Psychedelic Therapeutics Market

The global psychedelic therapeutics market size was USD 4 Bn in 2022 and is likely to reach USD 13.5 Bn by 2031, expanding at a CAGR of 14.8% during 2023–2031. Growing prevalence of depression and mental health disorders coupled with the expanding acceptance of psychedelic therapeutics as recreational solutions are propelling the market.

Mental health-related disorders rose significantly since 2020 owing to COVID-19-fueled the rise in depression & sadness, death of close ones, economic uncertainties, and loneliness. The demand for psychedelics among the young and adult population jumped as a result in countries such as the US, as they are becoming accessible for medicinal purposes through legislative reforms across states.

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• According to information published by the National Center for Biotechnology Information, in late 2020, Oregon became the first state in the US that decriminalized psilocybin and made it legal for therapeutic applications. However, all the essential steps regarding psilocybin including licensing, production, extraction, and purity and potency testing procedures required to follow strict guidelines which are to be supervised by the Oregon Health Authority.

Psychedelic drugs come under hallucinogenic therapeutics. The most common psychedelics across the world include 3,4-Methyl​enedioxy​methamphetamine, also known as ecstasy, molly, and mandy (MDMA), lysergic acid diethylamide (LSD), psilocybin, and ayahuasca. These substances are legalized and controlled in by the United Nations.

As per a study conducted by the National Institutes of Health (NIH) in 2022 for discussion of the role of hallucinogens in healthcare treatments, psychedelics can have an effect on an individual’s perception of the external world and a person’s conception about their role within the world. The study states that these drugs have the ability to influence mood and stress management, and aid in memory and social functioning improvement.

Conventional drugs related to mental health therapy can be taken at least once daily without needing supervision from professionals. Whereas, for mental health therapy purpose, the use of psychedelics requires a clinical setting with preparatory and integrative counseling. This helps in keeping check of any adverse effects or disorientation signs in a patient to whom it is being administered.

The market report finds that the COVID-19 pandemic's impact on the psychedelic therapeutics market varied across the regions owing to rules and regulations set by the governments on the use of psychedelics. Nevertheless, depression and mental health disorders, which were already significant issues of the world pre-pandemic, further increased during the pandemic with the rise in personal and professional worries.

A survey study undertaken in 2021 revealed that nearly half of the American members surveyed had reported recent depressive and anxiety disorder symptoms. About 10% of individual respondents felt that their mental health needs were being fulfilled. These factors are likely to increase the number of individuals seeking various procedures and therapeutics to recover from the mental health complications created directly and indirectly by the occurrence of the pandemic.

Psychedelic Therapeutics Market Dynamics

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Key Trends

Acceleration in trials, development of guidelines, and rising approval processes from regulatory bodies are major trends in the market. Such widened exploration of psychedelic therapeutics for the treatment of various mental health disorders is helping the market to gain significant momentum.

• On June 25, 2023, the United States Food and Drug Administration (FDA) issued draft guidance for designing clinical trials for psychedelic therapeutics. It addresses the unique challenges occurring while developing clinical studies for these drugs. As per the guidance, the term psychedelic comprises classic psychedelics, typically recognized as 5-HT2 agonists such as psilocybin, LSD, and entactogens or empathogens such as MDMA.

Major Drivers

Rising incidences of mental health and depression disorders and growing awareness among individuals are projected to propel the psychedelic therapeutics market during the assessment period. According to the largest review by the World Health Organization (WHO), released in June 2022, noted that depression and anxiety disorders grew by 25% during the first year of the COVID-19 pandemic.

According to NCBI estimation, there are 1 billion people suffer from mental health disorders, commonly, depression, and anxiety. It costs the global economy USD 1 trillion each year. The positive out of such a high prevalence of mental health disorders is that individuals are becoming increasingly aware of the need to fix these psychological disorders with proactive measures. These factors are leading to the high demand for psychedelic therapeutics available for medicinal use.

Existing Restraints

Ethical issues and strict regulations associated with trials, approvals, and the production of psychedelics are some factors hampering the market. Although the policy reforms and new trials are underway or being ideated, there are several complexities involved in taking them to the final stages. Even after the approvals, owing to strict guidelines their enforcement and use is varying across regions. The side effects associated with the long-term use of psychedelics limits the market.

Emerging Opportunities

Rising research and development for the medicinal use of various psychedelics and growing investment by various organizations are likely to create new growth prospects for the market players in the coming years. In June 2023, Blake Mycoskie, the founder of Los Angeles-based canvas footwear brand Tom Shoes, committed to providing USD 100 million in the support of psychedelic access and research. In June 2023, the FDA said that the psychedelic drug prospects for mental health treatment looked promising and cleared the path for new trials by releasing new trial guidance the development of innovative psychedelic therapeutics is likely to expand in the coming years.

Scope of the Psychedelic Therapeutics Market Report

The global psychedelic therapeutics market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

In terms of origin of psychedelic substance, the psychedelic therapeutics market is bifurcated into natural substances and synthetic substances. The natural substances segment is expected to expand at a substantial growth rate during the projection period owing to rising research and high acceptance of psychedelics such as psilocybin (also recognized as magic mushrooms, dimethyltryptamine (DMT), and others for medicinal use in anxiety disorders and depression treatments.

Psilocybin is sourced from mushrooms found in the US and countries in South America. It is one of the most researched psychedelic substances. Through constant research, its effects are being explored for anxiety and depression treatment, addictions, and cancer-related distress treatment.

The synthetic substances segment is poised to expand at a rapid pace during the forecast period owing to an increase in R&D and innovation of therapeutics for the treatment of psychological disorders and chronic disease pain issues. Examples of artificial psychedelic substances include ketamine, LSD, and MDMA. These substances are manufactured with human efforts in semi-controlled to controlled lab environments.

On the basis of substance type, the global market is segregated into gamma-hydroxybutyrate (GHB), ketamine, methylenedioxy-methamphetamine (MDMA), dimethyltryptamine (DMT), ayahuasca, lysergic acid diethylamide (LSD), psilocybin, and others. The psilocybin segment is projected to hold a major revenue share in the market owing to its use for the treatment of different types of mental health disorders.

Some of the common application of psilocybin therapy are for the treatment of conditions such as anxiety, depression, addiction, obsessive compulsive disorder (OCD), and psychosis. It remains the most researched psychedelic as of 2022 owing to its low potential for abuse & dependence and safety reasons.

Governments in several cities of the US, such as Denver (Colorado, 2019), Washington, D.C. (2020), Northampton (Massachusetts, 2021), and others have decriminalized the use of psilocybin. Oregon and Colorado have become the first two states in the US that decriminalized the use of these psychedelics for medicinal use.

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Based on target therapeutic application, the psychedelic therapeutics market is segmented into depression & anxiety disorders, sleep disorders, trauma, chronic pain disorders, and others. The depression & anxiety disorders segment is expected to expand at a robust pace during the forecast period owing to rising incidences of mental health disorders in youths and adult populations across the world. Growing number of studies and long-term side-effects associated with conventional mental health therapeutics are driving individuals to prefer psychedelic-based therapeutics for dealing with anxiety and depression issues.

The chronic pain disorders segment is expected to grow at a considerable pace in the coming years owing to the rising prevalence of various chronic disorders. As per a study published by NCBI in May 2023 over one-quarter of the US population suffered from chronic pain. In outpatient clinics, chronic pain complaints are the most commonly observed complaints. Studies suggest that some psychedelics can improve the lifestyle of individuals with chronic pain complaints.

On the basis of route of administration, the global market is segregated into intravenous therapies, intranasal therapies, sublingual therapies, and oral therapies. The intranasal therapies segment is projected to register a considerable CAGR during the forecast period owing to growing innovations related to administering therapeutics through the nasal region.

A rising number of pharmaceutical companies are entering the psychedelic space with new innovations in intranasal drug delivery devices. In recent years, Johnson & Johnson received an approval from the FDA for its SPRAVATO (Esketamine) nasal spray that treats resistant depression.

Based on end-user, the market is classified as hospitals, clinics, homecare, and research institutes. The clinics segment is expected to expand at a significant pace during the forecast period owing to the rising number of complaints of chronic pain, anxiety, and sleep disorders. Clinics also administer appropriate prescriptions for certain psychedelic medications and their dosages. Safety reasons are propelling the clinics segment, as numerous individuals facing chronic-pain disorders prefer getting a consultation and prescription before buying any medicine.

The research institute segment is projected to expand at a significant CAGR owing to the rising R&D to explore applications of psychedelics in treating mental health, trauma, and sleep disorders. The number of people going through psychological disorders is rising exponentially, thus fueling the need for developing drugs that are safe for use and do not have long-term implications. Research institutes worldwide are exploring ways to make use of psychedelics to develop therapeutics while adhering to ethics and government-set guidelines.

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Regional Outlook

In terms of region, the global psychedelic therapeutics market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period owing to expedited trials and regulatory approvals for new innovations happening in the psychedelic therapeutics market.

The growth of the market in North America is supported by rising number of people suffering from depression, anxiety, sleep, and chronic pain disorders. Individuals are becoming increasingly aware of direct and indirect impacts created by psychological issues in their personal and professional lives. Furthermore, the preference for these therapeutics is to avoid long-term health effects created by conventional drugs. Several studies have revealed positive effects of psychedelics for improving cognitive functions and boosting moods while dissolving the effects generated by depression and anxiety disorders.

• According to the Centers for Disease Control and Prevention (CDC), in 2021, an estimated 20.9% of US adults (51.6 million individuals) suffered chronic pain and 6.9% (17.1 million individuals) experienced high-impact chronic pain.

The market in Asia Pacific is projected to witness rapid growth owing to rising awareness related to mental health disorders and evolving regulatory landscape to make way for the development of psychedelic therapeutics. Individuals in the region, especially youths are seeking alternatives that aid in resolving psychological disorders without having to go through extensive treatment sessions and medications. Growing R&D in the field of mental health disorders and chronic pain disorders and supportive government policies are expected to fuel the market in the region.

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Segments

The global psychedelic therapeutics market has been segmented on the basis of

Origin of Psychedelic Substance

• Natural Substances
• Synthetic Substances

Substance Type

• Gamma-Hydroxybutyrate (GHB)
• Ketamine
• Methylenedioxy-methamphetamine (MDMA)
• Dimethyltryptamine (DMT)
• Ayahuasca
• Lysergic Acid Diethylamide (LSD)
• Psilocybin
• Others

Target Therapeutic Application

• Depression & Anxiety Disorders
• Sleep Disorders
• Trauma
• Chronic Pain Disorders
• Others

Route of Administration

• Intravenous Therapies
• Intranasal Therapies
• Sublingual Therapies
• Oral Therapies

End-user

• Hospitals
• Clinics
• Homecare
• Research Institutes

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Celon Pharma S.A.
• Mind Medicine Inc. (NASDAQ: MNMD)
• IX BIOPHARMA LTD
• Janssen Global Services, LLC
• MAPS PBC
• Jazz Pharmaceuticals, Inc.
• The Emmes Company, LLC
• NRx Pharmaceuticals, Inc.
• Avadel
• COMPASS Pathways
• CaaMTech
• Douglas Pharmaceuticals Limited
• Mindset Pharma
• Awakn Life Sciences Corp
• Psilera
• Braxia Scientific Corp.
• Cybin Corp.
• Aphrodite Health
• Eleusis Holdings Ltd,
• Diamond Therapeutics Inc.
• CB Therapeutics
• BetterLife Pharma

Competitive Landscape

The competitive landscape of the global psychedelic therapeutics market report provides key insights into the growth strategies and development initiatives implemented by the key players in the market.

Key players competing in the psychedelic therapeutics market are Celon Pharma S.A.; Mind Medicine Inc.; IX BIOPHARMA LTD; Janssen Global Services, LLC; MAPS PBC; Jazz Pharmaceuticals, Inc.; The Emmes Company, LLC; NRx Pharmaceuticals, Inc.; Avadel; COMPASS Pathways; CaaMTech; Douglas Pharmaceuticals Limited; Mindset Pharma; Awakn Life Sciences Corp; Psilera; Braxia Scientific Corp.; Cybin Corp.; Aphrodite Health; Eleusis Holdings Ltd; Diamond Therapeutics Inc.; CB Therapeutics; and BetterLife Pharma.

These companies adopt a range of development strategies including R&D, increased investment, innovation focus, partnerships, speedy trials, collaboration, product launches, and production expansion to expand their presence and prominence in the global market. The competitive landscape in the market report covers key insights into development strategies applied by major market players. For instance,

• In May 2023, Mind Medicine Inc. a clinical-stage biopharmaceutical company that works on developing novel product candidates for brain health disorders treatment, announced that its Phase 2b study assessing MM-120 (lysergide D-tartrate) for GAD is over 50% enrolled and dosed. The company plans to enroll up to 200 participants for the trial who are to receive a single administration of 25 µg, 50 µg, 100 µg or 200 µg of MM-120 or a placebo. The top findings of the trial are likely to be announced in late 2023.