Psychedelic Drugs Market

Psychedelic Drugs Market Size (2023 to 2028)

The global psychedelic drugs market is anticipated to be worth USD 8580 million by 2028 from USD 4167 million in 2023, registering a CAGR of 15.54% from 2023 to 2028. 

Psychedelic drugs are hallucinogenic components found naturally in seeds, trees, fungi and others or artificially made in laboratories with the help of certain chemicals. Psychedelics are said to have properties that induce altered perceptions and enhance sensory abilities. These drugs are said to increase brain activity, activeness, and energy levels in the body. They are supposed to be helpful drugs for treating psychological disorders like anxiety, PTSD, and depression and are effective in calming a person. There are different psychedelic drugs like LSD, DMT, mescaline, etc. Even though psychedelic drugs are believed to be helpful, they have certain restrictions on their production and sale because of their hallucinogenic properties. They need to be prescribed by a healthcare professional. 

Impact of COVID-19 on the global psychedelic drugs market:

The Covid 19 outbreak that has affected the entire world has caused some horrific incidents. Due to the excessive lockdowns and quarantines and the constrained production and supply of goods, all firms experienced losses. As a result, access to even the most essential elements of daily living grew progressively more challenging. The epidemic also significantly impacted the healthcare sector, and hospitals devoted their full attention to caring for covid patients. As a result, extra work for the healthcare department was frequently put off.

However, the market has positively affected the global psychedelic drugs market.

The pandemic caused distress all over the world. It led to a situation where people's stress levels rose, and more people experienced mental problems like depression, promoting the use of psychedelic drugs. In addition, psychedelic drugs are helpful in the prevention of suicidal tendencies, and the pandemic drove many families to financial, physical, and mental crises. Therefore, the need for psychedelic drugs was propelled after the advent of the pandemic, proving to be highly beneficial to its growth. 

MARKET DRIVERS:

The growing increasing number of mental disorders and depression cases worldwide is one of the key factors propelling the psychedelic drugs market.

Psychedelic drugs prevent suicidal tendencies and rehabilitate patients from opium abuse. In addition, they are said to have calming effects on the brain. The need to eradicate depression and anxiety-related cases are pushing the market as people are becoming more open to using psychedelic drugs. The high disposable income areas of the world, like the U.S., are now very open to using psychedelic drugs due to increased mental disorders among populations. According to reports from the National Institute of Health (NIH), around 21.0 million adults in the U.S. had a major depressive episode in 2020. 

Rising awareness regarding mental health to support the psychedelic drugs market growth.

Campaigns are being led, and advertisements are being published about the adverse effects of ignorance towards mental disorders, allowing people to accept the idea of psychedelic drugs openly. The symptoms of mental disease are now open to the public, and psychological problems are no longer taboo in society. They are being openly discussed, and companies, governments, and people are coming together to form preventive measures for these disorders. 

The rising research and development activities, government funding, mergers, acquisitions, and new projects are also helping the markets progress. In addition, psychedelic drugs are now more open for authorization than before. Finally, the pandemic has also played a part in favor of the market, further promoting the psychedelic drugs market growth. 

MARKET RESTRAINTS:

The growth of the psychedelic drugs market is anticipated to be hindered due to the high costs of manufacturing and purchasing. In addition, the approval and consumption of psychedelic drugs is a tedious process due to stringent regulations set by governments for passing medicines for patients' consumption. Therefore, the strict guidelines for approval also hinder the market's growth.

This research report on the global psychedelic drugs market has been segmented and sub-segmented based on type, source, drugs, route of administration, distribution channel, application, end-user & region.

Global Psychedelic Drugs Market – By Type: 

• Dissociatives
• Empathogens 
• Others

Empathogens, used to generate positive feelings and make a person feel content and empathetic towards people around them, are currently leading the market and are expected to continue leading during the forecast period. This is because while dissociatives might help the brain become more energetic, empathogens help suppress depressive and anxiety-prone behavior and may even prevent suicidal thoughts.

Global Psychedelic Drugs Market – By Source: 

• Natural 
• Synthetic

The synthetic psychedelics segment is expected to dominate the market during the forecast period as it is already the leading revenue. Drugs like LSD are among the most used psychedelics and are very popular. Synthetic psychedelics are more in use due to their safe usability and approval from the government testing departments. In addition, synthetic drugs are easier to find and made with utmost precaution for the consumer.

Global Psychedelic Drugs Market – By Drugs: 

• Ketamine
• Psilocybin
• Gamma-hydroxybutyric
• Others

The market is being led by LSD lysergic acid diethylamine from the other segment is currently dominating the market and is expected to continue dominating during the forecast period. LSD is popular due to its empathogenic properties and relatively less harmful side effects. Lsd works on your perception, thoughts, sight, hearing, etc., and can be very useful in inducing peace.

Global Psychedelic Drugs Market – By Route of Administration: 

• Inhalation
• Oral
• Injectable

The oral segment dominates the market and is expected to continue dominating during the forecast period due to the ease of administration through the mouth. In addition, tablets are more accessible to consume than inhalation or injections and can be stored easily.

Global Psychedelic Drugs Market – By Application: 

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

The narcolepsy market accounted for the largest market share and is anticipated to dominate the market during the forecast period. The huge population which suffers from narcolepsy is the factor driving the growth of this segment. 

Global Psychedelic Drugs Market – By End-user:

• Homecare
• Hospitals
• Specialty clinics
• Others

The hospital segment accounted for the largest share in 2022 due to the high patient load and the high use of drugs under the doctor’s supervision only. 

Global Psychedelic Drugs Market – By Distribution Channel:

• Retail pharmacy
• Hospital pharmacy 
• Online Pharmacy

The hospital Pharmacy and the Hospitals segment is expected to dominate the market during the forecast period due to the credibility of hospitals and their broad spread reach and availability of various types of psychedelics. In addition, hospitals have well-developed infrastructures and qualified professionals to recommend the dosages for psychedelic drugs carefully and only prescribe them when required.

Global Psychedelic Drugs Market – By Region:

• North America
• Latin America
• Asia Pacific
• Europe
• Middle East and Africa

The North American and European regions are expected to dominate the market during the forecast period because there is a high prevalence of mental disorders in the area; the U.S. FDA has recognized the advanced drug compound portfolios derived from psychedelic drugs, and psychedelic medicine use has increased, there is a need for extensive R&D to explore novel treatments, and there is an increase in economic stress that contributes to mental disorders like anxiety and depression. The population's willingness to spend on psychedelic drugs has developed in European countries like Germany.

The Asia-Pacific is expected to grow with a fast CAGR during the forecast period due to changing lifestyles, escalating research efforts, escalating environmental stress, major pharmaceutical companies, demand for psychedelic drugs, increasing disposable incomes, and depression rates in nations like China, India, and Japan, among other factors.

KEY MARKET PLAYERS:

Pfizer Inc., Avadel, Janssen Pharmaceuticals, Inc., Celon Pharma S.A., GABA Therapeutics, Inc., Jazz Pharmaceuticals, EmpathBio, Verrian, Mind Medicine, Inc., PharmaTher Inc., usonainstitute.org, and Cybin Corp. are some of the prominent companies operating in the global psychedelic drugs market profiled in this report.

RECENT MARKET DEVELOPMENTS:

• In October 2021, Cybin, a biotechnology company, announced the launch of EMBARK, a psychedelic facilitatory training program. The program offers the facilitators foundational training, which they need to provide qualified and ethical care to the patients receiving psychedelic treatments.
• In March 2021, Cure Pharmaceuticals Holding Corp. declared it would launch new initiatives to develop various psychedelic drugs like LSD, psilocybin, and MDMA.
• In January 2020, Jazz Pharmaceuticals Inc. received marketing authorization for Solriamfetol (Sunosi), allowing the company to improve distribution and generate more revenue.
• In September 2022, "Core One" is happy to report that after receiving very encouraging findings from phase one ("Phase 1") pre-clinical development studies carried out by its wholly owned subsidiary Akome Biotech Ltd. ("Akome"), and their research partners, regarding the neuroactivities of its chosen bioactive compounds (the "Bio-compounds") (see Company press releases dated April 2, 2022, August 18, 2022, and August 19, 2022), the Company, through Akome, has received interest from potential investors.