Mental Health Therapy TAM
In the United States, the number of adults diagnosed with and seeking treatment for mental health conditions has grown by about 2.15 percent annually over the last several years. Assuming a similar growth rate over the next 10 years, there is projected to be a total addressable market (TAM) of 60.15 million adults with mental illness by 2029.
- As of 2017, just under 20 percent of the adult population in the United States was diagnosed with at least one mental health condition, representing a total addressable market of 46.6 million adults.
- Of that number, only 41 percent — or about 19.1 million people — sought treatment.
- In 2018, the number of U.S. adults diagnosed with a mental health condition grew to 47.6 million, representing a growth of 2.15 percent.
- Assuming a similar growth rate of 2.15 percent annually, the TAM for the mental health therapy industry will reach about 60.15 million by 2029.
- Assuming a similar rate of people — 41 percent — seeks mental health treatment, this means that there will be about 24.67 million American adults seeking mental health treatment, including mental health therapy, by 2029.
- Anxiety and depression are the most commonly-diagnosed mental health conditions in the United States and globally.
- Specifically, 3.76 percent of the adult population was diagnosed with an anxiety disorder.
- A further 3.44 percent of adults were diagnosed with depression.
Research Strategy and Calculations
We began our research by reviewing reports and data published by health and mental health organizations such as NAMI, WHO, and AHA. Specifically, we reviewed reports and studies published by these and other similar organizations to determine whether they'd published any information on the number of people seeking or in need of mental health therapy in the United States. In this way, we were able to determine the current number of people diagnosed with a mental health condition in the United States, as well as similar data for 2017. Unfortunately however, this method did not provide us with data projected out to the future or, more specifically, to 2029.
We next turned to industry and employment organizations, in the hope that such data would be published in connection with projected employment rates for the relevant time period. However, while we were able to find the projected employment rate via the Bureau of Labor Statistics (BLS), neither they nor any other similar site published the projected TAM for the industry.
Finally, we calculated an estimated growth rate based on the percent change in population data from 2017 to 2018. We then applied this percentage — 2.15 percent annually — to the next 10 years in order to determine an estimated TAM for the year 2029. Specifically, we found that the number of adults diagnosed with a mental health condition grew by 2.15 percent from 2017 to 2018. We then calculated the total growth should the addressable market continue to grow at an annual rate of 2.15 percent from 2018 to 2029. The findings of these calculations have been outlined above.