Indonesia Alcohol Addiction Therapeutics Market Analysis

Indonesia Alcohol Addiction Therapeutics Market Executive Summary

The Indonesia Alcohol Addiction Therapeutics Market is valued at around $4 Mn in 2022 and is projected to reach $7 Mn by 2030, exhibiting a CAGR of 6.3% during the forecast period.

Alcohol addiction, commonly referred to as alcohol use disorder (AUD), is a persistent medical condition characterized by an inability to control alcohol consumption despite adverse consequences. Individuals experiencing alcoholism exhibit a strong desire to drink, irrespective of its detrimental impact on personal, work, and social aspects of their lives. The specific causes of alcohol dependency are intricate and vary among individuals, involving factors like genetics, brain chemistry, mental health issues, and environmental influences. Overcoming alcoholism necessitates a comprehensive approach. While detoxification addresses withdrawal symptoms, behavioural therapies like Cognitive Behavioural Therapy (CBT) focus on modifying underlying thought patterns and triggers. Medications, such as naltrexone, aid in managing cravings and preventing relapse. Support groups like Alcoholics Anonymous (AA) offer a safe setting for encouragement and accountability.

In Indonesia, heavy episodic drinking (HED) is more common among people aged 15 and above, accounting for 6.5% of the population. Adolescents and young adults are especially prone to HED, with studies indicating rates as high as 23.3% among early teens (ages 11 to 14). Men drink more than women, with 6.5% and 1.4% reporting alcohol usage in the previous year, respectively. Increasing awareness campaigns, reduced stigma, expanding healthcare infrastructure, and a changing social landscape, drive the potential demand for addiction treatment services, especially among youth in Indonesia.

Companies like Eli Lilly, Lundbeck, and AstraZeneca use the strength of existing brands such as Revia, Campral, and Vivitrol. Their broad experience and research clout offer them a solid foundation. Kimia Farma and Kalbe Farma, Indonesia's pharmaceutical giants, use their local presence and generic medicine manufacturing to reach a larger audience.

Market Dynamics

Market Drivers

Increasing Awareness of Alcohol Addiction: BNN (Badan Narkotika Nasional) and non-governmental organizations (NGOs) such as Yayasan Kusuma are actively promoting awareness about alcohol addiction and its repercussions via different projects across Indonesia. Furthermore, increased media attention and open discussions about addiction are reducing stigma and encouraging people to seek treatment. As knowledge of mental health concerns grows, the relationship between addiction and mental health conditions becomes more apparent, resulting in a greater demand for treatment.

Expanding Healthcare Infrastructure: The Indonesian government is investing in healthcare facilities and increasing access to addiction treatment treatments. Private hospitals and clinics are increasingly providing addiction treatment services to a broader spectrum of individuals. Telemedicine platforms and internet therapy services have made addiction treatment more accessible.

Changing Social Landscape: The urbanization of lifestyles, as well as increased social pressures, might contribute to alcohol consumption. Rising disposable income among some groups of the population may result in increased spending on healthcare, especially addiction treatment. Studies that show a high incidence of HED among adolescents and young people point to a possible future demand for addiction treatment services.

Market Restraints

Lack of Insurance Coverage: Indonesian health insurance schemes generally exclude or provide limited coverage for addiction treatment, leaving patients with financial burdens. Many people are unaware of possible insurance coverage choices for addiction treatment, which further limits access. Limited laws on alcohol advertising, taxes, and the minimum drinking age may all lead to increasing alcohol use and addiction. The lack of a coherent national policy framework for combating alcohol addiction impedes efficient resource allocation and program execution.

Uneven distribution of services: Treatment facilities and skilled specialists are primarily concentrated in cities, leaving rural communities with little access. Addiction treatment can be costly, particularly for long-term programs or private facilities, posing financial challenges for many people. The shortage of addiction treatment-trained healthcare personnel further restricts the service availability and quality.

Stigma and Social Barriers: The social stigma associated with addiction, particularly in respect to religious views, might discourage people from getting treatment. Concerns about job loss, social exclusion, and family humiliation all pose substantial hurdles to treatment access. Limited public knowledge of addiction as a curable medical illness contributes to stigma and discourages people from seeking assistance.

Healthcare Policies and Regulatory Landscape

Indonesia's healthcare landscape is shaped by its Universal Health Coverage Program (JKN), a multifaceted initiative aiming for equitable access to essential services. JKN leverages mandatory insurance contributions and covers a broad spectrum of care, including cancer treatment. Notably, Indonesia's decentralized system empowers local governments while emphasizing primary care and traditional medicine integration. This approach prioritizes prevention and early detection, crucial in tackling widespread challenges like underfunded JKN, uneven access across urban and rural areas, and healthcare worker shortages. In the realm of drug regulation, the National Agency for Drug and Food Control (BPOM) reigns supreme. From registration and manufacturing oversight to quality control and pricing mechanisms, BPOM safeguards drug safety and affordability. Lengthy registration processes, bureaucratic hurdles, and fluctuating regulations often test the patience of pharmaceutical companies.

Competitive Landscape

Key Players

• Elli Lily
• Lundbeck
• AstraZeneca
• Indivior
• Alkermes
• TEVA Pharmaceuticals
• Merck & Co.
• Kimia Farma
• Kalbe Farma
• Osotspa