Global Psychedelic Drugs Market – Industry Trends and Forecast to 2031

Global Psychedelic Drugs Market, By Source (Synthetic and Natural), Type (Empathogens, Dissociatives, and Others), Drugs (Gamma-Hydroxybutyric Acid, Ketamine, Psilocybin, Lysergic Acid Diethylamide (LSD), 3,4-MethylEnedioxyMethamphetamine, and Others), Application (Narcolepsy, Treatment Resistant Depression, Major Depressive Disorder, Opiate Addiction, Post-Traumatic Stress Disorder, and Others), Route of Administration (Oral, Inhalation, and Injectable), End-User (Hospitals, Specialty Clinics, Homecare, and Others), Distribution Channel (Hospitals Pharmacy, Retail Pharmacy, and Online Pharmacy) – Industry Trends and Forecast to 2031.

Psychedelic Drugs Market Analysis and Size

The market for psychedelic drugs includes a range of substances classified as empathogens, dissociatives, and others. Empathogens such as MDMA can increase feelings of empathy and sociability, while dissociatives such as ketamine can create a sense of detachment from reality. Other psychedelics, such as psilocybin mushrooms and LSD, can change perception and cognition.

The global psychedelic drugs market size was valued at USD 2.71 billion in 2023 and is projected to reach USD 7.35 billion by 2031, with a CAGR of 13.3% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include depth expert analysis, patient epidemiology, pipeline analysis, pricing analysis, and regulatory framework.

Report Scope and Market Segmentation       

Market Definition

Psychedelic drugs are substances that can cause changes in perception, mood, and cognition, often resulting in intense subjective experiences. Instances of these compounds include psilocybin (found in certain mushrooms), LSD, and MDMA. They mainly target serotonin receptors in the brain and are under investigation for their potential therapeutic benefits in treating mental health disorders, especially when used in supervised settings.                    

Psychedelic Drugs Market Dynamics

Drivers

• Rising Support for Psychedelic Therapy

The healthcare sector is increasingly accepting psychedelic therapy, spurred by numerous clinical trials demonstrating the therapeutic promise of substances such as psilocybin and MDMA for conditions such as depression, PTSD, and addiction. This evolving attitude among healthcare professionals and regulatory bodies is facilitating the wider incorporation of psychedelic-assisted therapy into conventional healthcare approaches, fueling substantial market expansion.

• Worldwide Shift Towards Psychedelic Legalization and Decriminalization 

Governments around the world are reassessing their policies on psychedelics, acknowledging their therapeutic potential in treating mental health disorders.This shift includes moves to decriminalize possession and even legalize medical and recreational use. These policy changes are creating new opportunities for research, development, and commercialization in the market and driving the market growth.

Opportunities

• Collaborations Between Academia and Industry

Academic institutions contribute scientific research and expertise, while industry partners provide resources and insights for drug development, formulation, and commercialization. This collaboration accelerates scientific discoveries into innovative therapies, offering lucrative opportunities for both sectors amidst growing market demand.

• Increasing Research Funding

Rising research funding facilitates extensive scientific investigations into therapeutic applications, safety profiles, and mechanisms of action of psychedelic compounds. This financial support fosters the identification of novel drug candidates and enhances existing treatments, attracting public and private investments and fueling market growth and expansion.

Restraints/Challenges

• Cultural Obstacles

In areas dominated by conservative values or where the use of psychedelic drugs contradicts cultural norms or religious beliefs, the acceptance of these substances may be limited. This lack of acceptance could lead to reduced demand for psychedelic therapies, decreased willingness among healthcare professionals to prescribe them, and difficulties in regulatory approval processes, which can be a challenge for the market. 

• Misuse and Public Safety Issues

Misuse, whether recreational or self-administered without medical supervision, can lead to adverse effects such as psychological distress or worsening of underlying mental health conditions. These events lead to doubt among regulators, healthcare professionals, and the public, disrupting the widespread acceptance of psychedelic therapies.

This psychedelic drugs market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the psychedelic drugs market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

• In September 2023, Cybin Inc. revealed a strategic partnership with Fluence, a renowned provider of continuing education in psychedelic therapy. This collaboration aims to bolster the expansion of the EMBARK training program for the CYB003 phase 3 trial
• In October 2022, Numinus Wellness Inc., a leading mental health care company, launched a pioneering program offering Ketamine for treating chronic and serious medical conditions. Initially, this groundbreaking program was introduced in Numinus' clinics situated in Utah, British Columbia, and Quebec

Psychedelic Drugs Market Scope

The psychedelic drugs market is segmented on the basis of source, type, drugs, application, route of administration, end-user, and distribution channel. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Source

• Synthetic
• Natural

Type

• Empathogens
• Dissociatives
• Others

Drugs

• Gamma-Hydroxybutyric Acid
• Ketamine
• Psilocybin
• Lysergic Acid Diethylamide (LSD)
•  3,4-MethylEnedioxyMethamphetamine
• Others

Application

• Narcolepsy
• Treatment Resistant Depression
• Major Depressive Disorder
• Opiate Addiction
• Post-Traumatic Stress Disorder
• Others

 Route of Administration

• Oral
• Inhalation
• Injectable

End-User

• Hospital
• Speciality Clinics
• Homecare
• Others

 Distribution Channel

• Hospitals Pharmacy
• Retail Pharmacy
• Online Pharmacy

Psychedelic Drugs Market Regional Analysis/Insights

The psychedelic drugs market is analyzed and market size insights and trends are provided by country, source, type, drugs, application, route of administration, end-user, and distribution channel as referenced above.

The countries covered in the market are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

North America is expected to dominate the market due to the region's high prevalence of mental disorders, and ongoing research and development efforts drive market growth. This sustained leadership highlights North America's crucial role in influencing the direction of the global psychedelic drugs market.

Asia-Pacific is expected to witness significant growth during the forecast period due to expanding healthcare infrastructure and growing public awareness. As the region invests in mental health services and education, along with increasing acceptance of psychedelic therapies, it is emerging as a key contributor to the market's global expansion and development.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Healthcare Infrastructure Growth Installed base and New Technology Penetration

The psychedelic drugs market also provides you with detailed market analysis for every country growth in healthcare expenditure for capital equipment, installed base of different kind of products for psychedelic drugs market, impact of technology using life line curves and changes in healthcare regulatory scenarios and their impact on the psychedelic drugs market. The data is available for historic period 2016-2021.

Competitive Landscape and Psychedelic Drugs Market Share Analysis

The psychedelic drugs market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• Jazz Pharmaceuticals, Inc. (U.S.),
• Janssen Pharmaceuticals, Inc. (U.S.)
• Hikma Pharmaceuticals PLC (U.K.)
• Compass (U.S.)
• Verrian (Germany)
• Pfizer Inc. (U.S.)
• F. Hoffmann-La Roche Ltd (Switzerland)
• Avadel (Ireland)
• Celon Pharma SA.(Poland)
• Cybin Corp. (Canada)
• GH Research (Ireland)
• Entheon Biomedical Corp (Canada)
• PharmaTher Holdings Ltd. (India)
• NRx Pharmaceuticals, Inc. (U.S.)
• Usona Institute (U.S.)Top of Form