Psychedelics—a term derived from the Greek words "psyche" (mind) and "deloun" (to manifest)—represent a unique class of compounds capable of inducing profound alterations in consciousness. Psychedelic drugs are a diverse group of substances that can alter one’s perception, mood, and cognition in profound ways. They have been used for various purposes throughout history, such as spiritual exploration, artistic expression, and therapeutic healing. Sometimes referred to as hallucinogens or entheogens, psychedelics are substances which induce an altered state of consciousness when consumed. According to BCC Research, the Psychedelic Drugs Market is projected to witness significant growth, with an expected market size of $5.7 billion by 2027. The compound annual growth rate (CAGR) during the forecast period is estimated to be 7.5%.
Psychedelics can be broadly classified into three categories: serotonergic, empathogenic, and dissociative. Serotonergic psychedelics are substances that mimic the effects of serotonin, a neurotransmitter that regulates mood, memory, and cognition. They include LSD, psilocybin, and DMT. Empathogenic psychedelics are substances that enhance emotional and social bonding, empathy, and compassion. They include MDMA, MDA, and 2C-B. Dissociative psychedelics are substances that produce a sense of detachment from reality and oneself. They include Ketamine, PCP, and DXM. At high doses some of them, such as LSD, can cause visual hallucinations. Many people have heard of “magic mushrooms” which contain the active ingredient psilocybin. Psychedelics are slowly reappearing in psychology and psychiatry as a viable way to treat anxiety, depression, post-traumatic stress disorder (PTSD), addiction, and easing anxiety for patients with terminal illness.
Key Boosters: Psychedelic Drugs Market Growth
The growth of the Psychedelic Drugs market can be attributed to various factors that continue to drive its expansion and development.
One of the main factors driving the growth of the psychedelic drugs market is the growing scientific support for their therapeutic potential. Psychedelic drugs have proven hopeful in clinical trials for mental health issues like depression, anxiety, PTSD, and addiction. These conditions affect millions of people worldwide and often have limited or ineffective treatment options. Psychedelic drugs offer a novel mechanism of action that can induce lasting changes in brain function and behavior, by modulating serotonin receptors and altering neural networks. The FDA has given breakthrough therapy status to psychedelic drugs like psilocybin, MDMA, and Esketamine, signaling their potential for significant enhancements over current treatments. The growing scientific support for the benefits of psychedelic drugs has stimulated investment and innovation in the field, as well as increased public and media attention.
Another factor driving the growth of the psychedelic drugs market is the regulatory advancements for their use and oversight. Although most psychedelic drugs are classified as Schedule I substances under the Controlled Substances Act, indicating that they have a high potential for abuse and no accepted medical use, there have been some changes in the legal and policy landscape that have facilitated their development and access. In the US, certain states and cities have enacted laws allowing therapeutic use, decriminalization, or legalization of select psychedelics like Psilocybin, Ketamine, and Ayahuasca. Moreover, countries such as Canada, the Netherlands, and Brazil have granted permissions for psychedelic use in specific contexts like end-of-life care, research, or traditional practices. These regulatory advancements reflect the shifting attitudes and evidence regarding psychedelic drugs and may pave the way for more widespread and legitimate use of these substances.
A third factor driving the growth of the psychedelic drugs market is the increasing patient and physician acceptance of these drugs. According to a recent survey, 40% of Americans said they would consider using a psychedelic drug for mental health treatment if it was legal and safe. Moreover, many patients who have participated in psychedelic therapy have reported positive outcomes, such as improved mood, reduced symptoms, enhanced well-being, and increased spirituality. Similarly, many physicians and mental health professionals have expressed interest and support for psychedelic drugs, as they recognize their unique and powerful effects on the brain and mind. Some have also undergone training and certification to administer psychedelic drugs in clinical settings, as part of a growing network of psychedelic therapists and practitioners.
