Saudi Arabia Addiction Therapeutic Market

An Intro to Addiction Therapeutics

The number of people exposed to addiction has increased exponentially in the past few years. A UN report says that the number of drug users reached 292 million in 2022, which is 20% more than ten years before. Among the drugs most used worldwide, Cannabis (228 million users) was at the top, followed by opioids (60 million users), amphetamines (30 million users), cocaine (23 million users), and ecstasy (20 million users). Nicotine is another big addiction, and the market is growing at an alarming rate of 12.72%.

The Addiction Therapeutic Market is the industry that helps individuals in the treatment of various addictions, including substance use disorders (such as alcohol, opioids, nicotine, and other drugs) and behavioural addictions (such as gambling, gaming, and internet use). The increased risk of both mental and physical health issues among individuals with addictions makes addiction treatment a key public health concern. An increase in the global number of drug, tobacco and alcohol cases will lead to a rise in the demand for addiction therapeutics.

Key components of the Addiction Therapeutic Market

There are several ways to treat addiction. Here are a few examples of the many ways: -

• Pharmaceutical Treatments: Medicines can be used for withdrawal symptoms, reducing cravings, and treating co-occurring mental health conditions. They can help reduce the pain and even fight against addiction.
• Behavioural Therapies: Psychological and counselling services help users understand the deep mental craving behind the addiction and provide coping strategies. These therapies can include cognitive-behavioral therapy (CBT), contingency management, and motivational interviewing.
• Rehabilitation Programs: There are medical centres created especially for the treatment of various addictions through the use of professionals. Both inpatient and outpatient programs are available that combine medical care, counselling, and support groups.
• Support Services: It includes support groups where linked-minded individuals share their experiences and discuss the issues surrounding the addiction. Alcoholics Anonymous (AA) and Narcotics Anonymous (NA) is an example.
• Technology-based Interventions: This includes Mobile apps, telemedicine, and online platforms that provide access to therapy, support groups, and monitoring tools to help individuals manage their addiction remotely

Who requires Addiction Therapeutics?

Individuals suffering from either behavioural or substance use disorders avail of addiction therapeutic services. The main objective of getting the treatment is to manage withdrawal symptoms, reduce cravings, and achieve long-term recovery.

Costs and Financing

The costs and financing for addiction therapeutics can vary widely depending on the type of treatment, location, and duration.

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Addiction Therapeutics Market from a Global Perspective

The Global Addiction Therapeutics Market was valued at USD 8.28 billion in 2021 and is expected to grow at a CAGR of 6.4%, reaching USD 14.47 billion in 2030. Rising substance abuse among young people is one of the biggest growth drivers of this market, increasing the need for addiction treatment. Moreover, supportive government initiatives, such as drug awareness campaigns and prevention programs, are expected to drive industry growth.

Governments worldwide are becoming increasingly concerned about these addictions. They are implementing a variety of awareness campaigns to raise awareness of the risks associated with these addictions and to encourage individuals to pursue early treatment. 

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Market Characteristics & Major Players

The Addiction Therapeutics Market is led by large pharmaceutical companies, with the market being highly fragmented, with the presence of both international and regional companies. Some of the leading players in the addiction therapeutics market are Teva Pharmaceuticals, Abbott, GSK, Cipla, Eli Lilly, and Novartis. Companies need to be highly innovative and effective, considering the highly competitive nature of the market. International companies engage in M&A activities to expand their product portfolio, gain access to new drug formulations, and enter new markets.

Geographical Bifurcation

North America is the largest market for addiction therapeutics (33.65%), with the US holding the largest market share, followed by Canada. The USA is the biggest market because of a higher number of substance users, an advanced healthcare system, and increased government investment in addiction awareness and treatment. In 2019, nearly 14 out of every 100 adults in the United States who were 18 years of age or older (14.0%) smoked cigarettes.

Asia Pacific is expected to grow at the fastest rate in the coming years due to rising incidents of substance abuse, developing healthcare infrastructure, and improved government initiatives for addiction treatment. Still, there is a long way to go as a lack of public awareness and healthcare inequalities pose a challenge.

Treatment Type Insights

At a global level, the most common addiction is tobacco/nicotine and vaping, followed by alcohol and drugs. People often call tobacco a “gateway drug” because it's what most people start with before moving on to more risky substances. As compared to non-smokers, smokers are 22 times more likely to consume cocaine, 8 times more likely to use marijuana, and 3 times more likely to consume alcohol. About 22.3% of people in the world smoke, which kills 8 million people every year.

Alcohol consumption is expected to grow at the fastest rate due to its high consumption, easy availability, and heightened social acceptance. According to data from WHO, 3 million people die every year from the harmful use of alcohol; which represents 5.3 % of all deaths worldwide.

Market Trends

• Growing number of Addicts

As the number of alcohol, drug, and tobacco addiction cases increases, so does the need for hospitalisation and addiction treatments to help people stop such behaviours. Smoking and consuming alcohol has become the social norm today and more and more young people are getting addicted leading to mental and physical health issues from an early age. As per data from the National Institute of Drug Abuse, 54% of the addicts in the US are below the age of 18.

• Addiction awareness campaigns & Rehab centres

Awareness campaigns related to addiction treatment are supposed to be one of the biggest growth drivers for the addiction therapeutics market. The increasing participation of governments in raising awareness allows the dissemination of the message on a larger scale, thereby increasing the prospects of the addiction therapeutics industry. 

Rehab centres will grow the fastest due to their ability to provide more treatment options, amenities, and specialized care. Rehab clinics are also the most preferred method for patients who are required to undergo long-term addiction treatment.  

• Contract Manufacturers

Outsourcing of medical services by Pharmaceutical companies has grown drastically in the past few years. Outsourcing is required as it helps to figure out the complexity of APIs and drive down R&D Costs. Contract manufacturers enable the industry to develop cost-effective solutions, allowing existing market players in the addiction therapeutics industry to sustain and invest in innovative medical solutions.

• Hospital Pharmacies leading the distribution Race

Hospital pharmacies are the biggest distributors of addiction medication due to their easy approachability and availability of a wide variety of medicine options.

• Innovation in Addiction Treatment and Technology

Technology will play a vital role in the addiction therapeutics industry, with a higher focus on both private and public players to develop innovative solutions. Several experts opined that treatment laboratories working actively with rehab centres are better placed to achieve a breakthrough. Data analytics is another key growth area wherein companies today are developing solutions that analyse real-time addiction data and devise customised recovery programmes.

• Government Initiatives

Governments in both developed and developing nations are working actively to spread awareness and provide treatment to protect the well-being of their citizens.

3. Addiction Therapeutics Market in Saudi Arabia

The Addiction Therapeutics Market was valued at $172 Mn in 2022 and is estimated to reach $327 Mn in 2030, growing at a healthy CAGR of 8.4%. As per data, around 7-8% of Saudis reported having used drugs. The fact that 70% of these individuals are in the age bracket of 12–22 years is quite concerning.  

Among Saudis, the most often used abuse substances include amphetamines, heroin, alcohol, and cannabis. A rise in the number of addicts in Saudi Arabia has raised eyebrows everywhere leading to the establishment of additional clinics, and a substantial annual budget of $1 Bn set aside for the treatment and rehabilitation of drug users. 

Leading Saudi Arabian research institutes such Umm Al-Qura University and King Abdullah University of Science and Technology (KAUST) are currently working on ground-breaking projects to find new ways to curb addiction.

Major Players

Eradah (Al Amal) Mental Health Complex, Taif Mental Health Hospital, Pfizer, Novartis, GSK, and Johns Hopkins Aramco Healthcare Dhahran are some of the biggest names in the addiction therapeutic market in Saudi Arabia.

Market Growth Drivers

• Drug Capital of the Middle East

In recent years, Saudi Arabia has gained a bad reputation as the drug capital of the Middle East. Captagon is the most popular recreational drug that has taken off significantly in the last few years, mainly due to a supply flood coming from Syria, where it is produced on an industrial scale. Many drug rehabilitation centres have opened in Saudi Arabia in response to the country’s rising drug users, giving addicts there an alternative to travelling to surrounding nations for treatment.

• Increased Involvement of the Saudi Government

Over the past few years, the Saudi government has invested continuously in drug prevention and treatment initiatives, as well as research into programs working towards effective addiction treatment solutions. With its Vision 2030 and aim of becoming a global superpower, the main objective of investing in addiction treatment is to void the number of deep-rooted issues that often court people with drug addiction such as unemployment, personal or child neglect, and drug-related violence.

• Increased Awareness

Public health campaigns providing affordable treatments and growing awareness of the consequences of drug addiction have increased the demand for addiction treatment and intervention programmes.

Conclusion

Substance use disorders and behavioural addictions are becoming more common, and young people make up the bulk of this growing population. Due to this, there is a greater need for therapies and treatments that help people overcome their addictions and lead healthy lives. The addiction therapeutics market has good growth potential with investments from government and private players combined with increased emphasis on technology and R&D Innovations.

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Disclaimer: The content provided in this article is for informational purposes only and should not be construed as investment advice. Tanemya Capital will not be held responsible for any decisions made based on the information provided. Always consult with a qualified financial advisor before making any investment decisions.

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