Market Trends of Substance Abuse Treatment Industry
This section covers the major market trends shaping the Substance Abuse Treatment Market according to our research experts:
The Tobacco/Nicotine Addiction Treatment Segment is Expected to Dominate the Market
By treatment type, the tobacco/nicotine addiction treatment segment is anticipated to witness lucrative growth. Tobacco and its usage through consumption and smoking are harmful, as they kill half of its users globally, as stated by the World Health Organization. In July 2021, the same source stated that tobacco kills more than 8 million people each year. More than 7 million of those deaths are the result of direct tobacco use, while around 1.2 million are the result of non-smokers being exposed to second-hand smoke. Moreover, the use of tobacco is greater in developing and underdeveloped countries, especially in the Pacific and East Asian countries. Such factors are anticipated to boost the growth of the segment in the developing as well as developed countries over the coming years.
Furthermore, several market players are engaged in the implementation of strategic initiatives, thereby contributing to market growth. For instance, in December 2021, the NFL Biosciences launched the Phase II/III clinical trial to assess the efficacy and safety of its NFL-101 smoking cessation treatment. It is approved by the Human Research Ethics Committee (HREC) in Australia and by the French National Agency for the Safety of Medicines and Health Products (ANSM). Similarly, in September 2021, Mydecine Innovations Group launched a Phase 2/3 clinical trial for smoking cessation for its MYCO-001 compound, following up on its recent announcement of 5-year cooperation with Johns Hopkins University's research institute. In this ground-breaking trial, Mydecine will collaborate with John Hopkins, and the trial will be a randomized, double-blind, placebo-controlled experiment to assess the efficacy of Mydecine's MYCO-001 in the treatment of nicotine addiction.
Hence, all these factors are expected to help this market grow during the forecast period.
North America is Expected to Dominate the Market During the Forecast Period
Within North America, the United States is expected to dominate the market due to the increasing overuse of tobacco and an increasing number of government initiatives aimed at reducing substance abuse.
For instance, as per a December 2020 update by the Centers for Disease Control and Prevention (CDC), nearly 14 out of every 100 United States adults aged 18 years or older (14.0%) smoked cigarettes in 2019. As per the same source, an estimated 34.1 million adults in the United States currently smoke cigarettes, and more than 16 million Americans live with a smoking-related disease. Such a prevalent addiction population within the country will necessitate the demand for addiction treatments, in turn, driving the market growth in the United States.
Furthermore, various initiatives are being implemented by the United States government to monitor the symptoms and determine drug abuse among the American population. For instance, as per a February 2022 update, the United States government and the United Kingdom are administering Narcan, a brand name for the medicine naloxone, in 16 counties at no cost to help reduce overdose deaths. Such initiatives will further supplement the growth of substance abuse treatment within the country.
Additionally, the United States has an advanced healthcare system with one of the largest expenditures on healthcare. Its investment in research and development, along with measures to curb and eliminate substance abuse, is further aiding access to addiction treatments among Americans. As a result of these factors, a large population is able to get the required treatment it needs. For instance, as per a February 2022 update, Texas and some of its largest counties will receive USD 1.17 billion as an opioid relief fund as part of a nationwide settlement from three large pharmaceutical distribution companies. Moreover, in February 2022, the United States Department of Human Health and Services announced a USD 10 million Substance Abuse and Mental Health Services Administration (SAMHSA) grant program addressing the health needs of pregnant women and children affected by substance use. Such programs are anticipated to drive the demand for substance abuse treatment in the United States, thereby driving the market growth.
Thus, owing to the above-mentioned factors, the market is expected to witness significant growth over the forecast period.
