The primary drivers driving the expansion of the psychedelic drug industry are the rising prevalence of depression and other mental disorders globally, the rising desire for treatment, and the spike in mental health awareness. Additionally, it is anticipated that lifestyle modifications and the desire for an improved standard of living will support market expansion. Over the forecast period, an increase in R&D initiatives in psychedelic medicine is anticipated to fuel market growth. Due to increased usage of psychedelic medications for treating depression and mental illnesses, the global market for psychedelic drugs is also anticipated to grow quickly throughout this projection period.
The recession will have a significant effect on the market for psychedelic drugs. Consumers typically reduce their discretionary expenditures during a recession to preserve their financial resources. This might cause the demand for psychedelic drugs to drop, especially among casual users. Furthermore, companies that manufacture or sell psychedelic substances may be forced to reduce their output or go out of business if they struggle to survive a recession. This can result in fewer of these medications being available on the market.
Increased Incidence of Mental Disorders Would Drive Market Growth
Mental diseases, often known as mental illnesses, can be chronic or sporadic and influence a person's feelings, mood, thinking, and behavior. Mental conditions like depression might impact the ability of an individual to accomplish their daily responsibilities. There are many diverse kinds of mental illnesses. The prevalence of depression and other mental diseases has increased globally due to several variables, including genetics, abuse, stress, biological factors, and the use of alcohol and other recreational substances. Depression and other mental problems have also increased as illicit drug use has grown. Hence, as depression and other mental diseases are becoming more common, so is the need for psychedelic substances, predicted to fuel market expansion.
Various Legal Restrictions to Limit Market Growth
It is challenging for businesses and individuals to conduct research, produce, manufacture, distribute, and sell psychedelic medicines due to varied legal constraints that exist throughout the world. Several psychedelic substances are listed as Schedule I under the Controlled Substances Act of the United States, indicating that they have a high potential for abuse and no currently recognized medicinal value. The classification of psychedelic drugs as illegal substances by similar legislative frameworks in other nations makes it challenging for researchers to secure the funds and authorizations required to research these substances. Furthermore, psychedelic drug usage, sales, and possession are illegal in many nations, and offenders may face fines, jail time, and other legal repercussions.
Based on source, the psychedelic drugs market is segmented into synthetic and natural. The natural category dominated the market in 2022. Natural psychedelic substances come from plants or fungi and have psychoactive ingredients that can cause altered states of consciousness, including hallucinations, spiritual encounters, and introspection. Certain plants, like ayahuasca, psilocybin mushrooms, and peyote, which contain psychoactive substances, are considered natural sources.
Based on type, the psychedelic drugs market is segmented into empathogens, dissociatives and others. The empathogens category dominated the market in 2022. Psychedelic substances known as "empathogens" foster feelings of empathy, emotional openness, and interpersonal connection. The neurotransmitter serotonin, linked to mood regulation, social behavior, and emotional processing, is normally released in greater amounts when taking these medications.
Based on drugs, the psychedelic drugs market is segmented into gamma-hydroxybutyric acid, ketamine, psilocybin and others. The gamma-hydroxybutyric acid category dominated the market in 2022. Jazz Pharmaceutical's Xyrem is one of the oldest psychedelic drugs on the market, with a substantial market share and belonging to the drug class. It is a Category III restricted substance, therefore a doctor must prescribe it and strictly supervise its use. GHB is used to treat excessive daytime sleepiness in its prescription form. In many patients, gamma-hydroxybutyric acid is also used to treat alcoholism and drug withdrawal.
Based on application, the psychedelic drugs market is segmented into narcolepsy, treatment resistant depression, major depressive disorder, opiate addiction, post-traumatic stress disorder and others. The narcolepsy category dominated the market in 2022. Daytime fatigue and sleep episodes are hallmarks of the chronic sleep condition narcolepsy. Narcoleptics have trouble staying up for extended periods of time in any circumstance. Many problems can arise in your daily life if you have narcolepsy.
By Route of Administration
Based on route of administration, the psychedelic drugs market is segmented into oral, inhalation and injectable. The oral category dominated the market in 2022. Many psychedelic substances are ingested orally, either as pills, capsules, or liquids. This method of administration is well-liked since it is practical and enables accurate dosing.
By End User
Based on end user, the psychedelic drugs market is segmented into hospital, speciality clinics, homecare and others. The hospital category dominated the market in 2022. Dealing with mental health is necessary for a higher standard of living due to the rising frequency of depression and other mental diseases among people worldwide. The use of psychedelic medications in hospital settings to treat such mental disease problems is anticipated to fuel market expansion.
By Distribution Channel
Based on distribution channel, the psychedelic drugs market is segmented into hospitals pharmacy, retail pharmacy and online pharmacy. The hospitals pharmacy category dominated the market in 2022 due to reasons including rising public awareness of mental health, the need for a prescription for psychedelic substances from a doctor, and the use of these medications for specified purposes, hospital pharmacies are becoming more and more important as distribution hubs.
North America is projected to hold the largest share of the psychedelic drugs market over the forecast period because of the region's developments in psychedelics, legislative reforms, and the rising prevalence of mental illnesses like depression. Furthermore, it is predicted that changing viewpoints, less severe drug side effects, and cost-effectiveness will propel market expansion. Because to strong demand in North America, the psychedelic drugs market is anticipated to expand. On the other hand, the Asia Pacific psychedelic drugs market is anticipated to be driven by factors like the rising demand for alternative therapies for mental health disorders in the region, the evolving legal framework, and the expanding understanding of the potential therapeutic benefits of psychedelic substances. During the course of the analysis period, it is anticipated that recent technological advancements, mergers and acquisitions, and partnerships within the companies involved in the design of psychedelic medicines would generate profitable market expansion prospects.
LIST OF KEY COMPANIES PROFILED:
- Jazz Pharmaceuticals, Inc.
- Janssen Global Services, LLC (a subsidiary of Johnson & Johnson Services, Inc.)
- Hikma Pharmaceuticals PLC
- Pfizer Inc.
- F. Hoffmann-La Roche Ltd
- Celon Pharma SA.
- Cybin Corp.
- GH Research
- Entheon Biomedical Corp
- PharmaTher Holdings Ltd
- NRx Pharmaceuticals, Inc.
- In March 2022, university of California researchers published the findings and follow-up information from a phase 3 clinical trial using the psychedelic substance 3,4-methylenedioxymethamphetamine (MDMA) in conjunction with psychotherapy to treat post-traumatic stress disorder (PTSD). Their preliminary findings suggested that the therapy is effective even for people who are difficult to treat, like those with drug or alcohol use disorders.
|Market Size in 2022||USD 494.6 Million|
|Market Forecast in 2030||USD 763.3 Million|
|Compound Annual Growth Rate||7.50 %|
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Source, By Type, By Drugs, By Application, By Route of Administration, By End User, By Distribution Channel and By Geography|
|By Route of Administration||
|By End User||
|By Distribution Channel||