Anxiety Disorders and Depression Treatment Market Size, Share & COVID-19 Impact Analysis, By Drug Class (Antidepressants, Anxiolytics, Anticonvulsants, Noradrenergic Agents, and Atypical Antipsychotics), By Indication (Anxiety and Depression), By Distribution Channel (Hospital Pharmacy, Retail Pharmacy, and Online Pharmacy), and Regional Forecast, 2020-2027

The global anxiety disorders and depression treatment market size was USD 8.50 billion in 2019 and is projected to grow from USD 10.89 billion in 2020 to USD 13.03 billion in 2027, at a CAGR of 2.6% in the 2020-2027 period. Based on our analysis, the global anxiety disorders and depression treatment market will exhibit a stellar growth of 28.2% in 2020. The global impact of COVID-19 has been unprecedented and staggering, with anxiety disorders and depression treatment products witnessing a positive demand shock across all regions amid the pandemic. The sudden decline in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

According to a MindMed report, there are around 284 million anxiety patients globally, and only 36% out of these seek treatment. This is largely responsible for the lower number of prescriptions for anxiety disorders and depression treatment, leading to slower market growth. As populations are largely lethargic towards awareness about the treatment and management of mental health disorders, there is not much demand for antidepressants. Nonetheless, market players are actively launching novel drugs to boost market potential.

On the other hand, the burden of the rising prevalence of psychological conditions and the need for effective management of anxiety and depression-related disorders is leading to a rise in the sales of products as well as clinical trials in the global market. Moreover, collaborative efforts by pharmaceutical companies, NGOs, mental health organizations, and government initiatives for spreading awareness among populations are expected to accelerate market growth during the forecast period. For example, organizations such as the Live, Love, Laugh Foundation, the World Health Organization (WHO), etc. have launched mental health initiatives to spread awareness among populations. World Mental Health Day is also celebrated internationally on October 10 every year, which was initiated by the World Federation for Mental Health in 1992.

COVID-19 Pandemic to Have a Positive Impact on Product Sales

The COVID-19 pandemic has had a positive impact on the anxiety disorders and depression treatment market growth due to a surge in the sales of products for managing mental health conditions. According to a survey conducted by the WHO in 2020, more than 80% of the high-income countries deployed telemedicine and teletherapy to provide necessary consultations to patients suffering from anxiety disorders and depression. Pharmaceutical companies amid the pandemic have significantly focused on maintaining a balance between supply and demand, thus keeping their sales intact. During the pandemic, a large mass of people witnessed a decline in its cognitive behavior, owing to the increasing financial as well as emotional burden caused by the coronavirus, leading to stress, fear, anxiety, and depression. This led to a rise in the demand and adoption of medications intended for related indications. For instance, according to several news articles, the prescriptions for anxiety and depression drugs spiked up to 34.1% and 18.6%, respectively, during 2020. Therefore, COVID-19 has led to the tremendous growth of the market.

LATEST TRENDS

Robust R&D by Companies to Improve Market Potential

The fundamental aim of companies operating in this market is to provide effective treatment options for improving mental health. Therefore, to materialize this aim, industry players are putting enormous efforts into R&D through strategic agreements, collaborations, and expanding funding. For example, in June 2020, Neurocrine Biosciences, Inc. and Takeda Pharmaceutical Company Limited entered into a collaborative agreement for the development of potential therapies for psychiatric disorders. Although there is less awareness among populations about the need for treatment against mental health issues, the demand for effective drugs has not lowered. Thus, the demand for novel drugs is expected to boost the R&D of companies during the forecasted timeframe.

DRIVING FACTORS

Economic Burden of Mental Disorders to Propel Product Demand

Globally, the prevalence of mental health disorders is increasing rapidly in adults and children, owing to the tremendous financial and emotional burden on individuals, families, and society as a whole. This will eventually have economic implications. According to the WHO, the cost of mental health problems in developed countries is estimated to be 3% to 4% of the Gross National Product (GNP). Therefore, the aim of governments to reduce the economic burden of such disorders is likely to propel product demand, ensuring timely management of anxiety and depression. 

Robust Drug Pipelines to Aid Growth Opportunities

Research and development to provide advanced patient care for mental health disorders are accelerating worldwide. Innovative experiments leading to combination therapies with new or existing drug molecules have led to a rise in the pipeline candidates for anxiety disorders and depression treatment. For instance, in March 2020, Luye Pharma announced that the US Food and Drug Administration (FDA) accepted its new drug application for LY03005, an antidepressant drug. Also, strong backing from government and international healthcare organizations for R&D funding is likely to contribute to the creation of varied opportunities in the market for anxiety disorders and depression treatment. This, coupled with the increasing preference for innovative drugs entering the market, is projected to augment market growth.

RESTRAINING FACTORS

Adverse Effects of Drugs and Necessary Treatment Gaps to Restrict Market Growth

Treating affected neurological cells with high drug dosage generally damages normal cells of the body. These result in various side effects, such as weight gain, blurred vision, dizziness, nausea, etc., in many patients. Therefore, these adverse events pertaining to anxiety and depression drugs are negatively influencing the growth of this market. Additionally, the widening gap between the need for treatment and the resources available is also another factor causing hindrances in market growth. For instance, according to a WHO report, in developed countries, between 44% and 70% of the patients do not receive treatment, while in the developing countries the gap is even worse, being close to 90%.

SEGMENTATION

By Drug Class Analysis

Increased Sales of Products for Anxiety Treatment to Foster Growth

Based on drug class, the global market has been segmented into antidepressants, anxiolytics, anticonvulsants, noradrenergic agents, and atypical antipsychotics. The antidepressants segment accounted for the major market share in 2019. Antidepressants have greater efficacy compared to other medications, resulting in the lowering of an individual’s depressive state of mind. As a result, these drugs are commonly prescribed by hospitals, neurologists, and psychiatrists. Moreover, a growing number of pipeline candidates coupled with product approvals are anticipated to fuel the segment’s growth during the forecast period, enabling it to register the highest CAGR. For example, in September 2020, Janssen Research and Development LLC announced the initiation of Phase 3 clinical study of Seltorexant for testing its safety and efficacy in treating major depressive disorder (MDD).

The other drug class segments are anticipated to have a comparatively lower market share owing to the lower rate of adoption and prescription.

By Indication Analysis

Rising Incidence of Anxiety Disorders among Populations to Drive the Market

On the basis of indication, the global market for anxiety disorders and depression treatment is classified into anxiety and depression. A higher prevalence of phobias, social anxiety disorders, and others in developed as well as emerging economies has led to the increased sales of anti-anxiety drugs. For instance, according to the Anxiety and Depression Association of America, in the U.S, anxiety disorders are the most common mental illness, affecting about a million adults annually.

Patient population with depressive disorders demanding effective drugs for improvements in their cognitive behavior is another major factor that contributed to the growth of the market in 2019. Also, indications, such as major depressive disorder, obsessive-compulsive disorder, post-traumatic stress disorder (PTSD), general anxiety disorder (GAD), etc., are visible in the majority of the populations worldwide. This is anticipated to boost market growth during the forecast period.

By Distribution Channel Analysis

Increasing Prescription of Medications at Hospitals to Support Market Growth

In terms of distribution channel, the market is segmented into hospital pharmacies, retail pharmacies, and online pharmacies. The hospital pharmacy segment holds the lion’s share globally due to increased patient visits and sales of prescription-based drugs for treatment against depressive disorders, mainly MDD.

Rising patient preference to buy products from nearby pharmacies on a regular basis is responsible for the growth of the retail pharmacies segment.

The online pharmacy segment is expected to witness a lucrative CAGR over the forecast period due to the penetration of online pharmacies in developing countries.

REGIONAL INSIGHTS

The market size in North America stood at USD 4.44 billion in 2019. The dominance of this region in the anxiety disorders and depression treatment market share is attributable to the high prevalence of anxiety and depression disorders among the U.S population. Another major factor contributing to the growth of the regional market is the presence of major players, coupled with the frequent launch of innovative products.

Europe holds the second-largest position in the market, owing to huge investments in R&D for the development of antidepressant drugs. This, along with the higher sales of products for anxiety-related disorders, is expected to drive the growth during the forecast period.

Asia Pacific is anticipated to witness the highest CAGR due to the growing demand for antidepressants by the adult population, coupled with the rising incidence of depressive disorders among individuals.

On the other hand, Latin America and the Middle East & Africa are likely to witness a comparatively slower growth rate due to the lower incidence rate of anxiety-related disorders and the lack of product approvals in these regions.

KEY INDUSTRY PLAYERS

Brand Presence of Novel Products to Improve Sales of Industry Players

The market is fragmented owing to the presence of multiple players focusing on anxiety disorders and depression treatments. The industry players’ brand presence is attributable to the strong sales of anti-depression drugs, coupled with the launch of novel therapies. Additionally, the emergence of new players during the forecast period and multiple product approvals are anticipated to broaden the scope of the global market. Moreover, owing to the COVID-19 pandemic, companies witnessed a sudden surge in the sales of products for treating mental health conditions, which is likely to drive the trends in the global market. For instance, according to several news articles, sales of anxiety and depression drugs witnessed a sudden rise during the pandemic as people increasingly turned towards prescription medications, such as antidepressants, to cope up with the stress and anxiety induced by the coronavirus.

LIST OF KEY COMPANIES PROFILED:

• Pfizer Inc. (New York, U.S)


• H. Lundbeck A/S (Denmark, Europe)


• GlaxoSmithKline plc (Brentford, U.K)


• Merck & Co. Inc. (New Jersey, U.S)


• Eli Lilly and Company (Indiana, U.S)


• Johnson & Johnson (New Jersey, U.S)


• AstraZeneca (Cambridge, U.K)


• Bristol-Myers Squibb (New York, U.S)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• July 2021- Alembic Pharma received the USFDA approval for desipramine hydrochloride tablets USP, 10 mg, 25 mg, 50 mg, 75 mg, 100 mg, and 150 mg for the treatment of depression.


• May 2021 – VistaGen Therapeutics Inc. (NASDAQ: VTGN), a biopharmaceutical company, announced the initiation of its PALISADE Phase-3 clinical program with the PALISADE-1 Phase 3 trial, a randomized, double-blind, placebo-controlled study to evaluate the efficacy and safety of PH94B for the acute treatment of anxiety in adults with Social Anxiety Disorder (SAD)


• November 2020 – Janssen Pharmaceutical N.V. collaborated with digital mental healthcare company, Koa Health, with an aim to research ways to pair the delivery of digital cognitive behavioral therapy with pharmacological treatments to help treatment-resistant major depressive disorder patients.


• August 2020 – Janssen Pharmaceutical N.V. announced that the USFDA has approved the supplemental new drug application (sNDA) for SPRAVATO (esketamine) CIII nasal spray, taken with an oral antidepressant, to treat depressive symptoms in adults with major depressive disorder (MDD) with acute suicidal ideation or behavior

REPORT COVERAGE

The anxiety disorders and depression treatment market research report provides a detailed analysis of the market. It focuses on key aspects, such as leading companies, drug class types, and leading indications of the drugs. Besides this, the report offers insights into the current market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the developed market in recent years.

Report Scope & Segmentation