Substance Abuse Treatment Market Research Report By Type (Alcohol Dependence and Tobacco & Drug Abuse), By Treatment Type (Tobacco/Nicotine & Vaping, Alcohol), By End User (Outpatient Treatment Centers, Residential Treatment Centers, and Inpatient Treatment Centers), and By Region, 2023-2032

Report Overview

The substance abuse treatment market size was projected at USD 9.5 billion in 2022 and is predicted to grow at a CAGR of 6.8% from 2023 to 2032. It is expected to reach USD 18.0 billion by 2032. The increase in drug awareness campaigns and the dominance rate of the habituated population are very low market drivers of substance abuse treatment.

The Substance Abuse Treatment Market is medically used to aid nicotine-addicted patients in getting rid of this substance. By definition itself, we can know that substance abuse refers to the use and habituated behavior of psychoactive substances that include alcohol and illegal drugs.

The main reason or growing factor behind this is the demand for special designations from governed authorities. It is witnessing substantial growth, driven by the increasing prevalence of drug addiction, particularly in North America. Asia Pacific is also emerging as a promising region for the substance abuse treatment market, with growing awareness of the need for effective treatment and rehabilitation programs.

There were several awareness campaigns and initiatives taken by the government to spread awareness about the substance abuses, what are their side effects as well as what are their possible treatments. The substance abuses and mental health services administration, mainly works to increase the awareness programs and treatments. Not only this, it is one of the popular and leading campaigns all across the US with only one intention i.e., to reduce the substance abuse market in US department of health and humanitarian services.

For instance, one of the study which was published by Brazilian Journal of Psychiatry underwrites to amplify awareness of the connotation of addressing anger in substance abuse treatment. This augment awareness can drive needs for more inclusive and effective choices. This also highlights the requirement to integrate intensive anger management modules into substance use treatment programs.

Healthcare providers can sight this as a chance to improve their programs, entice more patients looking for intensive care and potentially get a modest edge in the market. This also give much emphasize on the importance of current research and new development in the field of substance abuse treatment. Treatment Providers who put their funding in research based approaches and implement new findings into their programs may get a reputation for being at the front of treatment, enticing both the patients and investment chances.

Government has been taking some of the new and innovative strategies to improvise the substance abuse treatment. For example, the implementation of Digital Therapeutics (DTs), which is a new and advance treatment to enhance the patient outcomes and treats it more effectively.

To understand more about this treatment NIDA conducted a clinical trial with the help of DTs. This DTs played a vital role in treatment and appealed more number of patients and individuals to get the proper care and treatment. After doing several trials NIDA found no substantial difference in adverse event rates between the DT group and the old way of treatment group. This gives signs that DTs can share safe treatment options which can enhance self-reliance in their adoption.

As Digital Therapeutic and the up surge of awareness regarding the anger challenge in substance abuse treatment has taken place, there is a critical requirement for specialised approaches that focus on the issue of homelessness and substance use disorder (SUD).

According to University of California, LA, Integrated Substance Abuse Program, it is clearly seen that there has been a significant cut in retention rates and successful discharge status for individual homelessness. This generally emphasize the criticality of personalised interventions. It was about 11.90% decline in retention in SUD and 19.40% downfall in successful discharge status. These current trends were at one place across various different treatment ways including the outpatient and inpatient (residential care). This acknowledgment can arouse the create specialised treatment programs building business prospects for healthcare providers.

After several researches and findings about the treatment regarding the mental illness and SUD, there is one of the highlighted issue which is within the prison population and the prevalence of comorbid serious mental illness. There is a high percentage of individuals those who are struggling with comorbid conditions and indicates a huge demand for personalised or specific treatment solution.

As per Lancet Public Health Publication, around 3.5% of the individuals in custody have current non-affective psychosis with any comorbid substance use disorder and among that 9.1% have major depression with comorbid substance disorders. These findings can give a major impact on public policy and investment decisions. Healthcare providers who provides dual diagnosis and various services to the patients with comorbid challenge may find an expanding market within correctional facilities. This will ultimately witness business expansion and potential partnership with government authorities.

Driving Factors

Advancements in Treatment Methodology

Improvements in medical and therapeutic interventions have boosted the effectiveness and convenience of substance abuse treatment. This comprises new creations in pharmacological treatments, such as suppositories for opioid use disorder, and the expansion of evidence-based behavioral therapies. These progressions expand the range of options accessible to individuals looking for treatment, leading to more effective results.

Government Campaigns and Policies

Drug awareness campaigns are instrumental in educating the public about the dangers of illicit drugs, contributing to the substance abuse treatment market growth by promoting early intervention and treatment. Better awareness and acknowledgement of substance abuse as a public health concern have led to the execution of policies that can endorse access to treatment services. This can comprise funding for treatment centers, insurance coverage for addiction treatment, and regulatory provision for evidence-based practices.

Increasing Substance Abuse Rates and Demand for Treatments

The upsurge in the occurrence of substance abuse disorders is a main driving factor for the substance abuse market. Varieties of factors contribute to this unsettling trend, with the rising pressures of modern life such as stress and the complex interaction of mental health issues. Moreover, social pressure and standards can unintentionally contribute to this rising predicament.

As these challenges become more prevalent, there is an ever-increasing demand for specialized treatment services. This outpouring in demand creates an imperious demand for the growth and refinement of treatment offerings, safeguarding that individuals contending with substance abuse obtain the comprehensive care they require.

Restraining Factors

Stigma and discrimination

Despite development, stigma surrounding substance abuse remains an important restraining factor in the treatment market. Individuals with abuse maladies may face social judgment and discernment, which can dissuade them from seeking treatment. This stigma creates a barrier to entry and can undermine the effectiveness of treatment interventions.

Limited access to quality treatment facilities

Disparities in access to quality treatment facilities and services can be substantial restraining factors. Some regions may have limited access to treatment centers, mostly in rural areas.

Moreover, individuals without adequate insurance coverage or financial resources may face difficulties accessing high-quality treatment options. This can result in delays or inadequate care, impacting the overall effectiveness of treatments.

Growth Opportunities

Telemedicine and digital medicines

With technological advancements, there is great opportunity for advancement in substance abuse treatment through telemedicine and digital health solutions. These forums enable individuals to access them remotely, removing barriers of mobility, distance, and stigma. This approach not only expands treatment services but also provides clients with better options that are both soft and convenient.

Additionally, digital tools can provide on-going support, follow-up progress, and resources for relapse prevention, contributing to effective and accessible care.

Integrated care and treatment for co-occurring diseases

Preventing co-morbidities, where substance abuse and mental conditions co-exist, is an important development opportunity. Integrated models of care combining mental health and substance abuse treatment have shown promising results in improving overall well-being.

There is a need for specialized programs and trained staff who can provide comprehensive care that addresses addiction and underlying mental health issues. As the number of people who realize how these conditions are connected increases, so does the demand for integrative therapies.

Expanding medication-assisted treatment (MAT)

There is a great opportunity for improvement in substance abuse treatment through the expansion of medication-assisted treatment (MAT). MAT combines medication with counseling and behavioral therapy to provide a holistic approach to recovery, especially for opioid use disorder. The opioid epidemic is widespread, and MAT is highlighted as evidence.

By Type

Drugs and tobacco hold a strong place in the substance abuse market. The rising demand for drugs and tobacco, especially among youth and adults, is one major factor in market growth.

The development of international awareness and campaigns to edify addicted users is one of the factors that makes these substances the leaders of this segment. These programs are meant to make youth and adults realize the importance of their health. Thus, the growing intake has been a major requirement for the treatment. Furthermore, many market participants are putting their tactical plans into action, which helps the substance abuse treatment market grow.

Alcohol addiction treatment is a also becoming a critical component of the substance abuse treatment market, addressing the needs of individuals suffering from alcohol use disorder.

By Treatment

The tobacco and vaping segments hold the largest share. The segment is the largest due to the high tobacco addiction among youths and adults. Tobacco is a passage drug as it can lead to the usage and abuse of different substances.

In fact, research indicates that youths who smoke are significantly more likely to experiment with other substances, with statistics showing that they are approximately 15 times more inclined to use cocaine, six times more likely to use marijuana, and twice as likely to consume alcohol compared to their non-smoking counterparts

Tobacco is the main reason behind the damage to every body part, such as the lungs, impairments, and malfunctions. This compels the requirement for addiction treatment for such a health condition. Nicotine addiction and the demand for nicotine addiction treatment are also on the rise, with products like nicotine lozenges gaining popularity among those looking to quit smoking.

By End User

Outpatient treatment centers dominate the substance abuse treatment market, as well as being projected as a fast-growing segment. The most common places are rehabilitation centers, where substance abuse treatment is given to the patients. The rehabilitation programs are making magnificent progress in treating the population with the worst effects of substance abuse.

Clinical trials for innovative treatments are ongoing, offering hope for more effective and targeted interventions in the future, further advancing the treatment options available at rehabilitation facilities and treatment centers.

The newly introduced program, which is a restoration program, guides people to gain control over their habits and participate in society. There are some drug recovery programs that support and direct victims through which they can easily overcome, such as remedial meetings and other activities.

Key market segments

By Type

• Alcohol Dependence
• Tobacco and drug abuse

By Treatment Type

• Tobacco, nicotine, and vaping
• Alcohol

By End User

• Outpatient Treatment Centers
• Residential Treatment Centers
• Inpatient Treatment Centers

Latest Trends

Advance care for depression and trauma

Depression-reported care is a comprehensive approach that increases awareness and response to the impact of depression on individuals. This includes understanding potential triggers and providing a safe and supportive environment for healing.

This trait is beneficial because it addresses the root cause of drug addiction. Many individuals with substance use disorders have experienced trauma, and providing care that is sensitive to their experiences builds trust and enhances treatment, as well as helping to prevent trauma again during treatment. The integration of trauma-related factors is more holistic and tailored to the individual’s specific requirements.

Customized and Specific Treatment

Personalized and precision medicines require that treatment programs be tailored to the specific genetic and biological environment that contributes to substance abuse.

This trend represents a major shift towards more effective and targeted therapies. By understanding the unique factors that affect an individual addict, treatment can be customized to produce the best possible results. This helps reduce trial-and-error methods and can lead to a greater and more sustainable recovery. In addition, self-administered medications can decrease the risk of worse reactions to certain drugs or treatments. Thereby improving both the safety and efficiency of treatment.

Regional Analysis

North America holds a strong and dominant position among other countries in the substance abuse treatment market. A greater number of populations are addicted to marijuana, and well-planned compensation policies, legalization of marijuana by higher authorities in different states, and advanced healthcare sectors are expected to expand the regional market.

These factors support the expansion of substance abuse treatment market growth in this region. According to the US Health and Human Services Department, adults and youngsters are more often reported for drinking within the past few months and are admitted to consuming prescription drugs or illegal drugs.

Key Regions and Countries

North America

• US
• Canada

Europe

• Germany
• France
• UK
• Spain
• Italy
• Russia
• Netherland
• Rest of Europe

Asia Pacific

• China
• Japan
• South Korea
• India
• New Zealand
• Singapore
• Thailand
• Vietnam
• Rest of APAC

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• South Africa
• Saudi Arabia
• UAE
• The rest of MEA

Key Player Analysis

All the substance abuse treatment market competitors are investing and spending funds to encourage R&D events, such as the introduction of new treatment services in the market. Major companies are also taking various types of initiatives to build their market share, with main market developments. Product launches and commercial launches of new addiction treatment therapies are key factors fueling the growth of the substance abuse treatment market.

Market players in the field of substance abuse treatment should present more effective services and help to progress different treatments. Moreover it is also crucial for companies to find out the right distribution channel in order to ensure that these life-changing treatments reach those in need efficiently and with the utmost effectiveness.

Key Players in the Substance Abuse Treatment Market

• Alkermes PLC
• Allergan PLC
• GlaxoSmithKline PLC
• Mallinckrodt, Inc.
• Mylan NV
• Pfizer Inc.
• Purdue Pharma LP
• Reckitt Benckiser Group plc
• Sanofi S.A.
• Teva Pharmaceutical Industries Ltd.
• AELIS FARMA
• Alex Therapeutics
• Sahyog Clinic
• Eli Lilly and Company
• Cipla Ltd
• Indivior PLC
• Novartis AG
• Sun Pharmaceutical Industries Ltd.
• Reddy’s Laboratories Ltd.
• Viatris Inc.
• AstraZeneca

Recent Developments

• A study funded by the federal government in October 2023 provides compelling evidence in favor of expanding the utilization of telehealth services for treating opioid use disorder.
• In October 2023, as a component of a worldwide opioid litigation settlement with Teva Pharmaceuticals, tribes became eligible to receive annual allocations of free boxes containing the opioid overdose emergency treatment medication Naloxone for a duration of 10 years.
• Research funded by the NIH in September 2023 indicates that higher doses of buprenorphine are linked to improved retention rates in the treatment of opioid use disorder. This emphasizes the need to reassess recommendations for opioid addiction treatment, particularly in the context of the prevalence of fentanyl.
• As of August 2023, substance use patterns, including marijuana, hallucinogen use, and binge drinking, have surged to historic highs among adults aged 35 to 50.
• A study conducted by the NIH and CDC in August 2023 revealed that in 2021, only one in five U.S. adults with opioid use disorder received medications as part of the standard evidence-based care. The study also highlighted that telehealth is associated with an increased likelihood of receiving this standard of care for opioid use disorder.

Report Scope