Psychedelic Drugs Market

Global Psychedelic Drugs Market Research Report: By Drug Type (Ketamine, Psilocybin, Others), By Application (Mental Health, Abuse Disorder, Others), By End User (Hospitals, Mental Health Center, Others) and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2023-2031.

Pharma & Healthcare | December 2023 | Report ID: EMR00299 | Pages: 317

The global psychedelic drugs market was valued at USD 1.02 billion in 2022 and is estimated to reach approximately USD 3.29 billion by 2031, at a CAGR of 13.9% from 2023 to 2031.

The entry of psychedelic drugs into the mainstream has caused a complex change in the way society views itself and the medical field. Some drugs, like LSD and psilocybin (found in magic mushrooms), have historically been linked to counterculture movements, but due to their possible medical uses, interest in them is growing again. As a result of increased research, medical practitioners and regulatory agencies are beginning to accept their effects on mental health, including anxiety, PTSD, and depression. At the same time, a growing industry surrounding psychedelics has developed. Both new and established businesses are looking for ways to use these substances to provide standardized, medically supervised treatments. The commercial interest in psychedelics has increased due to investment in R&D, clinical trials, and novel delivery systems like microdosing. Furthermore, a more candid discussion on the possible applications of these drugs has been facilitated by shifting public perceptions and a growing recognition of mental health concerns. Where, difficulties remain in spite of the promise. Stigma, legal restrictions, and moral dilemmas all continue to influence how the psychedelic industry develops. However, the reevaluation of once-marginalized substances for their therapeutic potential brought about by the entrance of psychedelics into mainstream markets reflects a paradigm shift and opens a potentially transformational path for future mental health treatments.






Report Attribute


Estimated Market Value (2022)

1.02 Bn

Projected Market Value (2031)

3.29 Bn

Base Year


Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Drugs Type, By Application, By End-User, & Region

Segments Covered

By Drugs Type, By Application, By End-User, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.


Global Psychedelic Drugs Market Dynamics

Investor interest and funding have increased in tandem with the growing body of research on the therapeutic effects of psychedelics, creating a competitive environment among startups, research institutes, and pharmaceutical firms. Collaborations between academics and industry have resulted from this boom, which has fueled innovation in medication research, formulation, and treatment techniques. Attitudes toward regulations are also changing. A few areas have approved clinical studies and compassionate use initiatives while carefully examining medical use routes. Strict laws and the stigma associated with these drugs, however, continue to be significant obstacles. Nevertheless, market dynamics have been impacted by an increase in consumer interest in and demand for alternative mental health therapies. This tendency is further demonstrated by the establishment of wellness facilities that support microdosing and clinics that provide psychedelic-assisted therapy. The market's future depends on how these complicated regulations are handled, as well as how science and ethics are addressed. Furthermore, the market for psychedelic medications will be greatly shaped by public opinion, the results of current research, and the capacity to develop scalable, standardized therapies. These factors have the potential to transform mental health care while addressing the difficulties presented by a quickly changing environment.


Global Psychedelic Drugs Market Drivers

  • Demand for Mental Health Treatments

Increased demand for treatments has resulted from societal shifts in knowledge and initiatives to de-stigmatize mental health disorders. This has encouraged more people to seek care for mental health conditions. Furthermore, the need for comprehensive and easily accessible therapeutic options has grown as our understanding of mental health and its relationship to general well-being has evolved. The growing recognition of the shortcomings of conventional therapies has sparked a search for novel strategies that can provide more significant and long-lasting relief. Furthermore, the stresses of contemporary life have compounded, made worse by world events, making mental health issues more severe. This has created an urgent need for treatments that address the root causes of mental health issues rather than just treating symptoms. The increased demand for mental health services indicates a paradigm shift in the importance placed on mental wellness and a willingness on the part of society to accept a broader range of treatments, including novel approaches like psychedelic-assisted therapies, in order to address the complex needs of those who are struggling with mental health problems.

  • Growing Research and Clinical Trials

A paradigm-shifting change in public attitudes and scientific curiosity is the cause of the explosion of psychedelic research and therapeutic trials. A resurgence of study on hallucinogenic substances has occurred after decades of research restrictions, prompted by growing evidence that these compounds have therapeutic promise. Growing knowledge of these drugs' capacity to cause significant changes in consciousness and their potential to cure mental health issues including addiction, PTSD, and depression is what is driving this revival. Moreover, a growing number of exploratory investigations have yielded encouraging outcomes, encouraging scholars to further explore the processes behind these impacts and their potential therapeutic uses. Concurrently, changes in public perceptions of psychedelics and mental health, together with advocacy initiatives, have increased acceptability and support for research in this field. Thus, the confluence of scientific curiosity, encouraging preliminary findings, and a more accommodating societal perspective has driven the quick growth of research and clinical trials, underscoring the possibility of revolutionary discoveries in mental health treatment approaches.



  • High Research and Development Costs

Expenses are greatly increased by carrying out thorough clinical investigations, guaranteeing safety standards, and negotiating intricate regulatory environments. Psychedelics require close examination because of past stigmas and strict laws, which increases R&D costs. This is in contrast to some conventional medications. Costs are further increased by the requirement for specialist staff, cutting-edge tools, and unique environments in order to perform psychedelic treatments. The complicated and time-consuming nature of psychedelic substances also makes it necessary to conduct in-depth study on their mechanisms of action and possible long-term impacts. Certain investors are deterred from investing in psychedelics due to the financial risk involved, which is further exacerbated by the uncertainty surrounding market acceptance and governmental licenses.

  • Intellectual Property and Patent Issues

There are many obstacles when it comes to patenting psychedelic substances and treatment modalities. It is difficult to establish exclusive rights because of the complicated nature of patent law and the historical background of psychedelic compounds, which is mainly known to the public. Since a lot of psychedelic chemicals are found in nature or have been studied before, proving novelty and non-obviousness—two essential requirements for patentability becomes a difficult question. This uncertainty creates a competitive environment that makes it difficult to protect intellectual property rights, which may discourage investment and stifle innovation. Furthermore, the fear of a poor return on investment may deter businesses from devoting significant resources to research and development in the absence of strong and well-defined patent protections.



  • Expanding Therapeutic Applications

After first concentrating on mental health issues, scientists are now investigating psychedelics' potential to treat a broad range of medical ailments. This encompasses persistent discomfort, drug misuse issues, neurological conditions such as Alzheimer's disease, and even existential unease during life-threatening illnesses. Because of their special pharmacological qualities, which can lead to deep psychological experiences and altered states of consciousness, psychedelics provide a fresh approach to therapeutic intervention. These drugs show promise not merely for symptom relief but also for initiating profound, long-lasting shifts in perception, thought processes, and emotional regulation. Moreover, their potential to tackle fundamental causes rather than merely symptoms and their very low risk of physical dependence when compared to standard treatments encourage hope for their wider applicability. The growing body of research and understanding surrounding the therapeutic use of psychedelics not only heralds novel approaches to treating a wide range of medical conditions, but also represents a paradigm shift in the way we conceptualize and approach healthcare, providing a revolutionary chance to improve patient outcomes and quality of life.

  • Innovative Treatment Models

By utilizing the special qualities of psychedelics, these models combine psychotherapy with potent synergy to provide a deeper and more thorough healing experience. Practitioners can lead people through transformative journeys that facilitate introspection, emotional processing, and significant transformations in consciousness by mixing these drugs with formal therapy frameworks. In addition to showing promise in treating mental health issues that are resistant to conventional treatment, the combination of psychedelics and therapy provides a comprehensive strategy that takes into account the connections between mental, emotional, and spiritual wellness.  Furthermore, these creative models promote a more thorough healing process by highlighting the significance of set, setting, and integrating support. These treatment models have the potential to completely transform mental healthcare as research and protocols advance. They offer a new level of individualized, transformative therapies that not only relieve symptoms but also support long-term healing and personal development, creating a wealth of opportunities to change the way mental health interventions are provided.


Segment Overview

By Drug Type

Based on drug type, the market is divided into ketamine, psilocybin, others.  The ketamine category dominates the market with the largest revenue share  in 2022. Ketamine, originally developed as an anesthetic, has gained attention for its potential in treating depression, anxiety, and other mental health conditions. It works differently from traditional antidepressants, providing rapid relief in some cases. Ketamine clinics offering intravenous infusions or nasal sprays have emerged as a treatment option for individuals resistant to conventional therapies. Psilocybin is the psychoactive compound found in "magic mushrooms." Recent research has highlighted its therapeutic potential for depression, anxiety, PTSD, and addiction. Studies suggest that controlled doses of psilocybin, often administered in a controlled and supportive setting, can lead to profound psychological effects and therapeutic breakthroughs.


By Application

Based on the application, the global psychedelic drugs market is categorized into mental health, abuse disorder, others. The mental health category leads the market with the largest revenue share in 2022. Psychedelic drugs like ketamine and psilocybin are being studied for their potential to treat various mental health conditions, particularly depression. Clinical trials have shown promising results, indicating that these substances could offer a novel approach to treating treatment-resistant depression.  Research is exploring the use of psychedelics in addressing different anxiety disorders, including generalized anxiety disorder (GAD), social anxiety disorder (SAD), and post-traumatic stress disorder (PTSD). Psilocybin, for instance, has shown potential in providing relief for individuals with PTSD. Psychedelics, particularly substances like MDMA and psilocybin, are being researched for their potential to assist in addiction treatment. Studies suggest that these substances could aid in addressing substance use disorders related to alcohol, nicotine, opioids, and other substances by altering patterns of thinking and behavior.


By End-User

Based on end-user, the global psychedelic drugs market is segmented into hospitals, mental health center, others. The mental health center segment dominates the market. Mental health centers, clinics, or specialized treatment facilities specifically cater to individuals dealing with mental health challenges. These centers may offer a range of therapies, including psychedelic-assisted treatments, within a dedicated mental health care environment. Mental health centers provide a conducive environment for administering psychedelic therapies, ensuring a supportive and controlled setting conducive to therapeutic experiences. Hospitals serve as key venues for administering psychedelic-assisted therapies in controlled clinical settings. They provide the infrastructure and medical expertise necessary for conducting research trials and administering psychedelic treatments for various mental health conditions. Some hospitals have specialized units or departments dedicated to psychiatric care, including the exploration of innovative treatments like psychedelic therapies. These units focus on providing comprehensive mental health care, incorporating psychedelic treatments when appropriate.


Global Psychedelic Drugs Market Overview by Region

The global psychedelic drugs market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. North America emerged as the leading region, capturing the largest market share in 2022. There has been a noticeable change in the region's perspective on mental health care and a greater willingness to consider alternative therapies such as psychedelics. This changing viewpoint has made it easier to fund more studies, conduct clinical trials, and investigate the medicinal potential of psychedelic drugs. Furthermore, North America has a strong healthcare system, with reputable hospitals, research facilities, and mental health clinics leading the way in psychedelic study and therapy. These organizations possess the tools, know-how, and legal structures required to carry out extensive research and trials. Furthermore, the area has seen a rise in private funding and partnerships between entrepreneurs, academic institutions, and pharmaceutical corporations, which has sped up the development of psychedelic-based medicines and stimulated innovation. The market has expanded due to this capital inflow, which has also stimulated a vibrant ecosystem of R&D and commercialization. Additionally, there has been a desire to investigate the therapeutic potential of psychedelics in several North American jurisdictions, as seen by legislative changes that have opened the door to greater clinical research and, in specific situations, compassionate use programs. North America is a crucial location influencing the future of this growing industry because of its role as a major hub for the advancement of psychedelic medicines, which has been made possible by this legislative freedom.




Global Psychedelic Drugs Market Competitive Landscape

In the global psychedelic drugs market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global market include Field Trip Health, Enveric Biosciences, Johnson & Johnson (J&J), Numinus Wellness Inc, Havn Life, Apex Labs, Braxia Scientific, Psyched Wellness, PharmaTher, Ceruvia Lifesciences, and various other key players.


Global Psychedelic Drugs Market Recent Developments

In June 2022, The acquisition of Novamind Inc. was announced by Numinus Wellness Inc. Following the acquisition, Numinus has expanded its operations to include 13 wellness centers, 4 clinical research facilities, and a psychedelics research lab, establishing the company as a top provider of integrated mental wellness services that include ketamine and psychedelic assisted therapies.


Scope of the Global Psychedelic Drugs Market Report

Psychedelic Drugs Market Report Segmentation



By Drug Type

  • Ketamine
  • Psilocybin
  • Others

By Application

  • Mental Health
  • Abuse Disorder
  • Others


By End-User

  • Hospitals
  • Mental Health Center
  • Others


By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request


  • Available upon request


Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Psychedelic Drugs Market Size and Forecast:

To identify and estimate the market size for the global psychedelic drugs market segmented by drug type, by application, by end user, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of psychedelic drugs between 2019 and 2031.

  • Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global psychedelic drugs market

  • Market Influencing Factors:

To find out the factors which are affecting the sales of psychedelic drugs among consumers

  • Impact of COVID-19:

To identify and understand the various factors involved in the global psychedelic drugs market affected by the pandemic

  • Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

Intended Audience

  • Healthcare Professionals
  • Regulatory Bodies and Policymakers
  • Pharmaceutical Companies and Biotech Startups
  • Retailers, Wholesalers, and Distributors
  • Governments, Associations, and Industrial Bodies
  • Investors and Trade Experts

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

The global psychedelic drugs market forecast period is 2023 - 2031.
According to psychedelic drugs market research, the market is expected to grow at a CAGR of ~13.9% over the coming years.
Asia-Pacific is expected to register the highest CAGR during 2023 - 2031.
North America held the largest share in 2022.
The major players operating in the global psychedelic drugs market include Field Trip Health, Enveric Biosciences, Johnson & Johnson (J&J), Numinus Wellness Inc, Havn Life, Apex Labs, Braxia Scientific, Psyched Wellness, PharmaTher, Ceruvia Lifesciences ,and various others.

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