The controlled substance market comprises products such as narcotics, stimulants, depressants, hallucinogens, anabolic steroids and others which are regulated by governments under controlled substance acts due to their potential for abuse and addiction. Controlled substances find applications in pharmaceuticals for pain management. Some common controlled substances used are fentanyl, oxycodone, amphetamines, methylphenidate and others. The regulations around these substances are aimed to curb non-medical use while ensuring availability for legitimate medical and scientific use. The global pharmaceutical industry has been growing steadily which is expected to drive the demand for controlled substances in therapeutic applications.
The global controlled substance market is estimated to be valued at US$ 37.33 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers for the controlled substance market is the growing pharmaceutical industry. The pharmaceutical market size stood at US$ 1.27 trillion in 2021 and is expected to reach US$ 1.65 trillion by 2026, growing at a CAGR of 6.4%. This growth is attributable to factors such as rising healthcare expenditure, increasing Research & Development (R&D) investments by pharmaceutical companies, growth in the geriatric population, rising prevalence of chronic diseases and increasing demand for medications in emerging countries. As controlled substances are predominantly used in pain therapeutics, the pharmaceutical industry growth directly impacts the demand from this end use segment. Another driver is the rising prevalence of diseases requiring long term pain management therapy. Diseases such as cancer and arthritis often require medications containing controlled substances for effective pain relief over longer duration. Growth in incidence of such conditions will further augment market growth over the forecast period.
Segment Analysis
The controlled substance market can be segmented based on product type and end use. Based on product type, the market is segmented into natural and synthetic. The natural segment is dominating the market as natural substances have higher demand due to their health benefits and lesser side effects. Based on end use, the market is segmented into food & beverages, pharmaceuticals, personal care & cosmetics, and others. The food & beverages segment dominates the market as controlled substances are widely used as colorants, flavors, and preservatives in various food products and beverages.
PEST Analysis
Political: Regulations regarding the use of controlled substances are becoming stricter. Different countries have imposed limits on the maximum usage levels of controlled substances in final products.
Economic: The global GDP growth along with rising disposable incomes is driving the demand for processed and packaged food & beverages, thereby propelling the controlled substance market.
Social: Increasing health consciousness among consumers is boosting the demand for natural substances with minimal artificial ingredients or synthetic compounds.
Technological: Advancements in extraction technologies have enabled efficient production of natural substances from plant sources on an industrial scale. New emulsification techniques help improve the stability of substances.
Key Takeaways
The Global Controlled Substance Market Growth nis expected to witness high over the forecast period. The global controlled substance market is estimated to be valued at US$ 37.33 Mn in 2024 and is expected to exhibit a CAGR of 6.6% over the forecast period 2024 to 2031.
The Asia Pacific region dominates the market currently due to the large production and consumption of food & beverages in countries like China and India. The growing middle-class population with higher disposable incomes is driving the demand.
Key players operating in the controlled substance market are GNT International B.V., Roha Dyechem Pvt. Ltd., D.D. Williamson & Co., Inc., Kalsec Inc., Chr. Hansen A/S, Archer Daniels Midland Company, Adama Agricultural Solutions Ltd. (LycoRed), Naturex S.A., Sensient Technologies Corporation, and Symrise AG. Key players are focusing on new product launches with natural substances and improving production efficiencies to strengthen their position in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
