Psychedelic Therapeutics Market by Origin of Psychedelic Substance (Natural Substances and Synthetic Substances), Substance Type (Gamma-hydroxybutyrate, Ketamine, Methylenedioxy-methamphetamine, Dimethyltryptamine, Ayahuasca, Lysergic Acid Diethylamide, Psilocybin, and Others), Target Therapeutic Application (Depression & Anxiety Disorders, Sleep Disorders, Trauma, Chronic Pain Disorders, and Others), Route of Administration (Intravenous Therapies, Intranasal Therapies, Sublingual Therapies, and Oral Therapies), and End-user (Hospitals, Clinics, Homecare, and Research Institutes), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
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.
- 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-Methylenedioxymethamphetamine, 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
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.
Attributes |
Details |
Report Title |
Psychedelic Therapeutics Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2022 |
Historic Data |
2016–2021 |
Forecast Period |
2023–2031 |
Segmentation |
Origin of Psychedelic Substance (Natural Substances and Synthetic Substances), Substance Type (Gamma-hydroxybutyrate, Ketamine, Methylenedioxy-methamphetamine, Dimethyltryptamine, Ayahuasca, Lysergic Acid Diethylamide, Psilocybin, and Others), Target Therapeutic Application (Depression & Anxiety Disorders, Sleep Disorders, Trauma, Chronic Pain Disorders, and Others), Route of Administration (Intravenous Therapies, Intranasal Therapies, Sublingual Therapies, and Oral Therapies), and End-user (Hospitals, Clinics, Homecare, and Research Institutes) |
Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
Key Players Covered in the Report |
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 |
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.
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.
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.
2. Assumptions and Acronyms Used
3. Research Methodology
4. Psychedelic Therapeutics Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Psychedelic Therapeutics Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Psychedelic Therapeutics Market - Supply Chain
4.5. Global Psychedelic Therapeutics Market Forecast
4.5.1. Psychedelic Therapeutics Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Psychedelic Therapeutics Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Psychedelic Therapeutics Market Absolute $ Opportunity
5. Global Psychedelic Therapeutics Market Analysis and Forecast by End Users
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by End Users
5.2.2. Y-o-Y Growth Projections by End Users
5.3. Psychedelic Therapeutics Market Size and Volume Forecast by End Users
5.3.1. Hospitals
5.3.2. Clinics
5.3.3. Homecare
5.3.4. Research Institutes
5.4. Absolute $ Opportunity Assessment by End Users
5.5. Market Attractiveness/Growth Potential Analysis by End Users
6. Global Psychedelic Therapeutics Market Analysis and Forecast by Region
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by Region
6.2.2. Y-o-Y Growth Projections by Region
6.3. Psychedelic Therapeutics Market Size and Volume Forecast by Region
6.3.1. North America
6.3.2. Latin America
6.3.3. Europe
6.3.4. Asia Pacific
6.3.5. Middle East and Africa (MEA)
6.4. Absolute $ Opportunity Assessment by Region
6.5. Market Attractiveness/Growth Potential Analysis by Region
6.6. Global Psychedelic Therapeutics Demand Share Forecast, 2019-2026
7. North America Psychedelic Therapeutics Market Analysis and Forecast
7.1. Introduction
7.1.1. Basis Point Share (BPS) Analysis by Country
7.1.2. Y-o-Y Growth Projections by Country
7.2. North America Psychedelic Therapeutics Market Size and Volume Forecast by Country
7.2.1. U.S.
7.2.2. Canada
7.3. Absolute $ Opportunity Assessment by Country
7.4. North America Psychedelic Therapeutics Market Size and Volume Forecast by End Users
7.4.1. Hospitals
7.4.2. Clinics
7.4.3. Homecare
7.4.4. Research Institutes
7.5. Basis Point Share (BPS) Analysis by End Users
7.6. Y-o-Y Growth Projections by End Users
7.7. Market Attractiveness/Growth Potential Analysis
7.7.1. By Country
7.7.2. By Product Type
7.7.3. By Application
7.8. North America Psychedelic Therapeutics Demand Share Forecast, 2019-2026
8. Latin America Psychedelic Therapeutics Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.1.3. Latin America Average Pricing Analysis
8.2. Latin America Psychedelic Therapeutics Market Size and Volume Forecast by Country
8.2.1. Brazil
8.2.2. Mexico
8.2.3. Rest of Latin America
8.3. Absolute $ Opportunity Assessment by Country
8.4. Latin America Psychedelic Therapeutics Market Size and Volume Forecast by End Users
8.4.1. Hospitals
8.4.2. Clinics
8.4.3. Homecare
8.4.4. Research Institutes
8.5. Basis Point Share (BPS) Analysis by End Users
8.6. Y-o-Y Growth Projections by End Users
8.7. Market Attractiveness/Growth Potential Analysis
8.7.1. By Country
8.7.2. By Product Type
8.7.3. By Application
8.8. Latin America Psychedelic Therapeutics Demand Share Forecast, 2019-2026
9. Europe Psychedelic Therapeutics Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Europe Average Pricing Analysis
9.2. Europe Psychedelic Therapeutics Market Size and Volume Forecast by Country
9.2.1. Germany
9.2.2. France
9.2.3. Italy
9.2.4. U.K.
9.2.5. Spain
9.2.6. Russia
9.2.7. Rest of Europe
9.3. Absolute $ Opportunity Assessment by Country
9.4. Europe Psychedelic Therapeutics Market Size and Volume Forecast by End Users
9.4.1. Hospitals
9.4.2. Clinics
9.4.3. Homecare
9.4.4. Research Institutes
9.5. Basis Point Share (BPS) Analysis by End Users
9.6. Y-o-Y Growth Projections by End Users
9.7. Market Attractiveness/Growth Potential Analysis
9.7.1. By Country
9.7.2. By Product Type
9.7.3. By Application
9.8. Europe Psychedelic Therapeutics Demand Share Forecast, 2019-2026
10. Asia Pacific Psychedelic Therapeutics Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Asia Pacific Average Pricing Analysis
10.2. Asia Pacific Psychedelic Therapeutics Market Size and Volume Forecast by Country
10.2.1. China
10.2.2. Japan
10.2.3. South Korea
10.2.4. India
10.2.5. Australia
10.2.6. Rest of Asia Pacific (APAC)
10.3. Absolute $ Opportunity Assessment by Country
10.4. Asia Pacific Psychedelic Therapeutics Market Size and Volume Forecast by End Users
10.4.1. Hospitals
10.4.2. Clinics
10.4.3. Homecare
10.4.4. Research Institutes
10.5. Basis Point Share (BPS) Analysis by End Users
10.6. Y-o-Y Growth Projections by End Users
10.7. Market Attractiveness/Growth Potential Analysis
10.7.1. By Country
10.7.2. By Product Type
10.7.3. By Application
10.8. Asia Pacific Psychedelic Therapeutics Demand Share Forecast, 2019-2026
11. Middle East & Africa Psychedelic Therapeutics Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Middle East & Africa Average Pricing Analysis
11.2. Middle East & Africa Psychedelic Therapeutics Market Size and Volume Forecast by Country
11.2.1. Saudi Arabia
11.2.2. South Africa
11.2.3. UAE
11.2.4. Rest of Middle East & Africa (MEA)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Middle East & Africa Psychedelic Therapeutics Market Size and Volume Forecast by End Users
11.4.1. Hospitals
11.4.2. Clinics
11.4.3. Homecare
11.4.4. Research Institutes
11.5. Basis Point Share (BPS) Analysis by End Users
11.6. Y-o-Y Growth Projections by End Users
11.7. Market Attractiveness/Growth Potential Analysis
11.7.1. By Country
11.7.2. By Product Type
11.7.3. By Application
11.8. Middle East & Africa Psychedelic Therapeutics Demand Share Forecast, 2019-2026
12. Competition Landscape
12.1. Global Psychedelic Therapeutics Market: Market Share Analysis
12.2. Psychedelic Therapeutics Distributors and Customers
12.3. Psychedelic Therapeutics Market: Competitive Dashboard
12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
12.4.1. Celon Pharma S.A.
12.4.2. Mind Medicine Inc. (NASDAQ: MNMD)
12.4.3. IX BIOPHARMA LTD
12.4.4. Janssen Global Services, LLC
12.4.5. MAPS PBC
12.4.6. Jazz Pharmaceuticals, Inc.
12.4.7. The Emmes Company, LLC
12.4.8. NRx Pharmaceuticals, Inc.
12.4.9. Avadel
12.4.10. COMPASS Pathways
12.4.11. CaaMTech
12.4.12. Douglas Pharmaceuticals Limited
12.4.13. Mindset Pharma
12.4.14. Awakn Life Sciences Corp
12.4.15. Psilera
12.4.16. Braxia Scientific Corp.
12.4.17. Cybin Corp.
12.4.18. Aphrodite Health
12.4.19. Eleusis Holdings Ltd,
12.4.20. Diamond Therapeutics Inc.
12.4.21. CB Therapeutics
12.4.22. BetterLife Pharma