Dementia Treatment Market Size Trends

The global dementia treatment market is poised for significant expansion, with an estimated value of USD 18.03 billion in 2024. A CAGR of 8.0% is anticipated from 2025 to 2030, driven by rising geriatric populations, advancements in novel therapeutic products, and increased research and development efforts. The market's trajectory can be attributed, in part, to the alarming prevalence of dementia worldwide, with approximately 6.7 million individuals aged 65 and above in the U.S. currently living with Alzheimer’s disease dementia, a number expected to reach around 13.8 million by 2060.

The World Health Organization (WHO) reported a significant surge in dementia cases globally, with over 55 million individuals affected worldwide as of March 2023. The number is expected to rise dramatically, reaching 78 million by 2030 and 139 million by 2050. This alarming trend is further exacerbated by the discovery of approximately 10 million new cases every year. Developing economies, such as China, India, and Brazil, show a higher prevalence of dementia compared to other regions. The introduction of novel therapeutic products is expected to play a crucial role in supporting growth within this sector. Notably, Eisai Co., Ltd. announced the launch of Leqembi in the U.S. market in November 2023, with an ambitious goal to prescribe it to 10,000 patients by March 2024. Following FDA approval in July 2023, Leqembi is poised to become a vital treatment option for those affected by this debilitating disease.

Government and non-government entities are launching various initiatives to enhance overall healthcare services and promote awareness among the general public. The US Department of Health Human Services has released a comprehensive roadmap in December 2023, outlining strategies to boost research activities, increase treatment rates, improve health services for dementia patients, and reduce risk factors associated with the disease. Concurrently, Corium, Inc. announced the availability of Adlarity – a donepezil transdermal system – in September 2022, for prescription use in the US to treat mild, moderate, or severe dementia linked to Alzheimer's disease. The US FDA approved Adlarity for this purpose in March 2022, marking a significant milestone in addressing this complex health issue.

The government's financial aid initiative aims to accelerate the development of novel treatments for Alzheimer’s disease and related dementia by supporting promising drug candidates through clinical trials. Announced in November 2023, this funding opportunity will focus on phase 1 and 2 trials, providing a vital boost to the evaluation process. The strong pipeline of drugs currently undergoing clinical trials is expected to drive market growth. As of January 2023, there were 36 drugs in phase-3, 87 in phase-2, and 31 in phase-1 clinical trials.

Investment in research and development is expected to drive growth in the market by introducing novel biological and other drug classes. The promising outcomes from clinical studies on anti-amyloid antibodies have sparked interest, with trials showing notable results. For instance, lecanemab and donanemab, two promising drug candidates, demonstrated a 27% reduction in cognitive decline after 18 months of treatment and an 80% improvement in amyloid clearance in their respective phase-3 trials. These findings suggest a potential breakthrough in the fight against this debilitating disease.

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Indication Insights

The Alzheimer's disease dementia segment dominated the global market in 2024, accounting for a significant share of 59.8%, primarily due to the high prevalence of Alzheimer's cases, substantial treatment rates, and rising awareness among individuals. As highlighted by the World Health Organization (WHO), Alzheimer's disease is the most common form of dementia, responsible for approximately 60%-70% of all dementia cases. Furthermore, the upcoming approval of novel therapeutic drugs is expected to propel segment growth, as demonstrated by Eisai Co., Ltd.'s recent market approval in Japan for lecanemab to treat dementia caused by Alzheimer's disease in September 2023.

The Lewy body dementia segment is projected to expand at a remarkable pace, boasting a CAGR of 10.6% between 2025 and 2030. This growth is largely attributed to the rising incidence and severity of this debilitating health condition, which presents a more rapid onset than other forms of dementia. As a result, patients often experience a multitude of symptoms, leading to a sudden decline in their quality of life. The Lewy Body Society notes that LBD accounts for 15% of all disease forms, with forecasts indicating an upward trend in the coming years.

Drug Class Insights

The cholinesterase inhibitors segment dominated the market with a notable 44.2% share in 2024, driven by high prescription rates of donepezil, rivastigmine, and galantamine, which have yielded promising results. The segment's growth is also fueled by the growing adoption of transdermal formulations, boasting superior safety and effectiveness profiles. For example, in July 2024, Alpha Cognition Inc.'s ALPHA-1062 (Zunveyl), an Acetylcholinesterase inhibitor, received FDA approval for treating mild-to-moderate Alzheimer's disease in the U.S., further solidifying the market's momentum.

The combination drug market is anticipated to experience a significant surge in growth, projected to rise at a rate of 10.2% over the forecast period. The increasing adoption of combination therapy due to its superior efficacy and the burgeoning introduction of novel combination drugs are key drivers of this market's expansion. A notable example is Amneal Pharmaceuticals LLC's receipt of U.S. FDA approval for memantine/donepezil in January 2025, which targets moderate to severe Alzheimer’s dementia and comes with a 180-day exclusivity period in the U.S. The growing approval of cholinesterase inhibitors and NMDA receptor antagonist combinations globally is further fueling segment growth.

Route of Administration Insights

The oral route of administration dominated the market in 2023, accounting for a substantial 54.3% share. This widespread adoption can be attributed to the high penetration of oral medications like memantine, donepezil, rivastigmine, galantamine, and others. Additionally, the presence of numerous pharmaceutical companies offering these oral drugs, coupled with an increasing number of approvals, have significantly contributed to the segment's expansion. For example, in December 2024, Cognition Therapeutics announced promising results from its Phase 2 SHIMMER study in the U.S., which demonstrated CT1812’s potential therapeutic benefits for dementia with Lewy bodies across various aspects, including behavioral and cognitive functions.

The injectable drug market is poised for rapid expansion, with a projected growth rate of 9.6% over the forecast period. Driven by significant investments in research and development (RD) activities, this segment is anticipated to experience substantial growth. Notably, the approval of innovative biological therapeutics has been a key factor contributing to the segment's momentum. The recent announcement by Eisai and Biogen, where they received regulatory approval for LEQEMBI (lecanemab), marks an exciting development in the treatment of mild cognitive impairment and mild Alzheimer’s disease dementia. Launch preparations are underway, indicating a promising future for this injectable drug. Furthermore, the increasing introduction of novel injectable drugs is expected to propel the segment growth significantly.

Regional Insights

The North America region has emerged as a leader in the global dementia treatment market, accounting for approximately 37.6% of total revenue share in 2024. The high prevalence of dementia cases in this region, coupled with the presence of prominent pharmaceutical companies actively involved in developing innovative treatments, is significantly contributing to the market's growth. The approval of REXULTI (brexpiprazole) by Health Canada in January 2024 is a notable example of the growing efforts to combat Alzheimer’s disease. Co-developed by Otsuka and Lundbeck, this medication aims to manage agitation associated with the condition. Government initiatives have also been supportive, creating an environment that fosters innovation and market expansion. The synergy between robust pharmaceutical development, government support, and high disease prevalence has positioned North America at the forefront of the global dementia treatment market.

U.S. Dementia Treatment Market Trends

The North American market for dementia treatment led the way in the U.S., accounting for a significant 83.5% revenue share by 2024, thanks to several key factors including strong player presence, favorable reimbursement policies and advancements in healthcare infrastructure, as well as collaborative efforts from government and non-profit organizations aimed at enhancing care services for those affected by dementia. For example, CuraSen Therapeutics, based in the U.S., recently kicked off a human clinical trial for its new neurodegenerative disease treatment, CST-3056, set to launch in late 2024. The company has secured a notable funding of USD 5.8 million from the Alzheimer’s Drug Discovery Foundation.

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Recent Developments

• In February 2025, the University of Edinburgh, UK, initiated a BHF-funded project led by Dr. Jing Qiu. The study explores Nrf2’s role in vascular dementia by targeting endothelial cells in the brain. It aims to identify therapeutic strategies and involves collaborative efforts.

• In July 2024, the FDA approved Alpha Cognition’s oral therapy ZUNVEYL for treating Alzheimer’s disease in the US, offering a novel dual mechanism of action and improved tolerability.

• In July 2024, the FDA approved Lilly’s Kisunla (donanemab-azbt) in the US. The Alzheimer’s treatment demonstrated up to 35% slower cognitive decline and was the first amyloid plaque-targeting therapy with a limited treatment duration.

• In February 2024, the FDA granted Breakthrough Therapy Designation to latozinemab in the U.S. Alector and GSK announced this, marking the drug’s potential for treating frontotemporal dementia due to a progranulin gene mutation (FTD-GRN).

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