Dementia Drugs Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Dementia Drugs Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global dementia drugs market was valued at USD 13,459.39 million in 2021, registering a CAGR of 8.28% over the forecast period (2022 - 2027).

The outbreak of the COVID-19 pandemic is expected to have a considerable impact on the dementia drugs market. According to a study titled, "The effects of the COVID-19 pandemic on people with dementia", published in January 2021, the population with dementia is at high risk of contracting COVID-19 infection as the cognitive symptoms cause difficulty to abide by the safety guidelines that were proposed to contain the viral spread. The study also stated that people have a comparatively high chance of developing a serious COVID-19 infection and are also at risk of neuropsychiatric disorders as a result of lockdown procedures and social exclusion in 2020. Likewise, as per a study titled "Covid-19 and the quality of life of people with dementia and their carers—The TFD-C19 study", published in January 2022, COVID-19 placed unprecedented pressure on dementia health and social care systems worldwide. This has resulted in reduced services and support for people with dementia and their family carers. Hence, COVID-19 had a significant impact on the growth of the studied market over the pandemic phase.

The factors that are propelling the market growth are the increasing prevalence of target diseases, the introduction of new and innovative technologies and drugs, and increased government funding and awareness programs for dementia.

Increased government funding and awareness programs are the major factors driving the market's growth. For instance, as per a February 2022 update, a new initiative by McGill University’s Dementia Education Program is among the 15 projects that will receive funding from the Public Health Agency of Canada to raise awareness of dementia and promote dementia-inclusive communities. Additionally, in October 2021, the Government of Kerala, India, launched the Dementia-Friendly District program, "Udbodh". This program was undertaken in cooperation with the NeuroScience department at Cochin University of Science and Technology, the Ernakulam district administration, and Kochi Municipal Corporation. Moreover, in January 2021, LSP, the leading European life sciences investor, launched the LSP Dementia Fund, a fund dedicated to combating neurodegenerative diseases. Such initiatives will boost the awareness of dementia and ultimately drugs and treatments, thereby contributing to market growth.

Additionally, in August 2021, the National Institutes of Health (NIH) awarded USD 1.9 million in funding to Tabula Rasa HealthCare Inc. and Hesperos Inc., to investigate drug-induced dementia and develop new models that will drive Alzheimer's research. Such support from public organizations is also contributing to the growth of the market.

Thus, the market is expected to project growth over the forecast period. However, the high failure rates of drugs at approval stages are expected to impede market growth over the forecast period.

Key Market TrendsThe Alzheimer’s Disease Segment Dominates the Market and is Expected to Continue the Same Over the Forecast Period

The Alzheimer's disease segment is expected to hold a major market share over the forecast period owing to factors such as the increasing burden of Alzheimer's disease and ongoing research and development of drugs for Alzheimer's.

The increasing company focus on research and development activities for developing effective treatment drugs for patients with Alzheimer's disease is expected to drive the segment growth over the forecast period. For instance, as per the Alzheimer’s Association 2021 report, the United States Food and Drug Administration (FDA) approved five drugs for the treatment of Alzheimer’s, namely rivastigmine, galantamine, donepezil, memantine, and memantine combined with donepezil. As per the same source, the vast majority of people who develop Alzheimer’s dementia are aged 65 years or older. This is called late-onset Alzheimer’s. In the United States, nearly 5.3% of people aged 65 to 74 years, 13.8% of people aged 75 to 84 years, and 34.6% of people aged 85 years or older have Alzheimer’s dementia. Additionally, an estimated 6.2 million Americans aged 65 years and older are living with Alzheimer’s dementia in 2021 and are projected to reach 13.5 million by 2050. Such a higher prevalence of the disease is anticipated to bolster the demand for dementia drugs among the patient population over the coming years.

Moreover, several market players are engaged in the implementation of strategic developments, thereby contributing to market growth. For instance, in June 2021, the United States Food and Drug Administration approved Aduhelm (aducanumab) for the treatment of Alzheimer's disease.

Thus, due to the above-mentioned developments coupled with the growing burden of the disease, the segment is expected to witness significant growth over the forecast period.

The European Region Holds the Major Share in the Market and is Expected to Continue the Same Over the Forecast Period

The European region is expected to hold a major share of the market throughout the forecast period owing to factors such as the increasing burden of neurological disorders in countries such as the United Kingdom and Germany, the growth in strategic development by the market players operating in the industry, and increasing government initiatives.

As per a February 2022 update by the United Kingdom government, in December 2020, the estimated dementia and Alzheimer’s diagnosis rate was 62.4% in the United Kingdom. Thus, this number indicates the increasing patient pool within the country, which, in turn, drives the demand for dementia drugs in the United Kingdom.

Furthermore, as per the 2021 National Dementia Strategy, in Germany, 1.6 million people were living with dementia in 2020. As per the same source, dementia affects one person in every 25 households, and the number is expected to increase up to an estimated 2.8 million people by 2050. Thus, the increasing incidences of dementia among the European population are likely to propel the demand for dementia drugs in the European region, thereby contributing to the market growth.

Additionally, an increasing number of initiatives by the government in Germany are also contributing to the market's growth. For instance, as per the National Dementia Strategy, adopted in July 2020, the German government is taking initiatives to sustainably improve the living conditions of dementia patients and create sustainable structures for the future. Such developments are expected to fuel the research and development activities related to dementia, which further boost the development of dementia drugs in the country, thereby contributing to market growth.

Moreover, in February 2021, Exscientia collaborated with the Alzheimer’s Research United Kingdom University of Oxford Drug Discovery Institute (ARUK-ODDI) to develop medicines targeting neuroinflammation for the treatment of Alzheimer’s disease. The increasing company activities and increasing adoption of business strategies such as collaboration and partnerships are expected to increase the demand for dementia drugs, thereby boosting the market growth in the region.

Thus, due to the above-mentioned factors, the market is expected to witness significant growth during the forecast period.

Competitive Landscape

The dementia drugs market is moderately competitive and consists of local as well as global players. In an attempt to enhance their market position, the key players have been investing in new product development, collaborations, and strategic alliances such as mergers and acquisitions. Some of the major players in the market include Apotex Inc., AstraZeneca, Aurobindo Pharma, Eisai Co., Ltd., Eli Lilly and Company, Johnson & Johnson, Pfizer Inc., Teva Pharmaceuticals, and Zydus Cadila, among others.

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