|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The psychedelic drugs market is expected to register a CAGR of 7% during the forecast period.
During the COVID-19 pandemic, there was a rising demand for psychedelic drugs, which is driving the market growth. The COVID-19 infection rate was rising exponentially across the world. Due to the sudden imposition of the lockdown by the governments worldwide, people everywhere suffered from severe trauma and stress. For instance, according to the Frontiers Journal published in 2020 by the department of psychology in Latin America, the COVID-19 pandemic led to a rise in anxiety, stress, and depression. Therefore, psychedelic drugs play a potential role in treating frequently occurring mental disorders, thus driving the market growth.
The crucial factors driving the market's growth were a rise in awareness toward mental health and a rapid expansion in research and development in exploring novel treatments. A rapid increase in the cases of depression, stress, and other mental disorders resulted in the increasing awareness of mental health among the population worldwide. These mental disorders could result in severe conditions if untreated. The need for handling excess stress, anxiety, and other mental disorders plays a vital role in the market's growth. Lack of healthcare structure and facilities can make these diseases fatal, which is the case in many developing and under-developed countries.
Mental health issues are increasing among people globally. As per a report by the World Health Organization (WHO) published in 2021, mental health disorders affect 13% of the world's population. The report also stated that mental health conditions now cause 1 in 5 years lived in disability. Such severe conditions have led people toward the treatment. Moreover, several organizations have launched awareness campaigns that increased the usage of psychedelic drugs to treat mental disorders. For instance, in 2021, The Federation Internationale de Football Association (FIFA) launched Reach Out, a campaign to raise awareness about the symptoms of mental conditions and take actions for better mental health.
The growing prevalence of mental depression, anxiety, stress, and availability of off-label drugs propelled the demand for the psychedelic drugs market. As per the National institute of mental health, in 2020, in the United States, young adults aged 18-25 years and adults of about 30 were having severe mental disorders, which required treatment. As per the statistics published by the Lancet Public health in 2021, 6.4% of the population suffered from depression and other mental conditions. Therefore, these high and increasing prevalence rates of mental health disorders resulted in the growth of the psychedelic drugs market.
Scope of the Report
As per the scope of this report, psychedelics are also known as hallucinogens, a class of psychoactive substances used in the treatment of mental health disorders like depression, stress, and anxiety. Psychedelic drugs produce changes in perception, mood, and cognitive processes. The psychedelic drugs market is segmented by Drug Type (Gamma Hydroxybutyric Acid (GHB), Ketamine, and Other Drug Types), Application (Treatment-Resistant Depression, Opiate Addiction, Post-traumatic Stress Disorder, Narcolepsy, and Other Applications), Distribution Channel (Hospital Pharmacy, Retail Pharmacy, and Online Distribution Channel), and Geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The market report also covers the estimated market sizes and trends of 17 countries across major regions globally. The report offers the value (in USD million) for the above segments
|By Drug Type|
|Gamma Hydroxybutyric Acid (GHB)|
|Other Drug Types|
|Treatment Resistant Depression|
|Post-traumatic Stress Disorder|
|By Distribution Channel|
|Other Distribution Channels|
Key Market Trends
Hospitals Pharmacies Segment Expected to Hold a Major Market Share
During the COVID-19 pandemic, the demand for psychedelic drugs increased as the hospital pharmacies were widely occupied with treating the patient's mental health disorders, further boosting segment growth.
The increasing awareness among people worldwide regarding their mental health and usage of psychedelic drugs for specific indications are driving the growth of hospital pharmacies as a distribution channel. The psychedelic drugs have also shown anti-inflammatory activity, further driving the market's growth.
The increasing prevalence of depression and other mental disorders among the population across the globe resulted in the need for handling mental health for a better quality of lifestyle. The treatment for such mental illness conditions using psychedelic drugs is expected to drive the market's growth. Consumers tend to visit the hospital pharmacies for safe and authorized drugs, which results in the hospital pharmacies' distribution channel growth.
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North America Expected to Hold a Significant Share and Expected to do the Same in the Forecast Period
The United States is the most affected country globally, as most of the population suffers from mental health disorders. Thus, the demand is significantly higher in the North American region as the patient population is increasing compared to other countries.
North America is expected to hold a major market share in the global psychedelic drugs market due to the rise in mental illness and the increasing prevalence and incidence of mental disorder problems. In 2020, North America held a major market share for psychedelic drugs, and this trend is likely to remain the same in the forecast period. The incidence of severe mental health disorders, like depression, stress, obsessive-compulsive disorders, is also high in the United States. As per the National Institute of Mental Health (NIMH) statistics, in 2020, an estimated 52.9 million adults aged 18 or older in the United States had a mental illness. The report also stated that mental illness was higher among females than males at 25.8%. As per the mental health first aid report in 2020, the most common mental illness in the United States was anxiety disorder, which affected 40 million adults, 18.1% of the population. The high prevalence of these mental disorders leads to severe health issues, the leading causes of death and disability in America. Rising awareness of mental health disorders such as depression, obsessive compulsion, and stress is expected to boost the psychedelic drug market growth. An increase in economic stress, unstable family structures, and other causes are further estimated to accelerate the market's growth.
Moreover, an increase in R&D and favorable healthcare infrastructure are fueling the growth of the overall regional market to a large extent.
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The psychedelic drugs market is fragmented, competitive, and consists of several major players. A few major players are currently dominating the market in terms of market share. Some companies currently dominating the market include Jazz Pharmaceuticals, Hikma Pharmaceuticals, Celon Pharmaceuticals, Cybin Corp, and Pfizer Inc., which hold substantial market shares.
In October 2021, Cybin, a biotechnology company focused on progressing psychedelic therapeutics, announced the launch of EMBARK psychedelic facilitatory training program. This program offers psychedelic clinical trial facilitators the foundational training needed to provide qualified and ethical care to participants receiving psychedelic treatment.
In March 2021, Cure Pharmaceutical Holding Corp. announced that it launched a new initiative for the clinical development of psychedelic compounds such as psilocybin, LSD, and MDMA for the treatment of various mental disorders.
In February 2021, Algernon Pharmaceuticals announced that it had established a clinical research program for the treatment of stroke focused on AP-188, a known psychedelic compound. The company plans to be the first company globally to pursue N,N- Dimethyltryptamine (DMT) for stroke in humans and is planning clinical trials as soon as possible.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increase in Awareness toward Mental Health
4.2.2 Rapid Expansion in R&D in Exploring Novel Treatments
4.3 Market Restraints
4.3.1 Increasing Side Effects of Psychedelic Drugs
4.3.2 Stringent Regulatory Framework
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Drug Type
5.1.1 Gamma Hydroxybutyric Acid (GHB)
5.1.3 Other Drug Types
5.2 By Application
5.2.1 Treatment Resistant Depression
5.2.2 Opiate Addiction
5.2.3 Post-traumatic Stress Disorder
5.2.5 Panic Disorders
5.3 By Distribution Channel
5.3.1 Hospital pharmacy
5.3.2 Retail pharmacy
5.3.3 Other Distribution Channels
5.4.1 North America
184.108.40.206 United States
220.127.116.11 United Kingdom
18.104.22.168 Rest of Europe
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.4.4 Middle-East and Africa
188.8.131.52 South Africa
184.108.40.206 Rest of Middle-East and Africa
5.4.5 South America
220.127.116.11 Rest of South America
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 COMPANY PROFILES
6.1.1 Jazz Pharmaceuticals
6.1.2 Hikma Pharmaceuticals
6.1.3 Celon Pharmaceuticals
6.1.4 Cybin Corp.
6.1.5 Pfizer Inc.
6.1.7 Mind care Health Inc.
6.1.8 Mind Medicine
6.1.10 PharmaTher Holdings Ltd
6.1.11 NRx Pharmaceuticals Inc.
6.1.12 Seelos Therapeutics
6.1.13 Havn Life
6.1.14 Revive Therapeutics
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Global Psychedelic Drugs Market market is studied from 2019 - 2027.
What is the growth rate of Global Psychedelic Drugs Market?
The Global Psychedelic Drugs Market is growing at a CAGR of >7% over the next 5 years.
Which region has highest growth rate in Global Psychedelic Drugs Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Psychedelic Drugs Market?
North America holds highest share in 2021.
Who are the key players in Global Psychedelic Drugs Market?
Hikma pharmaceuticals, Celon Pharmaceuticals, Cybin Corp, Pfizer Inc, Jazz Pharmaceuticals, Inc. are the major companies operating in Global Psychedelic Drugs Market.