The global controlled substance market is poised for significant growth in the next five years, according to a new report by Report Linker.
The market, which includes sales of drugs such as morphine, valium, ritalin and cannabis, among others, is expected to grow from $83.92 billion in 2022 to $89.78 billion in 2023, marking a compound annual growth rate (CAGR) of 7 per cent.
The Controlled Substance Global Market Report 2023 provides a comprehensive analysis of the controlled substance market, offering insights into market growth, impact of global events, regional analysis, market segmentation, market drivers and key trends.
Controlled substances are drugs or chemicals –both illegal and legally prescribed– whose production, possession and usage are regulated by the government. Under its definition, the substances can lead to physical and mental dependence and their restrictions are based on the potential for abuse or dependence.
Despite these risks, controlled substances play a crucial role in healthcare, helping to reduce pain and other symptoms, thereby enhancing patients’ quality of life.
Report highlights the impact of global events on the market
The Russia-Ukraine war has disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. This conflict has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets globally. Despite these challenges, the controlled substance market is expected to reach $116.44 billion in 2027 at a CAGR of 6.7 per cent.
North America held the largest share of the controlled substance market in 2022. However, the Asia-Pacific region is expected to be the fastest-growing region in the forecast period. The report covers regions including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The report provides an in-depth analysis of the market segmentation. The main types of controlled substances are opioids, stimulants, depressants, and cannabinoids. Opioids, used to treat moderate to severe pain, can be synthesized in the laboratory or obtained from the opium poppy plant.
Controlled substances are distributed through hospital pharmacies, retail pharmacies, and online pharmacies,and are used for various applications including pain management, sleep disorders, depression and anxiety, seizures, attention deficit hyperactivity disorder (ADHD), among others.
The increasing demand for medically prescribed drugs is expected to propel the growth of the controlled substance market. Prescription drugs, which are often included in controlled substances, can enhance outcomes for patients and minimize wasteful spending. For instance, in 2021, spending on prescription drugs increased by 7.8 per cent to $378.0 billion, which is faster than the 3.7 per cent growth in 2020.
Product innovations and acquisitions are key trends in the controlled substance market. Major companies are innovating new products and drugs to sustain their position in the market.
For instance, in January 2022, CareFlow Medicines Management Ltd. partnered with Australia-based healthcare software provider, Modeus, to launch its Controlled Drug Manager, an innovative platform designed to safely manage and track controlled drugs.
In November 2021, ANI Pharmaceuticals Inc. (Nasdaq: ANIP) acquired Novitium Pharma for $163.5 million to strengthen its research and development engine, expand its generics and contract development and manufacturing organization (CDMO) businesses, and establish a highly compliant US production facility.
Major players in the controlled substance market are Merck & Co. Inc. (NYSE: MRK), Johnson and Johnson Services Inc. (NYSE: JNJ), Orbis Biosciences Inc.,, GW Pharmaceuticals PLC (NASDAQ: GWPH), Corium Inc., Pfizer Inc. (NYSE: PFE), Aradigm Corporation (OTCMKTS: ARDMQ), Alkermes PLC (NASDAQ: ALKS), Depomed Inc. (NASDAQ: ASRT), Sun Pharmaceutical Ltd. (NSE: SUNPHARMA), F. Hoffmann-La Roche Ltd. (SWX: RO), AbbVie Inc. (NYSE: ABBV), Mallinckrodt PLC (OTCMKTS: MNKKQ), Ampac Fine Chemicals, Coating Place Inc. and Siegfried Holding AG (SWX: SFZN).