Psychedelic Drugs Market Size, Share, Industry, Forecast and outlook (2024-2031)

Psychedelic Drugs Market is Segmented By Drug Type (Lysergic Acid Diethylamide, Gamma Hydroxybutyric Acid, Ketamine, Psilocybin, Others), By Application (Treatment-Resistant depression, Opiate addiction, Post- Traumatic stress disorder, Narcolepsy, Panic Disorders, Others), By Distribution Channel (Hospital Pharmacies, Retail pharmacies, Online Pharmacies), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031.

Psychedelic Drugs Market Size

The Global Psychedelic Drugs Market size reached USD 3.9 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 9.9 billion by 2030. The Global Psychedelic Drugs Market is exhibiting at a CAGR of 12.6% during the forecast period 2023-2030. The psychedelic drugs market has experienced significant growth and renewed interest in recent years.

Research into the therapeutic potential of psychedelics has expanded, particularly for mental health disorders. Some companies have emerged to develop and commercialize psychedelic-based treatments. Regulatory attitudes toward psychedelics have evolved, with certain regions easing restrictions and allowing research and medical applications. 

The psychedelic drugs market is driven by factors such as the increasing acceptance of psychedelic-assisted therapy, rising mental health concerns, increasing awareness towards mental health, rapid expansion in the research and development in exploring novel treatments, and technological advancements.

Psychedelic Drugs Market Scope

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Psychedelic Drugs Market Dynamics

Increasing Acceptance of Psychedelic-Assisted Therapy

Growing evidence from clinical trials and research studies has demonstrated the potential therapeutic benefits of psychedelics in treating mental health conditions such as depression, anxiety, and PTSD. This increased acceptance has generated interest and investment in psychedelic-based treatments.

For instance, in January 2023, Field Trip Health & Wellness, a global leader in the delivery of psychedelic therapies, launched Field Trip Online Therapy, a unique approach to psychotherapy that leverages contemporary talk therapy, integrative wellness tools and insights derived from being one of the largest global providers of psychedelic-assisted treatments.

Rising Mental Health Concerns

The rising mental health concerns are also a significant factor expected to dominate the market share during the forecast period. The global burden of mental health disorders has been on the rise, creating a demand for innovative treatments. As traditional approaches have limitations, psychedelic drugs offer a potential alternative that has shown promising results in addressing treatment-resistant mental health conditions.

For instance, in February 2023, The University of California, Davis, launched the Institute for Psychedelics and Neurotherapeutics to advance basic knowledge about the mechanisms of psychedelics and translate it into safe and effective treatments for diseases such as depression, post-traumatic stress disorder, addiction, Alzheimer’s disease, and Parkinson’s disease, among others. The new institute will bring together scientists across various disciplines and partner with the pharmaceutical industry to ensure that key discoveries lead to new medicines for patients.

Side Effects  of Psychedelic Drugs

Side effects and associated risks can raise safety concerns among regulatory authorities, policymakers, and the general public. This can result in stricter regulations and barriers to market entry for psychedelic-based treatments and research. Stringent regulations can slow the progress of clinical trials, impede product development, and limit the availability of these therapies.

The perception of psychedelics as illicit drugs with potential risks and adverse effects can create stigma and negative public opinion. This stigma can hinder public acceptance, limit the adoption of psychedelic-based treatments, and make it challenging for companies operating in this space to gain trust and support from investors and healthcare providers.

Psychedelic Drugs Market Segment Analysis

The Global Psychedelic Drugs Market is segmented based on drug type, application, distribution channel, and region.

Based on Drug Type, Psilocybin Segment is Expected to Dominate the Market Share 

Based on the drug type, the psilocybin segment is expected to dominate the market share during the forecast period. The market for psilocybins holds 41.2% of the market share in 2022. Psilocybin, the naturally occurring psychedelic compound found in certain mushrooms, has gained attention for its therapeutic potential in treating various mental health disorders.

Psilocybin has been studied in clinical trials for conditions such as depression, anxiety, addiction, and end-of-life distress. The preliminary results have shown promising outcomes, generating interest and investment in the development of psilocybin-based therapies.

For instance, in April 2023, Researchers at Queen’s University and Kingston Health Sciences Centre (KHSC) will soon begin recruiting patients to study the efficacy of psychedelic-assisted therapy for the treatment of alcohol use disorder (AUD). The Phase IIb clinical trial, sponsored by Vancouver-based Clairvoyant Therapeutics, will assess whether motivational enhancement therapy and the use of psilocybin can help those living with the disorder.

Source: DataM Intelligence Analysis (2023)

Psychedelic Drugs Market Geographical Share

North America Holds the Largest Market Share Due to Advanced Research, Clinical Trials And Technological Advancements.

North America holds 40.3%, the largest market share during the forecast period due to advanced research, clinical trials, and technological advancements. North America, particularly the United States, has been at the forefront of psychedelic research and clinical trials. 

Renowned institutions and universities in the region have conducted studies to explore the therapeutic potential of psychedelic drugs, attracting attention and investments from both the public and private sectors. The technological advancements in psychedelic drugs and treatments are also a driving factor for the psychedelic drugs market in North America.

Source: DataM Intelligence Analysis (2023)

Psychedelic Drugs Market Companies

The major global players include Compass Pathways, MindMed, Hikma Pharmaceuticals, Celon Pharmaceuticals, Cybin Corp, Pfizer Inc., Jazz Pharmaceuticals Inc., Atai Life Sciences N.V., PharmaTher Holdings Ltd, and GH Research PLC

COVID-19 Impact on Psychedelic Drugs Market 

The COVID-19 pandemic had a significant impact on the psychedelic drugs market. The pandemic led to disruptions in ongoing clinical trials, including those related to psychedelic drugs. Restrictions on in-person interactions, limited access to healthcare facilities, and diverted resources towards COVID-19 response affected the progress of trials and delayed data collection and analysis.

The pandemic has sparked conversations about mental health and the limitations of conventional treatments. This increased awareness has contributed to a shift in public perception, with more individuals open to considering alternative approaches such as psychedelic therapies. The pandemic has also created opportunities for virtual psychedelic experiences and digital mental health platforms.

Russia-Ukraine Conflict Analysis

The Russia-Ukraine war significantly impacted the psychedelic drugs market. The conflict can create uncertainty and impact investor sentiment. In such situations, investors may become more cautious and hesitant to invest in certain sectors, including the psychedelic drugs market. This caution can potentially affect funding and investment in research, development, and commercialization efforts.

The conflict can influence regulatory environments and policies, including those related to controlled substances and medical research. Changes in regulations or restrictions imposed by affected countries can indirectly impact the availability and progress of psychedelic drug research and development.

By Drug Type

• Lysergic Acid Diethylamide
• Gamma Hydroxybutyric Acid
• Ketamine
• Psilocybin
• Others 

By Application

• Treatment-Resistant Depression
• Opiate Addiction
• Post- Traumatic Stress Disorder
• Narcolepsy
• Panic Disorders
• Others 

By Distribution Channel

• Hospital Pharmacies
• Retail Pharmacies
• Online Pharmacies

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In May 2023, Small Pharma Inc., a biotechnology company focused on short-duration psychedelic-assisted therapies for mental health conditions, announced an update to its intellectual property ("IP") portfolio, demonstrating significant progress already made by the Company. 

Small Pharma aims to protect its pipeline programs through a multi-layered IP strategy with four core protection areas. These areas of protection include Composition of Matter, covering novel drug substances; Medical Use, covering therapeutic compositions and medical uses; Drug Product, covering pharmaceutical formulations; and Synthetic Route, covering the novel and efficient synthesis of high-purity drug substances at scale.

• In March 2023, Lucy Scientific Discovery Inc., a leading NASDAQ-listed psychedelic drug manufacturer, announced the launch of a new line of unscheduled psychoactive compounds available for sale throughout the United States and permitted throughout the rest of the world. 

The first line in the new family of brands contains Amanita Muscaria mushrooms, a psychoactive adaptogen. The product leverages the compounds of these mushrooms, and a proprietary blend of other natural functional ingredients, to create a transformative experience for consumers worldwide. This product line is named ‘Mindful by Lucy.’

• In May 2023, Incannex Healthcare announced that three of the world’s top psychedelic therapy and science experts with significant media profiles had joined the advisory board of its subsidiary Clarion Clinics Group.

Why Purchase the Report?

• To visualize the Global Psychedelic Drugs Market segmentation based on drug type, application, distribution channel, and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of psychedelic drugs market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Psychedelic Drugs Market Report Would Provide Approximately 54 Tables, 46 Figures  And 195 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies