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Drug & Alcohol Rehabilitation Clinics in the US - Market Research Report (2014-2029)

Marley Brocker Marley Brocker New York, United States Last Updated: June 2024 NAICS OD4619

Revenue

$5.3bn

2024

$5.3bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

50,851

Businesses

6,217

Wages

$X.Xbn

Drug & Alcohol Rehabilitation Clinics in the US industry analysis

Swelling awareness of the importance of substance abuse treatment has supported drug and alcohol rehabilitation clinics in recent years. Medicare and Medicaid coverage expansion and program funding through SAMHSA have aligned with the changing societal attitudes toward drug and alcohol abuse.

Trends and Insights

  • An unmet need for drug and alcohol rehabilitation has been expanding. Swelling rates of substance abuse and overdoses are strengthening demand for outpatient treatment, but labor shortages strain clinics’ ability to meet the growing need.
  • Medicaid is the largest payer for drug and alcohol rehabilitation in the US. Drug and alcohol rehabilitation clinics rely more on Medicaid reimbursements than other revenue sources.
  • Metropolitan areas have the highest concentrations of drug and alcohol rehab clinics. Major metro areas have huge populations, large employee pools and high reported substance abuse rates.
  • Clinics with established histories of successful outcomes are the most competitive. Patients and their family members seek out clinics where chances of rehabilitation are highest.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 3.3 % over the past five years, to reach an estimated $5.3bn in 2024.

Trends and Insights

Efforts to destigmatize substance abuse lead more patients to treatment

  • Swelling awareness of the importance of substance abuse treatment has supported drug and alcohol rehabilitation clinics, as waning stigma encourages more people to look for care.
  • Additional trends and insights available with purchase
Drug & Alcohol Rehabilitation Clinics in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Elevated substance abuse rates will keep demand for clinics at a record high

  • Drug and alcohol rehabilitation clinics will continue to see an uptick in demand from patients seeking treatment. A combination of long-lasting pandemic effects, societal factors, mental health considerations and the chronic nature of addiction indicate that demand for clinics will remain at a record high.

Biggest companies in the Drug & Alcohol Rehabilitation Clinics in the US

Company
Market Share (%)
2024
Revenue ($m)
2024
Profit ($m)
2024
Profit Margin (%)
2024
Acadia Healthcare Company, Inc.
791.4
25.4
3.2

To view the market share and analysis for all 1 top companies in this industry, view purchase options.

Products & Services Segmentation

Drug & Alcohol Rehabilitation Clinics in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Treatment for alcohol use only, Methadone treatment and Buprenorphine treatment. Treatment for alcohol use only is the largest segment of the Drug & Alcohol Rehabilitation Clinics in the US.

Trends and Insights

Unmedicated treatments stay the standard for drug and alcohol rehabilitation

  • Unmedicated treatments include general counseling, along with medical, vocational, educational and other assessment and treatment services.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Drug and alcohol rehabilitation clinics are specialized medical and therapeutic facilities designed to help individuals overcome substance abuse and addiction through various services on an outpatient or inpatient basis.

What's included in this industry?

Providing outpatient servicesProviding detoxification servicesProviding intensive outpatient servicesProviding medication-assisted opioid therapy services

Companies

Acadia Healthcare Company, Inc.

Purchase this report to view all 1 major companies in this industry.

Related Terms

OUTPATIENTMEDICAIDMEDICAREMETHADONE

Industry Code

NAICS 2017

NAICS 62221 - Drug & Alcohol Rehabilitation Clinics in the US

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

An unmet need for drug and alcohol rehabilitation has been expanding. Swelling rates of substance abuse and overdoses are strengthening demand for outpatient treatment, but l...

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 (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • 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

Medicaid is the largest payer for drug and alcohol rehabilitation in the US. Drug and alcohol rehabilitation clinics rely more on Medicaid reimbursements than other revenue s...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

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

Metropolitan areas have the highest concentrations of drug and alcohol rehab clinics. Major metro areas have huge populations, large employee pools and high reported substanc...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

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

Clinics with established histories of successful outcomes are the most competitive. Patients and their family members seek out clinics where chances of rehabilitation are hig...

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 2019-2024
  • 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

Acadia Healthcare is the largest provider of drug and alcohol rehabilitation in the US. Acadia holds its leading position through its targeted expansion strategy, including s...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Acadia Healthcare Company, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for Acadia Healthcare Company, Inc., 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 Substance Abuse and Mental Health Services Administration allocates billions in funding to drug and alcohol rehabilitation clinics yearly. The Biden Administration’s effo...

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 (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

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

The pandemic exacerbated an already undersized workforce. Labor shortages are straining clinics’ ability to treat patients while driving up wage expenses.

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 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

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 (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Drug & Alcohol Rehabilitation Clinics in the US industry in United States in 2024?

The market size of the Drug & Alcohol Rehabilitation Clinics in the US industry in United States is $5.3bn in 2024.

How many businesses are there in the Drug & Alcohol Rehabilitation Clinics in the US industry in 2024?

There are 6,217 businesses in the Drug & Alcohol Rehabilitation Clinics in the US industry in United States, which has grown at a CAGR of 10.6 % between 2019 and 2024.

Has the Drug & Alcohol Rehabilitation Clinics in the US industry in United States grown or declined over the past 5 years?

The market size of the Drug & Alcohol Rehabilitation Clinics in the US industry in United States has been growing at a CAGR of 3.3 % between 2019 and 2024.

What is the forecast growth of the Drug & Alcohol Rehabilitation Clinics in the US industry in United States over the next 5 years?

Over the next five years, the Drug & Alcohol Rehabilitation Clinics in the US industry in United States is expected to grow.

What are the biggest companies in the Drug & Alcohol Rehabilitation Clinics in the US market in United States?

The biggest company operating in the Drug & Alcohol Rehabilitation Clinics market in United States is Acadia Healthcare Company, Inc.

What does the Drug & Alcohol Rehabilitation Clinics in the US in United States include?

Providing outpatient services and Providing detoxification services are part of the Drug & Alcohol Rehabilitation Clinics in the US industry.

Which companies have the highest market share in the Drug & Alcohol Rehabilitation Clinics in the US in United States?

The company holding the most market share in United States is Acadia Healthcare Company, Inc..

How competitive is the Drug & Alcohol Rehabilitation Clinics in the US industry in United States?

The level of competition is moderate and steady in the Drug & Alcohol Rehabilitation Clinics in the US industry in United States.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Mental Health & Substance Abuse Clinics in the US
  • Telehealth Services in the US

Complementors

  • Psychiatric Hospitals in the US
  • Mental Health & Substance Abuse Centers in the US
  • Family Counseling & Crisis Intervention Services in the US

International industries

  • Crisis and Care Accommodation in Australia
  • Crisis and Care Accommodation in New Zealand
  • Learning Disability, Mental Health & Substance Abuse Facilities in the UK

View all industries in United States

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Key data sources in the US include: 

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  • US International Trade Commission

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.

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  • Industry and trade associations
  • Industry federations or regulators
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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.

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