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The Daily Insight Hub

How much do drugs cost the US yearly?

Author

Sophia Koch

Updated on January 31, 2026

The estimated cost of drug abuse in the United States—including illegal drugs, alcohol, and tobacco—is more than $740 billion a year and growing, according to data reported by the National Institute on Drug Abuse (NIDA.

How much can drug abuse cost the economy a year?

Drug and alcohol use in the United States costs $1.45 trillion in economic loss and societal harm annually. This includes $578 billion in economic loss and $874 billion dollars in societal harm through quality of life adjustment and premature loss of life.

How much money does drugs make a year?

With a world GDP of US$36 trillion in the same year, the illegal drug trade may be estimated as nearly 1% of total global trade. Consumption of illegal drugs is widespread globally and it remains very difficult for local authorities to thwart its popularity.

How much does the government spend on addiction?

The federal government spent $238.2 billion (9.6 percent of its budget) on substance abuse and addiction.

Why are drug prices so high?

New drugs have almost always come with a higher price to help offset the cost of their research and development and all the others that don’t make it to market. Federal price controls could be a possible answer, but that is difficult to implement in a country that prides itself on a free market economy.

Why drugs are so expensive in the US?

1. Lack of price regulation. At a basic level, drug manufacturers call the shots when it comes to how much American patients pay for their prescriptions. While the Food and Drug Administration regulates how new drugs are tested, marketed, and released on the market, they don’t have any price control over medications.

How much does substance abuse cost the US?

Substance abuse costs our Nation over $600 billion annually and treatment can help reduce these costs. Drug addiction treatment has been shown to reduce associated health and social costs by far more than the cost of the treatment itself.

What can be done to prevent drug abuse?

Here are the top five ways to prevent substance abuse:

  • Understand how substance abuse develops.
  • Avoid Temptation and Peer Pressure.
  • Seek help for mental illness.
  • Examine the risk factors.
  • Keep a well-balanced life.

What drug brings in the most money?

Best selling pharmaceuticals of U.S. Market

RankDrugTrade name
1adalimumabHumira
2apixabanEliquis
3etanerceptEnbrel
4ustekinumabStelara

How big is the illegal drug industry?

“With estimates of $100 billion to $110 billion for heroin, $110 billion to $130 billion for cocaine, $75 billion for cannabis and $60 billion for synthetic drugs, the probable global figure for the total illicit drug industry would be approximately $360 billion.

How much money does it cost to treat alcohol problems?

Untreated alcohol problems waste an estimated $184.6 billion dollars per year in health care, business and criminal justice costs, and cause more than 100,000 deaths. 4.

How much is spent on alcohol in the United States?

Twenty-five to forty percent of all patients in U.S. general hospital beds (not in maternity or intensive care) are being treated for complications of alcohol-related problems. 1 Annual health care expenditures for alcohol-related problems amount to $22.5 billion.

How much money is wasted by untreated alcohol problems?

Untreated alcohol problems waste an estimated $184.6 billion dollars per year in health care, business and criminal justice costs, and cause more than 100,000 deaths.

What are the statistics on the cost of substance abuse?

The purpose of the program was to send those charged with drug or alcohol-related crime to treatment instead of jail. And the efforts have paid off. Or rather, the treatment has payed off. the rate of people incarcerated for drug possession in the state dropped by 34.3%