Last Updated on August 29, 2025
Table of Contents
The overall impact of illegal drugs and substance abuse on American society is massive. According to the Centers for Disease Control and Prevention (CDC), drug overdose deaths have risen from 16,849 in 1999 to 80,391 in 2024. In terms of finances, the numbers are just as grim.
| Year | Overdose Deaths (approx.) | Trend / Notes |
|---|---|---|
| 1999 | 16,849 | Baseline point |
| 2017 | 70,237 | Sharp rise from 1999 |
| 2022 | 107,941 | New record high |
| 2023 | 105,007 | Slight decline; rate—31.3 per 100,000 |
| 2024 | 80,391 (provisional) | Significant drop—lowest since 2019 |
The Financial Cost of Illegal Drug Abuse in America
The National Drug Intelligence Center (NDIC) estimates that substance abuse costs an estimated $700 billion annually per year in diminished productivity, lower labor force participation, incarceration, premature death, ER and hospital expenses, and treatment programs.
| Category | Annual Estimated Cost |
|---|---|
| Tobacco, Alcohol, Illicit Drugs (combined) | >$700 billion |
| Illicit Drugs Alone | $193 billion |
| Alcohol Misuse | $249 billion |
Although 90 percent of Americans ages 12 and over don’t use any illegal drugs and do not use prescription drugs non-medically, they still pay taxes that contribute to overall substance abuse. For example, in 2007, taxpayers paid more than $193 billion in lost productivity, health care expenses, and criminal justice expenditures due to substance abuse.
In 2024, and the opioid epidemic alone has escalated this burden to $4 trillion nationwide. Out of that, the federal government (i.e., taxpayers) is estimated to cover $118 billion—just in Medicare returns, lost tax revenue, and costs of policing and incarceration tied to the opioid crisis.
These numbers underscore a sobering reality: even as fewer Americans may be involved in substance misuse, the financial consequences—especially from opioids—have ballooned dramatically.
| Year | Context / Category | Cost (approx.) |
|---|---|---|
| 2007 | Substance abuse (lost productivity, healthcare, criminal justice) | > $193 billion |
| 2024 | Opioid use disorder overall economic burden | $4 trillion total; Federal taxpayer portion ~ $118 billion |
Unfortunately, despite the negative effects of illegal drugs, substance use is a profitable business. Revenues from the sale of alcohol alone reached $253 billion in 2018, an increase of 5.1 percent or $12.4 billion.
The alcohol industry remains highly lucrative: U.S. alcohol sales climbed to approximately $260 billion in recent years—a modest rise from $253 billion in 2018. Yet within the spirits segment—a key part of that market—alcohol revenues dropped from $37.7 billion in 2023 to $37.2 billion in 2024, signaling shifting consumer habits and market pressures.
People who use drugs in the United States not only suffer from harmful damage to their own lives and health but those effects ripple outward to affect those around them. The overall societal costs of substance abuse in terms of disease, premature death, lost productivity, crime, unwanted and unplanned sex, substance abuse prevention efforts, law enforcement, prosecution, incarceration, and probation far outweigh even the sales revenues of addictive substances like alcohol, cigarettes, and illegal drugs.5 Everyone pays these costs, not just the substance user.
However, we often turn a blind eye to the amount of money spent on illegal substances. To get a better understanding of changes in substance abuse outcomes and policies, it’s important to look at the markets for commonly abused illegal substances like methamphetamine, heroin, marijuana, and cocaine. Not only that, but it’s eye-opening to find out how much money Americans actually spend on these drugs and how much is consumed.
We consulted several different reports to find detailed information about the monetary cost of substance abuse in America and here is what we found.
How Many Chronic Drug Users are there in the U.S.?
Although the estimated number of cocaine users in the U.S. decreased from 2006 to 2016, there are now more heroin, methamphetamine and marijuana users in America today than there were over a decade ago. The population of marijuana users, especially, has grown significantly, increasing nearly 30 percent in the six years between 2010 and 2016 alone.6
Since 2016, substance use trends in the U.S. have shifted dramatically. Marijuana use has surged from approximately 24 million users in 2016 to nearly 62 million in 2023, meaning more than one in five Americans aged 12 and older reported using marijuana in the past year. Cocaine use has also climbed significantly, increasing from about 1.9 million users to 5 million over the same period. Methamphetamine use, which wasn’t separately detailed in earlier surveys, now accounts for 2.6 million users—about 0.9% of the population. Heroin use remains lower overall, with around 660,000 people using it in the past year. These updated figures confirm that while cocaine use is rising again, the more dramatic increases are seen in marijuana, methamphetamine, and heroin use—highlighting an escalating pattern of substance use nationwide.
The number of chronic heroin users in the U.S. increased by more than 40 percent from 2006 to 2016. Chronic heroin use has also expanded into rural areas instead of remaining concentrated in urban areas, as it historically has. This can be attributed to the ongoing opioid crisis in America.
Since 2016, chronic heroin use in the U.S. has climbed sharply—by over 40%—and the opioid crisis has no longer been confined to urban centers. By 2021, approximately 1.1 million Americans (0.4% of those aged 12+) reported using heroin in the past year. Although overdose rates remain higher in cities, rural communities are now seeing nearly comparable levels—into 2020, heroin overdose mortality in rural counties reached 3.2 per 100,000, only slightly lower than the 4.2 per 100,000 observed in urban areas. This longstanding rural spread highlights how heroin dependency has permeated communities once seen as insulated from the epidemic.
Freedom Starts Here. Take Back Your Life Today.
Same-Day Admissions in Austin Available.
How Much Money Do Chronic Drug Users in America Spend on Drugs?
Drug users in the U.S. spent nearly $150 billion on cocaine, heroin, and methamphetamine in 2016.6 The marijuana market has grown substantially and is now the size of the cocaine and meth markets combined. The spending habits of heroin users also show that they spend more money annually on heroin than other drug users spend on their drug of choice.
By 2017, overall illegal drug spending was estimated at $153 billion—a figure that underscores the scale of the underground economy. More recent estimates place the total economic impact of all substance-related addiction, spanning illegal drugs, alcohol, and tobacco, at over $740 billion per year—and for opioids specifically, up to $1.5 trillion annually as of 2020.
The amount of money daily cocaine users spent on cocaine decreased by 63 percent from 2006 to 2016. Cocaine expenditures of less frequent users also dropped by 55 percent during that time period.
While daily cocaine users saw a dramatic drop in spending (‑63%) from 2006 to 2016, recent estimates show that maintaining the habit now costs nearly $50,000 a year—a stark reminder that addiction remains expensive. At the same time, fentanyl has transformed the raw economics of substance abuse. With street prices as low as $3–$5 per bag and approximately $8 per dose in some areas, users can spend as little as $30 to over $100 a day, totaling up to $40,000 annually. Its cheap availability, paired with extreme potency, fuels both addiction and tragedy.
Heroin use has become significantly more expensive over time. While daily users spent about 39% more in 2006–2016, the financial burden today is even more pronounced. With the average cost around $150–$200 per gram, individuals using a gram a day now face expenses between $66,000 and $88,000 each year—a staggering sum that underscores both the persistence and escalation of heroin-related financial strain.
Methamphetamine expenditures also increased 80 percent by 2016, despite a reduction from 2008 to 2011 due to efforts like the Combat Methamphetamine Epidemic Act of 2005. Less frequent meth users also spent more money on their drug of choice, with a 76 percent increase from 2006 to 2016.
Methamphetamine spending has sharply surged in recent years: users navigating a market where purity and location dictate prices—which today range from $20 to $60 per gram—end up spending between $12,800 and $38,300 annuallyto sustain severe addiction. At the same time, the legal environment has shifted in response. In 2022, meth was federally designated an “emerging drug threat,” triggering a strategic response from national drug policy agencies. Meanwhile, Oregon reversed its earlier decriminalization in 2024, turning meth possession back into a misdemeanor—though courts may still redirect individuals toward treatment. Federally, sentencing reforms proposed in 2025 seek to eliminate archaic punishments tied to drug purity, ensuring fairness now that high-grade “ice” is the norm.
| Drug | Estimated Expenditures on Illegal Drugs in 2006 |
Estimated Expenditures on Illegal Drugs in 2016 |
Estimated Expenditures on Illegal Drugs in 2025 |
|---|---|---|---|
| Cocaine | $58 billion | $24 billion | $50 billion |
| Heroin | $31 billion | $43 billion | $66–88 billion |
| Marijuana | $34 billion | $52 billion | $61.8 billion |
| Methamphetamine | $22 billion | $27 billion | $12.8–38.3 billion |
| Total (all four drugs) | $145 billion | $146 billion | ~$190–238 billion |
How Much Cocaine, Heroin, and Meth Do Chronic Drug Users in the U.S. Use?
Consumption of cocaine in the U.S. decreased dramatically from 2006 to 2016 while the consumption of heroin nearly doubled from 27 pure metric tons to 47 pure metric tons. With each passing year between 2010 and 2016, heroin consumption increased another 10 percent.
Cocaine consumption in the U.S. subtly bounced back after 2016—by 2019, about 1.8% of adults over 25 reported using it in the past year, up slightly from earlier decades. While comparable tonnage data is limited, this suggests a modest resurgence in use. On the heroin front, after a decade of explosive growth in both consumption and fatalities, the trend has shifted: heroin-related overdose deaths have dropped dramatically—from more than 15,000 in 2016 to just under 4,000 in 2023. While research lacks exact figures for volume consumed, this downward trajectory signals a meaningful change in the heroin epidemic’s scope.
Although opioid use generally claims all the media attention, methamphetamine consumption has skyrocketed to 171 pure metric tons in 2016, compared to just 50 pure metric tons ten years prior.
After peaking around 2016 with estimated nationwide consumption of 171 pure metric tons, meth seizures dropped significantly to around 119 metric tons in 2022, suggesting a potential decline in availability or shifts in trafficking routes. Still, the meth crisis shows no signs of subsiding—rising overdose deaths and expanded illicit production underscore that, even if volume dips, methamphetamine remains a severe and persistent threat.
Efforts to Reduce Spending on Alcohol and Drugs
Aside from making addictive substances illegal and more difficult to obtain, state lawmakers may also impose or raise excise taxes. Of course, this could only apply to legal substances, such as alcohol or cigarettes. Lawmakers may also focus on positive marketing efforts, drug abuse education for teens and young people, and promotion of the skills and tools teens need to stay sober and practice safe use of substances like prescription drugs.
Even still, educating, limiting access to a substance, discouraging people from purchasing it with higher prices, or funneling those purchases to specific locations like liquor stores may help curb alcohol and nicotine abuse, but it won’t prevent individuals from getting their hands on illegal drugs if that’s what they are determined to do.
For those who are already addicted, long-term addiction treatment programs are effective and less expensive than an individual’s overall costs of incarceration, lost productivity, lost property, and medical expenses related to their substance abuse.
Although addiction treatment takes time and continued efforts from all those affected (such as immediate family members), it provides life-altering education, behavioral therapy, skills, and support to help reduce not only the financial burden associated with substance abuse, but also other societal costs like disease, crime, lost productivity, and more.
There is no simple solution to the drug abuse and addiction problem in America, but encouraging addicted individuals to complete a long-term and comprehensive addiction treatment program is one way we can help those who are struggling.
If you or a loved one is suffering from a substance use problem or addiction, please call (512) 605-2955 today to speak with a Nova representative about your treatment options.
References:
- https://www.drugabuse.gov/related-topics/trends-statistics/overdose-death-rates
- https://www.justice.gov/archive/ndic/pubs44/44731/44731p.pdf
- https://www.addictionpolicy.org/blog/tag/research-you-can-use/what-we-spend-on-drugs
- https://www.thedrinksbusiness.com/2019/01/us-alcohol-sales-increased-by-5-1-in-2018/
- https://hpi.georgetown.edu/abuse/
- https://www.rand.org/pubs/research_reports/RR3140.html
Other Drug and Alcohol Rehab Locations
Add Your Heading Text Here
How much money do Americans spend on illegal drugs?
Americans spent nearly $150 billion annually on cocaine, heroin, marijuana, and methamphetamine as of 2016. In 2017, illegal drug spending rose slightly to around $153 billion. More recent estimates suggest that illicit opioids alone cost Americans over $2.7 trillion in total impact by 2023.
What are the drug trends in the U.S. today?
Spending on cannabis rose from about $34 billion in 2006 to $52 billion in 2016, making the marijuana market roughly the size of the combined cocaine and meth markets. By 2025, it’s grown even larger. While cocaine spending dropped sharply by 2016, heroin and meth saw significant increases, especially during the height of the opioid crisis.
What’s the economic impact of drug use?
Substance misuse costs the U.S. far more than just the price of the drugs themselves. It drains productivity, inflates healthcare spending, and burdens the criminal justice system. In 2015, the opioid epidemic alone cost an estimated $504 billion. Broader societal costs tied to addiction across all substances have reached over $520 billion annually.
What are the latest overdose death statistics?
By 2021, overdose deaths reached an all-time high, with more than 106,000 fatalities in a single year. Synthetic opioids like fentanyl were the primary cause. Fentanyl-related deaths alone rose from about 2,600 in 2011 to over 70,000 by 2021.
What is the scope of drug trafficking in the U.S.?
In 2023, over 19,000 drug-related cases were reported across the country, with trafficking offenses accounting for more than 98% of them. Major transportation hubs, including airports, have become key distribution points in the growing domestic and international drug trade.
What do DEA budgets look like for drug enforcement?
In 2018, the DEA operated on a budget of roughly $2 billion. About $1.6 billion was allocated for domestic enforcement, while another $445 million supported international efforts and coordination.
How much do heavy users spend daily?
A daily cocaine user may spend upwards of $80 per day, totaling tens of thousands of dollars annually. In contrast, heavy heroin users might spend between $438 and $1,750 per week—amounting to anywhere from $22,000 to over $90,000 each year, depending on usage and local pricing.
