by Addiction treatment involves counseling, medication, and behavioral therapies to help people overcome dependency on substances such as alcohol or drugs. Substance abuse disorders are prevalent medical conditions that often require long term treatment approach. Addiction occurs when continued use of certain legal or illegal drugs or alcohol leads to changes in the brain and interferes with an individual’s ability to control their use of the substance. The rising abuse of illicit drugs and harmful use of alcohol have led to increasing addiction rates worldwide. According to the World Drug Report 2021 by United Nations Office on Drugs and Crime, about 275 million people globally used drugs in 2020. The growing cases of drug and alcohol addiction fuel the need for various addiction treatment programs and services.
The global Addiction Treatment Market is estimated to be valued at US$ 9199 in 2023 and is expected to exhibit a CAGR of 29% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the addiction treatment market is the increasing adoption of medication-assisted treatment. Medication-assisted treatment involves using FDA-approved medications, such as buprenorphine or methadone, together with counseling and behavioral therapies to help people recover from opioid addiction and prevent relapse. Medication-assisted treatment is quite effective for managing withdrawal symptoms and psychological cravings associated with opioid dependence. According to the National Institute on Drug Abuse, medication-assisted treatment can help people reduce illicit opioid use and become stay engaged in counseling or behavioral therapies. The rising effectiveness and acceptance of medication-assisted treatment is boosting the growth of the global addiction treatment market size during the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the addiction treatment market is low as it requires considerable investment and resources to set up treatment facilities and gain expertise in the field.
Bargaining power of buyers: The bargaining power of buyers is moderate as addiction treatment services have inelastic demand and switching costs are high for patients seeking treatment.
Bargaining power of suppliers: The bargaining power of suppliers is low in this market as there are many medication and equipment suppliers catering to the demand from treatment providers.
Threat of new substitutes: There is low threat of substitutes as addiction is a complex disease and alternative treatment options are limited.
Competitive rivalry: The competitive rivalry in the addiction treatment market is high due to the presence of many regional and global players offering similar services.
Key Takeaways
The global addiction treatment market is expected to witness high growth over the forecast period. The rising rate of substance abuse disorders is driving the demand for treatment. The global Addiction Treatment Market is estimated to be valued at US$ 9199 in 2023 and is expected to exhibit a CAGR of 29% over the forecast period 2023 to 2030.
Regional analysis: North America is the largest market for addiction treatment currently. This is attributed to raising awareness about substance use disorders, focus on prevention through government programs and insurance coverage for treatment services. Europe also offers growth opportunities led by countries like Germany, United Kingdom and France. Asia Pacific is expected to witness fastest growth led by China and India on back of rising prevalence, growing healthcare infrastructure and improving access to services.
Key players: Key players operating in the addiction treatment market are Alkermes, Allergan, Indivior, Noramco and Pfizer. Cipla, Glenmark and Sun Pharmaceuticals also offer medication for addiction disorders. These players are focusing on developing novel drug delivery systems and enhancing service offerings to strengthen their market position.
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