Global Psychedelic Drugs Market: Overview
As per Roots Analysis, the global psychedelic drugs market is expected to grow from USD 3.19 billion in the current year to USD 12.89 billion, at a CAGR of 15% during the forecast period.
The market sizing and opportunity analysis has been segmented across the following parameters:
Origin of Substance
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
Global Psychedelic Drugs Market: Growth and Trends
Psychedelic disorders are mental health issues defined by persistent perceptual disturbances following the use of psychedelic substances, especially hallucinogen persisting perception disorder (HPPD). HPPD involves persistent visual phenomena such as visual snow, trails, and altered motion perception, which are not part of another mental or medical condition and cause significant distress.
Psychedelic disorders, in addition to other mental health issues, are projected to lead to worldwide productivity losses surpassing USD 1 trillion each year. Recent data suggests that the pandemic intensified existing trends, especially among younger women, with rates rising 130% quicker for teenagers and 57% quicker for young adults after the COVID-19 pandemic. As of 2022, antidepressants ranked as the third most prevalent category of prescribed medications. The WHO states that there are numerous obstacles for effectively treating depression and other mental health disorders including insufficient understanding of these conditions, ongoing social stigma, incorrect diagnoses, and limited effective treatments. Due to such difficulties, an increase in clinical research emphasizes the treatment possibilities of psychedelic compounds for mental health issues such as depression. Researchers suggest that when given in suitable doses, psychedelics may assist in alleviating certain severe psychological effects in patients.
Psychedelic compounds have been shown to affect multiple neurotransmitter systems, including those related to serotonin, acetylcholine, norepinephrine, and dopamine. At present, various participants in the pharmaceutical sector are involved in research of both natural and synthetic derivatives of psychedelic compounds. The market for psychedelic drugs is expected to experience significant growth in the next decade.
Global Psychedelic Drugs Market: Key Insights
The report delves into the current state of global psychedelic drugs market and identifies potential growth opportunities within industry. Some key findings from the report include:
- More than 45 players from across the world presently claim to be engaged in the development and evaluation of therapeutic candidates based on a number of psychedelic compounds, such as ketamine and psilocybin.

- The pipeline features product candidates based on a variety of psychedelic drug classes, which are being investigated for a wide range of target disease indications and have different routes of administration.
- Despite its potential for misuse, psilocybin (33%) is an important class of chemical compounds with substantial therapeutic value; several companies are engaged in exploring its use in mainstream healthcare.
- Majority (60%) of the psychedelic therapeutics are designed for oral administration; there are certain candidates that are available in formulations that are intended for intranasal and intravenous dosing.
- From a global perspective, this industry is anticipated to evolve significantly over the next few years as federal / regional regulators in different nations are gradually convinced of the clinical significance of this product class.
- Several organizations, having realized the untapped opportunity within this emerging segment of psychedelic therapeutics, have awarded grants of over USD 275 million across 500+ instances.
- The number of grants awarded to stakeholders in this domain (in the US) has increased at a CAGR of 5%; more than 45% of the total amount was awarded under the R01 mechanism.
- The field has witnessed the involvement of various sponsor institutes from within the NIH; of all the involved departments, the participation of the NIMH, NIDA, NIGMS, and NIAAA was observed to be relatively more prominent.
- The word cloud represents the area of interest of research organizations within this emerging domain; indications such as depression and posttraumatic stress disorder have garnered significant attention.
- Several trials evaluating various psychedelic compounds against a wide range of therapeutic indications have been registered in the recent past.
- The growing interest is also reflected in the partnership activity; a number of different types of deals involving various drug classes have been established across multiple geographies.

- Majority of the partnerships were focused on development of psilocybin (42%), followed by ketamine (19%). In fact, the first ketamine analogue, SPRAVATO, was approved for treatment of resistant depression.
- A number of deals that involved key industry stakeholders were focused on therapy candidates for substance use disorders and neurological conditions, such as major depressive disorder and posttraumatic stress disorder.
- Presently, North American companies are actively consolidating their indigenous presence through strategic acquisitions; key value drivers behind such deals include both portfolio and geographical expansion.
- A number of eminent scientists from renowned universities have emerged as key opinion leaders in this domain, owing to their active involvement in clinical development efforts related to interventions based on psychedelics.
- Future market size, based on revenue reported from the sales of marketed and late-stage psychedelic-based therapies, is anticipated to be distributed across different therapeutic areas and key geographical regions.

- In fact, opinions from industry experts confirm the vast potential of this segment; the overall opportunity is well distributed across the various natural / synthetically derived substances and routes of administration.
Global Psychedelic Drugs Market: Key Segments
Trauma Segment Occupies the Largest Share of the Psychedelic Drugs Market
In terms of target disease indications, the market is segmented into depression and anxiety disorders, pain disorders, sleep related disorders and trauma. Currently, the trauma segment dominates the psychedelic drug market, capturing majority share of the market.
North America Accounts for the Largest Share of the Market
In terms of key geographical regions, the market is segmented into North America, Europe, Asia-Pacific and Rest of the World. Currently, North America dominates the psychedelic drugs market and accounts for the largest revenue share.
Primary Research Overview
Discussions with multiple stakeholders in this domain influenced the opinions and insights presented in this study. The market report includes detailed transcripts of interviews conducted with the following individuals:
- Founder & Chief Executive Officer, Small Company
- Chief Operating Officer and Chief Medical Officer, Mid-sized Company
- Chief Operating Officer, Small Company
- Chief Communications Officer, Mid-sized Company
- Associate Research Scientist, Large Company
Example Players in the Global Psychedelic Drugs Market
- Celon Pharma
- iX Biopharma
- MAPS Public Benefit
- MindMed
- Janssen Pharmaceuticals
- Jazz Pharmaceutical
Global Psychedelic Drugs Market: Research Coverage
- Market Sizing and Opportunity Analysis: The report features an in-depth analysis of the global psychedelic drugs market, focusing on key market segments, including [A] origin of substance, [B] type of psychedelic substance [C] target disease indications, [D] route of administration and [H] key geographical regions.
- Market Landscape: A comprehensive evaluation of marketed / pipeline molecules, considering various parameters, such as [A] phase of development of lead candidates, [B] type of psychedelic substance, [C] origin of psychedelic substance, [D] target therapeutic area (s), [E] route of administration and [F] dosing frequency. Additionally, a comprehensive evaluation of drug developer(s), based on [A] year of their establishment, [B] company size, and [C] location of headquarters.
- Company Profiles: In-depth profiles of companies that are engaged in the development of at least two or more psychedelic-based therapies, focusing on [A] company overview, [B] financial information (if available), [C] product portfolio, and [E] recent developments and an informed future outlook.
- Clinical Trial Analysis: An in-depth analysis of completed, ongoing and planned clinical studies of various psychedelic therapeutics, highlighting prevalent trends across various relevant parameters, such as [A] trial registration year, [B] phase of development, [C] current trial status, [D] enrolled patient population, [E] geographical distribution of trials, [F] study design, [G] leading industry, [H] study focus, [I] target therapeutic area and [J] key geographical regions.
- Clinical Trial Site Analysis: A detailed 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 [A] type of psychedelic substance, [B] trial phase, [C] target disease indications and [D] location of the trial.
- Grant Analysis: An insightful analysis of nearly 550 grants that were awarded to research institutes engaged in psychedelic therapeutics related projects, based on the parameters, such as the [A] year of grant award, [B] amount awarded, [C] funding institute center, [D] support period, [E] type of grant application, [F] purpose of grant award, [G] activity code, [H] responsible study section, [I] prominent program officers and [J] type of recipient organizations.
- Partnerships and Collaborations: A comprehensive analysis of various collaborations and partnerships that have been inked amongst stakeholders in this domain, based on [A] year of partnership, [B] type of partnership and [C] regional activity.
- Mergers and Acquisitions: A detailed analysis of the various mergers and acquisitions that have taken place in this domain, based on parameters, such as [A] key value drivers, [B] year of acquisition, [C] type of acquisition, [D] geographical location of the acquirer and [E] the acquired company.
Key Questions Answered in this Report
- How many companies are currently engaged in this market?
- Which are the leading companies in this market?
- What factors are likely to influence the evolution of this market?
- What is the current and future market size?
- What is the CAGR of this market?
- How is the current and future market opportunity likely to be distributed across key market segments?
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- The report provides a comprehensive market analysis, offering detailed revenue projections of the overall market and its specific sub-segments. This information is valuable to both established market leaders and emerging entrants.
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