U.S. Substance Use Disorder Treatment Market Size, Share & COVID-19 Impact, By Level of Care (Early Intervention, Level 1/Outpatient Services, Level 2, Level 3, and Level 4/Medically Managed Intensive Inpatient Services), By Application (Alcohol Addiction Treatment, Drug Abuse Treatment, Nicotine Addiction Treatment, and Opioid Addiction Treatment), By Age Group (Adult and Adolescent), By Service Provider (Rehabilitation Centers, Hospitals and Specialty Clinics, Sober Living Homes, and Others), and Forecasts, 2022-2029

The U.S. substance use disorder treatment market size was valued at USD 35.14 billion in 2021 and is projected to grow from USD 37.24 billion in 2022 to USD 60.18 billion by 2029, exhibiting a CAGR of 7.1% during the forecast period. 

Based on our analysis, the market exhibited a decline of 20% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with substance use disorder treatment experiencing lower-than-anticipated demand across the U.S. compared to pre-pandemic levels.

Substance abuse is a condition in which uncontrolled use of substances, such as tobacco, illicit drug, and alcohol, may further lead to addiction. In this, an individual further gets impaired from his ability to function in day-to-day life. This addiction requires individualized treatments and modalities that can address the symptoms by addressing the primary cause of the disease.   

The rising number of patients seeking assistance for substance use disorder treatment, with the increasing number of service providers providing residential treatment facilities, is fueling the market growth during the forecast period. Also, the rising number of physical therapy rehabilitation centers in the country and the increasing number of people enrolling for Medicare beneficiary’s plans for insurance coverage is contributing to the U.S. substance use disorder treatment market growth during the forecast period.

• For instance, according to an article published by Legal Action Center in February 2021, around 40.0% of the Medicare beneficiaries, or roughly 25.0 million people, enrolled in Medicare Advantage plans. These Medicare advantage plans provide coverage of Part A, Part B, and supplemental benefits and coverage of Medicare Part D.

COVID-19 IMPACT

Decline in the Number of Patient Visits to Drug Rehabilitation Facilities Led to Downfall in Revenues 

The emergence of COVID-19 has impeded the demand for substance abuse treatments due to decreased patient visits to drug rehabilitation centers. Key players in the market recorded a significant decline in revenues due to the COVID-19 pandemic. The restrictions on movements, the declining number of patient visits to rehabilitation centers and residential settings, and other major parameters impacted the revenues of these service providers in the U.S. substance use disorder treatment market.

The market players witnessed a significant decline in revenue generated during 2020. For instance, Hazelden Betty Ford Foundation generated a revenue of USD 186.3 million in 2020 and witnessed a decline of 6.1% as compared to USD 198.5 million in 2019, owing to the COVID-19 pandemic.

However, during Q3-Q4 2020, the number of patient visits to the hospital started increasing as travel restrictions imposed by the government were relaxed. In 2021, the number of patient visits began returning to normal, owing to higher COVID-19 vaccination coverage among the general population, dismissal of restrictions for travel, and others. This led to increased number of visits by patients seeking substance abuse treatment to rehabilitation centers and other treatment facilities, which led to growth in the revenues of service providers. For instance, Hazelden Betty Ford Foundation generated a revenue of USD 204.7 million in 2021 and witnessed a growth of 9.9% as compared to USD 186.3 million in 2020. Therefore, the resumption of services positively impacted the demand for substance use disorder treatment in 2021.

LATEST TRENDS

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Introduction of Virtual Behavioral Health Programs by Rehabilitation Centers is Anticipating Market Growth

The substance use disorder treatment market growth is subjected to the continuous innovations and development of technologically advanced treatments by market players, contributing to the expansion of the market. Digital health interventions are navigating this complex landscape of society. The most common modality adopted in this technology is telehealth and computer-assisted tools. Thus, the easy accessibility of this technology is likely to contribute to the growth of these programs in the market.

• For instance, in May 2022, Workit Health, a leading virtual Substance Use Disorder (SUD) treatment provider, launched clinical programs for stimulant use disorder of methamphetamines and cocaine. The program is planned to take place on a telehealth platform. In this program, people struggling with stimulants can access telemedicine visits and get e-prescribed medication from a local pharmacy.

Such innovative technology is likely to accelerate the demand for these products at a rapid pace. Also, an increase in collaboration among players to extend the market reach of these programs is likely to contribute to the market's growth.

DRIVING FACTORS

Increasing Number of Patients Seeking Substance Abuse Treatment is Propelling the Market Growth

The rising prevalence of neurological and psychological disorders, such as depression, schizophrenia, sudden mood swings, irritability, and personality disorders, among the general population in the U.S. is due to the rising number of people consuming alcohol and other illicit drugs. For instance, in September 2021, the Freedom Center Outpatient Recovery Center published an article stating that schizophrenia affects around 1.5 million people in the U.S. annually.

Also, the irrational and impulsive use of substances by the teenage population of the country has led to the development of dangerous addictive habits among youth of the country at an early stage.

• For instance, according to the statistics published by the National Center for Drug Abuse Statistics in 2020, among Americans aged 12 years and older, around 37.3 million are illegal drug users, among which 13.5% of Americans are 12 years old. These statistics have an increase of over 3.8% each year.

This number of people falling victim to substance abuse at a young age contributes to an increase in admissions to substance abuse treatment facilities. For instance, according to the statistics published by the Substance Abuse and Mental Health Services Administration (SAMHSA) in 2020, in the U.S., there were 1,090,357 clients for the treatment of substance abuse, among which 39,271 clients were under 18 years of age.

Rising Penetration of Insurance Coverage for the Treatment of Substance Abuse is Driving the Market Growth

Addiction is a chronic, relapsing, and remitting disorder that profoundly burdens healthcare services. The cost of the rehabilitation program depends on the type of treatment center and admission of an individual to the inpatient or outpatient program. The standard treatment for any addiction ranges between USD 2,000 to USD 25,000 per month, and sometimes with all the luxury, it can cost up to USD 80,000 per month. This inflated cost of the treatment has led the general population to buy insurance coverage for substance abuse treatment.

• For instance, according to the statistics published by the KAISER FAMILY FOUNDATION on December 2021, 21.6% of the adult population of the United States is covered for any mental illness and substance use by Medicaid, and 59.6% of the adult population is covered for any mental illness and substance use by private insurance.

This rising use of illicit drugs has allowed many entrepreneurs to enter the substance use disorder treatment market. It has increased the number of physical therapy rehabilitation centers in the country.

• For instance, according to the statistics published by IBISWorld in December 2021, 43,093 physical therapy rehabilitation centers were operating in the U.S., compared to 40,987 in 2020, a growth of around 5.1%.

This led to an increase in the launch of new insurance programs providing coverage for the treatment of substance use disorder, which is likely to boost the growth of this market during the forecast period.

RESTRAINING FACTORS

Delay in Diagnosis for a Substance Abuse is Restraining the Market Growth

Patients' reluctance toward substance abuse treatment is the most common reason for delay in the diagnosis of the disease in an individual. The major factors for this reluctance are either the patient is unaware of the treatment or they don’t consider themselves to have any substance use complications. Another factor for not pursuing substance abuse treatment is the lack of interest of any individual in prohibiting the abuse of any substance.

• For instance, according to an article published by the Substance Abuse and Mental Health Services Administration (SAMHSA) in October 2021, there are 38.4 million people who do not receive treatment for Substance Use Disorder (SUD) at a specialty facility, among which there are 37.5 million, or 97.5% people feel that they did not need any treatment and 737,000 people, or 1.9% feel they need treatment but did not make an effort to get the treatment.


• Also, according to the statistics given by the Substance Abuse and Mental Health Services Administration (SAMHSA), there were 52.9 million adults aged 18, and above suffering from mental illness, among which 16.1 million people, or 30.5% didn’t receive any treatment for mental health in 2020.

Another reason for patients not undergoing substance abuse treatment is the lack of awareness about the treatment facility, not finding the type of treatment they want, or being concerned that their neighbors and community will have a negative opinion of them.

• For instance, according to an article published by the SAMHSA in October 2021, among people aged 12 and above living with SUD, there were 14.4% of people did not find the type of treatment they wanted, and around 19.1% of people were concerned that getting treatment for substance abuse may cause their neighbors and community to have a negative opinion of them.

Therefore, the patient's reluctance to make an effort to get treatment for substance abuse treatment disorder is contributing to a decrease in the number of visits to rehabilitation centers and restraining the market growth.

SEGMENTATION

By Level of Care Analysis

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Level 2 to Lead Due to Number of Patients Undergoing Outpatient Services or Partial Hospitalization Services

Based on level of care, the U.S. substance use disorder treatment market is segmented into early intervention, level 1/outpatient services, Level 2, Level 3, and Level 4/medically managed intensive inpatient services.

Every individual seeking substance abuse treatment has different needs, sometimes, the patient may require intensive inpatient care, or an individual can get success for treatment in an outpatient setting. In the U.S., substance use disorder treatment centers must adhere to the standards of care put forth by the American Society of Addiction Medicine (ASAM). This professional medical society has featured a “continuum of care,” a flexible treatment system in which people can enter at a level most suitable for them and step up or move down, if necessary.

Level 2 segment is expected to account for the highest market share of the segment during the forecast period. The program's ability, which enables patients to continue with their normal, day-to-day activities and assistance of the program in relapse management, is anticipating the segment’s growth.   

• For instance, according to an article published by the SAMHSA, in 2020, out of the total patients taking substance use disorder treatment, around 44.0% of patients were taking level 2 care, or intensive outpatient/partial hospitalization.

The level 1/outpatient service segment is expected to register a comparatively higher CAGR during the forecast period. The rising focus of substance use treatment providers on expanding their outpatient services contributes to the segment's growth. For instance, in November 2021, a behavioral health business published news that stated that Regard Recovery LLC, a mental health and addiction treatment service provider, acquired JourneyPure LLC. This acquisition aims to add 15 new outpatient centers in 2022 and expand its operational facilities.

The early intervention program accounted for a significant market share during the forecast period. The emphasis of substance use disorder treatment providers on introducing early intervention programs propels the segment's growth. For instance, in June 2022, Stepping Stone, a non-profit organization that operates a 31-bed residential treatment facility, launched the StepIn program, an early intervention pilot program for the prevention and education of individuals who use recreational and prescription drugs.

By Application Analysis

Rising Number of Illicit Drug Users to Accelerate Opportunities for the Drug Abuse Treatment Providers

Based on application, the U.S. substance use disorder treatment market is segmented into alcohol addiction treatment, drug abuse treatment, nicotine addiction treatment, and opioid addiction treatment.

The market is dominated by drug abuse treatment, which is expected to account for the largest share during the forecast period. Major factors contributing to the higher share of the segment include an increase in the number of illicit drug users in the country. For example, according to the statistics published by the National Center for Drug Abuse Statistics in America, as of 2020, there are 37.3 million users of illegal drugs aged above 12 years, and every year, 3.1 million and 1.1 million teenagers are introduced to marijuana and hallucinogens.

The alcohol addiction treatment segment is expected to grow at the highest CAGR during the forecast period. The increasing number of people involved in alcohol abuse each year contributes to the segment's growth. For instance, according to the statistics published by National Center for Drug Abuse Statistics, 4.9 million people are introduced to alcohol abuse each year. Also, the use of alcohol among adolescents aged 12 to 17 increased by 4.4% from 2018 to 2019.     

The opioid addiction treatment segment is anticipated to witness substantial growth during the forecast period. The rising number of illegal or misused prescription opioid exposure cases and the expansion of insurance coverage from regulatory authorities are contributing to the segment's growth. For instance, according to the statistics published by National Center for Drug Abuse Statistics, 284,000 illegal or misused prescription opioid cases are reported each year, among which 44.0% of cases are of children under five years. Also, effective from January 2020, the Centers for Medicare & Medicaid Services (CMS) have finalized the expansion of Medicare insurance coverage, including the opioid treatment programs that deliver Medication-Assisted Treatment (MAT).

Thus, the growing number of alcohol and illicit drug abusers and the expanded insurance coverage provided by the regulatory authorities will likely boost the application segment during the forecast period.

By Age Group Analysis

Increased Number of Adult Patients Visits in Treatment Facility is to Propel Segment’s Growth  

The market is segmented into adult and adolescent in terms of age group.

The adult segment dominated the U.S. market in 2021. The increased abuse of substances among the adult population has increased inpatient admissions to hospitals and substance abuse treatment centers. For instance, according to statistics published by the National Survey of Substance Abuse Treatment Services in 2020, around 30,589 patients in the U.S. visited federal government facilities for the treatment of substance abuse, among which only 127 patients were under the age of 18, which demonstrates that the visit of the adult population for the treatment of substance abuse in the U.S. is comparatively greater.

The adolescent segment is expected to grow at the highest CAGR during the forecast period. The rise in incidents of children getting involved in cases of alcohol consumption or use of any illicit drug at an early stage is propelling the segment's growth. For instance, according to the data published by National Center for Drug Abuse Statistics, 2 million children aged below 18 years have reported drug use across the nation, and approximately 591,000 teenagers of the same age group have used an illicit drug once in their life span.

Thus, the rising number of individuals getting involved in the complexities of illicit drug or alcohol consumption and the rise in the number of patients visiting the substance use treatment facility is contributing to the growth of the segment.

By Service Provider Analysis

Dedicated Teams for the Treatment of Substance Abuse in Hospital Settings is Anticipating the Growth of the Segment                   

The U.S. substance use disorder treatment market is segmented into rehabilitation centers, hospitals and specialty clinics, sober living homes, and others in terms of service provider.

The increasing number of patient visits to hospital emergency departments in the U.S. for the treatment of patients involved in alcohol and other substance use disorders demonstrated an urgency for hospitals to develop a system for providing addiction treatment in their emergency and inpatient care. For instance, according to an article published by the Regents of the University of California in September 2021, the visits made by adults with alcohol and substance use disorders to the hospital’s emergency department increased by 30.0%, and the hospitalizations rate for substance use disorder increased by 57.0%.

The hospitals and specialty clinics segment accounted for the highest market share during the forecast period. Introducing substance abuse treatment services in hospital settings has contributed to the segment’s growth. For instance, according to an article published by National Public Radio (NPR) in September 2022, Salem Hospital introduced an addiction consult service at their hospital in the U.S. The service includes the consultation of substance use disorder patients and navigating them with further treatment options.

The rehabilitation centers segment is estimated to grow at the highest CAGR during the forecast period. The rising number of patient admissions to rehabilitation centers for substance use treatment contributes to the segment’s growth. For instance, in August 2022, Mayflower Recovery published an article stating that more than 4.0 million people in the U.S. enter a drug rehabilitation program each year.

The sober living homes segment is anticipated to grow significantly during the forecast period. The rising investment in introducing recovery residencies in the country's different states is contributing to the segment’s growth. For instance, according to an article published by RTI international in January 2022, there were 10,558 recovery residencies between January 2020 and 2021. These residential facilities operate in all 50 states of the U.S. and demonstrate that 30% of the U.S. has at least one residential treatment facility.

KEY INDUSTRY PLAYERS

Launch of New Clinical Programs and Collaborations among Companies Adopted by the Market Players 

The U.S. substance use disorder treatment market share is characterized by players such as Hazelden Betty Ford Foundation, Pyramid Healthcare Inc., and Acadia Healthcare. The players focus on introducing new substance-use treatment programs and emphasize strategic partnerships and collaborations to strengthen their position in this market.

• For instance, in July 2022, Acadia Healthcare formed a joint venture with ECU Health, one of the leading healthcare systems in North Carolina. This joint venture aims to build a 144-bed inpatient behavioral health hospital in Greenville medical district.  


• In January 2022, Workit Health, one of the nation’s leading providers of virtual substance use disorder treatment, expanded its footprint in Virginia and started an outpatient clinic in Richmond. This clinic also offers virtual services for substance use and mental health.

Moreover, the market is further characterized by a large proportion of residential and outpatient facility providers focused on providing behavioral treatment facilities and different reprocessing therapies.

LIST OF KEY COMPANIES PROFILED:

• Hazelden Betty Ford Foundation (U.S.)


• JourneyPure (Regard Recovery) (U.S.)


• Workit Health (U.S.)


• Pyramid Healthcare Inc. (U.S.)


• American Treatment Network (U.S.)


• Banyan Treatment Centers (U.S.)


• Asana Recovery (U.S.)


• Aca dia Healthcare (U.S.)


• Promises Behavioral Health (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2022 – ERP Health LLC collaborated with Regard Recovery and its subsidiary JourneyPure, one of the leading substance abuse and mental health treatment providers. The collaboration aims to provide their outcome tracking platform (OTP) services to all JourneyPure patients across 17 facility networks.


• June 2022 – Hazelden Betty Ford Foundation collaborated with Included Health, Inc., a clinical care and healthcare navigation platform. The collaboration aims to increase the accessibility of addiction treatment and mental health care.  


• December 2021 – Pyramid Healthcare Inc. announced the acquisition of The Bluff in Augusta, Georgia, and Atlanta Addiction Recovery Centers (AARC). This acquisition aims to expand the company’s integrated behavioral healthcare system across seven eastern states.


• September 2021 – American Treatment Network, an outpatient substance abuse clinic, raised funding of USD 5.3 million. The company plans to use these funds to expand its business in the states of Delaware, with current locations in New Castle, Kent and Sussex counties.  


• February 2021 – Banyan Treatment Centers, one of the privately owned drugs, alcohol, and mental health addiction treatment center in the U.S., inaugurated their 13^th facility in Texas. The facility includes programs such as medically assisted detoxification, family therapies, etc. This facility expanded the company and strengthened its position in the country.    


• September 2020 - Promises Behavioral Health launched a regaining independence and sober education (R.I.S.E) program for adolescents aged between 13 and 17. This program aims to transform adolescent boys' harmful addiction behavior before adulthood.

REPORT COVERAGE

An Infographic Representation of U.S. Substance Use Disorder Treatment Market

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The U.S. substance use disorder treatment market research report provides a detailed market analysis. It focuses on key aspects such as the launch of new programs, patient admissions for substance abuse treatment, and the prevalence of substance abuse. Besides this, the report offers insights into the market trends and highlights key industry developments such as mergers, partnerships, and acquisitions and the impact of COVID-19 on the market. In addition to the above mentioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation