Psychedelic Drugs Market - Global Industry Analysis (2018 - 2020) - Growth Trends and Market Forecast (2021 - 2026)

Global Psychedelic Drugs Market Will Be Worth US$6,330 MN by 2026 from US$3,210 MN in 2021, Registering An Impressive CAGR of 14.5% for the Period

Mental disorders are an urgent health crisis worldwide, especially exacerbated by COVID-19. As per a study by Harvard, the medical cost of mental health conditions is estimated to rise to $6 trillion by 2030. According to the publisher, the psychedelic drugs market is expected to grow at a robust rate of 14.5% CAGR during the forecast period and reach a value of $6330 Mn in 2026 from $3210 in 2021 as there is a large unmet need for treatment driving the adoption of psychedelic drugs.

Key Insights of the Psychedelic Drugs Market:

• Ketamine eyes CAGR of 16.0% amongst all products in terms of value as it has a robust clinical trials portfolio in multiple diseases viz. depression (MDD, TRD), bi-polar disorder, suicidal ideation, drug and alcohol dependence, and social anxiety.
• Products with natural origin are anticipated to gain 90 BPS in terms of value market share by the end of the forecast period. However, synthetic products will maintain their dominant market position with an 85% market share in 2026.
• Depression is estimated to hold the largest chunk of the disease indication segment with more than 40% market share in 2021.
• Oral drugs are estimated to contribute more than 55% to the global psychedelic drugs market, wherein the intranasal route of administration exhibit a strong growth rate of 17% CAGR with the commercial arrival of Spravato.

Psychedelic Drug-assisted Psychotherapy to be Gamechanger in Psychedelic Drugs Market

The prevalence of mental health disorders has risen exponentially but the development of novel medications has not kept pace, precipitating a crisis in psychiatric medicine. A novel innovation is psychedelic drug-assisted psychotherapy - the medically approved use of MDMA, psilocybin, and LSD as a component of elevated psychotherapy programs.

A study conducted by Yale on mice determined that one dose of psilocybin immediately increased neural connections in the brains. Doctors believe this helps the brain “reorganize and adapt” to different situations, improving response time. MDMA has recently been designated a breakthrough treatment for post-traumatic stress disorder (PTSD) by the U.S. Food and Drug Administration (FDA), opening the way for its approval within two years. In a study published in Nature Medicine, symptoms of depression were significantly reduced after three doses of MDMA given at monthly intervals. Although there are risks to treatment with psychedelic-assisted therapy, it is likely that psychiatry will be profoundly altered by such medication in the days ahead.

Proven Efficacy of Ketamine Explains its Popularity in Psychedelic Drugs Market

Ketamine is on track to record the highest CAGR in the psychedelic drugs market as it has been used for decades. It has proven efficacy in higher doses as an anaesthetic, while it can even induce changes in cognition and mood at lower doses. As per data from the NCBI, ketamine is in experimental intervention in 70 Phase 2 trials for psychiatric illnesses and two Phase 3 trials for clinical depression. In addition, it has been heavily studied in PTSD, obsessive-compulsive disorder (OCD), alcohol abuse, cocaine use, and suicide disorders.

Higher Growth Rate in Intranasal Segment as Companies Launch Novel Psychedelic Sprays

Oral drugs comprised approx. 55% of the psychedelic drugs market during the assessment period. However, the intranasal segment is predicted to witness a considerably higher CAGR of 17% from 2021 to 2026 with the introduction of products such as Spravato - an intranasal general anaesthetic that was authorized by the FDA in August 2020 for the short-term treatment of suicidal thoughts. The U.S. state of Oregon is pushing for decriminalizing magic mushrooms and local company Silo Wellness has developed a psilocybin nasal spray intended to treat depression and PTSD.

Encouraging Results from Psilocybin Trials on Patients Suffering From Depression

In December 2020, the World Health Organization (WHO) stated that 264 million people suffer from depression. Unsurprisingly, depression is anticipated to account for the largest chunk of the disease indication segment in the psychedelic market during the forecast period. Growing evidence has suggested that psychedelic drugs could treat depression effectively. In a study published in The New England Journal of Medicine, researchers conducted a randomized trial on psilocybin and found that it is almost as good - if not more effective - than the current antidepressants. At the end of the six-week trial, all but one of the participants reported a marked improvement in their depressive symptoms - a positive development indeed.

Favourable Conditions Enable North America to Race Ahead in Psychedelic Drugs Market

North America is predicted to remain the largest region in the psychedelic drugs market due to a surge of clinical trials, massive investments, regulatory support, and widespread public awareness. The continent accounts for half of the revenue in the global psychedelic drugs market and should be worth $3184.0 Mn by the end of the forecast period. The strong presence of companies and ongoing clinical trials are also expected to bode well for the regional market.

Global Psychedelic Drugs Market: Competitive Landscape

A few of the companies profiled in this report on the psychedelic drugs market are Jazz Pharmaceuticals, Inc.; PharmaTher Holdings Ltd.; ATAI LIFE SCIENCES N.V.; COMPASS Pathways plc; Mind Medicine Inc.; and Janssen Pharmaceuticals, Inc. Companies have reduced their R&D expenditures and are looking at organic or inorganic methods of growth in the psychedelic drugs market. Recent IPOs by major companies are likely to generate headwinds in the psychedelic drugs market.