Psychedelic Drugs Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Psychedelic Drugs Market in 2025 is assessed at USD 21.9 billion. The global Market size was valued at around USD 19.84 billion in 2024 and is projected to grow at a CAGR of more than 13%, reaching USD 97.18 billion revenue by 2037. North America is poised to collect USD 38.87 billion by 2037, due to rising government initiatives to raise awareness about mental health conditions.
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.
Psychedelic Drugs Sector: Growth Drivers and Challenges
Growth Drivers
- Growing concerns about alcohol addiction- A growing number of studies demonstrating that psychedelic medications can help treat addictions such as alcoholism are expected to spur market growth. In one study, patients who received psilocybin experienced a 50% reduction in heavy drinking within eight months of starting treatment. On the other hand, those who took antihistamines had a 51% reduction in alcohol consumption.
- A resurgence of research interest in psychedelic drugs- The Commodity Administration (TGA) is anticipated to allow the prescription of MDMA for the treatment of post-traumatic stress disorder, which may facilitate the use of psychedelic drugs to treat many conditions. For instance, from July 2023, in Australia, medications containing psychedelic drugs such as psilocybin and MDMA may only be prescribed by a licensed psychiatrist for certain purposes.
- Increasing awareness about mental health- Many businesses and organizations are starting campaigns and adoption activities to spread awareness, which enables patients to select an effective treatment choice based on the underlying cause of their illness and any reported symptoms.
- In addition, the public's understanding of psychedelic substances has grown due to commercials, education initiatives, and other methods that encourage individuals to choose the best course of therapy for their mental illnesses.
Challenges
- Societal stigma associated with mental illness- Mental illness is universally stigmatized and can result in serious issues, which is poised to restrict market expansion in the coming years.
- Rather than being diagnosed as unwell, anxiety sufferers are sometimes called weak, which can exacerbate mental health issues and prevent someone from receiving the necessary treatment.
- Strict policies and regulations, as the legal status of psychedelic drugs varies globally, may limit research opportunities and increase the overall expenses for the companies.
- The need for extensive clinical trials may hamper market revenue.
Psychedelic Drugs Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
13% |
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Base Year Market Size (2024) |
USD 19.84 billion |
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Forecast Year Market Size (2037) |
USD 97.18 billion |
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Regional Scope |
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Psychedelic Drugs Segmentation
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 2037, 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.
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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Source |
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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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Customize this ReportPsychedelic Drugs Industry - Regional Synopsis
North American Market Forecast
The psychedelic drugs market in North America is anticipated to hold a share of about 40% by the end of 2037. 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.
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.
Companies Dominating the Psychedelic Drugs Landscape
- Compass Pathways Plc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Mind Medicine Inc.
- Jazz Pharmaceuticals plc
- Johnson & Johnson Pte. Ltd.
- Hikma Pharmaceuticals PLC
- Thoughtful Brands Inc.
- Pfizer Inc.
- F. Hoffmann-La Roche AG
- Avadel Pharmaceuticals plc
- NRx Pharmaceuricals, Inc.
In the News
- Compass Pathways Plc. a mental health care company dedicated to accelerating patient access to evidence-based innovation in mental health, announced that the American Medical Association (AMA) has approved a Current Procedural Terminology (CPT) III code for psychedelic therapies. The expected release of the full details of the code by the AMA is in July 2023 and the code will go into effect when it is published on January 1, 2024.
- Mind Medicine Inc., a clinical-stage biopharmaceutical company developing novel products to treat brain health disorders, announced that its collaborators at the University Hospital Basel (UHB) and the University Hospital of Psychiatry, have released positive topline data from an investigator-initiated trial (double-blinded) evaluating lysergide in the treatment of Major Depressive Disorder (MDD)
Author Credits: Radhika Pawar
- Report ID: 4153
- Published Date: May 08, 2025
- Report Format: PDF, PPT
