PUBLISHER: Grand View Research | PRODUCT CODE: 1813872
PUBLISHER: Grand View Research | PRODUCT CODE: 1813872
The U.S. mental health and addiction treatment centers market size was estimated at USD 143.62 billion in 2024 and is expected to reach USD 408.12 billion by 2033, growing at a CAGR of 12.3% from 2025 to 2033. The market is driven by rising awareness and diagnosis of behavioral health conditions, growing acceptance of mental health as a critical aspect of overall wellness, and increasing government support through funding and policy initiatives. Furthermore, integrating behavioral health into primary care and expanding insurance coverage under federal programs such as Medicaid and the Affordable Care Act have further improved access to treatment services.
Increasing prevalence of mental illness and substance use disorders is one of the primary factors driving industry growth in the U.S. According to the National Institute of Mental Health (NIMH) report, in 2022, approximately 59.3 million adults in the U.S., representing 23.1% of the adult population, experienced some form of mental illness during the year. Notably, the highest prevalence was observed among young adults aged 18 to 25, where over one-third reported mental health challenges.
In addition, data from the Kaiser Family Foundation (KFF) illustrate a consistent increase in the use of mental health services across adult age groups from 2019 to 2022. The most significant growth was observed among adults aged 18-26, whose usage of mental health services rose by 45% during this period.
In addition, a substantial portion of individuals with substance use disorders also experience co-occurring mental health conditions. According to the 2023 National Survey on Drug Use and Health (NSDUH), around 20.4 million adults were diagnosed with both mental disorder and substance use disorder. This overlap necessitates integrated and specialized treatment environments, prompting many providers to invest in dual-diagnosis capable inpatient, outpatient, and residential centers. As a result, facilities equipped to manage complex, multi-condition cases are becoming increasingly essential across the U.S.
Moreover, the expansion and financial sustainability of mental health and addiction treatment centers in the U.S. are significantly influenced by a supportive reimbursement environment and evolving federal and state-level policy reforms. These reimbursement mechanisms, which cover specific mental health and substance use disorder (SUD) services, have directly impacted treatment centers' capacity to maintain operations, expand infrastructure, and increase service delivery.
Following the implementation of the Affordable Care Act (ACA), many states expanded Medicaid coverage, which considerably increased access to behavioral health services. A 2020 study published in Health Affairs found that Medicaid expansion led to a 36% increase in SUD treatment admissions in expansion states compared to non-expansion states. In addition, Medicaid's share of funding for these services rose by approximately 23 percentage points, reducing the financial burden on local governments and supporting greater service delivery by treatment centers.
U.S. Mental Health and Addiction Treatment Centers Market Report Segmentation
This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the U.S. mental health and addiction treatment centers market report based on disorder, treatment centers type, and age group: