Psychedelic API Market

Psychedelic API Market Study by API-Grade Psilocybin, API-Grade DMT, LSD APIs, MDMA APIs, and Ketamine APIs for Clinical and Research Use from 2024 to 2034

Analysis of Psychedelic API Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Psychedelic API Market Outlook (2024 to 2034)

The global psychedelic API market size is set to be valued at US$ 2.03 billion in 2024 and further increase at a remarkable CAGR of 13.4% to reach US$ 7.11 billion by the end of 2034.

Psychedelics, often known as hallucinogens, are a type of chemical that alters perception, mood, and cognitive processes. They frequently cause substantial alterations in consciousness, resulting in changed thoughts, emotions, and sensory impressions. Psychedelics have been utilized for ages in several civilizations for religious and spiritual purposes. They improve creativity, attention, and mood.

Psychedelic drugs are compounds that alter perception, emotion, and cognition, frequently producing powerful subjective experiences. Examples of these chemicals include psilocybin (found in some mushrooms), LSD, and MDMA. They primarily target serotonin receptors in the brain and are being studied for their possible therapeutic effects in treating mental health issues, particularly when taken in supervised settings.

  • According to a survey by the World Health Organization, a United Nations specialized organization in charge of international public health, around 5% of Americans suffer from PTSD each year.

There is rising interest in using psychedelics and other fungal active compounds to treat mental health issues including anxiety, addiction, and major depressive disorder. The effects of these drugs, which include anti-addictive, anxiolytic, and depressive qualities, have raised awareness and stimulated neuropharmacological study.

Lysergic acid diethylamide (LSD), psilocybin, and other psychedelics may be administered at micro or acute dosages to provide patients with therapy options that are not now accessible. In addition to modifying immune systems, psychedelics can enhance pro-inflammatory cytokines, suggesting the prospect of using them to treat chronic pain and autoimmune illnesses.

Key Market Growth Drivers

  • Ability of chemicals such as lysergic acid diethylamide (LSD), psilocybin, and others to give therapeutic choices, particularly for treatment-resistant patients, is propelling market growth.
  • Changing rules and growing acceptance of formerly illegal chemicals for medical purposes have created new opportunities for producers and suppliers, culminating in significant investments in the production of psychedelics.
  • Contract manufacturing organizations (CMOs) are prepared to play an important role in making regulated drugs available, creating prospects for small-cap pharmaceutical enterprises.
Report Attribute Detail
Psychedelic API Market Size (2024E) US$ 2.03 Billion
Forecasted Market Value (2034F) US$ 7.11 Billion
Global Market Growth Rate (2024 to 2034) 13.4% CAGR
Canada Market Growth Rate (2024 to 2034) 17% CAGR
China Market Value (2034F) US$ 797 Million
North America Market Share (2024E) 44%
East Asia Market Share (2034F) 17%
Key Companies Profiled Core One Labs Inc.; Cayman Chemical Company (Matreya); COMPASS Pathways Plc; Beckley Psytech; Atai Life Sciences; Tryp Therapeutics; Filament Health; Ceruvia Lifesciences, LLC; BetterLife Pharma; Psygen Pharmaceutical; Mindset Pharma; Jazz Pharmaceuticals, Inc.; Janssen Pharmaceuticals, Inc.; Hikma Pharmaceuticals PLC; Verrian; Pfizer Inc.; F. Hoffmann-La Roche Ltd; Avadel; Celon Pharma SA.; Cybin Corp.; GH Research; Entheon Biomedical Corp.; PharmaTher Holdings Ltd.; NRx Pharmaceuticals, Inc.; Usona Institute.

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What Strategies are Creating Lucrative Opportunities for Psychedelic API Suppliers?

“Introduction of Contract Manufacturing and Emphasis on Regulatory Oversight”

Psychedelics, formerly stigmatized as illicit narcotics, are now being widely yet cautiously accepted by pharmaceutical companies. Studies from reputable institutions suggest their potential to enhance patient care, particularly for treatment-resistant individuals. Venture capital firms are investing significantly in entrepreneurs exploring psychedelic medicines for various purposes, including PTSD and smoking cessation.

United Nations agencies are enforcing regulations on banned ingredients in medication formulations. Criticism of regulated drugs prompts health groups like WHO to advocate for alternative medication forms. Successful implementation of this strategy can contribute to the expansion of the psychedelic API market size.

Expanding illegal drug menace and black market commerce may prompt international availability of such regulations, reshaping the future of the market. Controlled drug capabilities and facility requirements may incur high costs. Consequently, CMOs stand to profit, accessing controlled drug markets inaccessible to small-cap pharmaceutical firms.

“Collaborations between Academic Institutions and Industrial Partners”

Controlled drug capabilities and facility requirements may be excessively costly. CMOs have a high profit potential since they have access to the market for controlled drugs that small-cap pharmaceutical firms cannot buy or acquire for these areas.

Academic institutions offer scientific research and knowledge, while industrial partners provide resources and insights into medication development, formulation, and commercialization. This relationship speeds the translation of scientific discoveries into novel cures, creating profitable prospects for both sectors in the face of rising market demand.

“Increased Research Funding to Determine Safety Profiles of Psychedelic Substances”

Rising research funding enables substantial scientific investigations into medicinal uses, safety profiles, and mechanisms of action for psychedelic substances. This financial assistance promotes the discovery of new medication candidates and improves existing therapies, drawing public and private investments and supporting market development and expansion.

Several clinical investigations confirming the therapeutic promise of chemicals such as psilocybin and MDMA for diseases such as depression, PTSD, and addiction have prompted the healthcare system to adopt psychedelic treatment more widely. This shifting attitude among healthcare professionals and regulatory agencies is encouraging the further integration of psychedelic-assisted treatment into traditional healthcare practices, resulting in significant market growth.

What is Impeding Mass Production of Psychedelic Plants and Mushrooms?

“Complexities of Maintaining Chemical Potency and Uniformity of Substances”

Extracting active compounds from multi-compound organic goods is both expensive and challenging. This has never been tried on a large scale. Logistical and technological challenges of mass-producing such plants and mushrooms while maintaining their chemical potency and uniformity are hindering psychedelic API market growth. This still represents a significant learning curve in medical research.

Variability in the quantity and quality of the active psychedelic substances found in the hundreds of different varieties of “magic mushrooms” makes it impossible to produce regular dosages for treatments at this time.

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Country-wise Analysis

The market in Japan is evaluated to expand at a substantial CAGR of 12.8% from 2024 to 2034. The country is estimated to occupy a psychedelic API market share of 25.2% in East Asia by the end of 2034.

How Does Local Manufacturing in the United States Contribute to Market Growth?

“Enhanced Research Efforts on Psychedelics Pushing Opportunities for Suppliers”

Attribute United States
Market Value (2024E) US$ 665.7 Million
Growth Rate (2024 to 2034) 13.3% CAGR
Projected Value (2034F) US$ 2.32 Billion

Pharmaceutical manufacturing in Canada and the United States is regulated by their respective federal governments. Psilocybin is classified as a Schedule III substance in Canada and a Schedule I drug under the Controlled Substances Act in the United States. Compliance with legal and regulatory requirements is essential for product commercialization.

In the United States, market growth is propelled by various factors, including the rise of local companies engaged in research and development, the proliferation of innovative products and drug approvals, and increased funding for advancements in pharmaceutical manufacturing.

How are Major Biologics Businesses Contributing to Production of Psychedelic APIs in China?

“Focus on Constructing Commercial-Scale Biopharmaceutical CMO Facilities to Meet Local Demand”

Attribute China
Market Value (2024E) US$ 208 Million
Growth Rate (2024 to 2034) 14.4% CAGR
Projected Value (2034F) US$ 797 Million

China's reputation as a producer of APIs has grown dramatically. Several big biologics businesses in China and other developing countries are planning or building commercial-scale biopharmaceutical manufacturing CMO facilities to fulfill local and regional demand.

Some want to establish full-scale cGMP production in the future to service developed countries. China has been exploring cell therapies for many years and may provide some revolutionary medicines in the coming years. This is a key psychedelic API market trend in the country.

Category-wise Evaluation

Based on source, the bio-synthetics segment is forecasted to expand at a CAGR of 14.3% and occupy 11.5% market share by the end of 2034.

Why are Sales of LSD APIs Rising Despite Their Potency as a Hallucinogen?

“Positive Correlations Found in Recent Research between LSD Use and Mental Health Factors”

Attribute LSD API
Segment Value (2024E) US$ 680.2 Million
Growth Rate (2024 to 2034) 12.7% CAGR
Projected Value (2034F) US$ 2.25 Billion

Lysergide (LSD), a semi-synthetic hallucinogen, is one of the most powerful drugs known. Even at very high doses, LSD has relatively little physiological toxicity, with no evidence of biological harm or cognitive impairments associated with its use. Recent research has demonstrated a strong correlation between lifetime use of traditional hallucinogens such as LSD and a lower risk of mental disorders, as well as a positive but non-significant association with several mental health-related variables, thereby driving sales.

  • Sandoz conducted studies on the medication for medicinal use during the 1950s and 1960s before launching it as Delysid®.

Which API Compound is in High Demand?

“Novel Synthetic Compounds Helping Pharma Companies Reduce Reliance on Existing Medications”

Attribute Novel Synthetic Compounds
Segment Value (2024E) US$ 873.4 Million
Growth Rate (2024 to 2034) 13.9% CAGR
Projected Value (2034F) US$ 3.21 Billion

Novel synthetic compounds, often referred to as Internet drugs, research compounds, or legal highs, are termed novel psychoactive substances. These substances may carry similar health risks as traditional illegal narcotics. Many novel psychoactive substances fall into chemical classes including phenethylamines, synthetic cathinones, piperazines, amphetamines, pipradrols/piperidines, tryptamines, and amino indole benzofurans.

Use of novel synthetic compounds supports pharmaceutical companies in their innovation efforts in drug discovery and development. By exploring novel compounds, pharmaceutical companies can diversify their drug pipelines, reducing reliance on existing medications and expanding their portfolio to address unmet medical needs.

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Market Landscape

Key players in the psychedelic API market are placing a high value on supplying a diverse variety of APIs and participating in the creation of new psychedelic medications. Venture capital firms have also shown interest and are making major investments in start-ups exploring psychedelic medications for a variety of conditions, including PTSD and smoking cessation, and adapting themselves to the evolving market trends.

  • BetterLife obtained Mitacs funding for BETR-001 preclinical depression investigations in July 2022, in collaboration with the Carleton University research team.
  • In September 2022, Cybin announced the completion of its innovative pipeline of investigational psychedelic therapies ahead of schedule. Adelia Therapeutics Inc. endorsed these objectives upon signing the acquisition agreement in December 2020.

Fact.MR provides detailed information about the price points of key psychedelic API manufacturers providers positioned across the world, sales growth, production capacity, and speculative technological expansion in this new market report.

Key Segments of Psychedelic API Market Research

  • By Product :

    • API-Grade Psilocybin
    • API-Grade DMT
    • LSD API
    • Ketamine API
    • Others
  • By API Compound :

    • Active Plant Components
    • Novel Synthetic Compounds
    • Metabolites
    • Isotopically Labelled Standards
  • By Source :

    • Natural
    • Synthetic
    • Bio-Synthetic
  • By Grade :

    • GMP
    • Non-GMP
  • By Application :

    • Clinical
    • Research
  • By Region :

    • North America
    • Latin America
    • Eastern Europe
    • Western Europe
    • East Asia
    • South Asia & Pacific
    • Middle East & Africa

- FAQs -

How big is the psychedelic API market?

The global psychedelic API market is estimated at US$ 2.03 billion in 2024.

What is the future estimation for the API market?

The market for psychedelic APIs is forecasted to advance at a CAGR of 13.4% and reach a value of US$ 7.11 billion by 2034.

What is the stance of the North American market?

North America is estimated to hold 47.4% share of the global market by 2034.

How is the South Korea market expected to perform?

The South Korea market is forecasted to expand at a CAGR of 11.3% through 2034.

Who accounts for significant use of psychedelic APIs?

Research organizations are anticipated to hold a market share of 86.7% in 2024.

Who are the leading market players in the psychedelic API industry?

Leading market players are Core One Labs Inc., Cayman Chemical Company (Matreya), and COMPASS Pathways plc.

- Also of Interest -

Psychedelic Drug Market

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