U.S. Markets for Addiction and Substance Abuse

Report Highlights

• The total U.S. market for substance abuse treatment and diagnostics reached $1.1 billion in 2003 and, rising at an AAGR (average annual growth rate) of 4.1%, will reach $1.3 billion in 2008.
• The pharmaceutical treatments segment accounts for the largest portion of revenues with an estimated $922.1 million in 2003. By 2008, this segment is expected to reach $1.09 billion, growing at an average annual rate of 3.5%.
• Diagnostic testing products account for about 15% of the market, or revenues of $162.8 million in 2003. Technological advancements are expected to result in average annual growth of 7.1%, raising revenues to $229.6 million by 2008.

INTRODUCTION

The area of substance abuse encompasses a large menu of drugs. These have various consequences for families, in the healthcare system, in the criminal justice system, and at the very core of the American way of life. As more effective addiction therapies are introduced and accepted and physician education efforts continue, the treatment market is likely to grow. Some observers, noting the $7 billion spent on treatment of addicts in the U.S. in 2003, along with the much higher total cost of addiction, believe the market opportunity is great for new effective compounds, particularly those that reduce costs of inpatient care in hospitals or drug rehabilitation facilities, and also for compounds that shorten the duration of relapses, reduce craving, improve productivity, etc.

This BCC, Inc. report details the complicated world of substance abuse. The increased prevalence of substance abuse poses a threat to the health and welfare of many populations throughout the world. Recreational drugs play a major role in crime and corruption. Abuse of prescription drugs and alcohol places a heavy burden on health resources because of the subsequent medical problems. Breaking the substance abuse cycle is a difficult and tedious process. Pharmaceutical manufacturers have developed several products to assist in recovery from substance abuse. They are detailed in the report along with up-and-coming products that may provide even better alternatives.

The objectives of the study are to identify preparations, tests and important advancements in the drug abuse treatment arena. The study analyzes new therapeutics and diagnostics for drug abuse treatment from a current standpoint as well as what is on the horizon. Pharmaceutical manufacturers have been reluctant to invest valuable time and resources this market. As a result, the drug abuse problem continues to grow.

SCOPE OF STUDY

The following areas are addressed in this report:

• Stimulants, including tobacco, amphetamines, cocaine and crack
• Depressants, including sedatives and hypnotics, alcohol and opiates
• Hallucinogens
• Diagnostic testing, from point-of-care to home diagnostics
• Current and potential products and market drivers, with market forecasts to 2008
• Market participants and market shares.

METHODOLOGY AND INFORMATION SOURCES

The information and analysis presented in this BCC, Inc. report are based on extensive firsthand interviews with primary executives, product managers, and clinical specialists in the area of addiction and substance abuse. Background information was obtained from various government, , medical journal, psychiatric journal and trade magazines, from statistics from the National Center on Drug Abuse, and from interviews with psychiatrists, psychologists, drug treatment counselors, and nurses. Key information from published literature was used to conduct interviews with industry participants to validate and obtain expert opinions on current and future trends. Interviews were also used to confirm and /or adjust market size and market share estimates, as well as formulating market projections.

All market data pertain to the U.S. market at the manufacturer's level. Data are expressed in current U.S. dollars. The base year was 2003. Historical data are provided for 2001 and 2002 and forecast data are provided for 2008. Historical, base year and forecast data are provided for each market segment and subsegment. Market shares are provided for each market segment for the 2003 base year. Figures for 2003 are estimates based on 2002 real government numbers and BCC's June 2003 estimates.

ANALYST CREDENTIALS