Psychedelic Drugs Market Size, Share, Growth Analysis, By Source (Synthetic, Natural), By Type (Empathogens, Dissociatives), By Drug (Gamma-Hydroxybutyric Acid (GHB), Ketamine), By Application (Narcolepsy, Treatment-Resistant Depression), By Route of Administration, By End-User, By Distribution Channel, By Region - Industry Forecast 2025-2032


Report ID: SQMIG35I2114 | Region: Global | Published Date: December, 2024
Pages: 242 |Tables: 200 |Figures: 80

Psychedelic Drugs Market Insights

Psychedelic Drugs Market size was valued at USD 2706.71 Million in 2023 and is poised to grow from USD 3066.7 Million in 2024 to USD 7253.41 Million by 2032, growing at a CAGR of 13.3% during the forecast period (2025-2032).

The development of psychedelic drugs, as well as increased awareness of the importance of treating mental health issues, are major factors driving market growth over the forecast period. The need to manage excessive stress, anxiety, and other mental disorders is critical to the market growth. Because psychedelic drugs provide new mechanisms for treating mental illness, some have shown promise, while others have been ineffective. Government initiatives, alliances, and mental health awareness programmers are expected to drive market growth during the forecast period.

Mental health issues are one of the major factors driving market growth over the forecast period, as mental health issues such as anxiety and depression, psychosis, and some forms of panic attacks necessitate treatment with psychedelic drugs. According to the State of Mental Health in America 2022 report, the number of youths experiencing a severe major depressive episode (MDE) increased by 197,000 from the 2021 dataset. Thus, an increase in the prevalence of depressive disorders leads to an increase in demand for psychedelic drugs, which boosts market growth over the forecast period.

As a result of increased awareness about the importance of treating mental illnesses, increased research and development of psychedelic drugs, and growing acceptance of psychedelic drugs for depression, the market is expected to grow over the forecast period. However, rising psychedelic drug side effects and a stringent regulatory framework will restrict market growth over the forecast period. While there are still legal and regulatory obstacles to overcome, as well as concerns about safety and potential side effects, the growing interest in psychedelic drugs as a potential new area of growth and investment, indicates that this industry will be one to watch in the coming years.

US Psychedelic Drugs Market is poised to grow at a sustainable CAGR for the next forecast year.

Market snapshot - 2025-2032

Global Market Size

USD 1.6 billion

Largest Segment

Gamma-Hydroxybutyric Acid

Fastest Growth

Gamma-Hydroxybutyric Acid

Growth Rate

12.1% CAGR

Global Psychedelic Drugs Market ($ Bn)
Country Share for North America Region (%)

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Psychedelic Drugs Market Segmental Analysis

Global Psychedelic Drugs Market is segmented by source, type, drug, application, route of administration, end-user, distribution channel and region. Based on source, the market is segmented into synthetic and natural. Based on type, the market is segmented into empathogens, dissociatives and others. Based on drug, the market is segmented into gamma-hydroxybutyric acid (GHB), ketamine, psilocybin, lysergic acid diethylamide (LSD), 3,4-methylenedioxymethamphetamine (MDMA) and others. Based on application, the market is segmented into narcolepsy, treatment-resistant depression, major depressive disorder, opiate addiction, post-traumatic stress disorder (PTSD) and others. Based on route of administration, the market is segmented into oral, inhalation and injectable. Based on end-user, the market is segmented into hospitals, specialty clinics, homecare and others. Based on distribution channel, the market is segmented into hospital pharmacy, retail pharmacy and online pharmacy. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Psychedelic Drugs Market Analysis by Drug

The gamma-hydroxybutyric acid segment will be the most popular in 2021, as Xyrem from Jazz Pharmaceutical is one of the almost psychedelic medications on the market, with a large market share and belonging to the drug class. It is a Schedule I controlled substance, which means it must be prescribed by a physician and closely monitored. GHB is used to treat excessive daytime sleepiness in its prescription form. In a few cases, gamma-hydroxybutyric acid has also been used to treat alcoholism and drug withdrawal. GHB is used to treat narcolepsy and, less commonly, alcoholism; however, its efficacy in comparison to other alcoholism pharmacotherapies is unknown. It is sometimes used off-label to treat bromalin. GHB is the active ingredient in the pharmaceutical sodium oxidate (Xylem). The Food and Drug Administration in the United States has approved sodium oxidate for the treatment of cataplexy and excessive daytime sleepiness (EDS) in people with narcolepsy.

Global Psychedelic Drugs Market By Drug

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Psychedelic Drugs Market Regional Insights

North America is expected to continue to dominate the global psychedelic drugs market during the forecast period. The FDA's recognition of advanced drug fusion portfolios obtained from psychedelic drugs has aided the growth of the North American market. Furthermore, the presence of key market players in this region, as well as increased investment in research and development activities, are supporting market growth. The European Union is the second-largest market after North America in terms of psychedelic drug market share.

The Asia Pacific market for psychedelic drugs is also expected to grow slowly. The sale of FDA-approved psychedelic drugs in the country has increased research activities. The increasing presence of key pharmaceutical players in the country for oncology-related treatment and ketamine psychedelic drugs is expected to pave the way for the development of psychedelic drugs for medicinal purposes.

Global Psychedelic Drugs Market By Region
  • Largest
  • Fastest

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Psychedelic Drugs Market Dynamics

Psychedelic Drugs Market Drivers

Acceptance of Psychedelic Drugs for Treating Depression is Growing

  • Psychedelics have grown in popularity in the last decade because they are used in human mental healing and treatment practices and have the ability to heal the mind. Researchers and scientists are investigating the therapeutic value of psychedelic drugs and compounds that could be a new treatment option for people suffering from depression. Continuous research and development in psychedelic drugs have increased the medication's acceptance. Psychedelic drugs' promising outcomes have increased their use in the United States and other regions, resulting in rising demand for psychedelic drugs; thus, these factors are expected to act as market drivers.

Depression and mental disorders have increased globally

  • Mental disorders (or mental illnesses) can be chronic or episodic, affecting people's feelings, moods, thinking, and behavior. Depression and mental disorders can impair an individual's ability to perform daily tasks. There are numerous types of mental disorders. Depression and mental disorders have increased globally as a result of a variety of factors including family history and genes, abuse or stress, biological factors, alcohol or recreational drug use, and many others.

Psychedelic Drugs Market Restraints

High cost of psychedelic drugs

  • The high cost of psychedelic drugs, on the other hand, will limit the market growth rate. Furthermore, stringent rules and regulations will pose additional challenges to the market during the forecast period.

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Psychedelic Drugs Market Competitive Landscape

The major players are actively implementing growth strategies, such as product launches, acquisitions, and collaborations, to contribute to the market's growth. For instance, Cybin, a biotechnology company focused on progressing psychedelic therapeutics, announced the launch of the EMBARK psychedelic facilitatory training course in October 2021. This program offers the foundational training required for psychedelic clinical trial facilitators to provide skilled and ethical care to participants receiving psychedelic treatment.

Psychedelic Drugs Market Top Player’s Company Profiles

  • Pfizer Inc. (USA) 
  • Johnson & Johnson (USA) 
  • AbbVie Inc. (USA) 
  • Jazz Pharmaceuticals (Ireland) 
  • COMPASS Pathways (UK) 
  • MindMed (Canada) 
  • Atai Life Sciences (Germany) 
  • Cybin Corp. (Canada) 
  • Field Trip Health (Canada) 
  • GH Research (Ireland) 
  • Beckley Psytech (UK) 
  • Seelos Therapeutics (USA) 
  • Numinus Wellness Inc. (Canada) 
  • Delix Therapeutics (USA) 
  • Mydecine Innovations Group (Canada) 
  • Revive Therapeutics Ltd. (Canada) 
  • Entheon Biomedical (Canada) 
  • Mind Cure Health Inc. (Canada) 
  • PsyBio Therapeutics (USA) 
  • Tryp Therapeutics (USA) 

Psychedelic Drugs Market Recent Developments

  • In October 2022, Numinous Wellness Inc, a mental health care company that advances innovative treatments and evidence-based psychedelic-assisted therapies, has launched the Ketamine for Chronic and Serious Medical Illness Program. This new programmer will most likely begin in Numinous clinics in Utah, British Columbia, and Quebec. In the coming months, the company plans to expand the programmer to other clinics.
  • In March 2022, the results and follow-up data from a phase 3 clinical trial of a psychedelic drug, 3,4 methylenedioxymethamphetamine (MDMA), combined with psychotherapy for the treatment of PTSD University of California researchers reported the findings. Their preliminary findings indicated that the therapy is effective even in difficult-to-treat patients, such as those with drug or alcohol use disorders.

Psychedelic Drugs Key Market Trends

  • The hospital pharmacy segment is expected to grow over the forecast period due to factors such as increased public awareness of mental health, psychedelic drugs requiring a medical practitioner's prescription, and the use of psychedelic drugs for specific indications, which are driving the growth of hospital pharmacies as distribution channels.
  • The increasing prevalence of depression and other mental disorders among the global population has resulted in the need for mental health management for a better quality of life. The use of psychedelic drugs to treat such mental illness conditions is expected to drive market growth. According to the Mental Health America 2022 report, the number of people affected by mental illness in Texas in 2022 is estimated to be 3.6 million. As the prevalence of mental illnesses such as depression and anxiety rise, so does the likelihood of using psychedelic drugs, boosting market growth.
  • Thus, the studied segment is expected to grow in the studied market over the forecast period due to the rise in mental health issues and the increase in demand for psychedelic drugs that require a mandatory prescription from a medical practitioner.

Psychedelic Drugs Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our global Psychedelic Drugs market analysis, we found that the development of psychedelic drugs, as well as increased awareness of the importance of treating mental health issues, are key drivers of market growth over the forecast period. The need to manage excessive stress, anxiety, and other mental disorders is critical to the market growth. Because psychedelic drugs provide new mechanisms for treating mental illness, some have shown promise, while others have been ineffective. Government initiatives, alliances, and mental health awareness programmes are expected to drive market growth during the forecast period.

Report Metric Details
Market size value in 2023 USD 2706.71 Million
Market size value in 2032 USD 7253.41 Million
Growth Rate 13.3%
Base year 2024
Forecast period 2025-2032
Forecast Unit (Value) USD Million
Segments covered
  • Source
    • Synthetic, Natural
  • Type
    • Empathogens, Dissociative, Others
  • Drug
    • Gamma-Hydroxybutyric Acid (GHB), Ketamine, Psilocybin, Lysergic Acid Diethylamide (LSD), 3,4-Methylenedioxymethamphetamine (MDMA), Others
  • Application
    • Narcolepsy, Treatment Resistant Depression, Major Depressive Disorder, Opiate Addiction, Post-Traumatic Stress Disorder, Others
  • Route of Administration
    • Oral, Inhalation, Injectable
  • End User
    • Hospitals, Speciality Clinics, Homecare, Others
  • Distribution Channel
    • Hospital Pharmacy, Retail Pharmacy, Online Pharmacy
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Pfizer Inc. (USA) 
  • Johnson & Johnson (USA) 
  • AbbVie Inc. (USA) 
  • Jazz Pharmaceuticals (Ireland) 
  • COMPASS Pathways (UK) 
  • MindMed (Canada) 
  • Atai Life Sciences (Germany) 
  • Cybin Corp. (Canada) 
  • Field Trip Health (Canada) 
  • GH Research (Ireland) 
  • Beckley Psytech (UK) 
  • Seelos Therapeutics (USA) 
  • Numinus Wellness Inc. (Canada) 
  • Delix Therapeutics (USA) 
  • Mydecine Innovations Group (Canada) 
  • Revive Therapeutics Ltd. (Canada) 
  • Entheon Biomedical (Canada) 
  • Mind Cure Health Inc. (Canada) 
  • PsyBio Therapeutics (USA) 
  • Tryp Therapeutics (USA) 
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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Psychedelic Drugs Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Psychedelic Drugs Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Psychedelic Drugs Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Psychedelic Drugs Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Psychedelic Drugs Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Psychedelic Drugs Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Psychedelic Drugs Market size was valued at USD 2706.71 Million in 2023 and is poised to grow from USD 3066.7 Million in 2024 to USD 7253.41 Million by 2032, growing at a CAGR of 13.3% during the forecast period (2025-2032).

The major players are actively implementing growth strategies, such as product launches, acquisitions, and collaborations, to contribute to the market's growth. For instance, Cybin, a biotechnology company focused on progressing psychedelic therapeutics, announced the launch of the EMBARK psychedelic facilitatory training course in October 2021. This program offers the foundational training required for psychedelic clinical trial facilitators to provide skilled and ethical care to participants receiving psychedelic treatment. 'Pfizer Inc. (USA) ', 'Johnson & Johnson (USA) ', 'AbbVie Inc. (USA) ', 'Jazz Pharmaceuticals (Ireland) ', 'COMPASS Pathways (UK) ', 'MindMed (Canada) ', 'Atai Life Sciences (Germany) ', 'Cybin Corp. (Canada) ', 'Field Trip Health (Canada) ', 'GH Research (Ireland) ', 'Beckley Psytech (UK) ', 'Seelos Therapeutics (USA) ', 'Numinus Wellness Inc. (Canada) ', 'Delix Therapeutics (USA) ', 'Mydecine Innovations Group (Canada) ', 'Revive Therapeutics Ltd. (Canada) ', 'Entheon Biomedical (Canada) ', 'Mind Cure Health Inc. (Canada) ', 'PsyBio Therapeutics (USA) ', 'Tryp Therapeutics (USA) '

Psychedelics have grown in popularity in the last decade because they are used in human mental healing and treatment practices and have the ability to heal the mind. Researchers and scientists are investigating the therapeutic value of psychedelic drugs and compounds that could be a new treatment option for people suffering from depression. Continuous research and development in psychedelic drugs have increased the medication's acceptance. Psychedelic drugs' promising outcomes have increased their use in the United States and other regions, resulting in rising demand for psychedelic drugs; thus, these factors are expected to act as market drivers.

The hospital pharmacy segment is expected to grow over the forecast period due to factors such as increased public awareness of mental health, psychedelic drugs requiring a medical practitioner's prescription, and the use of psychedelic drugs for specific indications, which are driving the growth of hospital pharmacies as distribution channels.

North America is expected to continue to dominate the global psychedelic drugs market during the forecast period. The FDA's recognition of advanced drug fusion portfolios obtained from psychedelic drugs has aided the growth of the North American market. Furthermore, the presence of key market players in this region, as well as increased investment in research and development activities, are supporting market growth. The European Union is the second-largest market after North America in terms of psychedelic drug market share.

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