral therapies, to treat substance use disorders. For opioid addiction, medications like buprenorphine and methadone are used to help alleviate cravings and discomfort during withdrawal and recovery.

While detox and counseling can be effective for some, medication-assisted treatment has proven highly beneficial for moderate to severe addictions due to the relapsing nature of substance abuse disorders. The use of medications normalizes brain chemistry imbalances and blocks the euphoric effects of continued drug use, thus allowing patients to gain control and make progress in other aspects of treatment. However, medications only work when combined with therapy and lifestyle changes. Ongoing treatment is also important to prevent lapses during recovery and support long-term sobriety.