Psychedelic Drug Market

Psychedelic Drug Market Outlook (2024 to 2034)

The global psychedelic drug market is expected to reach a valuation of US$ 603.1 million in 2024. Projected to expand at a CAGR of 7%, worldwide sales of psychedelic drugs are expected to reach US$ 1.18 billion by the end of 2034.

Psychedelic drugs are categorized as Schedule I drugs. Historically, these drugs have been seen only to have a high potential for abuse treatment. Rising awareness regarding mental health disorders and illness is resulting in increased adoption of treatment measures for psychological ailments by the general population across the world. This is being supported by numerous awareness campaigns and initiatives by various organizations.

• Introduction of Jannsen’s Spravato, an esketamine nasal spray for the treatment of resistant depression, has led to the breakthrough scenario of the application of alternative drugs for specific indications. This has aided the demand for synthetic psychedelic drugs with growing clinical studies, suggesting the efficacy of psychedelic drugs as medicinal compounds. However, safety and monitoring of the effects of psychedelic drugs after administration still pose a concern, but the future outlook presents an opportunity for growth.
• The Johns Hopkins Center for Psychedelic and Consciousness Research is investing heavily in the development of innovative treatments for mental illnesses using psilocybin.
• In 2018, the United States Food and Drug Administration approved Epidolex, the first drug comprised of an active ingredient derived from marijuana. This oral solution is used for the treatment of severe forms of epilepsy.

The global market will offer several opportunistic openings with the expanding research & development pipeline.

• The North American psychedelic drug market size is projected to reach US$ 288.3 million by 2034.
• East Asia is estimated to capture 22.4% of the global psychedelic drug market share in 2024.

Report Attribute	Detail
Psychedelic Drug Market Size (2024E)	US$ 603.1 Million
Forecasted Market Value (2034F)	US$ 1.18 Billion
Global Market Growth Rate (2024 to 2034)	7% CAGR
South Korea Market Value (2034F)	US$ 63.3 Million
Psilocybin Demand Growth Rate (2024 to 2034)	7% CAGR
Key Companies Profiled	Herbalife Nutrition; Havn Life; Revive Therapeutics; Amway; Jazz Pharmaceuticals; NeonMind BioSciences; Nature's Bounty Co.; NutraScience Labs; Cybin Corp.; NRx Pharmaceuticals Inc.; Seelos Therapeutics; Pfizer Inc.; Numinus; Mind Medicine; PharmaTher Holdings Ltd; GlaxoSmithKline Plc.; NOW Health Group.

How are R&D Efforts Increasing Use of Psychedelics?

“Rising Prevalence of Mental Disorders Boosting Sales of Depression Drugs Such As Psychedelics”

Psychedelics are gaining popularity in the field of mental healing and treatment practices. Several scientists and researchers are focusing on investigating the therapeutic features of psychedelic drugs. The main focus of this research is to obtain healing solutions for depression and mental illness. Thus, the efforts made on R&D are emerging as notable psychedelic drug market trends.

• The report 'Duke Researchers Probe the Magic of Psychedelics as Medicine' published by Duke University School of Medicine in 2023 says that scientists are researching the use of psychedelics in treating disorders such as depression, addiction, and post-traumatic stress disorders.
• According to the World Health Organization Report on Depressive Disorder published in March 2023, depression is a common mental disorder affecting around 5% of adults globally. As per the same source, depression can lead to suicide.

The above-mentioned statistics explain that mental disorders can be chronic and lead to serious results if not treated on time. Mental illness hampers one’s thinking, behaving, and performing daily tasks ability. Innovations in psychedelic drugs can act as a boon to patients suffering from mental illness.

What’s Restraining Demand Growth for Psychedelic Drugs?

“Strict Regulatory Policies Limiting Production of Psychedelic Drugs”

Stringent regulatory policies are the primary restraining factors associated with the submissive production of synthetic psychedelic drugs. Reforms associated with psychedelic drug laws and policies are complex and result in variable forms of enforcement across different geographical areas.

Changes in regulations for the approval of natural psychedelic drugs are expected to cause delayed launch of products. Inflexibility in regulations is a major restraint for the dissociative psychedelic drug sales growth. Apart from these problems, one of the most challenging restraints concerning regulations is the risk associated with rescheduling and drug classification in most Western countries.

• For instance, in the United States, nearly all psychedelic substances are categorized under Schedule I drugs, which makes them inaccessible for use in the medical context because they are considered to have a high proclivity for abuse.

Demand for dissociative psychedelic drugs is in a nascent space, and thus, can invite risks related to investments in a low market cap. Under federal law, types of psychedelic drugs, such as psilocybin and MDMA, are Schedule I controlled substances, subject to various criminal penalties. Researchers need to obtain approval from the Federal Drug Enforcement Administration (DEA) if they are seeking to conduct studies of Schedule I controlled substances that are not currently approved for medical use.

Start-Up Ecosystem

• MIND Foundation is a Germany-based start-up that supports psychedelic research. The foundation acts as a study partner and works with policymakers and researchers.
• Reconnect Labs, founded in 2021, is focused on the development of innovative therapies for disorders such as depression, anxiety, trauma, and neurodegenerative diseases. This company is also developing next-gen psychedelics with improved safety, efficacy, and tolerance.

Country-wise Analysis

Why is the United States Key for Psychedelic Drug Suppliers?

“Rising Importance of Psychedelic Drugs for Mental Health Treatment Coupled with Increasing FDA Approvals”

Attribute	United States
Market Value (2024E)	US$ 64.1 Million
Growth Rate (2024 to 2034)	7.4% CAGR
Projected Value (2034F)	US$ 131.5 Million

The United States leads the North American market with a share of 44.5% in 2024 and is projected to continue experiencing high growth throughout the study period (2024 to 2034). Growth of the United States market is driven by the recognition of active compounds derived from psychedelic drugs by the Food and Drug Administration (FDA). The approval of Spravato (esketamine) nasal spray by the FDA is supporting the United States market growth and generating opportunities in the field of psychedelic drug production for the treatment of mental disorders.

Will Germany Be a Lucrative Market for Psychedelic Drug Manufacturers?

“Depression Prime Mental Issue in Germany”

Germany is one of the major markets for psychedelic drugs in the European region. Depression is one of the prime mental issues in European countries including Germany. People's willingness and ability to spend on mental wellness is set to generate profitable opportunities for psychedelic drug producers. This, along with approved sales of FDA-approved psychedelic drugs for medicinal indications, is expected to aid the demand growth of psychedelic drugs in the country.

How is Japan Faring in the Psychedelic Drug Business?

“Research on Developing Effective Psychedelic Medicine for Depression among Cancer Patients”

Attribute	Japan
Market Value (2024E)	US$ 39 Million
Growth Rate (2024 to 2034)	7.5% CAGR
Projected Value (2034F)	US$ 80.6 Million

FDA-approved psychedelic product sales in the country are leading to increasing investments in research activities. Rising penetration of key pharmaceutical players in Japan for oncology-associated treatment and ketamine psychedelic drugs is expected to open the gateway to psychedelic drug development for medicinal purposes.

• According to the National Cancer Institute, psilocybin, a substance derived from mushroom 'psilocybe mexicana', is being studied for the treatment of anxiety or depression in cancer patients.

Category-wise Analysis

Which Source is Popular for Manufacturing Psychedelic Drugs?

“Synthetic Psychedelic Drugs Effective in Production and Reproduction of Compounds and Active Pharmaceutical Products”

Attribute	Synthetic Psychedelic Drugs
Segment Value (2024E)	US$ 329.3 Million
Growth Rate (2024 to 2034)	7.1% CAGR
Projected Value (2034F)	US$ 654.8 Million

Synthetic psychedelic drugs are projected to hold 55.2% of the global market share by 2034. Demand for synthetic psychedelic drugs is high because of the selective production of compounds and active pharmaceutical products for the production of novel drug formulations. This is effective in terms of the reproduction of compounds after extraction.

Which Therapeutic Drug is Highly Preferred?

“Lysergic Acid Diethylamide (LSD) Widely Consumed Mental Illness Therapeutic Drug”

Attribute	LSD
Segment Value (2024E)	US$ 145.9 Million
Growth Rate (2024 to 2034)	6.2% CAGR
Projected Value (2034F)	US$ 265.7 Million

Lysergic acid diethylamide (LSD) consumption is on the rise for people with depression. LSD being a semi-synthetic drug is derived from a chemical called diethylamide and a fungus called ergot. LSD stimulates the production of serotonin in the brain, which changes thoughts and mood. The easy availability and low price is another factor expected to boost LSD sales growth.

Competitive Landscape

Research and development activities, collaborations, sponsorships, fundraising, and partnerships are key growth strategies adopted by psychedelic drug manufacturing companies. By focusing on these strategies, key players in the psychedelic drug market are expanding their geographic footprints and strengthening their existing product portfolios.

• In October 2022, Numinus Wellness Inc. announced the launch of psychedelic-assisted therapy for chronic and serious medical illness disorders.

Fact.MR provides detailed information about the price points of key producers of psychedelic drugs positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Key Segments of Psychedelic Drug Market Research

• By Source :

  • Natural Psychedelic Drugs
  • Synthetic Psychedelic Drugs

• By Therapeutic Drug :

  • Psilocybin
  • LSD
  • MDMA
  • DMT
  • Ketamine

• By Indication :

  • Depressive Disorders
  • Post-Traumatic Stress Disorders
  • Substance Abuse Disorders
  • Obsessive Compulsive Disorders
  • Alzheimer Dementia
  • Cluster Headaches
  • Terminal Cancer Distress
  • Anorexia and Obesity
  • Personality Disorders
  • Anxiety

• By Route of Administration :

  • Oral Psychedelic Drugs
    • Liquid
    • Capsules
    • Tablets
  • Injectable Psychedelic Drugs
    • Intramuscular
    • Subcutaneous
    • Intrathecal
  • Rectal Psychedelic Drugs
  • Nasal Psychedelic Drugs
  • Transdermal Psychedelic Drugs

• By Distribution Channel :

  • Online Pharmacies
  • Hospital Pharmacies
    • Institutional Sales
    • Retail Sales
  • Retail Pharmacies

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa