Substance Abuse Treatment Market Size, Share & Trends Analysis Report By Treatment Type (Tobacco/Nicotine & Vaping, Alcohol), By End-use (Rehabilitation Centers, Clinics, Hospitals), By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The global substance abuse treatment market size was exhibited at USD 11.9 billion in 2022 and is projected to hit around USD 28.33 billion by 2032, growing at a CAGR of 9.06% during the forecast period 2023 to 2032.

Key Pointers:

• The tobacco/nicotine and vaping segment held the largest share of more than 33.40% of the overall revenue in 2022.
• The alcohol segment is expected to register the fastest growth rate over the forecast period.
• The hospital end-use segment dominated the industry in 2022 and accounted for the largest share of 37.83% of the total revenue.
• The rehabilitation centers segment is expected to register the fastest CAGR over the forecast period. 
• North America dominated the industry in 2022 and accounted for the largest share of more than 33.65% of the overall revenue.
• Asia Pacific is estimated to register the fastest CAGR over the forecast period.

Substance Abuse Treatment Market Report Scope

The growth is attributed to the increasing demand for therapeutic options as a result of the rising prevalence of substance abuse cases. For instance, according to the UNODCWorld Drug Report, in 2020, 284 million individuals aged between 15 and 64 years used drugs globally. Alcohol and tobacco are among the most extensively consumed psychoactive substances. They are also regarded as the most harmful psychoactive substances globally and are the leading causes of morbidity and mortality. The tobacco epidemic alone is one of the world’s most prominent public health concerns.

According to the WHO estimates, globally, there are 1.3 billion tobacco consumers, of which more than 8 million people die annually due to its consumption. Over 7 million tobacco deaths are the consequence of direct tobacco use, while about 1.2 million deaths are caused by passive smoking, where non-smokers are exposed to environmental tobacco smoke. Government initiatives to enable and advance healthcare settings to combat the rising concerns of substance abuse will drive market growth. For instance, in March 2020, researchers at Columbia University set up a new center due to the growing crisis associated with opioid and other substance use disorders. Various global initiatives spreading awareness about addiction treatment are among the major factors driving the industry growth.

For instance, the WHO celebrates World No Tobacco Day on May 31st each year. In addition, in June 2021, DC Health launched the public education campaign, MyRecoveryDC, to help provide access to treatments and recovery services for substance abuse. In October 2022, Qnovia raised USD 17 million to fight against nicotine addiction. Furthermore, key players are focusing on collaborations and partnerships to develop novel therapeutics for drug addiction treatment and maintain their competitive position in the market. For instance, in November 2022, Opiant Pharmaceuticals, Inc. entered into a definitive agreement with Indivior PLC to strengthen its position as the leader in addiction treatment. The acquisition is expected to give rights of Opiant’s pipeline product, OPNT003, an opioid overdose treatment, after its approval and launch.

Players are entering the drug addiction treatment market attributable to enhanced revenue generation possibilities in the treatment of drug addiction. For instance, in January 2023, Hikma announced the launch of its prefilled Naloxone Hydrochloride Injection, for the treatment of opioid overdose in the U.S. The growing need for effective drug addiction treatment in the U.S. and enhanced government support is expected to boost demand for drug addiction treatment.

Treatment Type Insights

The tobacco/nicotine and vaping segment held the largest share of more than 33.41% of the overall revenue in 2022. The dominance of the segment is attributed to the increasing prevalence of tobacco addiction among the population. It is estimated that globally, around 22.3% of the population uses tobacco, which leads to the death of 8 million people each year. Tobacco is frequently referred to as a gateway drug as it can lead to the use and abuse of other substances. Teenagers who smoke are 22 times more probable to use cocaine, 8 times more probable to use marijuana, and 3 times more likely to use alcohol than nonsmokers. Tobacco is associated with causing harm to almost every organ of the body including impairment of the lungs and decreased lung function. This further propels the need for addiction treatment for such health conditions.

The alcohol segment is expected to register the fastest growth rate over the forecast period owing to its high consumption, easy availability, and heightened social acceptance, resulting in its increasing consumption worldwide. According to the WHO estimates, 3 million deaths every year worldwide result from the harmful use of alcohol; this represents 5.3 % of all deaths. After tobacco addiction, alcohol abuse is the second-most common type of substance abuse globally. An alcohol use disorder occurs when a person’s drinking causes distress or harm, affecting around 10% of adult men and 5% of adult women. Alcohol addiction treatment market is projected to witness a surge over the forecast period. This includes major alcohol addiction treatment drugs such as disulfiram, acamprosate, and naltrexone

End-use Insights

The hospital end-use segment dominated the industry in 2022 and accounted for the largest share of 37.89% of the total revenue. The dominance is attributed to the delayed detection of the condition because of social stigmatization among patients leading to apprehension on availing the treatment, which often results in severe cases of addiction that need hospitalization for providing the user with the needed addiction treatments, thereby driving the segment's growth. In addition, individuals with prolonged substance abuse often develop other health conditions, such as cardiovascular disease, stroke, cancer, HIV/AIDS, Hepatitis B and C, lung disease, and mental disorders; hospitals being centers for primary treatment, also offer treatment for health conditions associated with substance abuse.

The rehabilitation centers segment is expected to register the fastest CAGR over the forecast period. Rehabilitation centers provide more treatment options, amenities, and specialized care, such as dual diagnosis, and are the most preferred method for patients who are required to undergo long-term addiction treatment, which may last six months to a year or more. Furthermore, rehabilitation centers are forming alliances with hospitals to provide better care to patients. However, the high cost associated with addiction treatment followed in a rehabilitation center is expected to hinder the growth of the segment. For instance, over 30 days, general outpatient rehab costs between USD 1,400-10,000. This equates to USD 5,700 per month on average. However, addiction treatment pharmaceutical product account for only a fraction of these costs.

Regional Insights

North America dominated the industry in 2022 and accounted for the largest share of more than 33.71% of the overall revenue. The segment is expected to grow further at a steady CAGR maintaining its dominant position throughout the forecast period. The growing population exposed to addiction, well-structured reimbursement policies, legalization of marijuana in various states, and developed healthcare sectors are expected to drive the regional market. According to the CDC, nearly 17% of the population are binge alcohol drinkers in the U.S. and around 6% are exposed to heavy drinking. Moreover, nicotine addiction is most common in the U.S. with nearly 40 million adults addicted to tobacco smoking. Thereby creating a major opportunity for addiction treatment market in North America.

Furthermore, public and private organizations in the region are constantly focusing on spreading awareness regarding the serious threats associated with substance abuse, and drug addiction which propels regional market growth. Asia Pacific is estimated to register the fastest CAGR over the forecast period. This can be attributed to the geographical expansion of key players in Asian countries, coupled with developing healthcare infrastructure and supportive government initiatives to improve nicotine, alcohol and drug addiction treatment adoption. In addition, rising incidences of alcohol, tobacco, and opioid addiction in Asian countries will boost the regional market growth. However, a lack of public awareness and healthcare disparities among emerging economies may hinder growth.

Some of the prominent players in the Substance Abuse Treatment Market include:

• Teva Pharmaceutical Industries Ltd.
• Abbott
• GSK plc.
• Cipla Inc.
• Lilly (Eli Lilly and Company)
• Novartis AG
• Sun Pharmaceutical Industries Ltd.
• Dr. Reddy’s Laboratories Ltd.
• Viatris Inc.
• AstraZeneca

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Substance Abuse Treatment market.

By Treatment Type 

• Tobacco/Nicotine And Vaping
• Alcohol
• Marijuana
• Synthetic Cannabinoids
• Prescription And Over-the-counter Medications
• Others

By End-use 

• Hospitals
• Clinics
• Rehabilitation Centers
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)