Market Size for Sober living in 2026 [Example]

The total available market (TAM) for sober living encompasses individuals seeking recovery from addiction worldwide. It's estimated that around 30 million people are in recovery from substance use disorders, with a significant proportion relying on sober living facilities. Assuming 20% of these individuals may opt for sober living arrangements, we arrive at a TAM of approximately 7 million people. Each person might spend about $6,000 annually on sober living programs and related expenses, totaling a TAM of around $40 billion per year.

The serviceable addressable market (SAM) is the portion of the TAM that can realistically be captured by a sober living facility. Given factors such as geographical limitations, marketing reach, and capacity, we can target about 10% of the TAM for sober living services. This leads to around 600,000 potential customers. If we consider that these individuals might spend approximately $6,500 per year on sober living services, the SAM translates to around $4 billion annually.

The serviceable obtainable market (SOM) represents the portion of the SAM that a single sober living facility can capture in its first year. For a sober living provider aiming for a realistic market share, capturing about 1-2% of the SAM seems feasible, given strategic outreach and marketing efforts. Thus, this means reaching around 10,000 customers. With each of these individuals spending around $6,000 in the first year, the SOM amounts to approximately $60 million.