Psychedelic Drugs Market size is anticipated to surpass USD 12 Billion by the end of 2036, growing at a CAGR of 14% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of psychedelic drugs was USD 3 Billion. The growth of the market can be attributed to the growing prevalence of mental health disorders across the globe. It is foreseen that by 2030, the primary cause of death and morbidity worldwide will be mental health issues, including depression, driven by elements such as loneliness or isolation and the usage of social media.
Moreover, since psychedelic drug use has been associated with significant improvement in symptoms of depression and anxiety and increased mental well-being, they are expected to gain acceptance as a treatment worldwide, and the demand will increase in the years to come. According to the World Health Organization (WHO), one in seven people aged 10 to 19 worldwide suffers from a mental illness, making up 13% of the age group's overall disease burden.
In addition to these, factors that are believed to augment the market expansion of psychedelic drugs include the growing popularity of combination therapies. Success in fighting mental illness is likely to come from the combination therapies that are standard of care for other major diseases of depression and suicidality.
As the available arsenal of treatments for mental illness hasn’t worked well enough and the world is facing a mental health emergency, the therapeutic potential of the highly stigmatized hallucinogenic drugs is attracting widespread interest in their use. Researchers state that the results seen with psilocybin are a cause for hope in previously highly complex and difficult-to-treat conditions.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
14% |
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Base Year Market Size |
USD 3 Billion |
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Forecast Year Market Size |
USD 12 Billion |
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Regional Scope |
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Drugs (Psilocybin, MethylenedioxyMethamphetamine, Lysergic Acid Diethylamide, Dimethyltryptamine)
The psilocybin segment in the psychedelic drugs market is estimated to hold 40% of the revenue share by the end of 2036. The segment growth can be accredited to the increasing research and development. Researchers are increasingly looking to psilocybin and psychedelic drugs for the treatment of various psychiatric and neurological disorders such as pain, addiction, depression, terminal anxiety, and post-traumatic stress disorder (POST).
For instance, a multinational research team that studied the biosynthesis of psilocybin discovered new information on the composition and mechanism of action of the enzyme PsiM, which catalyzes the final two steps in the synthesis of psilocybin, which are two consecutive methylation processes.
Psilocybin, also known as magic mushroom, is naturally available and is often used as part of psilocybin-assisted therapy used essentially for conditions that are difficult to treat, such as addiction and fear of the end of life.
Application (Treatment Resistant Depression, Narcolepsy, Major Depressive Disorder, Opiate Addiction)
The major depressive disorder segment in the psychedelic drugs market is set to garner a notable share shortly. It is estimated that the increasing prevalence of depressive disorders will drive the growth of this segment. Depression is a common mental illness worldwide, with approximately 5% of adults suffering from it. The field is expected to grow as ongoing research and studies show MDMA to be a promising potential treatment for depression and other mood disorders.
Our in-depth analysis of the global psychedelic drugs market includes the following segments
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Drugs |
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Application |
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Type |
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Route of Administration |
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End-User |
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Distribution Channel |
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North American Market Forecast
The psychedelic drugs market in North America is anticipated to hold a share of about 40% by the end of 2036. The market is also growing on account of rising government initiatives to spread awareness among people regarding mental health conditions. For instance, the Canadian government organized Mental Illness Awareness Week in October 2022 as part of a nationwide initiative to raise awareness of the realities of mental illness among Canadians.
It enables the general population to dispel myths about mental disease and advance knowledge about mental health. In turn, this fosters societal acceptance, respect, and fair treatment of those with mental disorders while also lowering stigma. As a result, these awareness campaigns may increase the desire to take psychedelic drugs, which is predicted to spur market expansion throughout the projection period.
APAC Market Analysis
The Asia Pacific region will also encounter huge growth for the psychedelic drugs market shortly and will hold the second position due to the increasing government support given to organizations looking into psychedelic chemicals' medicinal potential, which could result in better therapeutic approaches to treating mental disorders in the area.
Author Credits: Radhika Gupta, Shivam Bhutani
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