The Psychedelic Drugs Market was valued for $752.30 million in 2022 and is estimated to reach $2,614.10 million by 2032, exhibiting a CAGR of 13.4% from 2023 to 2032.
Psychedelic drugs, also known as hallucinogens, are a class of substances that can profoundly alter an individual's perception, thoughts, and feelings. Psychedelic drugs are renowned for their ability to induce altered states of consciousness, often characterized by vivid sensory experiences, unusual thoughts, and a heightened sense of connection to the world. Some well-known psychedelics include LSD (lysergic acid diethylamide), psilocybin, mescaline, and DMT (dimethyltryptamine). These substances primarily work by affecting the brain's serotonin receptors, which play a crucial role in mood regulation and perception.
The psychedelic drugs market is expected to register significant growth owing to increasing social acceptance toward psychedelics, surge in investment in the research and development of psychedelic drugs, and rise in mental health crisis. The shifting societal attitude toward psychedelics has emerged as a major driver for the psychedelic drugs market in recent years. Psychedelics were previously stigmatized and largely associated with counterculture movements and illegal activities, but psychedelics are now undergoing a significant transformation in public perception. According to 2020 report by Proceedings of the National Academy of Sciences (PNAS), a peer reviewed journal of the National Academy of Sciences (NAS), it was reported that past research suggests that use of psychedelic substances such as Lysergic acid diethylamide (LSD) or psilocybin may have positive effects on mood and feelings of social connectedness.
The scientific validation, coupled with changing cultural norms, has led to a reevaluation of psychedelics as more than just recreational substances. Moreover, high-profile endorsements from influential figures in various fields, including healthcare professionals, entrepreneurs, and even celebrities, have played a pivotal role in reshaping the narrative surrounding psychedelics. As a result, an increasing number of governments and regulatory bodies are revisiting their policies, decriminalizing or legalizing psychedelic substances for medical and even recreational use in some regions. Thus, the rise in social acceptance toward psychedelics is expected to drive the growth of the market.
Furthermore, the psychedelic drugs market has witnessed a remarkable surge in investment in research and development (R&D) activities, emerging as a major driver for growth and transformation of the market. The surge in investment in psychedelic drugs can be attributed to growing recognition within the medical and scientific communities of the therapeutic potential of psychedelics, particularly in the treatment of mental health disorders such as depression, anxiety, and post-traumatic stress disorder.
Promising clinical trials and studies have showcased the efficacy of substances like psilocybin and 3,4-Methylenedioxymethamphetamine, prompting increased interest and funding for further exploration. For instance, in February 2023, Transcend Therapeutics, a biotechnology company that develops medicines to treat neuropsychiatric diseases, including post-traumatic stress disorder (PTSD), announced that it closed its Series A funding round of $40 million. The funding round will enable Transcend to launch multiple clinical trials, including a phase II study, with its next-generation psychoactive compound. Transcend has raised nearly $42 million as of February 2023. Thus the rise in the investment in research and development of psychedelic drugs is expected to significantly contribute in the growth of the psychedelic drugs market.
In addition, the rise in the mental health crisis has emerged as a major driver for the psychedelic drugs market, signaling a paradigm shift in the way society perceives and addresses mental health disorders. In recent years, the global burden of mental health conditions, including depression, anxiety, post-traumatic stress disorder (PTSD), and addiction, has reached unprecedented levels. For instance, according to World Health Organization, a specialized agency of the United Nations responsible for international public health, as of March 2023, an estimated 3.8% of the population experience depression.
Conventional treatments such as antidepressants and therapy have not always been effective for everyone, leading to a growing demand for alternative approaches. Psychedelic substances, including psilocybin (found in magic mushrooms) and 3,4-Methylenedioxymethamphetamine (commonly known as ecstasy), have garnered significant attention for their potential to offer breakthrough therapies. According to 2023 report by National Library of Medicine, world’s largest biomedical library and a leader in research in computational health informatics, some types of psychedelic drugs, such as psilocybin and 3,4-Methylenedioxymethamphetamine (ecstasy), have shown promise as therapies for treatment-resistant depression and post-traumatic stress disorder.
Thus, the rise in mental health crisis and emergence of psychedelic drugs as promising treatment for depression, anxiety, and post-traumatic stress disorder are expected to drive the growth of the psychedelic drugs market. However, safety concerns represent a significant restraint on the growth of the psychedelic drugs market. While there is a growing body of research suggesting the therapeutic potential of psychedelics, there are also inherent risks associated with their use. One of the primary concerns is the potential for adverse psychological reactions, which can include intense anxiety, paranoia, or even hallucinations that may lead to dangerous behavior.
Moreover, the use of psychedelics in unsupervised or recreational settings can significantly increase the risk of harm, as individuals may not be adequately prepared or have the necessary support to navigate the often intense and unpredictable experiences induced by these substances. The psychedelic drugs market is segmented on the basis of drug type, application, end user, and region. By drug type, the market is categorized into ketamine, psilocybin, and other drug types.
As per application, the market is categorized into mental health, abuse disorders, and other applications. On the basis of end user, the market is categorized into hospitals, mental health center, and other. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and rest of Europe), Asia-Pacific (Japan, China, Australia and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, and rest of LAMEA).
Major key players that operate in the global psychedelic drugs market are Johnson & Johnson, Numinus, Field Trip Health, Enveric Biosciences, Havn Life, PharmaTher, Psyched Wellness, Ceruvia Lifesciences, Apex Labs, and Braxia Scientific
Psychedelic drugs, also known as hallucinogens, are a class of substances that can profoundly alter an individual's perception, thoughts, and feelings. Psychedelic drugs are renowned for their ability to induce altered states of consciousness, often characterized by vivid sensory experiences, unusual thoughts, and a heightened sense of connection to the world. Some well-known psychedelics include LSD (lysergic acid diethylamide), psilocybin, mescaline, and DMT (dimethyltryptamine). These substances primarily work by affecting the brain's serotonin receptors, which play a crucial role in mood regulation and perception.
The psychedelic drugs market is expected to register significant growth owing to increasing social acceptance toward psychedelics, surge in investment in the research and development of psychedelic drugs, and rise in mental health crisis. The shifting societal attitude toward psychedelics has emerged as a major driver for the psychedelic drugs market in recent years. Psychedelics were previously stigmatized and largely associated with counterculture movements and illegal activities, but psychedelics are now undergoing a significant transformation in public perception. According to 2020 report by Proceedings of the National Academy of Sciences (PNAS), a peer reviewed journal of the National Academy of Sciences (NAS), it was reported that past research suggests that use of psychedelic substances such as Lysergic acid diethylamide (LSD) or psilocybin may have positive effects on mood and feelings of social connectedness.
The scientific validation, coupled with changing cultural norms, has led to a reevaluation of psychedelics as more than just recreational substances. Moreover, high-profile endorsements from influential figures in various fields, including healthcare professionals, entrepreneurs, and even celebrities, have played a pivotal role in reshaping the narrative surrounding psychedelics. As a result, an increasing number of governments and regulatory bodies are revisiting their policies, decriminalizing or legalizing psychedelic substances for medical and even recreational use in some regions. Thus, the rise in social acceptance toward psychedelics is expected to drive the growth of the market.
Furthermore, the psychedelic drugs market has witnessed a remarkable surge in investment in research and development (R&D) activities, emerging as a major driver for growth and transformation of the market. The surge in investment in psychedelic drugs can be attributed to growing recognition within the medical and scientific communities of the therapeutic potential of psychedelics, particularly in the treatment of mental health disorders such as depression, anxiety, and post-traumatic stress disorder.
Promising clinical trials and studies have showcased the efficacy of substances like psilocybin and 3,4-Methylenedioxymethamphetamine, prompting increased interest and funding for further exploration. For instance, in February 2023, Transcend Therapeutics, a biotechnology company that develops medicines to treat neuropsychiatric diseases, including post-traumatic stress disorder (PTSD), announced that it closed its Series A funding round of $40 million. The funding round will enable Transcend to launch multiple clinical trials, including a phase II study, with its next-generation psychoactive compound. Transcend has raised nearly $42 million as of February 2023. Thus the rise in the investment in research and development of psychedelic drugs is expected to significantly contribute in the growth of the psychedelic drugs market.
In addition, the rise in the mental health crisis has emerged as a major driver for the psychedelic drugs market, signaling a paradigm shift in the way society perceives and addresses mental health disorders. In recent years, the global burden of mental health conditions, including depression, anxiety, post-traumatic stress disorder (PTSD), and addiction, has reached unprecedented levels. For instance, according to World Health Organization, a specialized agency of the United Nations responsible for international public health, as of March 2023, an estimated 3.8% of the population experience depression.
Conventional treatments such as antidepressants and therapy have not always been effective for everyone, leading to a growing demand for alternative approaches. Psychedelic substances, including psilocybin (found in magic mushrooms) and 3,4-Methylenedioxymethamphetamine (commonly known as ecstasy), have garnered significant attention for their potential to offer breakthrough therapies. According to 2023 report by National Library of Medicine, world’s largest biomedical library and a leader in research in computational health informatics, some types of psychedelic drugs, such as psilocybin and 3,4-Methylenedioxymethamphetamine (ecstasy), have shown promise as therapies for treatment-resistant depression and post-traumatic stress disorder.
Thus, the rise in mental health crisis and emergence of psychedelic drugs as promising treatment for depression, anxiety, and post-traumatic stress disorder are expected to drive the growth of the psychedelic drugs market. However, safety concerns represent a significant restraint on the growth of the psychedelic drugs market. While there is a growing body of research suggesting the therapeutic potential of psychedelics, there are also inherent risks associated with their use. One of the primary concerns is the potential for adverse psychological reactions, which can include intense anxiety, paranoia, or even hallucinations that may lead to dangerous behavior.
Moreover, the use of psychedelics in unsupervised or recreational settings can significantly increase the risk of harm, as individuals may not be adequately prepared or have the necessary support to navigate the often intense and unpredictable experiences induced by these substances. The psychedelic drugs market is segmented on the basis of drug type, application, end user, and region. By drug type, the market is categorized into ketamine, psilocybin, and other drug types.
As per application, the market is categorized into mental health, abuse disorders, and other applications. On the basis of end user, the market is categorized into hospitals, mental health center, and other. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and rest of Europe), Asia-Pacific (Japan, China, Australia and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, and rest of LAMEA).
Major key players that operate in the global psychedelic drugs market are Johnson & Johnson, Numinus, Field Trip Health, Enveric Biosciences, Havn Life, PharmaTher, Psyched Wellness, Ceruvia Lifesciences, Apex Labs, and Braxia Scientific
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the psychedelic drugs market analysis from 2022 to 2032 to identify the prevailing psychedelic drugs market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the psychedelic drugs market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global psychedelic drugs market trends, key players, market segments, application areas, and market growth strategies.
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- SWOT Analysis
Key Market Segments
By Application
- Mental Health
- Abuse Disorder
- Others
By End User
- Hospitals
- Mental Health Center
- Others
By Drug Type
- Ketamine
- Psilocybin
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa
- Rest of LAMEA
- Key Market Players
- Apex Labs
- Havn Life
- Numinus Wellness Inc
- Field Trip Health
- PharmaTher
- Johnson & Johnson (J&J)
- Ceruvia Lifesciences
- Psyched Wellness
- Enveric Biosciences
- Braxia Scientific
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: PSYCHEDELIC DRUGS MARKET, BY DRUG TYPE
CHAPTER 5: PSYCHEDELIC DRUGS MARKET, BY APPLICATION
CHAPTER 6: PSYCHEDELIC DRUGS MARKET, BY END USER
CHAPTER 7: PSYCHEDELIC DRUGS MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the psychedelic drugs market was valued at $0.7 billion in 2022, and is estimated to reach $2.6 billion by 2032, growing at a CAGR of 13.4% from 2023 to 2032.Psychedelic drugs, also known as hallucinogens, are a class of substances that alter perception, mood, and consciousness. Psychedelics are characterized by their ability to induce altered states of consciousness, which can include vivid visual and auditory hallucinations, a distorted sense of time, and a heightened sense of interconnectedness with the environment and others. Some well-known psychedelic substances include lysergic acid diethylamide, psilocybin, and dimethyltryptamine, 3,4-methylenedioxymethamphetamine among others.
The key factors driving the growth of the psychedelic drugs market are a surge in mental health crisis, rise in the research and development activities in the psychedelics, and rise in social acceptance of psychedelics. The psychedelic drugs market is expected to grow significantly, owing to a surge in the prevalence of mental disorders, rise in investment for research and development of psychedelic substances, and increased social acceptance of psychedelic drugs. The surge in the mental health crisis has emerged as a major driving factor for the growth of the psychedelic drugs market. In recent years, there has been a notable increase in the prevalence of mental health disorders such as depression, anxiety, post-traumatic stress disorder (PTSD), and substance abuse disorders. This escalating crisis has spurred a growing interest in alternative treatment options, particularly those involving psychedelic substances like psilocybin, MDMA, and LSD. Clinical research and trials have shown promising results in using these substances to alleviate symptoms and improve the overall well-being of individuals suffering from various mental health conditions. For instance, according to 2023 report by National Library of Medicine, world’s largest biomedical library and a leader in research in computational health informatics, A series of six phase-II clinical trials studying 3,4-Methylenedioxymethamphetamine (MDMA-AT) for treatment-resistant post-traumatic stress disorder (PTSD) found that 54% of MDMA-AT full-dose participants no longer met the diagnosis of PTSD after two MDMA sessions. Thus, the rise in the prevalence of the mental illness is expected to drive the growth of the market.
In addition, the surge in investment in the research and development of psychedelic drugs has emerged as a major driving factor for the psychedelic drugs market in recent years. This phenomenon can be attributed to a confluence of factors, including changing societal attitudes towards mental health, evolving regulations, and a growing body of scientific evidence suggesting the therapeutic potential of these substances. One of the primary drivers behind this surge is the increasing recognition of the therapeutic potential of psychedelic compounds like psilocybin, MDMA, and LSD in treating various mental health disorders such as depression, anxiety, PTSD, and addiction. Clinical trials and studies have demonstrated promising results, rekindling interest in these substances within the medical and scientific communities. This newfound legitimacy has opened the doors for pharmaceutical companies and startups to invest heavily in researching and developing psychedelic-based treatments. In conclusion, the surge in investment in psychedelic drugs' research and development is transforming the landscape of mental health treatment and is expected to contribute significantly in the growth of the market. In addition, increased social acceptance of psychedelic drugs is expected to positively impact the growth of the market. Over the past few years, there has been a noticeable shift in public perception and attitudes toward psychedelic substances, moving away from the stigmatization and fear that once surrounded psychedelic drugs.
The psychedelic drugs market is segmented on the basis of drug type, application, end user, and region. By drug type, the market is categorized into ketamine, psilocybin, and other drug types. As per application, the market is categorized into mental health, abuse disorders, and other applications. On the basis of end user, the market is categorized into hospitals, mental health center, and other. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and rest of Europe), Asia-Pacific (Japan, China, Australia, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, and rest of LAMEA).
The key players profiled in the study include Johnson & Johnson, Numinus, Field Trip Health, Enveric Biosciences, Havn Life, PharmaTher, Psyched Wellness, Ceruvia Lifesciences, Apex Labs, and Braxia Scientific.
Key Market Insights
On the basis of drug type, the ketamine segment was the highest contributor to the market in 2022. However, psilocybin is expected to register the fastest growth during the forecast period.On the basis of application, the mental health segment was the highest contributor to the market in 2022. However, abuse disorders are expected to register the fastest growth during the forecast period.
On the basis of end user, the mental health center segment was highest contributor to the market in 2022
On the basis of region, North America generated the largest revenue in 2022. However, Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period.Companies Mentioned
- Apex Labs
- Havn Life
- Numinus Wellness Inc
- Field Trip Health
- PharmaTher
- Johnson & Johnson (J&J)
- Ceruvia Lifesciences
- Psyched Wellness
- Enveric Biosciences
- Braxia Scientific
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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