Dementia Drugs Market Growth is Driven by Rapidly Aging Population and Increasing Prevalence of Dementia
Dementia drugs market is estimated to witness high growth, owing to rapidly aging population and increasing prevalence of dementia. Dementia drugs market is estimated to be valued at USD 24.47 Bn in 2024, exhibiting a CAGR of 6.6% over the forecast period (2024-2031). Rising approval of new drugs to treat dementia conditions can drive the market growth.
Market Dynamics
Rapidly aging population: Growing geriatric population can drive the dementia drugs market growth. As age is the greatest risk factor for dementia, rising number of elderly persons aged 65 years and above are more susceptible to dementia. In 2023, according to WHO, the number of people aged 65 years or older worldwide is projected to be more than double, rising from 761 million in 2021 to 1.6 billion in 2050.
Growing geriatric population can boost demand for dementia drugs
Dementia drugs market growth is driven by growing geriatric population globally. Age is the biggest risk factor for dementia as the chances of dementia doubles every 5 years after the age of 65 years. It is estimated that the population aged 65 years and older will reach nearly 1.5 billion worldwide by 2050. This rapid rise in aging population can lead to higher prevalence of dementia worldwide. In 2022, according to the WHO, around 50 million people currently suffer from dementia globally and this number will triple by 2050. Growing burden of dementia on healthcare systems and societies can lead to increased research and development in more effective treatment options for patients.
High treatment cost of dementia poses challenge
Dementia drugs market growth can be hampered due to high cost of managing and treating the condition over the long term. Dementia is a chronic and progressive disease requiring continuous medical supervision and care. The average lifetime cost of treating a single patient for dementia ranges anywhere from US$ 100,000 to over US$ 175,000 depending on the region. Most of these costs are incurred in informal care provided by family members as well as assisted living facilities in later disease stages. Even for dementia drugs, therapy involves multiple drug combinations to manage symptoms over several years posing a massive economic burden. This deters many families from pursuing optimal treatment and pushes them towards alternative remedies or no treatment due to financial constraints restricting market growth.
Lack of disease modifying therapies hampers progress
Absence of effective disease-modifying treatments that can halt or reverse the progression of dementia can hamper the market growth. Currently approved drugs only provide temporary symptomatic relief and do not alter the underlying neuronal degeneration process driving dementia. This has created dissatisfaction among patients, doctors, and caregivers leading people to doubt conventional drug treatments. The pharmaceutical industry has struggled to introduce groundbreaking dementia therapies despite massive investments in research. The lack of a permanent cure limits market potential until transformative therapeutic options emerges.
Promising new molecular targets open new avenues
Advancing basic research identifying novel molecular factors and pathophysiological pathways linked to different types of dementia can offer market growth opportunities. Emerging targets like amyloid-beta, tau, alpha-synuclein, TDP-43, and neuroinflammation open new possibilities to develop more precise disease-modifying therapies. Over 900 candidates targeting these mechanisms are currently under investigation in clinical testing providing optimism that future drug approvals may alter the disease course. Advances in innovative drug delivery techniques like gene therapy also widen treatment options. Novel brain imaging diagnostic tools facilitate earlier detection before extensive neurodegeneration for improving prognosis with future preventative options. These scientific advancements can expand the market, if successfully translated into approving new drugs.
Growing healthcare expenditure in emerging nations
Rising incomes and healthcare expenditures in developing countries like China, India, Brazil, and Mexico can boost demand for improved dementia care and drugs. While diagnosis and treatment rates in these regions remain extremely low currently, the economic rise of emerging middle-class populations facilitates market penetration. Governments are implementing universal healthcare programs expanding medical coverage to a larger populace. Multinational pharma firms are also boosting local clinical trial activity and drug registration to tap into these fast-growing markets. Increased accessibility and affordability of standard dementia drug regimens will be important for serving unmet needs and representing a valuable market opportunity.
Link: https://www.coherentmarketinsights.com/market-insight/dementia-drugs-market-1664
Key Developments
- On September 16, 2024, The Newfoundland and Labrador Dementia-Friendly Communities announced the launch of a new Dementia-Friendly Communities website and media campaign to help increase awareness about dementia, foster more dementia-inclusive communities, and promote overall health and well-being in Newfoundland and Labrador, Canadian Province. The Newfoundland and Labrador Dementia-Friendly Communities website complements actions under the Dementia Care Action Plan by promoting awareness and understanding of dementia and providing information on services and resources to support individuals and families to live well with dementia
- On August 22, 2024, Eisai Co., Ltd., a global biopharmaceutical company, and Biogen Inc., a pharmaceutical company, announced that the humanized amyloid-beta (Aβ) monoclonal antibody Leqembi (lecanemab) had been granted a Marketing Authorization by the Medicines and Healthcare products Regulatory Agency (MHRA) in Great Britain. Lecanemab is indicated for the treatment of mild cognitive impairment (MCI) and mild dementia due to Alzheimer’s disease (AD) in adult patients that are apolipoprotein E ε4 (ApoE ε4) heterozygotes or non-carriers. Lecanemab becomes the first treatment for early AD (MCI and mild dementia due to AD) that targets an underlying cause of the disease, to be authorized in a country in Europe
- On July 2, 2024, Eli Lilly and Company, a global pharmaceutical company, announced that the U.S. Food and Drug Administration had approved Kisunla (donanemab-azbt, 350 mg/20 mL once-monthly injection for IV infusion) indicated for adults with early symptomatic Alzheimer's disease (AD), which includes people with mild cognitive impairment (MCI) as well as people with the mild dementia stage of AD, with confirmed amyloid pathology
- In March 2022, Eisai Co., Ltd. and Biogen Inc., a pharmaceutical company, signed an agreement for the commercialization of aducanumab in U.S. The companies will continue to jointly develop and commercialize the investigational therapy lecanemab. Eisai continues to serve as the lead of lecanemab development and regulatory submissions globally with both companies co-commercializing and co-promoting the product
Key Players
Biogen, Eisai Co., Ltd., Novartis AG, Cipla, H. Lundbeck A/S, Otsuka Pharmaceutical Co., Ltd., Sun Pharmaceutical Industries Ltd., Viatris Inc., Mapi-Pharma Ltd., AbbVie, Inc., DAIICHI SANKYO COMPANY, LIMITED., and F. Hoffmann-La Roche Ltd
