Psychedelic Drugs Market

Psychedelic Drugs Market: Industry Trends and Global Forecasts, till 2030 - Distribution by Origin of Substance (Natural and Synthetic), Type of Psychedelic Substance (Gamma-hydroxybutyrate, Ketamine, MDMA, and Psilocybin), Target Disease Indications (Depression and Anxiety Disorders, Pain Disorders, Sleep Related Disorders and Trauma), Route of Administration (Oral, Intravenous, Intranasal and Sublingual) and Key Geographical Regions (North America, Europe, Asia Pacific and Rest of the World)

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Psychedelic Drugs Market Size Overview

The psychedelic drugs market size is projected to grow from $2.77 billion in 2024 to $6.75 billion by 2030, growing at a CAGR of 15% during the forecast period till 2030.

Psychedelic Drugs Market Size, By Type of Psychedelic Substance, 2024-2030 (USD Billion)

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The new research study consists of pipeline analysis, competitor analysis, clinical trial analysis, comprehensive KOL analysis, partnerships and collaborations, mergers and acquisitions, and detailed market analysis. The psychedelic drugs market growth over the next decade is likely to be the result of increasing adoption of approved therapy, increasing incidence of mental health disorders, unmet needs amongst the target population and support from the venture funds.

Psychedelic disorders along with other mental health disorders are estimated to be responsible for productivity associated losses worth over USD 1 trillion, every year, at the global level. In fact, the US reported a sharp increase (~20%) in number of prescriptions for antidepressants and anti-anxiety drugs during the global lockdown enforced to curb the spread of COVID-19. According to the World Health Organization, the major roadblocks to effective treatment for depression and other mental illnesses include the lack of understanding of the aforementioned conditions resulting in an irrational social stigma, inaccurate diagnosis, and paucity of effective medication. In this context, it is worth highlighting that there is a growing body of clinical evidence supporting the therapeutic effect of psychedelic substances on psychiatric conditions, such as depressions. Experts in this field also believe that psychedelics, at appropriate doses, can be used to address some of the serious psychological implications of the COVID-19 pandemic.

Market Share Insights

The psychedelic drugs market research report presents an in-depth analysis of the various companies that are engaged in developing this novel drug class, across different segments, as defined in the table below:

Global Psychedelic Drugs Market: Report Attributes / Market Segmentations

Key Report Attribute Details
Historical Trend 2020-2022
Base Year 2023
Forecast Period 2024-2030
Market Size 2030 $6.75 Billion
CAGR 15%
Origin of Substance
  • Natural
  • Synthetic
Type of Psychedelic Substance
  • Gamma-hydroxybutyrate
  • Ketamine
  • MDMA
  • Psilocybin
Target Disease Indications
  • Depression and Anxiety Disorders
  • Pain Disorders
  • Sleep Related Disorders 
  • Trauma
Route of Administration
  • Oral
  • Intravenous
  • Intranasal
  • Sublingual
Key Geographical Regions
  • North America
  • Europe
  • Asia Pacific
  • Rest of the World
Key Companies Profiled
  • Celon Pharma
  • iX Biopharma
  • Lykos Therapeutics
  • MindMed
  • Janssen Pharmaceuticals
  • Jazz Pharmaceutical
(Full list of 235+ companies captured is available in the report)
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  • Market Landscape Analysis
  • Clinical Trial Analysis
  • Partnership and Collaboration Analysis
  • Mergers and Acquisitions Analysis
  • Market Forecast and Opportunity Analysis


One of the key objectives of this psychedelic drugs market report was to estimate the current market size, opportunity and the future market growth potential of this drug class in pharmaceutical market, over the forecast period. Based on likely approval year, adoption trends and through primary validations, we have provided an informed estimate on the market evolution during the forecast period 2024-2030.

The market report also features the likely distribution of the current and forecasted opportunity within the psychedelic drugs market across various segments, such as origin of substance (natural and synthetic), type of psychedelic substance (gamma-hydroxybutyrate, Ketamine, MDMA, and psilocybin), target disease indications (depression and anxiety disorders, pain disorders, sleep related disorders and trauma), route of administration (oral, intravenous, intranasal and sublingual) and key geographical regions (North America, Europe, Asia Pacific and rest of the world).  In order to account for future uncertainties and to add robustness to our model, we have provided three market forecast scenarios, namely conservative, base and optimistic scenarios, representing different tracks of the psychedelic drugs market growth.

The opinions and insights presented in the market research report were also influenced by discussions held with multiple stakeholders in psychedelic drugs market. The market report features detailed transcripts of interviews held with the following individuals:

  • Andrew Chadeayne (Founder & Chief Executive Officer, CaaMTech)
  • Janakan Krishnarajah (Chief Operating Officer and Chief Medical Officer, iX Biopharma)
  • Alexander Speiser (Chief Operating Officer, Orthogonal Thinker)
  • Tracy Cheung, (Chief Communications Officer, COMPASS Pathways)
  • Benjamin Kelmendi (Yale University)

All actual figures have been sourced and analyzed from publicly available information forums and primary research discussions. Financial figures mentioned in this report are in USD, unless otherwise specified.

Psychedelic Drugs Market: Key Insights

The “Psychedelic Drugs Market: Industry Trends and Global Forecasts, till 2030 - Distribution by Origin of Substance (Natural and Synthetic), Type of Psychedelic Substance (Gamma-hydroxybutyrate, Ketamine, MDMA, and Psilocybin), Target Disease Indications (Depression and Anxiety Disorders, Pain Disorders, Sleep Related Disorders and Trauma), Route of Administration (Oral, Intravenous, Intranasal and Sublingual) and Key Geographical Regions (North America, Europe, Asia Pacific and Rest of the World)” market report features an extensive study of the current market landscape, market size, market share, market analysis, market forecast and future opportunities for the psychedelic drug developers involved in the pharmaceutical market. The report highlights the efforts of several drug developers engaged in this rapidly emerging market segment of the pharmaceutical industry. Key takeaways of the psychedelic drugs market analysis are briefly discussed below.

Current Psychedelic Drugs Market Landscape

Early in the 21st Century, XYREM®, a gamma-hydroxybutyric acid based psychedelic drug was approved for the treatment of cataplexy in patients suffering from narcolepsy. In 2019, SPRAVATO® (an analogue of ketamine), developed by Johnson and Johnson, was approved for use in patients suffering from treatment-resistant depression.  Recently, the US FDA accepted the application to review 3,4-Methylenedioxymethamphetamine (MDMA), also known as ecstasy, for treatment of post-traumatic stress disorder. MDMA and psilocybin, have shown clinical evidence of being capable of offering substantial therapeutic benefit in treating major depressive disorder, post-traumatic stress disorder and treatment resistant depression over other available therapies. Currently, several stakeholders in the pharmaceutical industry are actively evaluating the therapeutic potential of psychedelic substances against a wide array of mental health problems. As more players achieve proof-of-concept, this niche market is anticipated to witness substantial market growth in the mid-long term.

Psychedelic Drugs Market Trends Analysis: Increase in Venture Capital Interest and Rising Funds to Drive the Race to Market

A number of venture capital funds have shown interest in the companies developing psychedelic drugs. In November 2023, a mental health startup Psychae Therapeutics working on the development of psychedelic assisted therapies for mental health disorders received funding of $4.5 million from University of Melbourne’s Genesis Pre-seed fund. In January 2024, MAPS Public Benefit Corporation announced its name change to Lykos Therapeutics and also the news of receiving $100 million in Series A funding to support the pre-launch activities. A number of US companies (more than 50) have also gone public and have been listed on NASDAQ and NYSE. The increasing interest from the venture capital investors will provide the much-needed funds as the drug developers move the clinical products into the market.

Market Drivers and Restraints: Rising Incidence of Mental Disorders to Drive the Market Growth and Anticipated Approvals

Mental health disorders like PTSD, depression and anxiety have seen a steep rise, specifically post the COVID-19 pandemic. According to the data published by World Health Organization (WHO), anxiety and depression saw a rise of 26% and 28%, respectively during the period 2019 to 2020. There are a number of cases of treatment resistant depression which are challenging the pharmaceutical industry. Additionally, patients face difficulty to identify the right antidepressants and the right dosage of the drugs. Such unmet needs in the mental disorders market, along with the challenges faced with the currently approved treatment options will drive the adoption of the psychedelic drugs.

Johnson & Johnson’s approved psychedelic drug Spravato, a nasal spray approved for treatment of depression brought in $689 million in revenues in full year 2023, up 84% from the previous year. The anticipated approval of more psychedelic drugs in the coming years will contribute the psychedelic drugs market growth over the forecast period till 2035.

Market Size Analysis: Psychedelic Drugs for Treatment of PTSD to Hold Majority Market Share

The global psychedelic drugs market size is estimated to reach USD 6.5 billion by 2030. The market growth is expected to be driven by the increasing adoption of the approved drugs, leading to a CAGR of over 15% during the forecast period. Further, in terms of therapeutic indications, the treatment for post-traumatic stress disorder is anticipated to capture the majority of the market share in the short-term with the awaited approvals of Lykos Therapeutics drug in 2H 2024. According to the US Department of Veteran Affairs, approximately 13 million people in the U.S. had PTSD in 2020. There is a huge unmet need in this patient group, which will drive the adoption of approved psychedelic drugs.

Regional Analysis: North America to Hold Majority Share as the US Healthcare System Gets Ready for this New Drug Class

Presently, North America captures majority of the psychedelic drugs market share. In 2024, the most popular psychedelic drug Spravato generated more than 85% of the revenues through sales in the US.  In January 2024, the American Medical Association (AMA) put in to effect the current procedural terminology (CPT) III code for psychedelic therapeutics sorting the coverage and reimbursement procedures for this drug class. This development reflects the accepting nature of the north American market towards the new drugs class.

Key Companies Involved in Psychedelic Drugs Market

Examples of key psychedelic drug developers (which have also been profiled in this market report; the complete list of psychedelic companies is available in the full report) include Celon Pharma, iX Biopharma, Lykos Therapeutics, MindMed, Janssen Pharmaceuticals and Jazz Pharmaceutical. This market report includes an easily searchable excel database of all the psychedelic drug developers, worldwide.

Psychedelic Drugs Market Report Coverage

The psychedelic drugs market report presents an in-depth analysis, highlighting the capabilities of various stakeholders engaged in this industry, across different geographies. Amongst other elements, the market report includes:

  • A preface providing an introduction to the full report, Psychedelic Drugs Market, 2018-2023 (Historical Trends) and 2024-2030 (Forecasted Estimates).
  • An outline of the systematic research methodology adopted to conduct the study on psychedelic drugs, providing insights on the various assumptions, methodologies, and quality control measures employed to ensure accuracy and reliability of our findings.
  • An executive summary of the key insights captured during our research, offering a high-level view on the current landscape of the approved and under development psychedelic drugs and their likely evolution in the short to mid and long term.
  • A brief introduction to concept of psychedelic drugs and their applications in the healthcare industry.
  • A detailed assessment of the current market landscape of psychedelic therapeutics, providing information on phase of development (commercial, clinical, preclinical, and discovery stage) of lead candidates, type of psychedelic substance, origin of psychedelic substance, target therapeutic area route of administration (intranasal, intravenous, oral, sublingual, topical and transdermal), dosing frequency (single dose, twice a week, once in two months and others). In addition, it includes information on drug developer(s), highlighting year of their establishment, company size, and location of headquarters.
  • Tabulated profiles of prominent psychedelic therapeutics developers. Each profile features a brief overview of the company, its financial information (if available), product portfolio, recent developments and an informed future outlook.
  • An in-depth analysis of completed, ongoing and planned clinical studies of various psychedelic therapeutics, based on the various relevant parameters, such as trial registration year, phase of development, current trial status, enrolled patient population and geographical distribution of trials, study design, leading industry (in terms of number of trials conducted), study focus, target therapeutic area, key geographical regions.
  • An insightful analysis of clinical trial sites where the studies have been / are being conducted for evaluation of various psychedelic therapeutics, based on relevant parameters, such as type of psychedelic substance, trial phase, target therapeutic area and location of the trial.
  • A list of key opinion leaders (KOLs) within psychedelic drugs market, and detailed 2×2 matrices to assess the relative experience of key individuals who were shortlisted based on their contributions (in terms of involvement in various clinical studies) to psychedelic drugs market. It also includes a schematic world map representation (highlighting the geographical locations of eminent scientists / researchers) and an analysis evaluating the (relative) level of expertise of different KOLs, based on number of publications, number of citations, participation in clinical trials, number of affiliations and strength of professional network (based on information available on LinkedIn).
  • A detailed analysis of nearly 550 grants that have been awarded to research institutes engaged in psychedelic therapeutics projects, in the period between 2015 and 2020 (till May), including analysis based on important parameters, such as year of grant award, amount awarded, funding institute center, support period, type of grant application, purpose of grant award, grant funding mechanism, study section involved, and recipient organizations. In addition, it highlights popular psychedelic therapeutics, popular funding institute centers, prominent program officers, and popular recipient organizations.
  • An analysis of the partnerships that have been established in the recent past (2017-2020 till May), covering acquisitions and mergers, licensing agreements, product development agreements, research agreements, research and development agreements, clinical trial agreements, joint venture agreements and other relevant types of deals.
  • A detailed analysis of the various mergers and acquisitions that have taken place in psychedelic drugs market, highlighting the trend in the number of companies acquired between 2017-2020, based on parameters, such as year of merger and acquisition, type of acquisition, geographical location of the acquirer and the acquired company, and key value drivers. Moreover, it presents a schematic world map representation of the geographical distribution of this activity, highlighting inter- and intracontinental deals.
  • A detailed estimate of the current market size, opportunity and the future growth potential of the psychedelic drugs market, over the next decade. Based on multiple parameters, likely adoption trends and through primary validations, we have provided an informed estimate on the market evolution during the forecast period 2024-2030. The report also features likely distribution of the current and forecasted opportunity. Further, in order to account for future uncertainties and to add robustness to our model, we have provided three forecast scenarios, namely conservative, base and optimistic scenarios, representing different tracks of the industry’s growth.

Recent Developments In Psychedelic Drugs Market

Several recent developments have taken place related to psychedelic drugs industry, some of which have been outlined below.

  • In February 2024, Lykos Therapeutics announced NDA application and priority review for its MDMA therapeutic for treatment of post-traumatic stress disorder.
  • In December 2023, Compass Pathways announced the initial data readout for phase 2 trial of its investigational psilocybin drug COMP360 in patients with post-traumatic stress disorder.
  • In September 2023, Beckley Waves, a startup working on building a safe care delivery infrastructure for access to psychedelic drugs, raised $3.3 million.

 

There are more than 300 Million Indiviaduals Suffering From Depression There is List of Psychedelic Therapy name in Global Psychedelic Therapeutics Market There are 44% depression and Anxiety disorder

Over time, it have been demonstrated that psychedelic substances interact with a variety of neurotransmitter pathways, including those of serotonin, acetylcholine, norepinephrine, and dopamine, among several others. In fact, there is evidence that an imbalance in the levels of serotonin in the brain, causes depression. Similarly, the aforementioned biomolecules have been associated with a plethora of neurological conditions. As a result, biocompatible molecules having the ability to modulate neurotransmitter production / function, have the potential to be put to therapeutic use. Early in the 21st Century, XYREM®, a gamma-hydroxybutyric acid based psychedelic drug was approved for the treatment of cataplexy in patients suffering from narcolepsy. In 2019, SPRAVATO® (an analogue of ketamine), developed by Johnson and Johnson, was approved for use in patients suffering from treatment-resistant depression.

Recently, the US FDA granted the breakthrough drug designation to 3,4-Methylenedioxymethamphetamine (MDMA) and psilocybin, based on clinical evidence of these substances being capable of offering substantial therapeutic benefit in treating major depressive disorder, post-traumatic stress disorder and treatment resistant depression over other available therapies. Currently, several stakeholders in the pharmaceutical industry are actively evaluating the therapeutic potential of psychedelic substances against a wide array of mental health problems. As more players achieve proof-of-concept, this niche market is anticipated to witness substantial market growth in the mid-long term.

Key Companies in Psychedelic Drugs Market 

Examples of key psychedelic companies engaged in psychedelic drugs market (which have also been profiled in this market report; the complete list of psychedelic companies is available in the full report) include Celon Pharma, iX Biopharma, MAPS Public Benefit, MindMed, Janssen Pharmaceuticals and Jazz Pharmaceutical. This market report includes an easily searchable excel database of all the psychedelic companies developing psychedelic drugs, worldwide.

Scope of the Psychedelic Drugs Market Report

The “Psychedelic Drugs Market, 2020-2030” market report features an extensive study of the current market landscape, market size, market share, market growth, market forecast, market outlook and future opportunities of the psychedelic drugs market. The market research report features an in-depth analysis, highlighting the diverse capabilities of stakeholders engaged in psychedelic drugs market.

15 Players are based in US. There are 544 Cumulative Number of Grants in 2020 There is 68 Players Based in North America

In addition to other elements, the market research report includes:

  • A detailed assessment of the current market landscape of psychedelic therapeutics, providing information on phase of development (commercial, clinical, preclinical, and discovery stage) of lead candidates, type of psychedelic substance, origin of psychedelic substance, target therapeutic area route of administration (intranasal, intravenous, oral, sublingual, topical and transdermal), dosing frequency (single dose, twice a week, once in two months and others). In addition, it includes information on drug developer(s), highlighting year of their establishment, company size, and location of headquarters.
  • Tabulated profiles of prominent psychedelic therapeutics developers. Each profile features a brief overview of the company, its financial information (if available), product portfolio, recent developments and an informed future outlook.
  • An in-depth analysis of completed, ongoing and planned clinical studies of various psychedelic therapeutics, based on the various relevant parameters, such as trial registration year, phase of development, current trial status, enrolled patient population and geographical distribution of trials, study design, leading industry (in terms of number of trials conducted), study focus, target therapeutic area, key geographical regions.
  • An insightful analysis of clinical trial sites where the studies have been / are being conducted for evaluation of various psychedelic therapeutics, based on relevant parameters, such as type of psychedelic substance, trial phase, target therapeutic area and location of the trial.
  • A list of key opinion leaders (KOLs) within psychedelic drugs market, and detailed 2×2 matrices to assess the relative experience of key individuals who were shortlisted based on their contributions (in terms of involvement in various clinical studies) to psychedelic drugs market. It also includes a schematic world map representation (highlighting the geographical locations of eminent scientists / researchers) and an analysis evaluating the (relative) level of expertise of different KOLs, based on number of publications, number of citations, participation in clinical trials, number of affiliations and strength of professional network (based on information available on LinkedIn).
  • A detailed analysis of nearly 550 grants that have been awarded to research institutes engaged in psychedelic therapeutics projects, in the period between 2015 and 2020 (till May), including analysis based on important parameters, such as year of grant award, amount awarded, funding institute center, support period, type of grant application, purpose of grant award, grant funding mechanism, study section involved, and recipient organizations. In addition, it highlights popular psychedelic therapeutics, popular funding institute centers, prominent program officers, and popular recipient organizations. 
  • An analysis of the partnerships that have been established in the recent past (2017-2020 till May), covering acquisitions and mergers, licensing agreements, product development agreements, research agreements, research and development agreements, clinical trial agreements, joint venture agreements and other relevant types of deals. 
  • A detailed analysis of the various mergers and acquisitions that have taken place in psychedelic drugs market, highlighting the trend in the number of companies acquired between 2017-2020, based on parameters, such as year of merger and acquisition, type of acquisition, geographical location of the acquirer and the acquired company, and key value drivers. Moreover, it presents a schematic world map representation of the geographical distribution of this activity, highlighting inter- and intracontinental deals.
43% Partnership were Signed in 2020 71% mergers were done in north America A list of key opinion leaders (KOLs) within this domain, and detailed 2×2 matrices to assess the relative experience of key individuals who were shortlisted based on their contributions (in terms of involvement in various clinical studies) to this field.

The key objective of psychedelic drugs market report is to provide a detailed market analysis in order to estimate the existing market size, market trends, market value, statistics and future opportunity for psychedelics industry during the forecast period. Based on multiple parameters, such as target patient population, likely adoption and the annual treatment cost, we have provided informed estimates on the evolution of psychedelic therapeutics market for the forecast period 2020-2030.

The market report also features the likely distribution of the current and forecasted opportunity across [A] origin of substance (natural and synthetic) [B] type of psychedelic substance (gamma-hydroxybutyrate, Ketamine, MDMA, and psilocybin) [C] key geographical regions (North America, Europe, Asia Pacific and rest of the world) [D] target disease indications (depression and anxiety disorders, pain disorders, sleep related disorders and trauma)  and [E] route of administration (oral, intravenous, intranasal and sublingual). In order to account for future uncertainties and to add robustness to our model, we have provided three market forecast scenarios, namely conservative, base and optimistic scenarios, representing different tracks of the industry’s growth.  

The opinions and insights presented in the market research report were also influenced by discussions held with multiple stakeholders in psychedelic drugs market. The market report features detailed transcripts of interviews held with the following individuals:

  • Andrew Chadeayne (Founder & Chief Executive Officer, CaaMTech)
  • Janakan Krishnarajah (Chief Operating Officer and Chief Medical Officer, iX Biopharma)
  • Alexander Speiser (Chief Operating Officer, Orthogonal Thinker)
  • Tracy Cheung, (Chief Communications Officer, COMPASS Pathways)
  • Benjamin Kelmendi (Yale University)

All actual figures have been sourced and analysed from publicly available information forums and primary research discussions. Financial figures mentioned in this market research report are in USD, unless otherwise specified.

Frequently Asked Questions

Question 1: What are psychedelic drugs?

Answer: Psychedelic drugs or psychedelics belong to a class of hallucinogenic drugs having primary effect on the consciousness of the patient to treat a medical condition.

Question 2: How big is the psychedelic drugs market?

Answer: The psychedelic drugs market size is estimated to be worth $6.5 billion by 2030.

Question 3: What is the projected market growth of the psychedelic drugs market?

Answer: The psychedelic drugs market is expected to grow at compounded annual growth rate (CAGR) of 15% during the forecast period till 2030.

Question 4: Who are the leading psychedelic drug developers?

Answer: Examples of key companies engaged in psychedelic drugs market (which have also been profiled in this market report; the complete list of companies is available in the full report) include Celon Pharma, iX Biopharma, Lykos Therapeutics, MindMed, Janssen Pharmaceuticals and Jazz Pharmaceutical.

Question 5: How much grant money has been received by the companies engaged in psychedelic drugs market?

Answer: Over USD 275 million of grant money has been received by the drug developers engaged in psychedelic drugs industry.

Question 6: How many companies are currently engaged in the psychedelic drugs market?

Answer: Over 45 psychedelic drug developers are currently engaged in the development of psychedelic drugs.

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