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Drug & Alcohol Rehabilitation Clinics in the US - Market Research Report (2015-2030)

Marley Brocker Marley Brocker New York, United States Last Updated: December 2025 NAICS OD4619

Revenue

$5.5bn

2025

$5.5bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

53,047

Businesses

6,633

Wages

$X.Xbn

Drug & Alcohol Rehabilitation Clinics in the US industry analysis

Swelling awareness of the importance of substance abuse treatment has supported drug and alcohol rehabilitation clinics in recent years. At the same time, Medicare and Medicaid coverage expansion and SAMHSA program funding have broadly aligned with shifting societal attitudes toward drug and alcohol use. The expansion of clinics has been vital, as rates of substance abuse and an opioid epidemic continue to boost the need for accessible treatment. COVID-19 exacerbated preexisting rates of substance abuse in the US. Extended periods of stress and isolation pushed many people toward drugs and alcohol, while the CDC and other agencies link the spread of illicit fentanyl to unprecedented overdose death levels. Pandemic-related operating and labor challenges hindered clinics' ability to meet record-high demand. However, rising household incomes, broader insurance coverage and changing attitudes still enabled industry revenue to grow at an estimated CAGR of 3.8% over the past five years, reaching roughly $5.8 billion in 2025, when revenue growth is estimated at 2.1%.​

Trends and Insights

  • An unmet need for drug and alcohol rehabilitation has been expanding. Swelling rates of substance abuse and overdoses are strengthening demand for outpatient treatment, but labor shortages strain clinics’ ability to meet the growing need.
  • Medicaid is the single most crucial payer for drug and alcohol rehabilitation. Many clinics rely more heavily on Medicaid reimbursement than on commercial insurance or self-pay revenue, making the program vital to access to care and the financial stability of providers.
  • Metropolitan areas host the highest concentrations of drug and alcohol rehabilitation clinics, reflecting where demand and operating capacity are greatest. Large metro regions combine dense populations, sizable commercially insured segments, deep labor pools and higher reported substance use and overdose rates, making them the most viable markets.
  • Clinics with a strong track record of successful outcomes are the most competitive. Patients and families increasingly seek out programs that demonstrate high completion rates and sustained recovery, making reputation, published results and referrals critical demand drivers.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 2.8 % over the past five years, to reach an estimated $5.5bn in 2025.

Trends and Insights

Efforts to destigmatize substance abuse lead more patients to treatment

  • Efforts to destigmatize substance use disorder (SUD), combined with broader insurance coverage and evolving care models, are directly translating into higher utilization and revenue growth for drug and alcohol rehabilitation clinics. As SUD is increasingly recognized as a medical condition that warrants treatment, more individuals are seeking care rather than avoiding or delaying it. This increases the number of filled beds, program enrollment and billable services.
  • Additional trends and insights available with purchase
Drug & Alcohol Rehabilitation Clinics in the US
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Policy whiplash will keep rehabilitation clinics in flux

  • The Substance Abuse and Mental Health Services Administration (SAMHSA) steadily increased its financial support for addiction services across the US. This growth in funding enabled many drug and alcohol rehabilitation clinics to expand their programs, invest in staff training and enhance their treatment infrastructure. Many providers were often able to plan multi-year budgets, open new facilities, and respond to rising demand driven by the opioid crisis and increased mental health needs, underpinning industry growth.

Biggest companies in the Drug & Alcohol Rehabilitation Clinics in the US

Company
Market Share (%)
2025
Revenue
2025
Profit
2025
Profit Margin (%)
2025

There are no companies that hold a market share exceeding 5% in the Drug & Alcohol Rehabilitation Clinics in the US industry.

Products & Services Segmentation

Drug & Alcohol Rehabilitation Clinics in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Core and legal-mandated services, Physchosocial rehabilitation, housing and recovery services and Physical and behavioral health services. Core and legal-mandated services is the largest segment of the Drug & Alcohol Rehabilitation Clinics in the US.

Trends and Insights

Unmedicated treatments stay the standard for drug and alcohol rehabilitation

  • Unmedicated treatments include general counseling, along with medical, vocational, educational and other assessment and treatment services.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Drug and alcohol rehabilitation clinics are specialized medical and therapeutic facilities designed to help individuals overcome substance abuse and addiction through various services on an outpatient or inpatient basis.

What's included in this industry?

Products and services covered in the Drug & Alcohol Rehabilitation Clinics industry in the United States include Providing outpatient services, Providing detoxification services, Providing intensive outpatient services and Providing medication-assisted opioid therapy services.

Companies

Companies covered in the Drug & Alcohol Rehabilitation Clinics industry in the United States include .

Purchase this report to view all major companies in this industry.

Related Terms

Related terms covered in the Drug & Alcohol Rehabilitation Clinics industry in the United States include outpatient, medicaid, medicare and methadone.

Industry Code

NAICS 2017

NAICS 621420 - Drug & Alcohol Rehabilitation Clinics in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

An unmet need for drug and alcohol rehabilitation has been expanding. Swelling rates of substance abuse and overdoses are strengthening demand for outpatient treatment, but l...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Medicaid is the single most crucial payer for drug and alcohol rehabilitation. Many clinics rely more heavily on Medicaid reimbursement than on commercial insurance or self-p...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Metropolitan areas host the highest concentrations of drug and alcohol rehabilitation clinics, reflecting where demand and operating capacity are greatest. Large metro region...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each state in 2025
  • Number and share of revenue each state accounts for in 2025
  • Number and share of wages each state accounts for in 2025
  • Number and share of employees in each state in 2025

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Clinics with a strong track record of successful outcomes are the most competitive. Patients and families increasingly seek out programs that demonstrate high completion rate...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

There are no companies that hold a market share exceeding 5% in the Drug & Alcohol Rehabilitation Clinics in the US industry.

Analyst insights

Acadia Healthcare is the largest provider of drug and alcohol rehabilitation in the US. Acadia holds its leading position through its targeted expansion strategy, including s...

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The Substance Abuse and Mental Health Services Administration is a key funder for addiction services, supporting prevention, treatment and recovery efforts. However, SAMHSA b...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The pandemic exacerbated an already undersized workforce, leaving many drug and alcohol rehabilitation clinics without enough qualified staff to meet demand. Persistent labor...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2018-2023)
  • Industry Tax Structure (2018-2023)
  • Income Statement (2018-2023)
  • Balance Sheet (2018-2023)
  • Liquidity Ratios (2018-2023)
  • Coverage Ratios (2018-2023)
  • Leverage Ratios  (2018-2023)
  • Operating Ratios (2018-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Drug & Alcohol Rehabilitation Clinics industry in the United States in 2025?

The market size of the Drug & Alcohol Rehabilitation Clinics industry in the United States is $5.5bn in 2025.

How many businesses are there in the Drug & Alcohol Rehabilitation Clinics industry in the United States in 2025?

There are 6,633 businesses in the Drug & Alcohol Rehabilitation Clinics industry in the United States, which has grown at a CAGR of 8.6 % between 2020 and 2025.

How may import tariffs affect the Drug & Alcohol Rehabilitation Clinics industry in the United States?

The Drug & Alcohol Rehabilitation Clinics industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Drug & Alcohol Rehabilitation Clinics industry in the United States?

The Drug & Alcohol Rehabilitation Clinics industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Drug & Alcohol Rehabilitation Clinics industry in the United States grown or declined over the past 5 years?

The market size of the Drug & Alcohol Rehabilitation Clinics industry in the United States has been growing at a CAGR of 2.8 % between 2020 and 2025.

What is the forecast growth of the Drug & Alcohol Rehabilitation Clinics industry in the United States over the next 5 years?

Over the next five years, the Drug & Alcohol Rehabilitation Clinics industry in the United States is expected to grow.

What does the Drug & Alcohol Rehabilitation Clinics industry in the United States include?

Providing outpatient services and Providing detoxification services are part of the Drug & Alcohol Rehabilitation Clinics industry in the United States.

How competitive is the Drug & Alcohol Rehabilitation Clinics industry in the United States?

The level of competition is moderate and steady in the Drug & Alcohol Rehabilitation Clinics industry in the United States.

Methodology

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What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

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