Psychedelic Drugs Market Size, Share, Growth Analysis, By Source(Synthetic and Natural), By Type(Empathogens, Dissociative, Others), By Drugs(Gamma-Hydroxybutyric Acid, Ketamine, Psilocybin, Others), By Application(Narcolepsy, Treatment Resistant Depression, Major Depressive Disorder, Opiate Addiction), By Route of Administration(Oral, Inhalation, Injectable), By End User(Hospital, Speciality Clinics, Homecare), By Distribution Channel(Hospitals Pharmacy, Retail Pharmacy, Online Pharmacy.), By Region - Industry Forecast 2024-2031

Psychedelic Drugs Market size was valued at USD 2386.72 million in 2019 and is poised to grow from USD 2706.71 million in 2023 to USD 6401.95 million by 2031, growing at a CAGR of 13.3% in the forecast period (2024-2031).

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.