Controlled Substance Market Is Estimated To Witness High Growth Owing To Increasing Prevalence Of Chronic Diseases

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The global Controlled Substance Market is estimated to be valued at US$ 41.8 Bn in 2023 and is expected to exhibit a CAGR of 4.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Controlled Substance Market Is Estimated To Witness High Growth Owing To Increasing Prevalence Of Chronic Diseases

Market Overview:
Controlled substances are medications or drugs that are regulated by several authorities such as the United States Food and Drug Administration (FDA) and the Drug Enforcement Administration (DEA). Controlled substances include prescription medications such as opioid painkillers, stimulants, depressants and anabolic steroids. These drugs are used for medical purposes to treat various health conditions like chronic pain, attention deficit hyperactivity disorder (ADHD), depression etc. However, they also have potential for abuse and addiction.

Market key trends:
The global controlled substance market is primarily driven by increasing prevalence of chronic diseases worldwide. According to an estimate by WHO, chronic diseases accounted for approximately 70% of all deaths globally in 2017. Moreover, ageing population is another major factor contributing to rising cases of chronic illnesses such as cancer, diabetes and cardiovascular diseases. For instance, as per the United Nations, it is projected that over 16% of the global population will be aged 65 or over by 2050. Growing geriatric population increases demand for regulated medications for pain management and other therapeutic applications. Furthermore, availability of advanced treatment options and new drug approvals by regulatory bodies are encouraging market growth. However, stringent regulations regarding distribution and dispensing of controlled substances act as a major restraining factor for the market.

Porter’s Analysis
Threat of new entrants: The controlled substance market has moderate barriers for new entrants due to strong regulations and compliance requirements. New companies will need significant investment to meet regulatory standards.
Bargaining power of buyers: Individual buyers have low bargaining power due to inelastic demand for controlled substances used for medical treatment. However, large pharmacy chains and healthcare providers can negotiate better prices in bulk purchases.
Bargaining power of suppliers: Key raw material suppliers like pharmaceutical intermediaries have moderate to high bargaining power since manufacturing controlled substances require specialized machinery and skills. Suppliers can influence prices to some extent.
Threat of new substitutes: Threat of new substitutes is low as controlled substances have no close substitutes for treating certain medical conditions. Developing new substitutes require lengthy clinical trials and approval processes.
Competitive rivalry: The market has high competition as large pharmaceutical companies intensely compete to develop new controlled substances and acquire smaller firms for product portfolio expansion.

SWOT Analysis
Strength: Strong R&D capabilities and established product portfolios of top players. Companies like Johnson & Johnson and Pfizer have decades of expertise in developing novel treatments.
Weakness: Regulatory compliance involves high costs and complexity which impacts profit margins. Frequent product recalls can damage company reputation.
Opportunity: Growing aging population suffering from chronic diseases like cancer, diabetes boosts demand. Unmet needs in developing nations present untapped potential.
Threats: Price control policies impact revenues. Shift to alternative treatment options pose challenges. Stringent regulations delay product approvals.

Key Takeaways

The Global Controlled Substance Market Demand is expected to witness high growth, exhibiting CAGR of 4.9% over the forecast period, due to increasing prevalence of chronic diseases. The market size for 2023 is estimated to reach US$ 41.8 billion.

Regionally, North America dominates currently due to rising healthcare spending and growing adoption of advanced therapies. followed by Europe. However, Asia Pacific is poised to emerge as the fastest growing market owing to rising healthcare access, growing medical tourism, and increasing awareness.

Key players operating in the controlled substance market are Johnson & Johnson, Pfizer, Sanofi, Merck & Co., Gilead Sciences, Amgen, Novartis, AbbVie, GlaxoSmithKline, AstraZeneca, Bristol-Myers Squibb, Eli Lilly, Teva Pharmaceutical, Bayer, Novo Nordisk, Allergan, Takeda Pharmaceutical, Boehringer Ingelheim, Aspen Pharmacare, and Astellas Pharma. Major players are focused on R&D investments, M&As, and collaborations for developing novel drugs and expanding their product portfolios.