Dementia and Alzheimer’s Disease Treatment Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Drug Class (Cholinergic/ Cholinesterase (ChE) Inhibitors, Memantine, Combination Drugs, Others), By Distribution Channel (Hospital Pharmacies, Retail Pharmacies, Online Pharmacies), By Region and Competition, 2020-2030F

Market Overview

Global Dementia and Alzheimer’s Disease Treatment Market was valued at USD 12.17 Billion in 2024 and is expected to reach USD 17.62 Billion by 2030 with a CAGR of 6.56%. As the global population continues to age, the incidence of neurodegenerative diseases such as Alzheimer’s is increasing at an alarming rate. This demographic shift is creating an urgent demand for effective treatment options, prompting pharmaceutical companies and research institutions to intensify their focus on the discovery and commercialization of innovative therapeutic solutions.

Traditionally, the treatment landscape has been dominated by symptomatic therapies, including cholinesterase inhibitors and NMDA receptor antagonists, which offer temporary relief but do not alter the course of the disease. However, recent advancements in neuroscience and biotechnology have led to the emergence of disease-modifying treatments that aim to target the underlying pathophysiology of Alzheimer’s disease, such as the accumulation of beta-amyloid and tau proteins. Despite this optimistic outlook, the market faces considerable challenges. The high failure rate in clinical trials and the complexity of Alzheimer’s pathology continue to hinder drug development.

Key Market Drivers

Growth in Healthcare Industry

The healthcare industry's global sales are estimated at over USD 4 trillion annually. The most significant and high-margin sub-sectors include pharmaceuticals and biotechnology, generating just under USD 850 billion, along with medical technology and diagnostics, which contribute more than USD 400 billion. The global healthcare industry's steady expansion has emerged as a major driver of the dementia and Alzheimer’s disease treatment market. With rising life expectancy and improved access to medical services, the healthcare sector is increasingly focused on addressing complex, age-related neurological disorders. This shift is leading to greater investment in research, diagnostics, and treatment options specifically aimed at neurodegenerative diseases such as Alzheimer’s and other forms of dementia.

One of the key factors contributing to this trend is the demographic shift toward an aging global population. By 2030, 1 in 6 people in the world will be aged 60 years or over. By 2050, the global population of individuals aged 60 and above is projected to double, reaching 2.1 billion. Meanwhile, the number of people aged 80 years or older is expected to triple between 2020 and 2050, reaching 426 million. As the proportion of elderly individuals grows, so does the incidence of dementia-related conditions. Healthcare systems worldwide are responding by prioritizing early diagnosis and developing therapeutic strategies to slow cognitive decline, manage symptoms, and improve the quality of life for affected individuals. This growing patient pool is prompting healthcare providers and pharmaceutical companies to expand their offerings, thereby stimulating growth in the treatment market.

Surge in Technological Advancements

The global dementia and alzheimer’s disease treatment market is undergoing a significant transformation, largely driven by rapid technological advancements. The donepezil transdermal patch, branded as Adlarity, received FDA approval in 2022 for the treatment of mild, moderate, and severe Alzheimer’s-type dementia. It provides enhanced convenience over the once-daily rivastigmine patch. Additionally, the use of nanocarriers is being investigated to facilitate the delivery of these cholinesterase inhibitors via intranasal administration, intravenous injection, and alternative routes. These innovations are reshaping how the disease is diagnosed, monitored, and treated, offering new hope in managing a condition that has long posed substantial medical and societal challenges.

One of the most impactful developments is the emergence of disease-modifying therapies, particularly those based on monoclonal antibodies targeting amyloid plaques and tau proteins. Unlike traditional symptomatic treatments, these advanced therapies aim to slow the progression of the disease by addressing its underlying causes. Their introduction represents a paradigm shift in therapeutic approaches and has significantly contributed to renewed interest and investment in Alzheimer’s research and development.

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Key Market Challenges

High Cost of Treatment and Care

The high cost of treatment and care represents a major challenge in the global dementia and Alzheimer’s disease treatment market. As the prevalence of these neurodegenerative conditions rises with aging populations, the financial burden on healthcare systems, patients, and caregivers is intensifying. The expenses associated with managing Alzheimer’s disease extend far beyond the cost of pharmaceuticals, encompassing long-term care, specialized nursing support, frequent medical visits, and assistance with daily living activities many of which are not fully covered by insurance or public healthcare programs in several countries.

The introduction of disease-modifying therapies, while a positive development from a clinical standpoint, has further elevated cost concerns. These new treatments often come with high price tags due to complex manufacturing processes, rigorous regulatory compliance, and the intensive R&D required to bring them to market. For example, monoclonal antibodies targeting amyloid-beta proteins require ongoing monitoring through imaging and laboratory diagnostics, adding to the overall cost of care. These expenses can place a considerable strain on national healthcare budgets and limit the accessibility of innovative therapies, particularly in low- and middle-income countries where infrastructure for administering such treatments may also be lacking.

Key Market Trends

Advancement in Tau-Targeted Therapies

One of the most significant trends shaping the global dementia and Alzheimer’s disease treatment market is the growing focus on tau-targeted therapies. ACI-35 is a noteworthy Alzheimer’s disease (AD) vaccine that is liposome-based and specifically targets p-tau396404. It has demonstrated both safety and tolerability in patients with AD. As scientific understanding of the pathophysiology of Alzheimer’s disease evolves, tau protein has emerged as a critical therapeutic target alongside amyloid-beta. The accumulation of abnormal tau proteins, which form neurofibrillary tangles inside neurons, is increasingly recognized as a key driver of neurodegeneration and cognitive decline in Alzheimer’s and related dementias.

Traditional treatment approaches have largely focused on managing symptoms or targeting amyloid plaques; however, the limited success of these therapies has shifted the industry's attention toward tau pathology. As a result, several biopharmaceutical companies and research institutions are investing heavily in the development of tau-targeted therapies. These include monoclonal antibodies, antisense oligonucleotides, and small molecule inhibitors designed to block tau aggregation, prevent its spread, or promote its clearance from the brain.

Segmental Insights

Drug Class Insights

Based on Drug Class, Cholinergic/ Cholinesterase (ChE) Inhibitors have emerged as the fastest growing segment in the Global Dementia and Alzheimer’s Disease Treatment Market in 2024. One of the primary factors supporting this growth is the increasing global prevalence of Alzheimer’s disease, particularly among the aging population. As the number of diagnosed patients rises, so does the demand for accessible, clinically validated treatment options. ChE inhibitors such as donepezil, rivastigmine, and galantamine are widely prescribed because they are among the few pharmacological therapies approved for symptomatic management. These drugs work by increasing levels of acetylcholine in the brain, a neurotransmitter crucial for memory and learning, thereby helping to stabilize or slow the progression of cognitive symptoms.

Distribution Channel Insights

Based on Distribution Channel, Hospital Pharmacies have emerged as the fastest growing segment in the Global Dementia and Alzheimer’s Disease Treatment Market during the forecast period. The rise in hospital admissions of dementia patients, particularly among the elderly population with comorbid conditions, has significantly increased the demand for hospital-based pharmaceutical services. Hospital pharmacies are well-equipped to manage high-value medications, such as monoclonal antibodies and emerging disease-modifying therapies, which often require cold-chain logistics, dosage customization, and clinical oversight capabilities that retail or online pharmacies may lack.

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Regional Insights

Based on Region, North America have emerged as the dominating region in the Global Dementia and Alzheimer’s Disease Treatment Market in 2024. A primary driver of this dominance is the robust presence of leading pharmaceutical and biotechnology companies in the United States and Canada, including Biogen, Eli Lilly, and Eisai. These firms are at the forefront of developing and commercializing innovative treatments such as amyloid-targeting monoclonal antibodies, including recently approved drugs like Leqembi (lecanemab) and Kisunla (donanemab). Their early success in clinical trials and expedited approvals through the U.S. FDA’s accelerated pathways have enabled rapid market penetration.

Recent Development

• In June 2024, Eisai Co., Ltd. and Biogen Inc. announced the official launch of their humanized anti-soluble aggregated amyloid-beta (Aβ) monoclonal antibody, LEQEMBI, in China. This follows regulatory approval granted in January 2024 for the treatment of mild cognitive impairment (MCI) due to Alzheimer’s disease (AD), as well as mild AD dementia. With this development, China becomes the third country after the United States and Japan to introduce LEQEMBI to its healthcare market. The therapy works by selectively targeting and binding to soluble Aβ aggregates (protofibrils) and insoluble Aβ aggregates (fibrils), the latter being a key component of amyloid plaques associated with AD. Through this mechanism, LEQEMBI reduces the presence of both protofibrils and plaques in the brain. It is the world’s first and only approved treatment that demonstrably slows disease progression and mitigates cognitive and functional decline by acting on this pathological pathway.
• In July 2024, the U.S. Food and Drug Administration (FDA) approved Kisunla (donanemab-azbt, 350 mg/20 mL once-monthly injection for IV infusion), developed by Eli Lilly and Company, as a treatment for adults with early symptomatic Alzheimer’s disease (AD). This includes individuals diagnosed with mild cognitive impairment (MCI) or mild dementia due to AD, with confirmed amyloid pathology. Kisunla is the first and only amyloid plaque-targeting therapy supported by clinical evidence allowing treatment discontinuation once amyloid plaques are cleared, offering the potential for reduced treatment costs and fewer infusions.
• In July 2024, researchers at the University of Texas Medical Branch reported a breakthrough in the treatment of neurodegenerative disorders, including Alzheimer’s disease and dementia. Published in Science Translational Medicine, the study introduced a novel nasal spray therapy that demonstrated promising outcomes in reducing toxic tau protein accumulation and enhancing cognitive performance in aged mouse models affected by these conditions. The research team, led by Dr. Kayed, engineered a specialized antibody, TTCM2, designed to selectively identify and neutralize harmful tau aggregates. To facilitate efficient brain delivery, the antibody was encapsulated in carrier particles and administered intranasally. This delivery approach effectively circumvents the blood-brain barrier a major challenge in neurodegenerative treatment allowing for rapid and targeted therapeutic action.
• In October 2024, the European Brain Council (EBC), in collaboration with the European Federation of Pharmaceutical Industries and Associations (EFPIA), unveiled the “Rethinking Alzheimer’s Disease Pathway: From Diagnosis to Care” Perspective Paper in observance of World Alzheimer’s Month. This strategic publication delivers an in-depth evaluation of current clinical practices, identifies persistent challenges, unmet needs, and systemic barriers, and puts forward targeted policy recommendations. The overarching objective of the report is to reconfigure the Alzheimer’s disease healthcare pathway in a manner that not only enhances diagnostic and therapeutic outcomes and improves the quality of life for patients and caregivers, but also alleviates the long-term societal and economic impact of the disease.

Key Market Players

• Merz Pharma GmbH & Co. KGaA
• Novartis AG
• Pfizer, Inc.
• Ono Pharmaceutical Co., Ltd.
• Johnson & Johnson Services, Inc.
• H. Lundbeck A/S
• F. Hoffmann-La Roche Ltd.
• AbbVie Inc.
• Eli Lilly and Company
• Corium, Inc.

Report Scope

In this report, the Global Dementia and Alzheimer’s Disease Treatment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Dementia and Alzheimer’s Disease Treatment Market, By Drug Class:

o   Cholinergic/ Cholinesterase (ChE) Inhibitors

o   Memantine

o   Combination Drugs

o   Others

• Dementia and Alzheimer’s Disease Treatment Market, By Distribution Channel:

o   Hospital Pharmacies

o   Retail Pharmacies

o   Online Pharmacies

• Dementia and Alzheimer’s Disease Treatment Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Dementia and Alzheimer’s Disease Treatment Market.

Available Customizations:

Global Dementia and Alzheimer’s Disease Treatment Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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