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.
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Table of Contents
Executive Summary
Psychedelic Drugs Global Market Report 2024 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on psychedelic drugs market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Where is the largest and fastest growing market for psychedelic drugs? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? This report answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
- The impact of higher inflation in many countries and the resulting spike in interest rates.
- The continued but declining impact of COVID-19 on supply chains and consumption patterns.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Report Scope
Markets Covered:1) By Type: Lysergic Acid Diethylamide (LSD); Ketamine; Phencyclidine; Gamma Hydroxybutyric Acid (GHB); Salvia
2) By Disease Indication: Depression; PTSD
3) By Origin: Natural; Synthetic
4) By Application: Treatment-Resistant Depression; Opiate addiction; Post- Traumatic Stress Disorder; Narcolepsy; Panic Disorders
5) By Distribution Channel: Hospitals Pharmacy; Retail Pharmacy; Online Pharmacy
Key Companies Mentioned: Pfizer Inc.; Johnson & Johnson; Merck & Co. Inc.; AbbVie Inc.; Novartis International AG
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes
Delivery Format: PDF, Word and Excel Data Dashboard
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- 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.
Methodology
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