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Sales of Behavioural Health Treatment Market to Grow at a CAGR of 2.4% Through 2027

Burden of mental illness on Europe’s economy is among the largest in the world, inadvertently making it the most lucrative region for players in the behavioural health treatment market, with the region slated to account for a staggering 47% of the global market by 2027. Total cost associated with mental health treatment amounted to around US$ 668 Bn in 2018 across the EU, translating to 4% of the GDP of Europe. Taking cue from this opportunity, key players are striving to expand their treatment facilities to offer easy accessibility to patients.

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However, uneven distribution of therapy facilities and rehabilitation centres in rural regions across the globe is projected to result in sluggish growth of the behavioural health treatment market, with an estimated CAGR of 2.4% during the forecast period (2020-2027).

Key Takeaways of Behavioural Health Treatment Market Study

  • According to WHO, 800,000 suicides are recorded every year, on the back of depression and anxiety disorders. Symptoms of depression are found to be high among millennial cohort as compared to other age groups, influenced by reckless use of social media and stressful lifestyles. Revenue generation through patient base suffering from depression is projected to grow by 3.2% in 2027 over 2026.
    • Individuals will continue to show a high interest in outpatient counselling services, as these programs offer freedom of movement over inpatient hospital treatment services. Given the high relevance of this influence, outpatient counselling services are projected to witness a marginal rise, at a CAGR of around 2.7% during the forecast period.
    • Social stigma associated with mental health discourages individuals from seeking proper treatment and counselling, which could hinder behavioural health treatment market growth during the forecast period.
  • Asia Pacific is projected to record the highest growth rate of nearly 2.8% during 2020-2027, which is attributable to increase in service centres and debunking of mental health taboos through awareness campaigns by various government and non-governmental organizations.

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A senior analyst at Fact.MR opines, “Advent of on-demand service model will remain crucial for the behavioural health treatment market, especially in developing regions, on account of high social stigma related to opting for mental health therapy. Additionally, value-based subscription models offered by on-demand counselling would be easy on the pockets of patients, which is projected to drive a massive shift from hospital and outpatient-based care to home-based care.”

Leading Players Intensify Focus on Expansion of Inpatient Care Facility

Although the behavioural health treatment market boasts of a number of organized players, numerous individual practitioners operating at regional and local levels generate a significant chunk of revenue. Lack of stringent regulations for practicing behavioural health services reduces the entry barrier in the market, and further adds a layer of fragmentation to the behavioural health treatment market.

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Key focus of players to strengthen their foothold in the behavioural health treatment market remains on the expansion of inpatient care facilities. For instance, in January 2019, Acadia Healthcare announced the acquisition of Whittier Pavilion, which is an inpatient psychiatric facility with 71 beds. In May 2019, MercyOne Central Iowa and Universal Health Services, Inc. established a new facility at Iowa, with 100 beds, to offer high quality services for behavioural health.

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Last Updated: 01-Nov-2021