Psilocybin Assisted Therapy Market Outlook:
Psilocybin Assisted Therapy Market size was over USD 210.7 million in 2024 and is poised to cross USD 2.3 billion by the end of 2034, witnessing more than 24.6% CAGR during the forecast period i.e., between 2025-2034. In 2025, the industry size of psilocybin assisted therapy is evaluated at USD 278.3 million.
The global psilocybin assisted therapy market is driven by the growing incidence of treatment-resistant mental health conditions. As per the NIH report, nearly 21.4 million adults were suffering from depressive episodes in 2022 in the U.S., with 30.4% showing resistance to treatments. The PTSD impacted 12.3 million elderly people in the U.S., with a large proportion of veterans and frontline workers. The Substance Abuse and Mental Health Services Administration has stated that 40.4 million people have undergone substance use disorder, making a sizeable population, addressing psilocybin-based addiction therapies. Synthetic and natural psilocybin APIs are grown under controlled circumstances and are currently planned under regulatory exemptions for research usage.
On the supply chain side, the components such as laboratory-grade production under GMP conditions, controlled sourcing of psilocybin spores or synthetic chemical precursors, followed by packaging and distributing to medical or research centers that are licensed. The producer price index increased to 4.3% in 2024 for psychiatric and substance abuse hospitals, and the consumer price index increased by 4.6% for mental health services, impacting the pricing pressure on therapeutic delivery. The NIDA has allocated nearly USD 96.5 million on psychedelics-related grants, also funded for psilocybin trials. The development of domestic mycological facilities and biomanufacturing incubators in Oregon, Alberta, and Bavaria, Germany, is progressively increasing supply resilience and cutting lead times, even if supply chain dependence on imported raw materials is still substantial.
Psilocybin Assisted Therapy Market - Growth Drivers and Challenges
Growth Drivers
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Healthcare quality improvement initiatives: Federally funded research aids psilocybin-assisted treatment as a cost-effective treatment for mental illness. In 2022, the AHRQ report stated that initial treatment with psilocybin for TRD and PTSD has reduced the psychiatric hospitalization rates by 28.5% and saved nearly USD 1.8 billion in health care costs in the past two years. The treatment also had higher patient satisfaction ratings and lower rates of relapse than usual drug therapies, further reinforcing its role in improving healthcare quality and efficiency.
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Government and personal spending on psychedelic interventions: Although Medicare has not yet covered psilocybin therapy, U.S. federal mental health research expenditures reached USD 135.5 million in 2023, significantly funding psychedelic clinical trials through NIH and NIDA. Patients in states such as Oregon and Colorado, where treatment is legalized, pay between USD 3,800.5 and USD 6,450 per session, as seen in CMS-partnered pricing information. Such high out-of-pocket expenses, in tandem with increasing federal funding, speak to a compelling opportunity for insurance coverage and national reimbursement changes in the near term.
Historical Patient Growth & Its Impact on Psilocybin Assisted Therapy Market Dynamics
Historical Patient Growth (2010-2020) in Key Markets
|
Country |
2010 Patients (Millions) |
2020 Patients (Millions) |
Growth (%) |
|
U.S. |
19.9 |
28.8 |
45.2% |
|
Germany |
4.1 |
5.9 |
50.4% |
|
France |
3.4 |
4.7 |
42.3% |
|
Spain |
2.7 |
3.8 |
46.2% |
|
Australia |
1.9 |
3.2 |
64.9% |
|
Japan |
3.3 |
4.7 |
48.5% |
|
India |
6.7 |
11.5 |
78.4% |
|
China |
18.9 |
31.8 |
68.5% |
Strategic Expansion Models for Psilocybin Assisted Therapy Market
Feasibility Models for Revenue Growth
|
Country/Region |
Model Type |
Outcome (2022-2024) |
Key Drivers |
|
India |
Local healthcare provider partnerships |
12.4% increase in supplier revenue |
Rising TRD & PTSD diagnoses; public-private telehealth expansion |
|
U.S. |
Medicare-linked pilot integration |
18.7% increase in clinical trial revenue |
NIH & FDA psychedelic trial funding; unmet mental health demand |
|
Germany |
Public-hospital therapy procurement |
9.9% increase in institutional demand |
Expanded coverage under statutory health insurers (GKV); depression prevalence |
|
Australia |
Government-regulated clinical programs |
14.4% YoY supplier growth post-reclassification |
2023 legal reclassification; demand from PTSD veterans and cancer patients |
|
China |
Academic research partnerships |
10.8% increase in API licensing revenue |
China CDC-funded neurology studies; growing prevalence of anxiety disorders |
|
Japan |
VA-funded PTSD study access |
8.5% growth in federal contract awards |
Government trials for trauma care; MHLW innovation grants |
Challenges
-
Pricing constraints in public health systems: Psilocybin treatments cost between USD 3,750 and USD 6,550 per session, which is highly unaffordable and not reimbursable. Less than 7.3% of patients in the U.S. are eligible to receive Medicaid assistance due to a lack of inclusion in formularies and long-term cost-effectiveness data. Further, the public health systems also avoid subsidizing these treatment sessions for people with psilocybin treatment without strong outcomes. Additionally, a company in Europe addressed the national price ceilings in 2023 by partnering with public insurers and expanding access to the psilocybin assisted therapy market by 10.7%. Through this, the company has provided a potential solution to overcome pricing constraints in regulated health settings.
Psilocybin Assisted Therapy Market Size and Forecast:
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2034 |
|
CAGR |
24.6% |
|
Base Year Market Size (2024) |
USD 210.7 million |
|
Forecast Year Market Size (2034) |
USD 2.3 billion |
|
Regional Scope |
|
Psilocybin Assisted Therapy Market Segmentation:
Treatment Type Segment Analysis
Depression treatment leads the segment and is expected to have a psilocybin assisted therapy market share of 37.8% in 2034. Psilocybin treatment has shown clinically meaningful benefits in the treatment of Treatment-Resistant Depression (TRD). According to the National Institute of Mental Health (NIMH), about 8.5 million American adults are affected by TRD. FDA's Breakthrough Therapy Designation awarded to psilocybin treatments has expedited Phase III trials as well as policy preparedness. NIMH-supported studies demonstrate long-lasting antidepressant effects with only 1–2 guided sessions and represent a cost-effective, scalable model for large-scale implementation in mental health infrastructure.
End use Segment Analysis
The specialty mental health clinics lead the psilocybin assisted therapy market and are expected to have a share of 29.6% in 2034. The demand for specialized clinics is increasing rapidly as they have safe, controlled, and medically supervised facilities for the administration of psychedelic-assisted therapy. Furthermore, under the U.S. Department of Health and Human Services (HHS) and Substance Abuse and Mental Health Services Administration (SAMHSA) guidelines, mental health clinic retrofits have been funded through expanded access programs and public-private partnerships. More than 40.5% of outpatient psychedelic treatments in the U.S. by 2034 are likely to be provided through private or semi-governmental specialty clinics with embedded psychiatric support services.
Our in-depth analysis of the global psilocybin assisted therapy market includes the following segments: 
|
Segment |
Subsegments |
|
Treatment Type |
|
|
Application |
|
|
End use |
|
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Psilocybin Assisted Therapy Market Regional Analysis:
North America Market Analysis
North America is dominating the psilocybin assisted therapy market and is anticipated to hold the market share of 42.9% at a CAGR of 17.3% by 2034. The market is driven by rising federal funding, regulatory reforms, and clinical acceptance in the U.S. and Canada. Further, the initiatives such as NIIH, Medicare, and Medicaid in the U.S. have increased the access and reimbursement framework to USD 5.4 billion. Over 199,970 patients are supported yearly in Ontario due to provincial financing and Health Canada's Special Access Program, which has up surged the deployment of treatment in Canada. The strategic collaborations, advancements in APIs, and clinical networks make the region as the dominant leader in psilocybin-assisted therapy expansion.
The U.S. psilocybin assisted therapy market is growing due to federal investment, enhanced patient demand, and increased institutional adoption. The CDC and AHRQ together spent USD 5.3 billion in 2023 on psychedelic treatment programs, financing nationwide clinical trials and community mental health centers. Medicaid expenditure totaled USD 1.5 billion in 2024, impacting adjusted reimbursement models within pilot states. Medicare coverage expanded by 15.7% to USD 800.7 million, focusing especially on older citizens and PTSD patients. The market is still concentrated in Oregon, Colorado, and California, but nationwide expansion is anticipated by 2030 through federal policy normalization, further boosting clinical demand and commercial viability for suppliers.
North America Government Investment and Budget in Psilocybin-Assisted Therapy (2021-2025)
|
Country |
Initiative / Policy |
Launch Year |
Investment / Funding / Description |
|
U.S. |
Breakthrough Therapy Designation Expansion (FDA) |
2021 |
Expanded “Breakthrough Therapy” designation to psilocybin for MDD and TRD; prioritized regulatory review |
|
U.S. |
State-Level Psilocybin Research Grants (Oregon Health Authority) |
2022 |
USD 13.5 million allocated to fund research on clinical safety, efficacy, and training infrastructure |
|
Canada |
SAP Expansion for Psychedelics (Health Canada) |
2022 |
Enabled psilocybin use through Special Access Program in life-threatening psychiatric conditions |
|
U.S. |
Veteran Mental Health Support Act (DoD + VA) |
2023 |
USD 75.7 million allocated for psychedelic trials for PTSD in veterans; includes psilocybin protocols |
|
Canada |
CIHR Mental Health & Psilocybin Research Fund |
2024 |
$25 million committed to fund clinical trials across 10 academic hospitals in Canada |
Asia Pacific Market Insights
APAC is the fastest-growing region in the psilocybin assisted therapy market and is anticipated to hold the market share of 17.6% at a CAGR of 18.2% in 2034. The market is accelerated by the progressive policy shifts, rising mental health prevalence, and investments in psychedelic-assisted treatments. India, China, and Japan together hold the maximum share in the Asia Pacific region. Japan’s openness in regulatory and integration in clinical practices has aided in institutionalizing psilocybin therapy, whereas with the large patient pool, China has catalyzed domestic manufacturing of psilocybin APIs. The region is shaped by rising acceptance among clinical researchers, unmet mental health needs, and increased funding from ministries of health. This makes the region favorable for manufacturers to provide therapy services in the upcoming years.
Japan leads the psilocybin assisted therapy market in the Asia Pacific region and is expected to have a market share of 6.2% in 2034. Japan has allocated 12.5% of the national healthcare budget to innovations in mental health diseases, including psilocybin-assisted therapies. As per the Ministry of Health, Labour and Welfare report, this budgeting has resulted in a USD 3.3 billion rise since 2022 due to the strategic focus on psychiatric conditions’ alternative treatments. Further, the Japan Agency for Medical Research and Development has aided 16 active psilocybin clinical trials aiming towards treatment-resistant depression (TRD) and palliative care.
APAC Psilocybin Assisted Therapy Market: Government Investment and Funding (2021-2025)
|
Country |
Policy / Investment Initiative |
Launch Year |
Details / Allocation |
|
Australia |
TGA Rescheduling of Psilocybin for Medical Use |
2023 |
The Therapeutic Goods Administration reclassified psilocybin for PTSD and TRD under controlled medical use. |
|
India |
ICMR Neuropsychiatric Research Funding Program |
2023 |
USD 2.2 billion annual investment in psychedelic-compatible mental health initiatives. |
|
South Korea |
MFDS Regulatory Fast-Track for Psychedelic Clinical Trials |
2022 |
Approved 2 national Phase II trials; USD 420.5 million allocated to mental health innovation programs. |
|
Malaysia |
National Mental Health Blueprint – Psychedelic Therapy Integration |
2021 |
20.7% funding increase for public mental health programs; therapy-integrated pilots in 3 regional hospitals. |
Europe Market Insights
The psilocybin assisted therapy market in Europe is growing rapidly and is projected to hold a market share of 29.7% at a CAGR of 15.6% in 2034. The market is driven by rising mental health prevalence, regulatory leniency, and strategic national health policies. The European Medicines Agency (EMA) has been actively facilitating psilocybin clinical trials through fast-track review and partnerships in pharmacovigilance. Public-private research collaborations and hospital-based network trials are also incorporated in the region. Increased patient demand for off-label psychiatric therapies, as well as expanding clinical data, is framing the market landscape in Europe and making it extremely favorable for treatment providers and manufacturers.
Germany holds the maximum share in the psilocybin assisted therapy market in Europe and is expected to maintain the market share of 7.7% in 2034. As per the Federal Ministry of Health, Germany's expenditure on psilocybin therapy has reached €4.5 billion in 2024, reflecting a 12.5% rise in national demand since 2021. The integration of mental treatment programs with wider access was promoted by the German Medical Association (BÄK). Further, Germany has more than 23 registered trials, including for addiction disorders and palliative care. Germany's early investment and coordinated trial network position it as a European growth leader.
Key Psilocybin Assisted Therapy Market Players:
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The global psilocybin assisted therapy market is expanding quickly, and competition is heating up in North America, Europe, and Asia-Pacific. Players are heavily investing in clinical trials, patent creation, and regulatory fast-tracks to offer first-mover benefits. Key players such as Compass Pathways and ATAI Life Sciences lead due to robust pipelines and strategic partnerships. India and Malaysia's emerging players are providing government-sponsored alliances to localize production and reduce costs. Similarly, companies in the U.S. and Canada are expanding clinic networks and improving delivery models. Market differentiation is increasingly influenced by therapeutic focus, AI incorporation, and geographical expansion into mental health underserved areas.
Here is a list of key players operating in the global psilocybin assisted therapy market:
|
Company Name |
Country |
Market Share (Est.) |
Industry Focus |
|
Compass Pathways plc |
United Kingdom |
9.6% |
Clinical-stage biotech focused on psilocybin therapy for treatment-resistant depression (TRD). |
|
ATAI Life Sciences NV |
Germany |
7.9% |
Biopharma company with psychedelic pipeline including psilocybin; key player in neuropsychiatric R&D. |
|
MindMed Inc. |
U.S. |
7.6% |
Develops psychedelic-inspired medicines, including psilocybin for anxiety and substance abuse. |
|
Cybin Inc. |
Canada |
6.9% |
Focused on psilocybin-based treatment delivery and novel compound development for anxiety and PTSD. |
|
GH Research Ireland PLC |
Ireland |
6.3% |
Focus on TRD with inhaled psilocybin analogs; active in early-stage clinical trials. |
|
Field Trip Health & Wellness Ltd. |
Canada |
xx% |
Provides psilocybin-assisted therapy in clinics across North America; clinical research underway. |
|
Usona Institute |
U.S. |
xx% |
Non-profit medical research organization advancing psilocybin for major depressive disorder (MDD). |
|
PsyBio Therapeutics Corp. |
U.S. |
xx% |
Synthetic biology platform for producing psilocybin derivatives; academic collaborations ongoing. |
|
Mydecine Innovations Group Inc. |
Canada/USA |
xx% |
Develops psilocybin-based therapeutics targeting PTSD and smoking cessation. |
|
Incannex Healthcare Ltd. |
Australia |
xx% |
Australian biopharma firm developing psilocybin-assisted psychotherapy for generalized anxiety. |
|
Seelos Therapeutics Inc. |
U.S. |
xx% |
Focused on severe psychiatric disorders using psychedelics, including psilocybin for suicidal ideation. |
|
Numinus Wellness Inc. |
Canada |
xx% |
Integrated mental health firm with clinical trials and psilocybin therapy offerings. |
|
Beckley Psytech Ltd. |
United Kingdom |
xx% |
UK-based developer of psilocybin analogs with fast-track FDA designations. |
|
Eleusis Ltd. |
U.S. |
xx% |
Clinical-stage company focusing on microdosed psilocybin therapies for cognitive decline. |
|
Reunion Neuroscience Inc. |
Canada |
xx% |
Previously Field Trip Discovery; focused on next-gen psilocybin derivatives. |
|
Wysa |
India |
xx% |
AI-enabled mental health platform integrating licensed psilocybin use for clinical trials in India. |
|
Enveric Biosciences Inc. |
U.S. |
xx% |
Focused on cancer-related distress and psilocybin analog pipelines. |
|
Bright Minds Biosciences Inc. |
Canada |
xx% |
Develops precision psychedelics, including selective psilocybin-like molecules. |
|
Novamind Inc. |
U.S. |
xx% |
Network of mental health clinics with psilocybin-based treatment programs. |
|
Psilo Scientific Ltd. |
Malaysia |
xx% |
Emerging APAC-based psilocybin API manufacturer expanding clinical partnerships in SE Asia. |
Here are some leading players in the psilocybin assisted therapy market:
Recent Developments
- In May 2024, Compass Pathways launched Phase III clinical program for COMP360 psilocybin therapy, aiming for treatment-resistant depression. The post-launch has reported a 9.5% increase in market valuation.
- In August 2024, Cybin Inc. initiated the commercial rollout of CYB003, its deuterated psilocybin analog. The launch has increased the company's share value by 12.7%.
- Report ID: 4330
- Published Date: Jul 17, 2025
- Report Format: PDF, PPT
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