Addiction Treatment Market

Rising drug awareness campaigns and prevention programs and growth in the number of addictions among the population are driving the market growth

Market CAGR for Addiction Treatment is being driven by the rising drug awareness campaigns and prevention programs and growth in the number of addictions among the population. The imposition of lockdowns and pandemic-related restrictions has resulted in the cancellation or delay of diagnoses and treatments for non-COVID and non-urgent medical conditions, including patients dealing with substance and alcohol addiction. A study published in the JAMA Network in November 2021 highlighted the implementation of temporary strategies by federal and state governments in the United States to ensure access to opioid use disorder (OUD) treatment during the pandemic.

This involved the adoption of telehealth policies across all states and Washington, DC, leading to an increased demand for substance abuse treatment.

The heightened awareness of substance abuse and drug addiction, coupled with efforts from both private and public entities, is anticipated to drive greater demand for substance abuse treatment. For instance, in December 2021, the Indian government initiated the "Drug-Free India" campaign, focusing on curbing drug abuse in the population. Similarly, in October 2021, the Centers for Disease Control and Prevention (CDC) launched four education campaigns targeting young adults, aged 18-34 years, to prevent drug overdose deaths.

These campaigns provide information on fentanyl prevalence and dangers, the risks of mixing drugs, the life-saving potential of naloxone, and the importance of reducing stigma around drug use to support treatment and recovery. Such campaigns and initiatives are enhancing awareness of substance abuse treatment, contributing to the growth of the market.

As a result, it is anticipated that throughout the projection period, demand for the Addiction Treatment Market will increase due to the rising drug awareness campaigns and prevention programs and growth in the number of addictions among the population. Thus, driving the Addiction Treatment Market revenue.

The Global Addiction Treatment Market Industry is poised for substantial growth, with projections indicating a market value of 7.14 USD Billion in 2024 and an anticipated increase to 18.6 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 9.1% from 2025 to 2035. Such projections highlight the increasing recognition of addiction as a critical public health issue and the corresponding demand for effective treatment solutions. As the market evolves, stakeholders are likely to invest in innovative treatment approaches, further driving market expansion.

Awareness and education regarding addiction and its consequences are pivotal drivers of the Global Addiction Treatment Market Industry. Public health campaigns and educational programs are increasingly informing communities about the signs of addiction and available treatment options. This heightened awareness encourages individuals to seek help earlier, thus increasing the demand for treatment services. As more people become educated about addiction, the stigma surrounding it diminishes, leading to a greater willingness to pursue recovery. Consequently, this trend is expected to bolster market growth, as more individuals access treatment services that were previously overlooked.

The Global Addiction Treatment Market Industry benefits significantly from advancements in treatment modalities. Innovations in pharmacological therapies, behavioral therapies, and holistic approaches are transforming the landscape of addiction treatment. For example, the introduction of medications that assist in managing withdrawal symptoms and cravings has shown promising results. Furthermore, the integration of technology, such as telehealth services, enhances accessibility for individuals in remote areas. These advancements not only improve treatment outcomes but also attract investments into the sector, thereby contributing to the overall growth of the market. As treatment options diversify, the industry is likely to expand further.

The integration of mental health services with addiction treatment is an emerging trend that significantly influences the Global Addiction Treatment Market Industry. Recognizing the co-occurrence of mental health disorders and substance use disorders, treatment providers are increasingly adopting a holistic approach. This integration allows for comprehensive care that addresses both addiction and underlying mental health issues. As a result, treatment programs are evolving to include psychological support alongside traditional addiction therapies. This shift not only enhances recovery outcomes but also expands the market by attracting a broader range of individuals seeking help.

Government initiatives play a crucial role in shaping the Global Addiction Treatment Market Industry. Various countries are implementing policies aimed at reducing the stigma associated with addiction and enhancing access to treatment services. Increased funding for rehabilitation centers and community-based programs is evident, as governments recognize the societal impact of addiction. For instance, national health departments are allocating substantial budgets to support prevention and treatment initiatives. This proactive approach not only fosters a supportive environment for individuals seeking help but also stimulates market growth, as more resources become available for innovative treatment methodologies.

The Global Addiction Treatment Market Industry experiences a notable increase in demand due to the rising prevalence of substance use disorders. According to government health statistics, millions of individuals worldwide grapple with addiction, prompting a need for effective treatment solutions. This growing concern has led to increased funding and resources allocated towards addiction treatment programs. In 2024, the market is valued at approximately 7.14 USD Billion, reflecting the urgent need for comprehensive treatment options. As awareness of addiction issues expands, the market is likely to see further growth, potentially reaching 18.6 USD Billion by 2035, with a projected CAGR of 9.1% from 2025 to 2035.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Addiction Treatment market in North America can be attributed to several key factors. The market is driven by the escalating prevalence of tobacco overuse and a surge in governmental initiatives aimed at mitigating substance abuse. For instance, recent data from the Substance Abuse and Mental Health Services Administration (SAMHSA) in 2021 revealed that over 61,203 individuals aged 12 years and above reportedly engaged in illicit drug consumption in the United States.

Additionally, data from the Canadian Mental Health Association (CMHA) indicated that an estimated 21% of the Canadian population, exceeding 6 million individuals, would meet the criteria for drug addiction in their lifetime. The substantial prevalence of addiction within the region is expected to generate heightened demand for addiction treatments, thereby propelling market growth.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: ADDICTION TREATMENT MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Addiction Treatment Market accounts for the second-largest market share. Several factors are propelling the growth of the substance abuse treatment market in Europe. These include heightened drug awareness campaigns and prevention programs, a substantial population grappling with addiction, and increased research and development in the field of substance abuse treatment. According to the European Drug Report 2022, an estimated 83.4 million adults (aged 15-64) in the European Union, comprising 29% of the population, were reported to use illicit drugs. Notably, there were more male users (50.5 million) than female users (33.0 million).

Cannabis emerged as the most widely consumed substance, with over 22 million European adults acknowledging its use in 2021. The significant prevalence of substance use in the European region is anticipated to drive an increased demand for substance abuse treatment throughout the forecast period.

Further, the German Addiction Treatment Market held the largest market share, and the UK Addiction Treatment Market was the fastest-growing market in the European region

The Asia-Pacific Addiction Treatment Market is expected to grow at the fastest CAGR from 2023 to 2032. Substance abuse issues, encompassing both alcohol and illicit drugs, have shown a noticeable upward trend across several regions in the Asia Pacific. According to a 2018 report by the World Health Organization (WHO), the per capita consumption of pure alcohol in India surged from 2.4 liters in 2005 to 4.3 liters in 2010 and further to 5.7 liters in 2016. A 2019 government survey revealed that one in seven Indians aged 10-75 engages in alcohol consumption.

Significantly, the prevalence is substantially higher among men, with 27.3 percent reporting alcohol use compared to 1.6 percent among women. This escalating pattern of alcohol consumption has led to a growing demand for addiction treatment services. Moreover, China’s Addiction Treatment Market held the largest market share, and the Indian Addiction Treatment Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Addiction Treatment market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Addiction Treatment industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Addiction Treatment industry to benefit clients and increase the market sector. In recent years, the Addiction Treatment industry has offered some of the most significant advantages to individuals grappling with substance abuse, fostering rehabilitation, and supporting their journey towards recovery and improved mental health.

Major players in the Addiction Treatment Market, including Alkermes plc, Cipla Ltd., GlaxoSmithKline plc, Pfizer, Inc., Mallinckrodt, Hikma Pharmaceuticals PLC, Orexo AB, Titan Pharmaceuticals, Inc., Teva Pharmaceutical Industries Ltd, and Indivor Plc are attempting to increase market demand by investing in research and development operations.

GlaxoSmithKline plc is a healthcare enterprise dedicated to the development, manufacturing, and commercialization of a broad portfolio, including general medicines, specialty medicines, and vaccines. The company provides pharmaceutical solutions for various medical conditions such as HIV, respiratory disorders, cancer, immuno-inflammation, anti-viral treatments, central nervous system (CNS) therapies, metabolic disorders, cardiovascular issues, urogenital problems, anti-bacterial, dermatology, and rare diseases. Additionally, GSK offers over-the-counter (OTC) products addressing pain relief, oral health, nutrition, skin health, and gastrointestinal diseases. GSK's vaccine portfolio encompasses a range of diseases, including hepatitis, diphtheria, tetanus, whooping cough, rotavirus, HPV infections, measles, and bacterial meningitis, among others.

The company distributes its products globally through channels such as wholesalers, pharmacies, hospitals, physicians, and other healthcare groups. Headquartered in Brentford, Middlesex, the UK, GSK has a presence. In March 2016, GlaxoSmithKline entered into a partnership with 2morrow Inc., the developer of the SmartQuit app, to provide patches to smokers as part of the app's cessation plan.

Indivior Plc specializes in the development and marketing of medications tailored for treating opioid addiction. The company's product portfolio includes Suboxone, a monthly depot and the sole approved film treatment for opioid dependence; Subutex, a mono-buprenorphine sublingual tablet; Sublocade injection; and Nalscue for opioid use disorder. Additionally, Indivior offers Perseris for schizophrenia. The company's pipeline features buprenorphine-based products, including INDV-1000 in the pre-clinical phase and INDV-2000 in Phase I for substance use disorder. AEF0117 is in Phase II for the treatment of cannabis disorder.

Indivior delivers its products in various forms such as film, tablets, and Subutex tabs, catering to markets in the US, Australia, Malaysia, France, Italy, Spain, Germany, Canada, and the UK. Headquartered in Slough, the UK, Indivior entered a collaborative agreement in 2022 with Addex Therapeutics, a clinical-stage pharmaceutical company, focusing on the discovery and development of novel oral gamma-aminobutyric acid subtype B (GABAB) Positive Allosteric Modulator (PAM) drug candidates. As part of this agreement, Indivior committed approximately USD 900,000 in additional research funding to Addex Therapeutics.