Psychedelic Mushroom Market

Global Psychedelic Mushroom Market Size (2024 to 2029)

The global psychedelic mushroom market size is expected to be worth USD 1.69 Billion in 2024. It is expected to grow at a CAGR of 10.50% during the forecast period and reach a value of USD 2.78 Billion by 2029.

Psychedelic mushrooms are also popular as magic mushrooms, psilocybin mushrooms, and shrooms. These mushrooms contain a psychoactive or hallucinogenic compound, which is believed to help cure some of the mental health conditions. Psychedelic mushrooms are not legal everywhere and cause significant health risks if not consumed appropriately.

MARKET DRIVERS

Researchers have found there are several medical benefits associated with magic mushrooms, ranging from depression to reducing alcohol addiction.

In recent years, the therapeutic potential of psychedelic mushrooms has been widely recognized to treat and manage some of the mental health conditions. Several scientists have done considerable research on psychedelics to find how this substance can help treat conditions such as anxiety, depression, PTSD, and alcohol dependence in the 1950 and 1960’s. The findings of the research studies looked promising; however, the U.S. banned psychedelics in the 1960s, and many countries followed the same. Apparently, all the research activities around psychedelics completely stopped in the 1970’s. Between the 1970s and 2000s, there was no chance for legitimate researchers to study the impacts of psychedelic drugs. However, the situation has changed in recent times, and many have believed psilocybin has promising potential to treat depression and anxiety. In the coming years, the acceptance of psychedelic therapies is expected to accelerate and contribute to the growth of the psychedelic mushroom market.

The continuing favorable changes in the regulatory landscape for psychedelics are a supportive factor for the psychedelic mushroom market growth. Based on country and drug type, the regulatory landscape is changing for psychedelic drugs. Several countries have imposed various legal and medical restrictions on the usage of psychedelic drugs. For instance, Health Canada announced some exemptions to use psilocybin in restricted situations such as end-of-life care and research purposes. Some types of psychedelic mushrooms are okay to use in the Netherlands in certain conditions. The number of calls for the reclassification of psilocybin for therapeutic use has increased in the UK in recent times. Currently, it is a Schedule I drug. It is estimated that the regulatory landscape for psychedelic drugs is expected to have several favorable amendments in the coming days due to the advantages associated with and also drive the growth of the psychedelic mushroom market.

The growing awareness of mental health issues among people has increased acceptance and promoted the interest in adopting alternative treatment options such as psychedelic therapy, and this trend is expected to accelerate in the coming years and result in global market growth eventually. The growing number of R&D and clinical trial activities to evaluate the efficacy of psychedelic mushrooms to treat mental health diseases, rising acceptance from people for psychedelics, and increasing investments to conduct R&D and commercialization of psychedelic products are further fueling the growth rate of the market.

MARKET RESTRAINTS

On the other hand, the strict legal restrictions and regulatory challenges in several countries to use psychedelic mushrooms for commercial purposes is one of the significant restraints to the global market growth. Concerns about the safety of psychedelic mushrooms, the complex cultivation process, and lack of standardization are further hindering the global psychedelic mushroom market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Psychedelic Mushroom Market Analysis By Product Type

The psilocybe segment had the major share of the global market in 2022 and is expected to grow at a promising growth rate during the forecast period. Psilocybe mushrooms contain properties such as psilocybin and psilocin. These properties have gained recognition to contain significant therapeutic potential to treat various mental health conditions such as anxiety, depression, and PTSD, which is a key factor propelling the growth of the psilocybe segment in the global market.  The growing research and clinical trial activities to explore the therapeutic potential of psilocybe mushrooms and the changing legal landscape for these products are driving the growth of the psilocybe segment in the worldwide market.

The panaeolus segment is expected to witness considerable growth during the forecast period owing to the growing recognition of panaeolus mushrooms for recreational purposes and rising awareness of the psychoactive properties of these mushrooms.

Global Psychedelic Mushroom Market Analysis By Form

The fresh/whole segment dominated the psychedelic mushroom market in 2022 and is expected to showcase healthy growth during the forecast period. People have been increasingly consuming fresh psychedelic mushroom products in recent years as these products are believed to offer potential cognitive and mood benefits when consumed in smaller quantities. This awareness among people is growing exponentially and is one of the major factors behind the domination of the fresh/whole segment in the worldwide market among the other. The growing usage of fresh mushrooms in therapeutic applications is another major factor propelling segmental growth.

The dried segment accounted for a considerable share of the worldwide market in 2022.

Global Psychedelic Mushroom Market Analysis By Application

The de-addition segment captured the largest share of the global market in 2022 and is anticipated to witness significant growth throughout the forecast period. The rapid adoption of psychedelic-assisted therapies for addiction treatment and increasing research and clinical trial activities around the potential of psychedelic mushrooms to address the treatment needs of various addictions are majorly driving the growth of the addiction segment.

The recreational and therapeutic segments have also accounted for a substantial share of the global psychedelic mushroom market in 2022 and are estimated to have promising growth during the forecast period.

REGIONAL ANALYSIS

The Asia-Pacific region led the market in 2022 and is expected to grow at a prominent CAGR during the forecast period. The growing usage of psychedelic mushrooms for spiritual and medicinal purposes in some of the Asia-Pacific countries, the rising adoption of psychedelic therapies to address the growing burden of mental health diseases, and an increasing number of research activities to explore the potential of psychedelic mushrooms in Asia-pacific are majorly driving the Asia-Pacific market growth.

North America is expected to account for a promising share of the worldwide market during the forecast period. The changing legal landscape for psychedelic drugs, growing investments for research and clinical trials, and rising acceptance of psychedelics for therapeutic and recreational purposes are primarily propelling the North American market growth.

Europe is estimated to hold a considerable share of the worldwide market during the forecast period.

KEY PLAYERS IN THE GLOBAL PSYCHEDELIC MUSHROOM MARKET

Companies playing a key role in the global psychedelic mushroom market include Champignon Brands Inc., Hollister Biosciences Inc., Red Light Holland, Axsome Therapeutics Inc., Johnson & Johnson, Artisan Growers Ltd., Novo Formulations Ltd., Herbalife Nutrition Ltd., Monterey Mushroom, Inc., Shroomland, Galaxy Treats, Blissmushrooms, oneupmushroomsbar.com, Psychedelic Mushy, Psilocybin Lounge, Compass Pathways, MindMed, Field Trip Health, Atai Life Sciences, Cybin Inc., Mydecine Innovations Group, Revive Therapeutics, and Numinus Wellness.

RECENT HAPPENINGS IN THE MARKET

• In December 2023, Red Light Holland, which is one of the major companies in the global psychedelic mushroom market, announced its plans to distribute GMP-manufactured psilocybin micro-dosing capsules to emerging markets. These capsules have completed five-month stability testing by CCrest Laboratories Inc., and the results were positive.
• In April 2020, Champignon acquired Altmed Capital Corp. Both these companies operate in the space of psychedelic medicine and contribute to the psychedelic mushroom market.
• In April 2020, Hollister Biosciences finished the acquisition of AlphaMind Brands Inc. AlphaMind Brands Inc. is a company that operates in certified legal mushroom space.

DETAILED SEGMENTATION OF THE GLOBAL PSYCHEDELIC MUSHROOM MARKET INCLUDED IN THIS REPORT

This research report on the global psychedelic mushroom market has been segmented and sub-segmented based on product type, form, application, and region.

By Product Type

• Psilocybe
• Gymnopilus
• Panaeolus

By Form

• Fresh/Whole
• Dried
• Processed

By Application

• De-addiction
• Recreational
• Therapeutic

By Region

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