The global psychedelic drugs market is valued at around US$ 487.5 Mn in 2021. As per Fact.MR’s projections, synthetic production of psychedelic drugs held a substantial share of over 71% in 2020. As per this detailed analysis, the psychedelic drugs market is set to experience significant growth at 7.8% CAGR through 2031.
Psychedelic Drugs Industry Outlook:
|Data Points||Market Insights|
|Market Value 2020||USD 457.9 Mn|
|Market Value 2021||USD 487.5 Mn|
Sales Analysis of Psychedelic Drugs from 2016 to 2020 Vs Market Outlook for 2021 to 2031
Demand for psychedelic drugs increased at 6.3% CAGR over the past 5 years.
Rising awareness regarding mental health disorders and illness has resulted in higher adoption of treatment measures pertaining to psychological ailments by the general population across the globe. This is being supported through numerous awareness campaigns and initiatives by various organizations.
Psychedelic drugs are categorized as schedule I drugs according to the most restrictively regulated drug schedule of the U.S. Historically, these schedule I drugs have been seen only to have high potential for abuse.
Introduction of Jannsen’s Spravato, an esketamine nasal spray for the treatment of resistant depression, has led to the breakthrough scenario of application of alternative drugs for specific indications. This has aided demand for synthetic psychedelic drugs with growing clinical studies, suggesting the efficacy of psychedelic drugs as medicinal compounds. However, safety and monitoring of the effects of psychedelic drugs after administration still pose a concern, but the future outlook presents an opportunity for growth.
The market is expected to expand at a considerable growth rate over the next ten years at a CAGR of around 7.8%, and offer an absolute $ opportunity of US$ 35.4 Mn.
What Opportunities are Psychedelic Drug Manufacturers Expected to Enjoy Going Ahead?
The global market possesses a large amount of opportunistic focus through an increasing research & development pipeline. Increasing R&D expenditure is creating new opportunities for psychedelic drug manufacturers.
- In September 2019, Johns Hopkins Medicine launched the Center for Psychedelic and Consciousness Research to study how compounds such as LSD and psilocybin can be used to treat depression, anorexia, addiction and other mental health issues.
- In 2018, the U.S. Drug Enforcement Administration (DEA) rescheduled “Epidolex”, a cannabis-based epilepsy medicine developed by GW Pharmaceuticals, following its FDA approval.
Avail customized purchase options for your needs
What’s Restraining Demand for Psychedelic Drugs?
Stringent regulatory policies are the primary restraining factors associated with the submissive production of synthetic psychedelic drugs. Reforms associated with psychedelic drug laws and policies are complex and are resulting in variable forms of enforcement across different geographical areas.
Changes in regulations for the approval of natural psychedelic drugs are expected to cause delayed launch of products. Inflexibility in regulations is a major restraint for the dissociative psychedelic drugs market.
Apart from these problems, one of the most challenging restraints concerning regulations is the risk associated with rescheduling and drug classification in most Western countries. For instance, in the U.S., nearly all psychedelic substances are categorized under schedule I drugs, which makes them inaccessible for use in the medical context because they are considered to have a high proclivity for abuse.
Demand for dissociatives psychedelic drugs is in a nascent space, and thus, can invite risks related to investments in a low market cap. Under federal law, types of psychedelic drugs, such as psilocybin and MDMA, are schedule I controlled substances, subject to various criminal penalties.
Researchers need to obtain approval from the federal Drug Enforcement Administration (DEA) if they are seeking to conduct studies of schedule I controlled substances that are not currently approved for medical use.
Why is the U.S. an Important Market for Psychedelic Drug Suppliers?
The U.S. dominates the North American region with a market share of 93.5% in 2021, and is projected to continue experiencing high growth throughout the forecast period.
Growth of this regional market is driven by the recognition of advanced drug compound portfolios derived from psychedelic drugs by the U.S. FDA. The recent approval of Jannsen’s Spravato by the U.S. FDA has established this key player’s dominance in the region.
Will Germany Be a Lucrative Market for Psychedelic Drugs in Europe?
Germany is expected to dominate the European market for psychedelic drugs, with a share of around 19% by 2031. Globally, per capita healthcare spending is on the rise. People's willingness and ability to spend on wellness has resulted in a significant shift in healthcare spending.
This, along with approved sales of FDA-approved psychedelic drugs for medicinal indications is expected to aid demand growth of psychedelic drugs in the country.
How is China Faring in the Psychedelic Drugs Business?
In 2020, China dominated the East Asia market with 40% share, and the market is projected to expand at a CAGR of 17.1% from 2021 to 2031. FDA-approved psychedelic product sales in the country has led to increasing research activities.
Rising penetration of key pharmaceutical players in the country for oncology associated treatment and ketamine psychedelic drugs is expected to open the gateway to psychedelic drug development for medicinal purposes.
An Adaptive Approach to Modern-day Research Needs
Which Psychedelic Drug Source is Driving Market Growth?
By Source, synthetic psychedelic drugs project lucrative growth at a CAGR of 8.3%. High demand for this source is because of the selective production of compounds and active pharmaceutical products for the production of novel drug formulations. This is effective in terms of reproduction of compounds after extraction.
Why is Psilocybin a Dominant Therapeutic Drug?
The psilocybin psychedelic drugs market is expected to hold a revenue share of 44.1% in 2021, but is projected to hold lesser share over the forecast period.
The reduced market revenue share is associated with the emergence of clinical studies ensuing the efficacy of MDMA and LSD as chemical alternatives to conventional pharmaceutical drugs.
Which Distribution Channel is Most Preferred for Psychedelic Drugs?
Based on distribution channel, hospital pharmacies lead the way with more than 56% market share. Growing awareness about psychedelic drugs and controlled distribution of the same for specific indications are driving the growth of hospital pharmacies as a distribution channel for these drugs, keeping patient safety in mind.
Impact of COVID-19?
The impact of the COVID-19 pandemic has projected an increase in psychological distress as well as mental illness across the globe. Though the advent of the pandemic can directly not be associated with the changes in the growth of the market for psychedelic drugs, it is indicated by the rise in prevalence of mental illnesses during lockdown impositions due to the pandemic, that the need to address diseases with novel and alternative drugs is inevitable.
Interested to Procure The Data
Research and development activities, collaborations, sponsorships, and partnerships have emerged as key growth strategies being adopted by psychedelic drug manufacturing companies. By focusing on these strategies, key stakeholders are expanding their geographic footprints and strengthening their existing product portfolios.
- In August 2020, Janssen announced U.S. FDA approval of the SPRAVATO® (esketamine) CIII nasal spray to treat depressive symptoms in adults with major depressive disorder with acute suicidal ideation or behaviour.
- In 2016, NUPLAZID, an ACADIA Pharmaceuticals product, was approved in the U.S. as the first and only treatment for hallucinations and delusions associated with Parkinson's disease psychosis.
Similarly, recent developments related to companies manufacturing psychedelic drugs have been tracked by the team at Fact.MR, which are available in the full report.
Psychedelic Drugs Industry Report Scope
|Historical Data Available for||2016-2020|
|Market Analysis||US$ Mn for Value|
|Key Regions Covered||
|Key Countries Covered||
|Key Market Segments Covered||
|Key Companies Profiled||
|Pricing||Available upon Request|
Key Segments Covered in Psychedelic Drugs Industry Research
- Natural Psychedelic Drugs
- Synthetic Psychedelic Drugs
By Therapeutic Drug
- Depressive Disorders
- Post-Traumatic Stress Disorders
- Substance Abuse Disorders
- Obsessive Compulsive Disorders
- Alzheimer Dementia
- Cluster Headaches
- Terminal Cancer Distress
- Anorexia and Obesity
- Personality Disorders
By Route of Administration
- Oral Psychedelic Drugs
- Injectable Psychedelic Drugs
- Rectal Psychedelic Drugs
- Nasal Psychedelic Drugs
- Transdermal Psychedelic Drugs
- Oral Psychedelic Drugs
By Distribution Channel
- Online Pharmacies
- Hospital Pharmacies
- Institutional Sales
- Retail Sales
- Retail pharmacies
Psychedelic Drugs Market - Scope of Report
The latest publication by Fact.MR on the global psychedelic drugs market evaluates the opportunities and current market landscape and provides detailed analysis and updates about corresponding sections affecting the market. The study offers detailed insights on current market dynamics, which include the drivers, restraints, trends, and opportunities in the market. The principal aim of the market study is to present exclusive information about how the market will perform during the forecast period of 2021-2031.
Important indicators for the successful growth of the market are presented in this comprehensive report, which includes a Year-on-Year (Y-o-Y) growth analysis of the market, and compounded annual growth rate (CAGR), which are described exhaustively in Fact. Mr’s study. This research study can support readers to know the demand for psychedelic drugs products and the quantitative development opportunities during the study period.
The research is beneficial for shareholders in the landscape, including investors, manufacturers, service providers, distributors, and suppliers, and can help them in developing suitable business strategies to flourish in the psychedelic drugs market. The insights and information presented in this Fact.MR study can be leveraged by shareholders in the psychedelic drugs market, industry experts, investors, researchers, and reporters, as well as business enthusiasts.
Market statistics as well as information linked to the macro- as well as micro-economic variables affecting the business scenario in the psychedelic drugs market are also included in the current study. Depending on potential developments in the market, substantive insights are also encountered in this report. Additionally, by the data submitted in this report, minor companies and new entrants in the industry can be aided in making suitable company choices to achieve traction in the market.
Key Questions Answered in Report
- Which regions will continue to remain the most profitable markets for psychedelic drugs over the coming years?
- How will changing trends impact the market?
- How has the COVID-19 crisis impacted market growth?
- How can market players capture the low-hanging opportunities in developed regions?
- What are the strategies of stakeholders in the market to shape their position in this landscape?
- What are the restraining factors that investors need to be aware of and might tackle while investing in the market?
- What are the developmental trends that will impact the market?
- How can companies manufacturing psychedelic drugs avail the growth opportunities in developed and emerging sectors?
In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the psychedelic drugs market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions.
Secondary resources referred to by analysts during the production of the market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, who contributed to the development of this report as a primary resource.
Comprehensive information acquired from primary and secondary resources acts as validation from companies in the market, and makes Fact.MR’s projections on the growth prospects of the psychedelic drugs market more accurate and reliable.
- FAQs -
The global psychedelic drugs market is worth US$ 457.9 Mn at present, and is set to expand 2.1X over the next ten years.
Sales of psychedelic drugs are expected to top US$ 1 Bn by the end of 2031, registering 7.8% CAGR over the same period.
From 2016-2020, the market for psychedelic drugs expanded at the rate of 6.3%, owing to increasing prevalence of mental illness across the globe.
Changes in regulatory impositions, rising clinical research activities, and growing initiatives for mental health awareness are some of the key trends being witnessed in this marketplace.
The U.S., Canada, Germany, U.K., and France are expected to drive most demand for psychedelic drugs.
North America is one of the key markets for psychedelic drugs, with the U.S. expected to account over 92% share of the North American market.
Demand for psychedelic drugs in Europe is expected to register growth of 8.5% CAGR over the next ten years.
The U.S., Germany, and U.K. are key producers of psychedelic drugs.
The South Korea market appears to uphold the least share in East Asia, and is expected to present growth of 3.8% CAGR. Japan holds a revenue share of 38.1% in this regional market.
Need an Exclusive Report for your Unique Requirement?
- Related Reports -
- Our Clients -
- Evaluate How Fact.MR's Report Can Help. -
Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
Who are the respondents for primary research?
Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
Is a sample of this report available for evaluation?
Yes, you can request a sample, and it will be sent to you through an email.