The increasing population will increase demand for this industry's services.
Los Angeles, CA (PRWEB) September 27, 2013
The Mental Health and Substance Abuse Clinics industry provide a variety of outpatient care services for patients struggling with depression, schizophrenia, bipolar disorder, alcoholism and other drug related issues. In addition, industry clinics treat a variety of illnesses commonly affecting the elderly, such as dementia and Alzheimer's disease. Despite the unfavourable recessionary conditions and a slowdown in government funding, the industry is poised to grow at an annualized rate of 0.7% to $1.4 billion, in the five years to 2013. In 2013 alone, industry revenue is expected to increase 3.9%.
According to IBISWorld Industry Analyst Sean Windle, “A variety of social and demographic factors have combined to fuel revenue growth, including an increase in Canada's aging population.” Over the past five years, the population has grown at an annualized rate of 1.2% to 35.3 million people, and the median age has risen from 39 to 40. With Canada's Mental Health Association estimating that one in five Canadians will experience a mental health illness during their lifetime, the growing population will increase demand for industry services. Additionally, Canada's growing elderly population will strengthen demand for industry services related to the treatment of dementia and Alzheimer's disease. Despite these favourable demand factors, industry revenue growth has been stifled by sluggish growth in government funding. In spite of rising demand, budgets for many mental health and substance abuse clinics are being slashed. Consequently, a number of facilities closed during the past five years, with many non-essential employees being let go or reduced to part-time work.
Fortunately for the industry, Windle says “the next five years will be much more effective, as social and demographic factors will continue to spur demand for mental health and substance abuse treatment.” Moreover, government funding will also finally pick up over the next five years. These factors will allow industry operators to expand services and rehire some of the workers laid off during the past five years. Market share concentration within the Mental Health and Substance Abuse Clinics industry in Canada is low. There are hundreds of small to mid-sized businesses that operate within the industry.
For more information, visit IBISWorld’s Mental Health & Substance Abuse Clinics in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry provides outpatient services related to the diagnosis and treatment of mental health disorders, in addition to alcohol and other substance abuse. Moreover, these establishments may provide counselling staff and information regarding a wide range of mental health and substance abuse issues.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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