III. Industry Analysis
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The drug rehabilitation center industry has grown rapidly in recent years. More people now than ever understand the importance of these centers and how they can help turn people’s lives around. As such, these centers are in high demand, with many being fully booked out.
According to Grand View Research, the substance abuse treatment market was valued at $10.25 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 9.05% from now until 2030. Several factors are affecting this rapid growth. The biggest factor is the rising awareness of substance addiction and how it affects every part of a person’s life. This has led to more people seeking treatment and more funding being available for research and treatment development. Furthermore, more insurance programs are covering addiction treatment centers in their plans and employers are allowing employees to take time off to get the help they need. All these factors make it much easier for people to seek the treatment they need.
The rise in disposable income has also benefited the industry. Though most patients utilize their insurance to cover their treatment, very few plans cover 100% of the costs. With a rise in disposable income, more patients are seeking treatment, knowing they can afford it.
The industry will continue to grow as long as society maintains its awareness and compassion for addiction struggles. A continued improvement in the economy and per capita income is also necessary in order for patients to afford the treatment they need.
