Psychedelic Drugs Market

Psychedelic Drugs Market Research, 2032

The global psychedelic drugs market was valued at $0.7 billion in 2022, and is projected to reach $2.6 billion by 2032, growing at a CAGR of 13.4% from 2023 to 2032. Psychedelic drugs, also known as hallucinogens, are a class of psychoactive substances that can profoundly alter an individual's perception, mood, and consciousness, often resulting in intense sensory experiences and altered states of consciousness. These substances typically induce vivid and intense sensory experiences, often characterized by hallucinations, altered thinking patterns, and a distorted sense of time and reality. Common psychedelics include substances like lysergic acid diethylamide (LSD), psilocybin, methylenedioxymethamphetamine (MDMA), and dimethyltryptamine (DMT). 

“The 2023 recession has posed significant economic challenges for the psychedelic drugs market. The economic burden and high inflation rate are expected to negatively impact the psychedelic drugs market. However, surge in prevalence of mental disorders such as depression, post-traumatic stress disorder, and anxiety are expected to drive the growth of the market.”

Market Dynamics 

The psychedelic drugs market is expected to grow significantly, owing to surge in prevalence of mental disorder, rise in investment for research and development of psychedelic substances, and increased social acceptance of psychedelic drugs. 

The surge in the prevalence of mental disorders has emerged as a major driver for the burgeoning Psychedelic Drugs Market Growth. In recent years, mental health issues such as depression, anxiety, PTSD, and substance abuse have reached alarming levels worldwide. For instance, according to 2023 report by World Health Organization, a specialized agency of the United Nations responsible for international public health, it was estimated that globally, approximately 280 million people in the world have depression. Furthermore, according to 2023 report by Center for Advancing Health, a non-profit organization that aims to improve health outcomes by translating research on the behavioral, psychosocial, economic, and environmental determinants of health into practical action, it was estimated that 6% of 50 American adults will have gone through PTSD or post-traumatic stress disorder at some point in their lives.

The traditional treatments, including psychotherapy and pharmaceutical medications, have often proven inadequate in providing long-lasting relief for many patients. For instance, according to a 2023 report by National Library of Medicine, world’s largest biomedical library and a leader in research in computational health informatics, treatment-resistant depression is a common variant of major depressive disorder. As a result, there has been a growing interest in alternative therapeutic approaches, with psychedelic substances gaining prominence. Psychedelic drugs, including psilocybin, lysergic acid diethylamide, and methylenedioxymethamphetamine, have demonstrated remarkable potential in clinical trials for the treatment of various mental health disorders. Psilocybin, for instance, has shown promise in providing relief from depression and anxiety in cases where conventional treatments have failed. Thus, the rise in prevalence of mental illnesses is expected to drive the growth of the Psychedelic Drugs Industry. 

Furthermore, the surge in investment for research and development of psychedelic substances has emerged as a significant driver for the growth of Psychedelic Drugs Market Size. Over the past few years, there has been a remarkable shift in the perception of psychedelic compounds like psilocybin, LSD, and MDMA, from being associated with counterculture to being recognized for their potential therapeutic benefits. This paradigm shift has spurred significant interest from both private investors and government agencies in exploring the therapeutic applications of these substances.  For instance in 2020, Defense Advanced Research Projects Agency provided grant of $27 million to a team of internationally acclaimed researchers led by UNC School of Medicine to create better medicines for treating mental illness using the biochemistry of psychedelics and other psychoactive molecules.

The mounting body of scientific evidence suggesting that psychedelic drugs can be effective in treating mental health conditions such as depression, anxiety, and PTSD has fueled this investment. Biotechnology companies and research institutions are increasingly conducting clinical trials to better understand the safety and efficacy of psychedelic treatments. Thus, the rise in investment for research and development is expected to drive the growth of the Psychedelic Drugs Industry.  

In addition, increased social acceptance of psychedelic drugs is expected to positively impact the growth of the Psychedelic Drugs Market Size. Over the past few years, there has been a noticeable shift in public perception and attitudes toward psychedelic substances, moving away from the stigmatization and fear that once surrounded psychedelic drugs. Additionally, the decriminalization and legalization efforts for psychedelics in certain regions, such as the decriminalization of psilocybin mushrooms in several U.S. cities and the approval of MDMA-assisted therapy for PTSD in some clinical settings, have contributed to the normalization of these substances. As society continues to evolve in its views on psychedelics, this market is poised for substantial growth and innovation in the coming years. 

However, safety concerns regarding the use of psychedelic drugs are expected to act as a significant restraint for the psychedelic drugs market. Moreover, rising awareness toward mental health has emerged as a significant growth opportunity for the psychedelic drugs market. 

The 2023 recession has significantly impacted the psychedelic drugs market. The economic uncertainty due to the 2023 recession and the rising inflation rates has negatively impacted potential investment opportunity for the research and development of the psychedelic drugs market. 

Segmental Overview 

The psychedelic drugs market is segmented on the basis of drug type, application, end user, and region. By drug type, the market is categorized into ketamine, psilocybin, and other drug types. As per application, the market is categorized into mental health, abuse disorders, and other applications. On the basis of end user, the market is categorized into hospitals, mental health center, and other. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and rest of Europe), Asia-Pacific (Japan, China, Australia, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, and rest of LAMEA). 

By Drug Type  

The psychedelic drugs market is categorized into ketamine, psilocybin, and other drug types. The ketamine segment dominated the global Psychedelic Drugs Market Share in 2022 and is anticipated to continue this trend during the forecast period.  This is attributed to the adoption of ketamine to treat depression. However, the psilocybin segment is expected to register fastest CAGR owing to the high number of clinical trials on psilocybin to evaluate its therapeutic activity. 

By Application 

By application, the market is categorized into mental health, abuse disorders, and other applications. The mental health segment dominated the global Psychedelic Drugs Market Share in 2022 and is anticipated to continue this trend during the forecast period due to rise in prevalence of mental illness such as depression, anxiety, and post traumatic disorder. 

By End Users 

On the basis of end user, the market is categorized into hospitals, mental health center, and other. The mental health segment dominated the market in 2022 and is expected to remain dominant throughout the Psychedelic Drugs Market Forecast period, owing to high adoption of psychedelic drugs at mental health centers to treat mental illness.

By Region  

Region wise, the psychedelic drugs market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. On the basis of region, North America had the highest market share in 2022, owing to presence of major key players and surge in research and development to evaluate therapeutic effects of psychedelic drugs. However, Asia-Pacific is expected to exhibit fastest growth during the forecast period, owing to rise in substance abuse. 

Competition Analysis 

Competitive analysis and profiles of the major players, such as Johnson & Johnson, Numinus, Field Trip Health, Enveric Biosciences, Havn Life, PharmaTher, Psyched Wellness, Ceruvia Lifesciences, Apex Labs, and Braxia Scientific, are provided in the psychedelic drugs market report. Major players have adopted collaboration, product approval, acquisition, funding, and partnership as key developmental strategies to improve the product portfolio and gain a strong foothold in the psychedelic drugs market. 

Recent Collaboration in the Psychedelic Drugs Market  

In July 2022, Havn Life has entered into collaboration with Canadian non-profit TheraPsil and the UK’s Drug Science. The project will be the largest medical psilocybin and data project to date, providing a safe supply of psilocybin to patients in medical need. 

Recent Product Approval in the Psychedelic Drugs Market   

In August 2020, Johnson and Johnson announced that the U.S. Food and Drug Administration (FDA) has approved the supplemental new drug application (sNDA) for SPRAVATO (esketamine) CIII nasal spray, taken with an oral antidepressant, to treat depressive symptoms in adults with major depressive disorder (MDD) with acute suicidal ideation or behavior. 

Recent Acquisition in the Psychedelic Drugs Market 

In June 2022, Numinus Wellness Inc announced the acquisition of  Novamind Inc. As a result of the acquisition, Numinus now operates 13 wellness clinics, four clinical research facilities and a dedicated psychedelics research lab positioning the company as a leading integrated mental wellness company providing ketamine- and psychedelic-assisted therapies. 

Recent Funding in the Psychedelic Drugs Market  

In July 2021, Numinus Wellness Inc announced that Health Canada has cleared the MAPS-sponsored single-arm, open-label safety and feasibility study evaluating MDMA-assisted therapy for post-traumatic stress disorder (PTSD). 

Recent Partnership in the Psychedelic Drugs Market  

In April 2021, Numinus Wellness Inc  announced that it has formed a partnership with KGK Science, a leading contract research organization with expertise in natural products, to undertake a new Psilocybin extraction clinical trial. 

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the psychedelic drugs market analysis from 2022 to 2032 to identify the prevailing Psychedelic Drugs Market Opportunity.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the psychedelic drugs market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global psychedelic drugs market trends, key players, market segments, application areas, and market growth strategies.

 Psychedelic Drugs Market Report Highlights