Japan Addiction Therapeutics Market Analysis

Japan Addiction Therapeutics Market Executive Summary

Japan addiction therapeutics market was valued at $628 Mn in 2022 and is estimated to reach $1111 Mn in 2030, exhibiting a CAGR of 7.4% during the forecast period.

The broad field of addiction therapy encompasses a variety of interventions and therapies aimed at aiding individuals in their recovery from drug use problems. This includes a broad range of techniques, including medication-assisted treatments, which use drugs to reduce cravings and withdrawal symptoms, and behavioural therapies, which target the psychological components of addiction. Long-term healing also depends on social support networks and community resources. Two commonly prescribed medications used in the ongoing treatment of opioid use disorder addiction are methadone and buprenorphine. Other medications that are approved for the treatment of substance use disorders include naltrexone, acamprosate, and disulfiram; however, these may not be initiated until after detox.

In Japan, 2.01 Mn people who are 16 years of age or older, or 1.5% of the population, were drug dependent in 2022. Methamphetamine and other amphetamines continued to be the most widely used illegal narcotics; there were about 1.24 million dependent users. Significantly, there has been a consistent rise in cannabis use; 220,000 dependent users were there in 2022. The 40s and 50s are the age groups most commonly associated with drug dependence, but younger age groups, i.e., the 20s and 30s, also show alarming patterns. Japan is unique in the world in that it is the only country where methamphetamine is more prevalent than cannabis among illegal substances, accounting for over 80% of drug use there. Methamphetamine is preferred in Japan's work culture because it is thought to increase productivity, whereas cannabis is thought to impair focus and functionality in a society that values hard work ethics. This difference in perception is the reason for the trend.

Less than 10% of the estimated 1 Mn people who are classified as alcoholics in Japan actually seek help for their addiction. After a year of treatment, about 30% of patients successfully recover from alcohol addiction.

Otsuka Pharmaceutical, in partnership with academic institutions and patient groups, is leading Project KIZUNA, which aims to improve rural communities' access to evidence-based addiction treatment. Through the use of telemedicine consultations and pharmacist-led buprenorphine dispensing, the project seeks to improve the convenience of medication-assisted treatment for patients who live in rural areas. This creative strategy aims to close the gap in underprivileged populations' access to addiction treatment treatments.

Also, Otsuka is about to conclude Phase 3 clinical trials for nalmefene, a potentially ground-breaking drug intended to treat alcoholism. If approved, nalmefene might become the first officially recognized therapy for alcohol use disorder in Japan, offering a cutting-edge therapeutic alternative that has the potential to profoundly alter the field of addiction treatment.

Market Dynamics

Market Growth Drivers

Increasing Awareness and Recognition: As mental health disorders, especially substance abuse, become more widely recognized, more people are turning to treatment and support services. The need for addiction treatment is fueled by campaigns to reduce stigma and increase public awareness of addiction as a curable condition. The market for addiction therapy has expanded dramatically due to increased knowledge and acceptance. The growing recognition of addiction as a treatable disease has contributed significantly to the growth of the addiction treatment sector.

Government Support and Initiatives: The market for addiction treatments is developing as a result of government-led programs like Project KIZUNA which was launched by the Ministry of Health, Labour, and Welfare in collaboration with Otsuka Pharmaceuticals to improve access to evidence-based addiction treatment, particularly medication-assisted treatment with buprenorphine, in rural areas, and efforts that aim to combat substance misuse, encourage harm reduction initiatives, and increase access to recovery treatments.

Investment in Healthcare Infrastructure: The ongoing investments in healthcare infrastructure, such as the establishment of rehabilitation centres and institutions that promote addiction treatment, are improving the country's accessibility to addiction treatment services. These costs are essential to improving wait times and patient care, as well as the working environment for medical personnel. These investments in healthcare for addiction therapeutics help increase market growth.

Market Restraints

Barriers to Awareness and Stigma: People may be deterred from seeking treatment if they think that drug use and mental health issues are taboo subjects. A hurdle to the market's expansion is inadequate education and awareness about addiction as a medical condition, which can impede efforts to encourage people to seek treatment.

High Cost of Treatment: For individuals and families struggling with substance use disorders, the high expense of addiction treatment poses a substantial barrier that hinders access to critical care. Financial difficulties arise from outpatient therapy sessions, hospitalization expenditures, and prescription costs. Insurance may not cover all of the cost of certain medications used in addiction treatment, resulting in additional out-of-pocket expenses. The cost is further increased by specific support services like career training or mental health counselling. Despite being universal, Japan's healthcare system does not often cover addiction treatment, therefore patients pay high costs.

Regulatory Hurdles: The complex and resource-intensive regulatory procedures and approval processes for drugs used in addiction treatment may have an impact on the timely availability of effective medications on the market by limiting the market's potential to grow and expand.

Healthcare Policies and Regulatory Landscape

The Pharmaceuticals and Medical Devices Agency (PMDA) is responsible for overseeing addiction treatment regulations and healthcare policy in Japan. Before allowing a pharmaceutical product to be sold, this regulatory body carefully assesses and tracks all pharmaceuticals, including those used in addiction treatment, to make sure that strict requirements for quality, safety, and efficacy are followed. Narcotics and psychotropic substances are regulated by the system in place with the goal of preventing overuse and illegal distribution. To get the PMDA certification, pharmaceutical companies need to provide extensive data on clinical trials and manufacturing methods, along with stringent evaluations. Accessibility to essential drugs, including addiction therapies, is given priority in Japan's healthcare regulations, and public health programs and a range of health insurance plans promote affordability and accessibility.

Competitive Landscape

Key Players

• Takeda Pharmaceutical Company
• Astellas Pharma
• Daiichi Sankyo Company
• Eisai Co.
• Otsuka Pharmaceutical Co.
• Mitsubishi Tanabe Pharma Corporation
• Shionogi & Co.
• Chugai Pharmaceutical Co.
• Kyowa Kirin Co.
• Sumitomo Dainippon Pharma.