Psychedelic Drug Market to Grow with a CAGR of 10.61% through 2028

Innovative treatment approaches, mental health concerns, and international expansion is expected to drive the Global Psychedelic Drug Market growth in the forecast period, 2024-2028.

According to TechSci Research report, “Psychedelic Drug Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Psychedelic Drug Market stood at USD 3.72 billion in 2022 and is anticipated to grow with a CAGR of 10.61% in the forecast period, 2024-2028. This can be attributed to international expansion. Interest in the psychedelic drug market is not confined to a single region. Research, advocacy, and policy discussions are occurring globally. As more countries take steps to facilitate research and potentially legalize certain psychedelics, the market's growth potential extends beyond North America to encompass a worldwide market.

Moreover, advocacy and education efforts are on the rise to reduce the stigma surrounding psychedelics and inform the public about their potential benefits and risks. Non-profit organizations, patient advocacy groups, and researchers are working together to provide accurate information and promote responsible and safe use of these substances.

The COVID-19 pandemic had a profound impact on the psychedelic drugs market. The sudden imposition of lockdowns by governments worldwide during the pandemic led to a surge in demand for psychedelic drugs, as people across the globe grappled with severe depression and stress. For example, according to a March 2022 update from the World Health Organization (WHO), the COVID-19 pandemic resulted in a 25% increase in the global prevalence of anxiety and depression. Many individuals lost their jobs and found themselves confined to their homes, exacerbating their mental health issues and driving up demand in the market. While current conditions have seen the easing of restrictions and a reduction in mental health-related issues, the market is expected to continue growing due to heightened awareness of mental health concerns that can be addressed with psychedelic drugs and increased research and development efforts in this field.

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The development of psychedelic drugs and the heightened recognition of their role in addressing mental health issues are key factors propelling market growth throughout the forecast period. The need to address elevated levels of stress, anxiety, and other mental disorders is a pivotal driver of market expansion. Psychedelic drugs offer novel approaches to tackling mental illness, with some showing promise where other treatments have fallen short. Government initiatives, partnerships, and awareness campaigns focused on mental health are expected to further drive market growth. For instance, the Mental Health Foundation has organized and hosted Mental Health Awareness Week for the past 22 years, making it one of the largest awareness initiatives in the UK and globally. In May 2022, Mental Health Foundation conducted Mental Health Awareness Week under the theme of 'loneliness,' exploring its impact on mental health and how communities can combat loneliness. These programs raise awareness about the treatment of severe mental disorders like depression, anxiety, bipolar disorders, and others, which require the use of psychedelic drugs, thereby boosting demand for these drugs and driving market growth.

Mental health issues are a significant catalyst for market growth during the forecast period, as conditions like anxiety, depression, psychosis, and certain types of panic attacks often require treatment with psychedelic drugs. For instance, according to the State of Mental Health in America 2022 report, the number of youths experiencing severe major depressive episodes (MDE) increased by 197,000 compared to the 2021 data. This rise in the incidence of depressive disorders translates into a heightened demand for psychedelic drugs, driving market growth. Furthermore, research studies highlighting the benefits of psychedelic drugs in various mental health domains are expected to contribute to market expansion, as researchers have the opportunity to explore the advantages of these drugs. For example, a study published in May 2021 in PubMed found that psilocybin-assisted therapy was effective in producing substantial, rapid, and sustained antidepressant effects in patients with major depressive disorder.

The Global Psychedelic Drug Market is segmented into drug type, application, distribution channel, regional distribution, and company.

Based on its drug type, Psilocybin is poised to dominate the global psychedelic drug market due to a convergence of factors that make it a frontrunner in the industry. Firstly, increasing awareness of the therapeutic potential of psilocybin in treating various mental health conditions, such as depression, anxiety, and PTSD, has led to a growing demand for psilocybin-based treatments. Moreover, recent regulatory changes in several countries and regions have facilitated research and development efforts, paving the way for potential legalization and commercialization. Additionally, the growing interest from both pharmaceutical companies and venture capitalists has injected significant capital into the psilocybin sector, fostering innovation and accelerating its market growth. As research continues to uncover the vast therapeutic possibilities of psilocybin, its prominence in the global psychedelic drug market is expected to solidify, offering immense opportunities for businesses and investors alike.

Based on region, North America is poised to maintain a significant share in the global psychedelic drugs market, a trend expected to persist throughout the forecast period. This prominence can be attributed to the region's robust research and development initiatives focused on psychedelic drugs, a heightened awareness surrounding mental health treatment, and the escalating incidence of mental health disorders. For instance, according to the 2022 Adult Prevalence of Mental Illness (AMI) statistics, a staggering 19.86% of adults in North America grapple with mental illness, equating to nearly 50 million Americans, with 4.91% experiencing severe mental health conditions. These alarming prevalence rates underscore the pressing demand for psychedelic drugs as a therapeutic solution, thereby propelling market growth over the projected timeframe.

• Jazz Pharmaceuticals PLC
• NeonMind Biosciences Inc.
• Cybin Inc.
• Pfizer Inc
• Numinus Wellness Inc
• Mind Medicine Inc
• PharmaTher Holdings Ltd
• NRX Pharmaceuticals Inc
• Seelos Therapeutics Inc
• Revive Therapeutics Inc

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“The global psychedelic drug market is at a pivotal moment, with emerging trends pointing to a future that holds great promise. As regulatory acceptance expands, psychedelic therapies are poised to become integral to mental healthcare. Additionally, the integration of technology, the exploration of new indications, and the growth of psychedelic wellness programs are broadening the scope of their applications. Investment and advocacy efforts are further propelling this transformative industry. However, it is essential to balance innovation with safety and ethics to ensure that the potential benefits of psychedelic drugs are realized responsibly and with the best interests of patients in mind,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

“Psychedelic Drug Market By Drug Type (Lysergic Acid Diethylamide, Gamma Hydroxybutyric Acid, Ketamine, Psilocybin, Others), By Application (Treatment-Resistant Depression, Opiate Addiction, Post-Traumatic Stress Disorder, Narcolepsy, Panic Disorders, Others), By Distribution Channel (Hospital Pharmacies, Retail Pharmacies, Online Pharmacies), By Region, By Competition Forecast & Opportunities, 2018-2028F”, has evaluated the future growth potential of Global Psychedelic Drug Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Psychedelic Drug Market.