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Psychedelic Drugs Market

Psychedelic Drugs Market

Psychedelic Drugs Market - Global Industry Assessment & Forecast

Number Of Pages # Pages:


Base Year:



Feb - 2024



Report Code:


Segments Covered
  • By Source By Source Synthetic, Natural
  • By Therapeutic Drugs By Therapeutic Drugs Psilocybin, LSD, MDMA, DMT, Ketamine
  • By Route of Administration By Route of Administration Oral, Injectable, Inhalation
  • By Indication By Indication Alzheimer Dementia, Anorexia and Obesity, Anxiety & Depressive Disorders, Cluster Headaches, Obsessive Compulsive Disorders, Personality Disorder, Post-Traumatic Stress Disorder, Substance Abuse Disorders, Terminal Cancer Distress
  • By Distribution Channel By Distribution Channel Hospital Pharmacies (Dominating 57.3%), Retail Pharmacies, Online Pharmacies
  • By Region By Region North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Base YearBase Year: 2023
Forecast YearsForecast Years: 2024 - 2032
Historical YearsHistorical Years: 2018 - 2022
Revenue 2023Revenue 2023: USD 2.91 Billion
Revenue 2032Revenue 2032: USD 8.85 Billion
Revenue CAGRRevenue CAGR (2024 - 2032): 13.2%
Fastest Growing Region Fastest Growing Region (2024 - 2032) Asia Pacific
Largest Region Largest Region (2023): North America
Customization Offered
  • Cross-segment Market Size and Analysis for Mentioned Segments Cross-segment Market Size and Analysis for Mentioned Segments
  • Additional Company Profiles (Upto 5 With No Cost) Additional Company Profiles (Upto 5 With No Cost)
  • Additional Countries (Apart From Mentioned Countries) Additional Countries (Apart From Mentioned Countries)
  • Country/Region-specific Report Country/Region-specific Report
  • Go To Market Strategy Go To Market Strategy
  • Region Specific Market Dynamics Region Specific Market Dynamics
  • Region Level Market Share Region Level Market Share
  • Import Export Analysis Import Export Analysis
  • Production Analysis Production Analysis
  • Other Others Request Customization Speak To Analyst
Psychedelic Drugs Market Share

The global Psychedelic Drugs Market is valued at USD 2.91 Billion in 2023 and is projected to reach a value of USD 8.85 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 13.2% between 2024 and 2032.

Key highlights of Psychedelic Drugs Market

  • The North America contributed to a revenue share of 37.8% in 2023
  • Asia Pacific is predicted to increase at the fastest rate in the anticipated years, with a maximum CAGR of more than 14.1%,
  • In 2023, the Natural segment accounted to have 58.9% of the overall revenue share
  • In 2023, the Psilocybin category held a notable 42.1% of revenue share in the worldwide Psychedelic Drugs market
  • In 2023, Oral segment accounted to have largest Psychedelic Drugs market growth with revenue share of 59.4%
  • By Indication, Anxiety & Depressive Disorders led the global Psychedelic Drugs market with revenue share of 43.1% in 2023
  • Based on Distribution Channel, Hospital Pharmacies anticipated to mention 57.3% of total revenue share in 2023
  • Mind Medicine, a biotech company, conducted a Phase 2b trial on MM-120 a pharmacologically optimized form of LSD being developed for GAD and other brain-based disorders. The study focused on the independent effects of MM-120 and discovered potential advantages. As a result, the company has established a positive position in the Psychedelic Drugs Market.

Psychedelic Drugs Market Size, 2023 To 2032 (USD Billion)

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Psychedelic Drugs Market: Regional Overview

With a revenue share of 37.8%, the North America led the Psychedelic Drugs market in 2023. In recent years, there has been an increase in mental health issues in North America. According to the NIMH (National Institute of Mental Health), approximately 57.8 million adults aged 18 and older in the United States go through mental health issues in 2023. These issues were more common among females (27.2%) than males (18.1%), and young adults aged 18-25 had the highest prevalence (33.7%) compared to those aged 26-49 (28.1%) and 50 and older (15.0%). This rise in mental health issues has created a requirement for alternative treatments, leading to the expansion of the Psychedelic Drugs market. Both major pharmaceutical companies and start-ups are investing significant resources in researching the therapeutic advantages of Psychedelic Drugs. For instance, Compass Pathways is conducting clinical trials on psilocybin therapy for depression-resistant disorders and has received substantial investment. This investment in research and development is expected to boost the expansion of Psychedelic Drugs and propel the overall growth of the market.

U.S. Psychedelic Drugs Market Overview

The U.S. Psychedelic Drugs Market is valued at USD 0.96 Billion in 2023 and is projected to reach a value of USD 2.41 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 10.8% between 2024 and 2032.

The Psychedelic Drugs market growth in the U.S. is influenced by a considerable increase in hallucinogen use since 2015. This surge in use is mainly observed among adults aged 26 and older, contrasting with a decrease in use among adolescents aged 12–17 years. The study, conducted by Columbia University Mailman School of Public Health and Columbia University Irving Medical Center, reveals a rising trend with an estimated 5.5+ million people in the U.S. using hallucinogens in 2019, marking an increase from 1.7% in 2002 to 2.2% in 2019. This changing landscape presents various growth opportunities for the market in the Psychedelic Drugs sector.

The global Psychedelic Drugs market can be categorized as Source, Therapeutic Drugs, Route of Administration, Indication, Distribution Channel, and Region.

Parameter Details
Segments Covered

By Source

  • Synthetic
  • Natural

By Therapeutic Drugs

  • Psilocybin
  • LSD
  • MDMA
  • DMT
  • Ketamine

By Route of Administration

  • Oral
  • Injectable
  • Inhalation

By Indication

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

By Distribution Channel

  • Hospital Pharmacies (Dominating 57.3%)
  • Retail Pharmacies
  • Online Pharmacies

By Region

  • North America
    • U.S.
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

Regions & Countries Covered
  • North America - (U.S., Canada, Mexico)
  • Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
  • Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
  • Latin America - (Brazil, Argentina, Rest Of Latin America)
  • Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
Companies Covered
  • Atai Life Sciences NV
  • Compass Pathways PLC
  • MindMed Inc
  • Takeda Pharmaceutical Company Limited
  • Pfizer Inc.
  • Alkermes
  • Celon Pharma S.A
  • Seelos Therapeutics Inc.
  • HAVN Life Sciences Inc.
  • Numinus Wellness Inc.
  • Eli Lilly and Company
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis
Pricing and purchase options Avail of customized purchase options to meet your exact research needs. Explore purchase options

Psychedelic Drugs Market: Source Overview

In 2023, the natural segment led the market and accounted for a revenue share of 58.9%. Based on Source, the Psychedelic Drugs market is divided into synthetic and natural.

Global Psychedelic Drugs Market by Source 2023

The growing curiosity in natural and alternative therapies is evident as consumers increasingly seek solutions for mental health issue, with a major attention on psychedelics derived from nature. Ongoing clinical research is exhibiting the therapeutic ability of natural psychedelics like psilocybin in treating problems like depression, anxiety, PTSD, and addiction, contributing to the Psychedelic Drugs market growth. The changing legal landscape, marked by decriminalization efforts in some regions and increased regulatory openness, is fostering opportunities for research and development in the field of natural psychedelics. Additionally, manipulators are drawn to the apparent benefits of these drugs, as they trust natural psychedelics have less side effects and support a more reliable experience related to their synthetic complements.

Psychedelic Drugs Market: Therapeutic Drugs Overview

The psilocybin segment accounted for the most significant revenue share of 42.1% in 2023. By Therapeutic Drugs, the Psychedelic Drugs market is classified into Psilocybin, LSD, MDMA, DMT, Ketamine.

Psilocybin is developing as a leader in the natural Psychedelic Drugs market, presenting promising growth. This is propelled by extensive clinical research highlighting its effectiveness in addressing issues like PTSD, addiction, end-of-life distress, depression, and anxiety. Breakthrough therapy designations from regulatory bodies like the US FDA, particularly for major depressive disorder and depression-resistant treatment, expedite approval processes, emphasizing its substantial potential. The surge in public awareness and media coverage attracts significant investment, propelling market expansion. Moreover, psilocybin's study of diverse applications outside mental health, such as cluster headaches, obsessive-compulsive illness, and Alzheimer's illness, is further intensifying its market influence.

Psychedelic Drugs Market: Route of Administration Overview

The oral segment accounted for the significant growth of the market in 2023 with revenue share of 59.4%. Based on Route of Administration, the Psychedelic Drugs market is classified into Oral, Injectable, and Inhalation.

The oral segment in the Psychedelic Drugs market holds a compelling position, not as the exclusive administration route but as a potentially significant player in the market's expansion. This is attributed to the convenience and preference of many patients for oral administration, enhancing treatment adherence and accessibility compared to alternative methods like injections or intranasal sprays. The ongoing development of new oral formulations, such as sublingual tablets and micro-dosing capsules, addresses historical challenges and aims to improve bioavailability and dosing control for psychedelics. Furthermore, the integration of oral administration into current psychedelic therapy models involving substances like psilocybin or MDMA contributes significantly to the segment's growth. Looking ahead, if regulations evolve favourably, oral options could facilitate broader patient access in the context of a potentially mainstream psychedelic-assisted therapy landscape.

Psychedelic Drugs Market: Indication Overview

The Anxiety & Depressive Disorders segment accounted for the significant growth of the market in 2023, contributing the revenue share of 43.1%. Based on Indication, the Psychedelic Drugs market is classified into Alzheimer Dementia, Anorexia & Obesity, Anxiety & Depressive Disorders, Cluster Headaches, Obsessive Compulsive Disorders, Personality Disorder, Post-Traumatic Stress Disorder, Substance Abuse Disorders, and Terminal Cancer Distress.

The Anxiety & Depressive Disorders segment mentions substantial growth in the Psychedelic Drugs market, propelled by a confluence of influential factors. The global prevalence of anxiety disorders and depression, highlighted by the World Health Organization and affecting millions globally, is further aggravated by escalating societal pressures, economic unpredictability, and the enduring impact of the COVID-19 pandemic, amplifying the demand for effective treatments. In the realm of clinical research, psychedelic-assisted therapy, particularly engaging elements like psilocybin, MDMA, and LSD, has evidenced promising results in reducing indications and enhancing the quality of life for those dealing with anxiety and depression. This surge is reinforced by a changing treatment landscape, where traditional possibilities like antidepressants face limitations, making psychedelics an appealing innovative approach with the potential for greater outcomes and long-lasting benefits.

Psychedelic Drugs Market: Distribution Channel Overview

The hospital pharmacies segment accounted for the significant growth of the market with revenue share of 57.3% in 2023. Based on Distribution Channel, the Psychedelic Drugs market is classified into Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies.

The hospital pharmacy segment is poised for growth in the coming years due to various factors. The consciousness of mental health issues is growing globally, encouraging an increased focus on managing mental comfort for a better quality of life. The use of Psychedelic Drugs in medicating mental illnesses, such as depression and anxiety, is expected to contribute significantly to the Psychedelic Drugs market's expansion. Notably, Psychedelic Drugs require a prescription from a medical practitioner, making hospital pharmacies a key distribution channel. As the occurrence of mental disorders continues to intensify, demonstrated by the 3.6 million people affected in Texas according to the Mental Health America 2022 report, the demand for Psychedelic Drugs as a treatment option is also expected to increase, driving further growth in the market and putting hospital pharmacies as vital providers of these prescription medications.

Key Trends

  1. The evolving gratitude of the possible clinical applicability of Psychedelic Drugs is reflected in regulatory deviations. For instance, the National Institute on Mental Health and the National Institute on Alcohol Abuse and Addiction conducted a workshop on a growing inclination to discover therapeutic applications of Psychedelics Therapeutics.
  2. The collective number of bills and legislative inventiveness related to psychedelic modification, with 36 bills in 2022 alone, establishes a growing thrust in various states. The focus on psilocybin and MDMA in these bills shows specific attention to discovering the therapeutic potential of these substances.
  3. The escalation in partnerships, with over 40 since 2019, highlights the promise of discovering innovative psychedelics like psilocybin and LSD for conditions such as depression and anxiety. Such partnerships, including Clearmind Medicine and Johns Hopkins University, highlight a collective effort to progress psychedelic research.
  4. The launch of a new program by NIDA's Office of Translational Initiatives to support small businesses in producing psychedelic-based remedies establishes government funding for evolving research in this field. This initiative contributes to the overall growth of the Psychedelic Drugs market.
  5. The increasing number of people using Psychedelic Drugs outside of medical settings for recreation, well-being, or divine exploration replicates an ever changing public observation. This trend contributes to a broader acceptance of Psychedelic Drugs beyond therapeutic applications.

Premium Insights

In recent years, the Psychedelic Drugs Market has observed a prominent surge in research interest, particularly in the examination of dissociative and Psychedelic Drugs for treating medical conditions, including mental health disorders. An increasing number of persons are self-reporting the use of these substances outside medical settings, appealing to such consumption for recreation, well-being development, and spiritual or self-exploration. The NIDA (National Institute on Drug Abuse) plays a crucial role by not only progressing the understanding of the health effects allied with these drugs but also vigorously examining their potential benefits in treating substance use disorders in medical settings. Furthermore, NIDA's Office of Translational Initiatives introduced a pioneering program in June 2022, supporting small businesses in developing psychedelic-based therapies for substance use disorders, showcasing a commitment to fostering innovation. Collaborating with various agencies, NIDA also supports significant coordination efforts, as seen in the co-sponsored 2022 Psychedelics as Therapeutics workshop, facilitating interdisciplinary discussion and strategic coordination to initiate innovation in psychedelic research and incorporation into mainstream healthcare practices.

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Market Dynamics

Legislative Transformations and Societal Trends Driving Market Expansion

A significant driver for the Psychedelic Drugs market is the notable governmental impetus and growing societal acceptance reflected in the growing number of bills and reform initiatives across US states. With 74 bills considered, 10 enacted, and 32 still active, the developing legislative landscape indicates a noteworthy shift toward recognizing the therapeutic potential of psychedelic substances. The steady escalation in the primer of psychedelic reform bills from 5 in 2019 to 36 in 2022 emphasizes a growing awareness and openness to discovering the medical applications of substances like psilocybin and MDMA. Furthermore, the United Nations Office on Drugs and Crime data revealing the prevalent non-medical use of Psychedelic Drugs, particularly MDMA or Ecstasy, among 20.2 million people globally in 2021, highlights the cultural acceptance of these drugs in social life and recreational settings. This legislative and societal momentum acts as a key driver, encouraging an environment favourable to research, development, and market growth in the Psychedelic Drugs Market.

Collaborative Forces and Regulatory Landscape in Psychedelic Therapeutics

The Psychedelic Drugs Market is being driven by a surge in collaborations, with more than 40 partnerships formed since 2019. These partnerships are signifying a crucial role in discovering ground-breaking Psychedelic Drugs, indicating their potential to address conditions such as depression and anxiety. Despite regulatory challenges, there is a growing recognition of the clinical applicability of Psychedelic Drugs, offering anticipation for therapeutic advancements in the future. Psychedelic Drugs, including psilocybin, LSD, and MDMA, have revealed potential benefits in medicating mental health issues. Still, the US Controlled Substance Act, categorizing them as Schedule I substances, has made their research and development challenging. The increase in partnership deals lines up with a regulatory environment allowing the clinical potential of Psychedelic Drugs, indicating a possible acceleration in ground-breaking drug development. The United States leads in this space, with 63 private biotech companies involved, followed by Canada and the UK, collectively determining the route of Psychedelic Drugs examination and potential market benefit.

Competitive Landscape

The Psychedelic Drugs Market exhibits a dynamic competitive landscape driven by strategic collaboration and partnerships among key players. For instance, Clearmind Medicine, a Canadian biotech company, has notably entered into a pivotal collaboration with Johns Hopkins University School of Medicine for the Phase I/II trial of CMND-100, a serotonin receptor 1A agonist, to address alcohol use disorder. Clearmind Medicine has expanded its reach by partnering with the Hebrew University of Jerusalem and SciSparc, focusing on evaluating CMND-100 alongside SciSparc’s dual cannabinoid receptor 1/2 agonist palmidrol to address obesity and metabolic syndrome. Simultaneously, Australia-based Psylo has arrived a co-development partnership with Daiichi Sankyo to develop non-hallucinogenic Psychedelic Drugs for chronic mental illnesses. These strategic collaborations position these companies as influential players in pursuing innovative and diversified solutions within the evolving landscape of psychedelic therapeutics.

The key players in the global Psychedelic Drugs market include - Atai Life Sciences NV, Compass Pathways PLC, MindMed Inc, Takeda Pharmaceutical Company Limited, Pfizer Inc., Alkermes, Celon Pharma S.A, Seelos Therapeutics Inc., HAVN Life Sciences Inc., Numinus Wellness Inc., Eli Lilly and Company among others.

Recent Development

  • In January 2024, Mind Medicine (MindMed) Inc. has shared promising results from its Phase 2b clinical trial investigating MM-120 (lysergide d-tartrate) for Generalized Anxiety Disorder (GAD). In this trial, participants were split into five groups, with each group receiving a single dose of MM-120 (lysergide d-tartrate) or a placebo.
  • In January 2024, Atai Life Sciences has announced a significant investment in Beckley Psytech Limited, marking a strategic collaboration aimed at expediting the development of Beckley Psytech’s two clinical-stage psychedelic candidates, BPL-003 and ELE-101. These candidates are characterized by their short-duration effects and are protected by patents. The collaboration involves integrating these innovative formulations into atai’s mental health innovation platform.
  • In November 2023, Compass Pathways plc, a biotech company committed to improving access to evidence-based innovations in mental health, has started the UK phase of its phase 3 program for investigating the COMP360 psilocybin treatment in individuals with treatment-resistant depression (TRD). This research will be conducted across various locations in the UK, including the Centre for Mental Health Research and Innovation in London.
  • In August 2023, COMPASS Pathways plc, headquartered in London, has successfully raised $285 million in private funding. This financial boost aims to propel the company forward in its mission to develop and provide psychedelics as a treatment for mental health conditions.

Frequently Asked Question
  • The global Psychedelic Drugs valued at USD 2.91 Billion in 2023 and is expected to reach USD 8.85 Billion in 2032 growing at a CAGR of 13.2%.

  • The prominent players in the market are Atai Life Sciences NV, Compass Pathways PLC, MindMed Inc, Takeda Pharmaceutical Company Limited, Pfizer Inc., Alkermes, Celon Pharma S.A, Seelos Therapeutics Inc., HAVN Life Sciences Inc., Numinus Wellness Inc., Eli Lilly and Company.

  • The market is project to grow at a CAGR of 13.2% between 2024 and 2032.

  • The driving factors of the Psychedelic Drugs include

  • North America was the leading regional segment of the Psychedelic Drugs in 2023.