Global Addiction Treatment Market is estimated to be valued at USD 9.51 Bn in 2024, and is expected to exhibit a CAGR of 5.6% over the forecast period (2024-2031). The addiction treatment market is witnessing steady growth owing to the rising prevalence of substance abuse globally. Furthermore, various government initiatives for spreading awareness and providing affordable treatment options are supporting the market growth.
Market Dynamics:
The global addiction treatment market is primarily driven by the rising prevalence of substance abuse disorders and increasing government initiatives. Substance abuse has become a major public health issue worldwide with increasing consumption of tobacco, alcohol and illicit drugs. The growing substance abuse is consequently increasing the demand for effective treatment options.
Increasing awareness about mental health and addiction issues is driving growth in the addiction treatment market
With rising awareness about substance abuse disorders and addiction as medical conditions rather than moral failures, more people are seeking treatment. Public health campaigns have helped reduce the stigma around addiction and more individuals now understand it as a chronic brain disease that requires clinical intervention. This changing public perception has encouraged those struggling with substance use to pursue evidence-based treatment options rather than attempt to quit on their own or resort to abstinence-only approaches with low success rates. The growing societal acceptance of addiction as a treatable medical condition is a major driver fueling demand for specialized treatment programs and services.
Rising rates of substance abuse and drug overdoses is another key driver of growth in the addiction treatment industry
Unfortunately, the rates of substance abuse, drug overdoses and deaths from overdose have been increasing dramatically in many countries over the past two decades. The misuse of opioid painkillers and the rise of lethal synthetic drugs like fentanyl have severely exacerbated the crisis. More individuals are now directly affected by substance use disorders whether through personal struggles or having family/friends in the throes of addiction. This has increased the need for medically-assisted treatment options like medication-assisted therapy (MAT) as well as counseling, residential programs, and support groups. The worsening crisis has shone a light on gaps in addiction treatment availability and accessibility which the industry is working to address through facility expansion and new virtual services.
Lack of insurance coverage and high treatment costs pose major restraints on the addiction treatment market
Addiction treatment is still severely under-insured, with many types of programs and services not covered or subject to strict limits by public and private payers. This leaves many individuals unable to afford evidence-based clinical treatment. Programs can cost thousands of dollars per month, putting them out of reach for those without strong insurance benefits or financial means. Another restraint is the shortage of providers who accept insurance which forces patients into costly out-of-network care. High treatment prices inhibit greater access much like in other specialized health markets dealing with chronic conditions. Expanded coverage and financing solutions are needed to remove this important restraint.
Increase in telehealth and digital therapies presents opportunities for market growth and innovation
The pandemic boosted both opportunities and demand for virtual forms of healthcare delivery including addiction services. Virtual treatment options help address gaps in bricks-and-mortar treatment capacity and expand access to underserved communities. Digital therapies and telehealth services are growing market opportunities. These include virtual counseling and recovery group meetings, smartphone apps, internet-based cognitive behavioral therapy (CBT), and integration with wearable monitoring devices. As technology improves outcomes and lowers costs, telehealth and digital tools are poised to play a bigger role in addiction care whether as standalone or hybrid virtual in-person treatment models. Further innovation will expand opportunities.
Growing demand for integrated care models and addiction services in alternative settings expands market potential
Opportunities exist to further integrate addiction treatment into general medical care through collaborative models. Co-locating services within primary care, emergency departments, and hospital systems can improve identification and transitions to specialized support. Partnering addiction professionals with those addressing pain management, mental health issues, and chronic conditions holds promise. Alternative delivery settings outside traditional rehab also presents opportunities. Examples include workplaces, college campuses, prisons, supportive housing, and recovery community organizations. Greater integration and broader delivery settings can help overcome restraints while also reaching more individuals in need of care.
Link - https://www.coherentmarketinsights.com/market-insight/addiction-treatment-market-4853
Key Development
- On May 14, 2024, Lifespan Health System, a healthcare institution announced that it had launched a new addiction treatment program that seeks to offer same-day help. The program is called Addiction Care Today, and it hopes to offer walk-in and same-day appointments for people seeking to begin treatment for substance use disorders.
- On February 9, 2024, Union Council of Ministers of India announced that they had launched 41 addiction treatment facilities in New Delhi, India for drug addicts. These facilities will provide free treatment, counselling and free medicines to people struggling with substance addiction problems.
- In May 2023, Camurus AB, a Sweden-based science-led biopharmaceutical company, announced that the U.S. Food and Drug Administration (FDA) approved Brixadi (buprenorphine) extended-release injection for subcutaneous use (under the skin) to treat moderate to severe opioid use disorder (OUD).
Key Players: Teva Pharmaceutical Industries Ltd., Pfizer, Inc., Alkremes Plc., Glenmark Pharmaceuticals, GSK plc, Johnson & Johnson Services, Inc., Novartis AG, Perrigo Company plc., Cipla , Dr. Reddy’s Laboratories Limited, Hikma Pharmaceuticals Plc., Indivior Inc., Mylan N.V., Eli Lilly and Company, Tempero Bio, BioCorRx Inc., and Opiant Pharmaceuticals Inc.
