Psychedelic Drugs Global Market Report 2024

The psychedelic drugs market size has grown rapidly in recent years. It will grow from $4.88 billion in 2023 to $5.62 billion in 2024 at a compound annual growth rate (CAGR) of 15.1%. The growth observed in the historic period can be attributed to factors such as a shifting regulatory landscape, heightened awareness regarding mental health, and changing public perception.

The psychedelic drugs market size is expected to see rapid growth in the next few years. It will grow to $10.2 billion in 2028 at a compound annual growth rate (CAGR) of 16.1%. The expected growth in the forecast period can be attributed to advancements in drug development, the expansion of therapeutic applications, growing acceptance in the medical community, public policy shifts, and the response to the mental health crisis. Key trends anticipated in the forecast period include a focus on education and public awareness, legal and regulatory developments, diversification of psychedelic compounds, and the adoption of patient-centric treatment approaches.

The surge in cases of mental illnesses is anticipated to drive the expansion of the psychedelic drugs market in the future. Mental illnesses encompass health conditions characterized by alterations in emotion, thinking, or behavior, including distress and post-traumatic stress disorder. Psychedelic drugs have demonstrated effectiveness in treating depression and post-traumatic stress disorder, contributing to the reduction of mental illnesses through regular use. For instance, in November 2022, as reported by the UK-based National Centre for Social Research, the percentage of 17- to 19-year-olds with a suspected mental disorder increased from 17.4% in 2021 to 25.7% in 2022. Consequently, the rising number of mental illness cases is a significant driver behind the growth of the psychedelic drugs market.

Government initiatives and programs related to mental health are poised to further propel the psychedelic drugs market. Government initiatives encompass planned actions, projects, or programs executed by a government to address specific issues, achieve goals, or respond to public needs. These initiatives facilitate research and clinical trials, advancing the understanding of the therapeutic potential and safety profiles of psychedelic substances. Furthermore, regulatory reforms or approvals for medical use, driven by government initiatives, create a more conducive environment for the development and commercialization of psychedelic-based treatments. For example, in February 2022, as reported by Business Insider, the US-based financial and business news website, Chile announced a more than 300% increase in the mental health budget in 2021, and Canada allocated a $1 billion fund for mental health in its 2021 Budget. Hence, government initiatives and mental health programs are significant contributors to the growth of the psychedelic drugs market.

The prevailing trend in the psychedelic drug market is the introduction of depression spray, with major companies taking steps to sustain their positions by offering nasal spray drugs for major depressive disorders. For example, in August 2021, Hikma Pharmaceuticals PLC, a UK-based pharmaceutical company, launched KLOXXADO, an 8 mg nasal spray containing naloxone HCl. This nasal spray is designed for the immediate care of patients, both adults and children, experiencing known or suspected opioid overdoses, as indicated by respiratory depression and/or central nervous system depression.

A notable strategy among major companies in the psychedelic drugs market involves forming partnerships to develop new products and strengthen market positions. Collaborations and partnerships in this sector facilitate the sharing of expertise, resources, and research efforts, expediting the development of innovative treatments and enhancing the understanding of the therapeutic potential of psychedelics. For instance, in March 2022, SciSparc Ltd., an Israel-based biopharmaceutical company, collaborated with Clearmind Medicine Inc., a Canada-based pharmaceutical company. The partnership focuses on exploring the development of innovative compounds in the psychedelic field, aiming to create drug candidates with robust efficacy and safety profiles for treating mental health-related diseases. The collaboration includes joint pre-clinical studies, and both companies anticipate that positive results could deepen their partnership in the pursuit of novel psychedelic-derived therapeutics. This strategic alliance reflects the growing interest and investment in the psychedelic pharmaceutical sector, driven by the potential for groundbreaking treatments and addressing underserved health problems.

In April 2022, Numinus, a Canada-based company specializing in psychedelic medicine with integrated psychotherapy, acquired Novamind for $20.77 million. This acquisition positions Numinus to expand its psychotherapy clinics in the US and advance psychedelic programs. Novamind, a US-based mental health company and psychedelic medicine manufacturer, contributes to Numinus's strategic growth in the evolving landscape of psychedelic treatments.

Major companies operating in the psychedelic drugs market report are Pfizer Inc., Johnson & Johnson, Merck & Co. Inc., AbbVie Inc., Novartis International AG, AstraZeneca PLC, Roche Holding AG, Takeda Pharmaceutical Company Limited, Mylan N.V., Jazz Pharmaceuticals PLC, Dr. Reddy’s Laboratories Ltd., Hikma Pharmaceuticals PLC, Mydecine Innovations Group Inc., Cybin Inc., Silo Wellness Inc., Emmes Company, Celon Pharma S.A., Klarisana, Mota Ventures Corp., BetterLife Pharma Inc., MindMed Inc., Numinus Wellness Inc., Revive Therapeutics Ltd., Field Trip Health Ltd., Red Light Holland Corp., Avadel Pharmaceuticals PLC, PsyBio Therapeutics Corp., Eleusian Biosciences Corp., Seelos Therapeutics Inc., COMPASS Pathways PLC, NeuroRx Inc.

North America was the largest region in the psychedelic drugs market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the psychedelic drugs market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the psychedelic drugs market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Psychedelic drugs come in different types, including lysergic acid diethylamide (LSD), ketamine, phencyclidine, gamma-hydroxybutyric acid (GHB), and salvia. LSD, colloquially known as acid, is manufactured in crystalline form and diluted for ingestion. These drugs are used for various disease indications such as depression and PTSD, with applications in treatment-resistant depression, opiate addiction, post-traumatic stress disorder, narcolepsy, and panic disorders. Distribution channels include hospital pharmacies, retail pharmacies, and online pharmacies.

The psychedelic drugs market research report is one of a series of new reports that provides psychedelic drugs market statistics, including psychedelic drugs industry global market size, regional shares, competitors with a psychedelic drugs market share, detailed psychedelic drugs market segments, market trends and opportunities, and any further data you may need to thrive in the psychedelic drugs industry. This psychedelic drugs market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The psychedelic drugs market consists of sales of psilocybin, PCP, cannabis, and ecstasy. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.