Psychedelic Drugs Market Size, Share, Analysis, Trends, Growth, 2032

Psychedelic Drugs Industry Prospective:

The global psychedelic drugs market size was evaluated at $3 billion in 2023 and is slated to hit $9 billion by the end of 2032 with a CAGR of nearly 12% between 2024 and 2032. 

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Psychedelic Drugs Market: Overview

Psychedelic drugs are a kind of hallucinogenic medicine that causes an individual to experience a non-ordinary mind state. Few of the examples of these medicines include Ayahuasca, Entactogens, 6-CAT, MDAT, dimethyltryptamine, tetralinylaminopropane, MDMAT, ketamine, Psilocybin mushrooms, dissociative psychedelics, mescaline, and classic psychedelics.

Key Insights

• As per the analysis shared by our research analyst, the global psychedelic drugs market is projected to expand annually at the annual growth rate of around 12% over the forecast timespan (2024-2032)
• In terms of revenue, the global psychedelic drugs market size was evaluated at nearly $3 billion in 2023 and is expected to reach $9 billion by 2032.
• The global psychedelic drugs market is anticipated to grow rapidly over the forecast timeline owing to a surging awareness about mental health problems such as PTSD, depression, addiction, and anxiety occurring in individuals.
• In terms of drug type, the psilocybin segment is slated to register the highest CAGR over the forecast period.
• Based on delivery method, the oral segment is predicted to contribute majorly towards global industry surge in the ensuing years.
• On the basis of application, the mental health disorders segment is likely to maintain segmental domination in the forthcoming years.
• Based on the end-user, the hospitals & clinics segment is projected to record the highest CAGR over 2024-2032.
• Region-wise, the Asia-Pacific psychedelic drugs industry is projected to register the fastest CAGR during the assessment timespan.

Psychedelic Drugs Market: Growth Factors

Escalating mental disorders can prop up the global market progress in the years ahead

Surging awareness about mental health problems such as PTSD, depression, addiction, and anxiety occurring in individuals is likely to boost the global psychedelic drugs market growth. Furthermore, the escalating use of psychedelic therapy in the healthcare sector and relaxation by regulatory authorities in research activities for improving psychedelic treatments will steer the global market trends.

Additionally, the growing inclination of investors in pharmaceutical firms and the changing adoption of psychedelic substances will steer the global market expansion. Moreover, swiftly expanding the healthcare sector and establishing special treatment units focusing on psychedelic treatments will spur the market space in the years ahead.

Psychedelic Drugs Market: Restraints

Adverse effects of the product can obstruct the expansion of the global industry over 2024-2032

Side effects of the product, such as paranoia, anxiety, and psychosis, can inhibit the growth of the global psychedelic drugs industry. Moreover, safety concerns pertaining to drugs, such as psychological issues, can obstruct global industry expansion. Furthermore, delays in the drug approval process and poor healthcare infrastructure facilities witnessed in emerging economies can deter the expansion of industry globally.

Psychedelic Drugs Market: Opportunities

High focus of healthcare service providers on effectively treating mental ailments can open new growth avenues for the global market

Growing focus of healthcare firms on the use of precision medicine in treating mental health ailments will generate new opportunities for growth for the global psychedelic drugs market. Moreover, a patient-centric approach in a huge number of hospitals will augment the global market surge in the years ahead. Joint ventures and collaborations with pharmaceutical firms & research institutes can speed up the drug development & commercialization process, thereby driving the global market expansion.

Psychedelic Drugs Market: Challenges

Low rates or product approval levels by FDA can deter the global industry surge over the coming years

Uncertainty related to the approval of products by the FDA, along with public safety concerns, can challenge the expansion of the global psychedelic drugs industry. Cultural stigma associated with the use of the product can obstruct the global industry surge.

Psychedelic Drugs Market: Report Scope

Psychedelic Drugs Market: Segmentation

The global psychedelic drugs market is divided into drug type, delivery method, application, end-user, and region.                 

In terms of drug type, the psychedelic drugs market across the globe is segmented into psilocybin, ketamine, MDMA, LSD, ibogaine, and ayahuasca segments. Apparently, the psilocybin segment, which garnered nearly 28% of the global market earnings in 2023, is projected to record the highest CAGR in the next couple of years owing to the huge therapeutic potential of the drug which can effectively treat PTSD, depression, and anxiety. Reportedly, the surging adoption of drugs by healthcare service providers, along with their high approval rate in clinics & hospitals, will drive the segmental surge.

Based on the delivery method, the global psychedelic drugs industry is sectored into oral, sublingual, intravenous, and inhalation segments. Furthermore, the oral segment, which dominated the global industry share in 2023, is set to contribute notably towards the global industry progress over 2024-2032. This can be due to the ease of administering the drug and the preference of a large number of patients towards oral administration of drugs.   

On the basis of application, the global psychedelic drugs market is segregated into mental health disorders, pain management, end-of-life care, and existential therapy segments. Moreover, the mental health disorders segment, which led the segmental growth in 2023, is likely to retain its segmental dominance in the forecasting years as a result of the massive use of the product in treating depression, PTSD, addiction, and anxiety.

Based on the end-user, the psychedelic drugs industry globally is divided into hospitals & clinics, clinical research organizations, and research institutes segments. Apart from this, the hospitals & clinics segment, which contributed notably towards the industry size in 2023, is projected to record the fastest CAGR over the assessment period. This can be due to the ability of hospitals & clinics to offer controlled settings for administering psychedelic drugs, thereby ensuring patient safety & monitoring.

Psychedelic Drugs Market: Regional Insights

North America is likely to maintain leading position in the global market over the analysis timeframe

North America, which accounted for about 38% of the global psychedelic drugs market size in 2023, is expected to establish a stronghold in the global market during the forecast timespan. Additionally, the regional market progress in the coming eight years can be due to the presence of strong healthcare infrastructure facilities in the countries such as the U.S. Moreover, a rise in the cases of mental health ailments and acceptance of new therapies will embellish the growth of the market in North America.

The Asia-Pacific psychedelic drugs industry is anticipated to register the highest CAGR in the expected timeframe. The rapid progression of the industry in APAC can be credited to surging mental health issues and supportive laws favoring the use of the product to treat these issues. The availability of efficient healthcare amenities in the region will steer the regional industry growth.

Psychedelic Drugs Market: Competitive Space

The global psychedelic drugs market profiles key players such as:

• AstraZeneca
• Cybin Corp.
• Jazz Pharmaceuticals Inc.
• Pfizer Inc.
• COMPASS Pathways
• Entheon Biomedical Corp
• PharmaTher Holdings Ltd.
• F. Hoffmann-La Roche Ltd
• Verrian
• Mind Medicine
• Hikma Pharmaceuticals PLC
• Celon Pharmaceuticals
• GH Research
• NeonMind Biosciences
• Usona Institute

The global psychedelic drugs market is segmented as follows:

By Drug Type

• Psilocybin
• Ketamine
• MDMA
• LSD
• Ibogaine
• Ayahuasca

By Delivery Method 

• Oral
• Sublingual
• Intravenous
• Inhalation

By Application

• Mental Health Disorders
• Pain Management
• End-of-Life Care
• Existential Therapy

By End-User

• Hospitals & Clinics
• Clinical Research Organizations
•  Research Institutes

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa