Sleep Medication Global Market Report 2025

The sleep medication market size has grown strongly in recent years. It will grow from $23.94 billion in 2024 to $25.92 billion in 2025 at a compound annual growth rate (CAGR) of 8.3%.

Key factors driving historical growth include the increasing reliance on prescription sleep aids, a surge in chronic diseases that interfere with sleep, rising mental health concerns, a growing preference for OTC sleep products, and the expanding use of digital health and telemedicine services.

The sleep medication market size is expected to see strong growth in the next few years. It will grow to $35.3 billion in 2029 at a compound annual growth rate (CAGR) of 8%.

Forecasted growth will be fueled by a growing interest in personalized treatment approaches, heightened investments in sleep-related research, enhanced awareness via digital health tools, increasing popularity of herbal and natural sleep remedies, and a rising incidence of sleep apnea and other associated conditions. Key upcoming trends include innovation in drug delivery systems, improvements in sustained-release formulations, the emergence of wearable technologies for sleep tracking, digital tools incorporating cognitive behavioral therapy, and the creation of combination therapies targeting sleep disorders.

The increasing prevalence of mental illness is expected to drive the growth of the sleep medication market in the coming years. Mental illness encompasses a variety of mental health conditions that affect mood, cognition, behavior, and overall daily functioning. A significant contributor to the rise in mental illness is chronic stress, which can impair brain function and exacerbate mental health disorders. Sleep medications play a crucial role in managing mental illness by improving sleep quality, which is frequently compromised in these conditions. These medications help regulate the sleep-wake cycle, alleviate symptoms such as insomnia and anxiety, and improve overall mental and functional health. For example, in 2022, the National Institute of Mental Health reported that 59.3 million adults aged 18 and older in the United States experienced mental illness, representing 23.1% of the total adult population. This growing incidence of mental illness is thus fueling the expansion of the sleep medication market.

Companies in the sleep medication market are increasingly developing innovative solutions, such as dual orexin receptor antagonists (DORAs), to provide more targeted treatments for insomnia with fewer side effects and a lower risk of dependence. DORAs work by inhibiting the activity of orexin neuropeptides, which are responsible for promoting wakefulness, by blocking both orexin receptors (OX1R and OX2R). This mechanism helps regulate the sleep-wake cycle without directly sedating the brain. For instance, in January 2022, Idorsia Pharmaceuticals Ltd., a pharmaceutical company based in Switzerland, received approval from the U.S. Food and Drug Administration (FDA) for QUVIVIQ (daridorexant) 25 mg and 50 mg. This DORA treatment is intended for adult patients with insomnia and works by blocking wake-promoting orexins to support better sleep regulation.

In July 2024, Cosette Pharmaceuticals Inc., a U.S.-based pharmaceutical company, strengthened its presence in the U.S. sleep medicine market by acquiring Ambien (zolpidem tartrate), a fast-acting sleep medication, and Ambien CR tablets (6.25 mg once daily before bedtime) from Sanofi S.A. for an undisclosed amount. This acquisition adds well-established insomnia treatments to Cosette's portfolio. Sanofi S.A., headquartered in France, is a pharmaceutical company known for its development of sleep medications.

Major players in the sleep medication market are Pfizer Inc., Johnson & Johnson, Merck & Co. Inc., Sanofi S.A., Novartis AG, Takeda Pharmaceutical Company Limited, Teva Pharmaceutical Industries Limited, Eisai Co. Ltd., Sun Pharmaceutical Industries Limited, Perrigo Company plc, H. Lundbeck A/S, Aurobindo Pharma Limited, Dr. Reddy’s Laboratories Limited, Cipla Limited, Lupin Limited, Zydus Lifesciences Limited, Torrent Pharmaceuticals Limited, Alembic Pharmaceuticals Limited, Vanda Pharmaceuticals Inc., Natrol LLC.

Sleep medication refers to drugs specifically formulated to assist individuals in falling asleep more quickly, staying asleep longer, or enhancing the overall quality of their sleep. These medications are primarily used to manage sleep disorders such as insomnia by helping regulate the body's natural sleep-wake cycle.

Sleep medications are broadly categorized into prescription drugs and over-the-counter (OTC) options. Prescription drugs require authorization from a medical professional due to their strength, possible side effects, and the necessity for supervision. Sleep disorders addressed by these medications include insomnia, sleep apnea, restless legs syndrome, narcolepsy, sleepwalking, among others. These medications are further classified into categories such as benzodiazepines, antidepressants, antihistamines, sedating antipsychotics, and others. They are distributed through hospital pharmacies, online platforms, and retail pharmacies, catering to key end-users including hospitals, homecare settings, specialty centers, and others.

The sleep medication market research report is one of a series of new reports that provides sleep medication market statistics, including the sleep medication industry global market size, regional shares, competitors with the sleep medication market share, detailed sleep medication market segments, market trends, and opportunities, and any further data you may need to thrive in the sleep medication industry. This sleep medication market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

North America was the largest region in the sleep medication market in 2024. The regions covered in sleep medication report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the sleep medication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The sleep medication market consists of sales of hormonal sleep aids, anticonvulsants, cannabinoids, and combination medications. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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