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Learning Disability, Mental Health & Substance Abuse Facilities in the UK - Market Research Report (2014-2029)

Fiona Stalker Fiona Stalker London, United Kingdom Last Updated: September 2024 SIC Q87.200

Revenue

£1.7bn

2024-25

£1.7bn

Past 5-Year Growth

Profit

£XX.Xm

Employees

25,113

Businesses

1,164

Wages

£XXX.Xm

Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry analysis

Treating mental health conditions requires specialised staff that the Care Quality Commission scrutinises, so there's significant pressure on facilities. Degenerative health conditions like dementia, which can lead to mental health problems, are rising in line with the ageing population, boosting demand for facilities. Greater awareness of mental health issues, primarily driven by campaigns led by high-profile figures, has increased demand.

Trends and Insights

  • The cost of living crisis magnified the mental health crisis. The cost of living crisis and the COVID-19 pandemic years have increased the prevalence of depression and anxiety due to social isolation, heightened unemployment and financial troubles, overwhelming mental health facilities and straining an already struggling system.
  • Online counselling sessions have become popular. As mental health awareness has spread, demand for counselling services funded by NHS Talking Therapies has surged, leading to further governmental investment in mental health.
  • Those in the South East and London can afford private healthcare. Rising incomes in these regions make costly private mental health treatments accessible, despite the prevalent drug and substance abuse.
  • Acquisitions fuel industry consolidation. Robust acquisition activity has increased industry concentration, with larger companies like Cygnet Health boosting their scale and efficiency and developing new treatments through strategic acquisitions.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 4.3 % over the past five years, to reach an estimated £1.7bn in 2024.

Trends and Insights

There’s unprecedented pressure on mental health facilities

  • Even before the COVID-19 pandemic, rates of mental illness across the UK were on the rise. COVID-19 accelerated this trend.
  • Additional trends and insights available with purchase
Learning Disability, Mental Health & Substance Abuse Facilities in the UK
Revenue (2014-2029)
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Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Funding increases will target improvements in substance abuse facilities

  • As part of the 10-year Drug Strategy, the government allocated £780 million over the three years through 2024-25. This will help rebuild local authority-commissioned substance misuse services, improving quality, capacity and outcomes to raise capacity by 20% by the end of 2024-25.

Biggest companies in the Learning Disability, Mental Health & Substance Abuse Facilities in the UK

Company
Market Share (%)
2025
Revenue (£m)
2025
Cygnet Health UK Ltd
186.5
Gadwall Holdings Limited
183.3
Lifeways Community Care Ltd
132.7

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Learning Disability, Mental Health & Substance Abuse Facilities in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Counselling, Psychotherapy and Detox and rehabilitation programmes. Counselling is the largest segment of the Learning Disability, Mental Health & Substance Abuse Facilities in the UK.

Trends and Insights

Counselling online has become commonplace since the COVID-19 outbreak

  • Counselling, publicly funded through NHS Talking Therapies, involves discussing troubling situations with a trained professional and aims to outline solutions to life challenges.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Operators in this industry provide residential care for people with learning disabilities, mental illness or substance abuse problems. They provide room, board, protective supervision and counselling, as well as some health care. The industry excludes psychiatric hospitals and social work operations like homeless shelters. It also excludes licensed hospital care.

What's included in this industry?

CounsellingPsychotherapyDetox and rehabilitation programmesProfessional medical remediation Planning and support servicesPhysiotherapy

Companies

Cygnet Health UK LtdGadwall Holdings LimitedLifeways Community Care Ltd

Purchase this report to view all 4 major companies in this industry.

Related Terms

LEARNING DISABILITYSUBSTANCE ABUSEMENTAL HEALTH PROBLEMSCLINICAL COMMISSIONING GROUPSEXPOSURE THERAPYNEUROPSYCHIATRIC CONDITIONS

Industry Code

SIC 2007

SIC 87.20 - Learning Disability, Mental Health & Substance Abuse Facilities in the UK

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The cost of living crisis magnified the mental health crisis. The cost of living crisis and the COVID-19 pandemic years have increased the prevalence of depression and anxiet...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Online counselling sessions have become popular. As mental health awareness has spread, demand for counselling services funded by NHS Talking Therapies has surged, leading to...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Those in the South East and London can afford private healthcare. Rising incomes in these regions make costly private mental health treatments accessible, despite the prevale...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Acquisitions fuel industry consolidation. Robust acquisition activity has increased industry concentration, with larger companies like Cygnet Health boosting their scale and ...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Cygnet Health Care focuses on men's mental health. Established in 1988, Cygnet has been opening new facilities specifically to support men's mental health, such as a purpose-...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Cygnet Health UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Gadwall Holdings Limited's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Lifeways Community Care Ltd's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Cygnet Health UK Ltd, and factors influencing its performance in the industry
  • Description and key data for Gadwall Holdings Limited, and factors influencing its performance in the industry
  • Description and key data for Lifeways Community Care Ltd, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The NHS continues to prioritise mental health funding. As budgets tighten, the NHS is committed to increasing funds for mental health services faster than other NHS areas, en...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Care home profit margins are climbing. Despite earlier constraints such as labour costs and competition, the sector's profit is now recovering thanks to government funding an...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2018-2022)
  • Coverage Ratios (2018-2022)
  • Leverage Ratios  (2018-2022)
  • Operating Ratios (2018-2022)
  • Assets (2018-2022)
  • Liabilities (2018-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry in United Kingdom in 2024?

The market size of the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry in United Kingdom is £1.7bn in 2024.

How many businesses are there in the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry in 2024?

There are 1,164 businesses in the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry in United Kingdom, which has grown at a CAGR of 5.9 % between 2019 and 2024.

Has the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry in United Kingdom grown or declined over the past 5 years?

The market size of the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry in United Kingdom has been growing at a CAGR of 4.3 % between 2019 and 2024.

What is the forecast growth of the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry in United Kingdom over the next 5 years?

Over the next five years, the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry in United Kingdom is expected to grow.

What are the biggest companies in the Learning Disability, Mental Health & Substance Abuse Facilities in the UK market in United Kingdom?

The biggest companies operating in the Learning Disability, Mental Health & Substance Abuse Facilities market in United Kingdom are Cygnet Health UK Ltd, Gadwall Holdings Limited and Lifeways Community Care Ltd

What does the Learning Disability, Mental Health & Substance Abuse Facilities in the UK in United Kingdom include?

Counselling and Psychotherapy are part of the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry.

Which companies have the highest market share in the Learning Disability, Mental Health & Substance Abuse Facilities in the UK in United Kingdom?

The company holding the most market share in United Kingdom is Cygnet Health UK Ltd.

How competitive is the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry in United Kingdom?

The level of competition is moderate and increasing in the Learning Disability, Mental Health & Substance Abuse Facilities in the UK industry in United Kingdom.

Related Industries

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Competitors

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the UK include:

  • Office for National Statistics
  • Office for Budget Responsibility
  • Bank of England

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.