Mental Health & Substance Abuse Clinics in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
NAICS 62142CARevenue
$4.6bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
38,772
Businesses
592
Wages
$X.Xbn
Mental Health & Substance Abuse Clinics in Canada industry analysis
The industry in Canada provides a variety of outpatient care services for patients struggling with depression, schizophrenia, bipolar disorder, alcoholism and other drug-related issues. In addition, industry clinics treat a variety of illnesses commonly affecting the elderly, such as dementia and Alzheimer's disease. Improving economic conditions along with greater societal awareness of mental health issues have contributed to industry revenue growth in recent years. The COVID-19 pandemic also to fueled demand for industry services, as the pandemic caused significant mental stress for many Canadians. Accordingly, industry revenue is expected to grow at a CAGR of 4.4% to reach $4.6 billion in 2023, when revenue is set to grow 2.0%. In spite of growing revenue, industry profit is has declined in recent years as wage costs have grown amid a persistent labor shortage.A variety of social and demographic factors have combined to fuel revenue growth in aggregate, including an increase in Canada's aging population. The number of Canadians aged 65 or older has consistently outpaced overall population growth. The Canadian Mental Health Association estimates that one in five Canadians experience a mental health illness at any point of their life, with nearly half of Canadians expected to experience a mental illness by the time they reach 40. The country's growing population will thus increase demand for services. Additionally, the growing elderly population has strengthened demand for industry services related to the treatment of dementia and Alzheimer's disease.Moving forward, the Mental Health and Substance Abuse Clinics industry in Canada is expected to see steady revenue growth, with IBISWorld expecting revenue to grow at a CAGR of 1.8% to reach $5.0 billion in 2028. Social and demographic factors will likely continue to spur demand for mental health and substance abuse treatment. Moreover, government funding is also expected to continue to grow over the coming years, enabling operators to expand their services.
Trends and Insights
- The pandemic strained Canada's mental health infrastructure. COVID-19 stressors led to unprecedented rates of mental illness, creating challenges for mental health and substance abuse clinics.
- Adults between 18 to 34 are likeliest to receive treatment at a mental health and substance abuse clinic. The COVID-19 pandemic worsened rates of mental health conditions for the age group, bringing more young adults to seek treatment.
- Densely populated metro areas have higher concentrations of mental health and substance abuse clinics. Access to large patient pools in metro areas encourages more facilities to operate here, but creates shortages in rural areas.
- Mental health clinics in Canada receive public funding and are often nonprofit organizations. A system dominated by nonprofits leaves less room for competition from for-profit private players.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 4.4 % over the past five years, to reach an estimated $4.6bn in 2023.
Trends and Insights
COVID-19 exacerbates mental illness rates in Canada
- Before the pandemic, rising awareness of the importance of mental health treatment supported the growth of mental health and substance abuse clinics in Canada.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Mental health clinics will be critical in addressing expanding demand
- Health spending on mental health and substance abuse treatment will expand as reported rates of mental health and substance abuse disorders will remain elevated above pre-COVID rates.
Biggest companies in the Mental Health & Substance Abuse Clinics in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Centre for Addiction and Mental Health | 64.0 | N/A | N/A | |
Alberta Health Services | 41.2 | N/A | N/A |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Outpatient treatment for mental health disorders, Outpatient treatment for alcoholism and drug addiction and Outpatient treatment for other disorders. Outpatient treatment for mental health disorders is the largest segment of the Mental Health & Substance Abuse Clinics in Canada.
Trends and Insights
Outpatient treatment for mental health disorders lead the industry
- Clinics provide services in the treatment of a broad range of mental disorders. Some mental facilities require individuals to remain under the supervision of the program for a specific amount of time, but mental health clinics recognized in this industry typically provide outpatient services that do not require the individual to remain under supervised care.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Mental Health & Substance Abuse Centres in Canada
Complementors
- Primary Care Doctors in Canada
- Hospitals in Canada
International industries
- Mental Health & Substance Abuse Clinics in the US
- Learning Disability, Mental Health & Substance Abuse Facilities in the UK
- Health Clinics in China
Table of Contents
About this industry
Industry definition
The Mental Health and Substance Abuse Clinics industry in Canada provides outpatient services related to the diagnosis and treatment of mental health disorders and substance abuse problems. Moreover, these operators may provide counselling and information pertaining to these issues.
What's included in this industry?
Outpatient alcoholism treatment clinicsOutpatient detoxification clinics Outpatient drug addiction treatment clinics Outpatient mental health clinicsCounseling staff and information regarding mental health and substance abuse issues Referring patients to more extensive treatment programs, if necessaryCompanies
Centre for Addiction and Mental HealthAlberta Health ServicesPurchase this report to view all 2 major companies in this industry.
Related Terms
OUT-OF-POCKET COSTSDEMENTIABIPOLAR DISORDERALZHEIMER's DISEASESCHIZOPHRENIACLINICIndustry Code
NAICS 621420 - Mental Health & Substance Abuse Clinics in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The pandemic strained Canada's mental health infrastructure. COVID-19 stressors led to unprecedented rates of mental illness, creating challenges for mental health and substa...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Adults between 18 to 34 are likeliest to receive treatment at a mental health and substance abuse clinic. The COVID-19 pandemic worsened rates of mental health conditions for...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Densely populated metro areas have higher concentrations of mental health and substance abuse clinics. Access to large patient pools in metro areas encourages more facilities...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each province in 2023
- Number and share of revenue each province accounts for in 2023
- Number and share of wages each province accounts for in 2023
- Number and share of employees in each province in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Mental health clinics in Canada receive public funding and are often nonprofit organizations. A system dominated by nonprofits leaves less room for competition from for-profi...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Mental Health and Substance Abuse Clinics industry in Canada is highly fragmented. Hundreds of small- to medium-sized businesses operate within the industry.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Centre for Addiction and Mental Health's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Alberta Health Services's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Centre for Addiction and Mental Health, and factors influencing its performance in the industry
- Description and key data for Alberta Health Services, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Canada Health Act outlines principles and guidelines for mental health and substance abuse clinics in the country. Mental health clinics must meet these standards to rece...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
COVID-19 exacerbated labor shortages predating the pandemic. Shortages are pressuring mental health clinics to pay more for employees as rates of mental health disorders clim...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Assets (2016-2021)
- Liabilities (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Mental Health & Substance Abuse Clinics industry in Canada in 2024?
The market size of the Mental Health & Substance Abuse Clinics industry in Canada is $4.6bn in 2024.
How many businesses are there in the Mental Health & Substance Abuse Clinics in Canada industry in 2023?
There are 592 businesses in the Mental Health & Substance Abuse Clinics industry in Canada, which has grown at a CAGR of 4.2 % between 2018 and 2023.
Has the Mental Health & Substance Abuse Clinics industry in Canada grown or declined over the past 5 years?
The market size of the Mental Health & Substance Abuse Clinics industry in Canada has been growing at a CAGR of 4.4 % between 2018 and 2023.
What is the forecast growth of the Mental Health & Substance Abuse Clinics industry in Canada over the next 5 years?
Over the next five years, the Mental Health & Substance Abuse Clinics industry in Canada is expected to grow.
What are the biggest companies in the Mental Health & Substance Abuse Clinics market in Canada?
The biggest companies operating in the Mental Health & Substance Abuse Clinics market in Canada are Centre for Addiction and Mental Health and Alberta Health Services
What does the Mental Health & Substance Abuse Clinics in Canada include?
Outpatient alcoholism treatment clinics and Outpatient detoxification clinics are part of the Mental Health & Substance Abuse Clinics industry.
Which companies have the highest market share in the Mental Health & Substance Abuse Clinics in Canada?
The company holding the most market share in Canada is Centre for Addiction and Mental Health.
How competitive is the Mental Health & Substance Abuse Clinics industry in Canada?
The level of competition is moderate and steady in the Mental Health & Substance Abuse Clinics industry in Canada.
