Substance Abuse Treatment Market

Market Overview

The global substance abuse treatment market size was valued at USD 10.75 billion in 2023. It is estimated to reach USD 21.85 billion by 2032, growing at a CAGR of 8.2% during the forecast period (2024–2032). The global substance abuse treatment market is driven by the surging incidence of substance abuse disorders worldwide, which is a major health concern and can cause a significant number of mortalities. Moreover, there has been a rise in government initiatives taken to spread awareness and combat substance abuse, which is further driving the demand for substance abuse treatment. 

Highlight

• Tobacco/nicotine addiction treatment dominates the type segment 
• Medication dominates the treatment type segment
• North America is the highest shareholder in the global market

Substance abuse is the term used to describe the harmful or dangerous use of psychoactive substances, such as alcohol and illegal drugs. It entails the recurrent and disproportionate intake of these substances, resulting in detrimental effects on the individual's bodily and mental well-being and social and occupational performance.
Substance abuse treatment includes medical and psychological measures designed to mitigate or eradicate the detrimental effects of substance misuse, including addiction, dependence, withdrawal, overdose, and health complications. The treatment encompasses a range of approaches, including medication, counseling, behavioral therapy, self-help groups, and rehabilitation programs. Substance abuse treatment can address various categories of substances, including alcohol, tobacco, nicotine, opiates, cannabis, cocaine, amphetamines, hallucinogens, and inhalants.

Market Dynamics

Global Substance Abuse Treatment Market Drivers:

Increasing Prevalence of Substance Abuse Disorders

Substance abuse disorders are a serious global public health issue, impacting a large number of individuals and resulting in significant illness and death rates. The World Health Organization (WHO) reported that in 2021, over 271 million individuals, or 5.5% of the global population aged 15-64 years, engaged in drug consumption at least once throughout the preceding year. Moreover, 39.5 million people experienced drug use problems. 

In 2021, over 1.3 billion individuals, accounting for 20.4% of the global population aged 15 years and older, were actively using tobacco. Similarly, almost 2.3 billion people, or 29.8% of the global population aged 15 years and older, were current alcohol consumers. The growing prevalence of addiction among the population is leading to a demand for efficient and easily accessible substance abuse treatment services, which is anticipated to drive substance abuse treatment market growth. 

Increasing Government Initiatives to Monitor Substance Abuse

The market is being propelled by a range of government initiatives aimed at monitoring and combating drug consumption. In FY 2020, the National Drug Control Budget sought a total of USD 34.6 billion for five specific areas related to drug control in the United States. These categories are prevention, operation, treatment, law enforcement, and interdiction. This allocation encompasses a financial provision of USD 1.90 billion for the Substance Abuse and Mental Health Services Administration (SAMHSA) and the Substance Abuse Preventive and Treatment Block Grant. The purpose of this funding is to support evidence-based preventive efforts. 

Furthermore, the National Institute on Drug Abuse (NIDA) is a prominent federal agency dedicated to advancing scientific research on drug use disorders and their associated impacts to enhance public health. For instance, in March 2020, NIDA released a Notice of Special Interest (NOSI) emphasizing the immediate requirement for study and the gathering and examination of data on the hazards of COVID-19 infection in individuals with substance use disorders. Due to the implementation of many initiatives and increased funding for programs targeting drug misuse, there is an expected rise in the demand for substance abuse treatment in the near future.

Global Substance Abuse Treatment Market Restraint:

Relapse of Addiction Due to the Discontinuation of Therapies

A significant obstacle encountered by the substance abuse treatment market is the increased likelihood of relapse among patients who discontinue their therapies. Relapse refers to the reappearance of substance use following a period of abstaining or reducing its consumption. A range of factors, including stress, cravings, cues, peer pressure, and the presence of concurrent mental problems, can instigate it. 

Based on a study conducted by the NIDA, the recurrence rates for substance use disorders vary from 40% to 60%, which are comparable to the rates observed in other chronic illnesses, including diabetes, hypertension, and asthma. Relapsing into addiction can diminish the efficacy and cost-effectiveness of substance abuse treatment programs while also heightening the likelihood of unfavorable consequences, such as overdose, infection, injury, and death. Hence, discontinuation of therapy leading to a relapse of addiction is a significant obstacle impeding the market expansion.

Global Substance Abuse Treatment Market Opportunities:

Technological Advancements and Innovation in Therapies

The substance abuse treatment market presents abundant opportunities for technological breakthroughs and innovation in therapies, hence augmenting the quality, accessibility, and affordability of the services. For instance, the development of innovative products like flavored chewing gums, heat-not-burn products, and lozenges for nicotine replacement therapy (NRT) might enhance the acceptance and compliance of the treatment among smokers. In August 2023, the smoking cessation category underwent a revamp with the introduction of Blip, a startup that is rethinking the concept of quitting nicotine for modern smokers and vapers. Using FDA-approved nicotine replacement therapy (NRT), products have the potential to significantly increase the likelihood of successfully stopping and provide valuable community support for individuals at any stage of their quitting journey. 

Moreover, digital technologies, such as telemedicine, artificial intelligence, virtual reality, and blockchain, can enhance the provision, supervision, and assessment of substance addiction treatment services. For instance, in October 2023, a study published in the JAMA Network found that utilizing telehealth for the treatment of opioid use disorder was linked to a higher probability of remaining in treatment for a longer duration, as opposed to initiating treatment in a non-telehealth environment.

Regional Analysis

Based on region, the global substance abuse treatment market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global substance abuse treatment market shareholder and is expected to expand substantially during the forecast period. The regional market is projected to take the lead because of its high incidence of substance abuse disorders, well-developed healthcare infrastructure and facilities, advantageous reimbursement policies and government initiatives, and the adoption of sophisticated technology and products. As per the SAMHSA, in 2021, approximately 46.3 million individuals aged 12 or above (equivalent to 16.5 percent) experienced a substance use disorder (SUD) within the past year. This includes 29.5 million individuals with an alcohol use disorder, 24.0 million individuals with a drug use disorder, and 7.3 million individuals with both an alcohol use disorder and a drug use disorder. 

Furthermore, numerous organizations have organized campaigns, initiatives, research, and publications to foster awareness of substance abuse diseases. For instance, in March 2022, Texas Health and Human Services initiated a public awareness campaign of USD 23.2 million. The program aims to prevent substance abuse disorder and facilitate access to addiction treatment and services. The growing utilization of digital platforms, such as websites, social media, mobile applications, and online forums, has also made spreading information and promoting substance abuse treatment programs easier. 

Moreover, there has been an increase in the development and implementation of novel products that can aid in overcoming substance abuse. For instance, in October 2023, Imperial Tobacco Canada (ITCAN) was pleased to announce that Health Canada has granted Nicoventures Trading Limited, a subsidiary of ITCAN's parent company BAT, a license to sell ZONNIC. ZONNIC is a nicotine pouch designed to assist adult smokers in quitting smoking by delivering nicotine to the body. Therefore, all of these variables contribute to the regional market's growth.

The Asia-Pacific region is projected to see the most rapid expansion due to the increasing occurrence of drug abuse disorders, the expanding need for substance abuse treatment services, the enhancement of healthcare infrastructure and facilities, and the rising government support and financing. In 2020, the Southeast Asian Region (SEAR) had the most significant global prevalence of tobacco usage, reaching approximately 27.9%. Among men, the average prevalence was 46%, while among women, it was 9.7%. Moreover, the Global Adult Tobacco Survey (GATS 2) reveals that 28.6% (266.8 million) of Indian adults aged 15 and above currently engage in tobacco consumption in various forms. Therefore, the significant prevalence of tobacco usage is expected to stimulate the need for substance abuse treatment in the region. Moreover, the increasing trend of medical tourism, wherein patients from different areas seek cost-effective and high-quality drug misuse treatment services in countries like India, Thailand, Malaysia, and Singapore, is driving the market growth in the region.

Segmental Analysis

The global substance abuse treatment market is segmented by type and treatment type.

Based on type, the global substance abuse treatment market is divided into alcohol addiction treatment, tobacco/nicotine addiction treatment, drug abuse treatment, and others. 

The tobacco/nicotine addiction treatment segment dominates the global market. The tobacco/nicotine abuse treatment segment dominates the market due to the rising tobacco consumption, the expanding adult population, and the implementation of government programs and anti-smoking regulations. The global tobacco usage rate in 2020 was 22.3%, with 36.7% of males and 7.8% of women being tobacco users. Annually, tobacco claims the lives of about 8 million individuals, which encompasses over 1.3 million non-smokers who are subjected to the harmful effects of second-hand smoke. 

In 2003, WHO Member States approved the WHO Framework Convention on Tobacco Control (WHO FCTC) to combat the widespread issue of tobacco use. Currently, 182 countries are signatories to this pact. The WHO MPOWER measures align with the WHO FCTC, effectively preventing deaths and lowering healthcare expenses by avoiding medical expenditures. These factors are expected to stimulate the expansion of the segment.

Based on treatment type, the global substance abuse treatment market is segmented into detoxification, medication, counseling and behavioral therapy, support groups, and others. 

The medication segment owns the highest market share. The medication segment holds a significant share of the market, primarily because it offers a wide range of medications for addressing substance misuse. Disulfiram, Acamprosate, and Naltrexone are medications employed in the therapy of alcohol misuse, whereas Bupropion and Varenicline are non-nicotine drugs utilized for addressing nicotine abuse. Moreover, in June 2018, Omeros Corporation obtained approval from the regulatory authorities and ethics committee to commence a phase I clinical trial for the drug candidate PDE7, a phosphodiesterase inhibitor. This medicine is intended for the treatment of several addictions, including nicotine addiction and compulsive disorders.

Recent Developments

• June 2023- Sukoon Health, a network of mental health centers, introduced its Drugs and Substance Recovery Centre in Chhatarpur, New Delhi. As stated in a press release, this Recovery Centre employs a distinctive 360-degree methodology to provide thorough and tailored assistance to clients grappling with issues related to alcohol and substance abuse.
• December 2023- Philip Morris International (PMI) announced its intentions to introduce a tobacco-free product named LEVIA in the near future. LEVIA is composed of a cellulose-derived substance, specifically a natural plant fiber. LEVIA, in contrast to cigarettes, is devoid of tobacco but does contain nicotine.