Psychedelic Drugs Market Report 2025

The psychedelic drugs market size has grown rapidly in recent years. It will grow from $5.56 billion in 2024 to $6.39 billion in 2025 at a compound annual growth rate (CAGR) of 14.9%. The growth in the historic period can be attributed to shifting regulatory landscape, increased mental health awareness, changing public perception.

The psychedelic drugs market size is expected to see rapid growth in the next few years. It will grow to $11.93 billion in 2029 at a compound annual growth rate (CAGR) of 16.9%. The growth in the forecast period can be attributed to advancements in drug development, expansion of therapeutic applications, growing acceptance in medical community, public policy shifts, mental health crisis response. Major trends in the forecast period include focus on education and public awareness, legal and regulatory developments, diversification of psychedelic compounds, patient-centric treatment approaches.

The surge in cases of mental illnesses is anticipated to drive the expansion of the psychedelic drugs market in the future. Mental illnesses encompass health conditions characterized by alterations in emotion, thinking, or behavior, including distress and post-traumatic stress disorder. Psychedelic drugs have demonstrated effectiveness in treating depression and post-traumatic stress disorder, contributing to the reduction of mental illnesses through regular use. For instance, in November 2022, as reported by the UK-based National Centre for Social Research, the percentage of 17- to 19-year-olds with a suspected mental disorder increased from 17.4% in 2021 to 25.7% in 2022. Consequently, the rising number of mental illness cases is a significant driver behind the growth of the psychedelic drugs market.

Government initiatives and programs focused on mental health are expected to drive the growth of the psychedelic drugs market in the future. These initiatives encompass actions, projects, or programs designed by governments to address specific issues, achieve particular goals, or respond to public needs. They facilitate research and clinical trials, which enhance the understanding of the therapeutic potential and safety profiles of psychedelic substances. Furthermore, regulatory reforms or approvals for medical use, prompted by these initiatives, could foster a more favorable environment for the development and commercialization of psychedelic-based treatments. For example, a report published by the National Institute of Mental Health in 2022 revealed that out of 59.3 million adults experiencing any mental illness (AMI), 30 million (50.6%) received mental health treatment in the past year. Thus, government initiatives and programs related to mental health are driving the growth of the psychedelic drugs market.

Major companies in the psychedelic drugs market are concentrating on developing innovative products, such as ketamine, to improve therapeutic outcomes for mental health conditions, enhance patient accessibility to treatment, and investigate new applications for psychedelic compounds in areas like depression, anxiety, PTSD, and substance use disorders. Ketamine is primarily known as an anesthetic and analgesic medication, recognized for its dissociative properties. It is also being investigated for its rapid antidepressant effects in treating severe depression and PTSD. For example, in March 2022, Husch Blackwell, a US-based firm, established the Psychedelics and Emerging Therapies Practice Group. This group aims to support innovators in researching, developing, and commercializing new therapies based on psychedelics. It consists of an interdisciplinary team of lawyers experienced in navigating the complex legal landscape surrounding these substances, which are frequently classified as Schedule I controlled substances under U.S. federal law. This classification creates significant regulatory challenges that can impede research and development efforts.

A notable strategy among major companies in the psychedelic drugs market involves forming partnerships to develop new products and strengthen market positions. Collaborations and partnerships in this sector facilitate the sharing of expertise, resources, and research efforts, expediting the development of innovative treatments and enhancing the understanding of the therapeutic potential of psychedelics. For instance, in March 2022, SciSparc Ltd., an Israel-based biopharmaceutical company, collaborated with Clearmind Medicine Inc., a Canada-based pharmaceutical company. The partnership focuses on exploring the development of innovative compounds in the psychedelic field, aiming to create drug candidates with robust efficacy and safety profiles for treating mental health-related diseases. The collaboration includes joint pre-clinical studies, and both companies anticipate that positive results could deepen their partnership in the pursuit of novel psychedelic-derived therapeutics. This strategic alliance reflects the growing interest and investment in the psychedelic pharmaceutical sector, driven by the potential for groundbreaking treatments and addressing underserved health problems.

In April 2022, Numinus, a Canada-based company specializing in psychedelic medicine with integrated psychotherapy, acquired Novamind for $20.77 million. This acquisition positions Numinus to expand its psychotherapy clinics in the US and advance psychedelic programs. Novamind, a US-based mental health company and psychedelic medicine manufacturer, contributes to Numinus's strategic growth in the evolving landscape of psychedelic treatments.

Major companies operating in the psychedelic drugs market include Atai Life Sciences, Cybin Inc., Mind Medicine Inc., Compass Pathways, Seelos Therapeutics, Numinus Wellness Inc., GH Research, Revive Therapeutics, Havn Life Sciences, PharmaTher Holdings, Field Trip Health, Small Pharma, Incannex Healthcare, Optimi Health, NeonMind Biosciences, Entheon Biomedical, Mydecine Innovations Group, Red Light Holland, Eleusis, MAPS Public Benefit Corporation, Beckley Psytech, Awakn Life Sciences, Psygen Industries, Enveric Biosciences, Filament Health, Tactogen, Bexson Biomedical, BetterLife Pharma, Clairvoyant Therapeutics, Universal Ibogaine.

North America was the largest region in the psychedelic drugs market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the psychedelic drugs market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the psychedelic drugs market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Psychedelic drugs constitute a category of psychoactive substances that induce alterations in perception, mood, and thought processes. These substances impact all senses, leading to changes in an individual's thinking, perception of time, and emotions. Examples include chemicals such as Lysergic acid diethylamide (LSD) and plants such as peyote. Psychedelic drugs find applications in the treatment of various mental health conditions.

Psychedelic drugs come in different types, including lysergic acid diethylamide (LSD), ketamine, phencyclidine, gamma-hydroxybutyric acid (GHB), and salvia. LSD, colloquially known as acid, is manufactured in crystalline form and diluted for ingestion. These drugs are used for various disease indications such as depression and PTSD, with applications in treatment-resistant depression, opiate addiction, post-traumatic stress disorder, narcolepsy, and panic disorders. Distribution channels include hospital pharmacies, retail pharmacies, and online pharmacies.

The psychedelic drugs market research report is one of a series of new reports that provides psychedelic drugs market statistics, including psychedelic drugs industry global market size, regional shares, competitors with a psychedelic drugs market share, detailed psychedelic drugs market segments, market trends and opportunities, and any further data you may need to thrive in the psychedelic drugs industry. This psychedelic drugs market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The psychedelic drugs market consists of sales of psilocybin, PCP, cannabis, and ecstasy. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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