Press Release

Due to Growing Prevalence of Mental Illness, Psychedelic Drugs Market to Grow at a CAGR of Around 12% During 2025-30

The Global Psychedelic Drugs Market size was valued at around USD1.92 billion in 2024 and is projected to reach USD3.8 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 12% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report. Various factors are driving the market growth. Awareness about mental health and government initiatives raise the demand for psychedelic drugs. The World Health Organization announced that the global mental health and world federation for mental health, have increased their attention towards mental health and raised awareness among consumers across the globe. With this, there is a rise in public understanding regarding mental health issues leading to broader acceptance of treatment options like psychedelic drugs.

Also, the government has organized many awareness programs across the globe for mental health that subsequently increased the treatment for cognitive issues and thereby demand for psychedelic drugs increased. Government programs, healthcare coalitions, and public awareness efforts have been important in removing mental health issues and alternative therapy options. Public awareness campaigns and de-stigmatization of mental health issues further support market growth, with patients and healthcare providers considering new solutions like psychedelics.

However, a few challenges are hampering market growth. Regulatory obstacles continue to pose a major challenge since numerous psychedelics such as LSD, MDMA, and psilocybin are still strictly controlled substances in various regions around the globe which hinders approval and research efforts. Social stigma and inaccurate information regarding psychedelics, frequently regarded as recreational substances, complicate their acceptance further. Safety issues, such as possible side effects like anxiety and psychosis may pose dangers in unsupervised environments. Moreover, the expensive nature of research and the competitive landscape create challenges for smaller enterprises to thrive. Ethical issues, including fair access and the possibility of misuse, must be tackled. Additionally, there is a lack of qualified professionals who can provide psychedelic-assisted therapy. Furthermore, the lasting effectiveness of psychedelics is still unclear, showing variable outcomes in clinical studies. Tackling these challenges will be essential for the growth of the market and its broad acceptance, further states the research report, “Global Psychedelic Drugs Market Analysis, 2025”

Global Psychedelic Drugs Market Segmentation Analysis:

Synthetic Source Gaining Popularity Among End-Users

Based on Source, the market is segmented into synthetic and natural. Among all, the synthetic segments have the largest market share around 53%. Government testing agencies directly approve it as safe and ensure the purity of the drugs, thus drugs made from this source are in high demand. Moreover, synthetic is easier to synthesize and control compared to natural psychedelics. It reduces the chances of risk that impurities or inconsistency factors may cause. Their production and distribution ease, coupled with strict standards, are making this segment is leading one in the market.

North America Leads Global Psychedelic Drugs Market

North America has the largest market share around 43%. This region has an advanced healthcare system, growing acceptance of mental health treatments, and high funding for psychedelic research, thus this region is preferred by most of the market players. Countries like the United States and Canada lead the clinical trials and development of new therapies using psychedelics, especially for mental health conditions like depression, anxiety, and post-traumatic stress disorder (PSTD). Moreover, the government policies in the region are also supportive, increasing public awareness. Thus, more people are looking for innovative treatment options.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including, Jazz Pharmaceuticals, Inc. (U.S.), Janssen Pharmaceuticals, Inc. (U.S.) Hikma Pharmaceuticals PLC (U.K.), Compass, Pfizer Inc., Avadel, AbbVie Inc., Celon Pharma, GH Research, Entheon Biomedical Corp., PharmaTher Holdings Ltd., Usona Institute, Cybin Corp., F. Hoffmann-La Roche Ltd., AstraZeneca PLC, Numinus Wellness Inc., and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across various regions?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?