Psychedelic Drugs Market Size

Psychedelic Drugs Market Analysis

The psychedelic drugs market is expected to register a CAGR of 7% during the forecast period.

COVID-19 had a significant impact on the psychedelic drugs market. Due to the sudden imposition of the lockdown by governments worldwide during the COVID-19 pandemic, there was an increase in demand for psychedelic drugs, and people all over the world suffered from severe depression and stress. For instance, as per the WHO March 2022 update, the COVID-19 pandemic triggered a 25% increase in the prevalence of anxiety and depression worldwide. Many people lost their jobs and were confined to their homes, which exacerbated their mental health and increased market demand. Currently, since the restrictions are lifted, the issues associated with mental health are reduced. However, the market is anticipated to grow due to an increase in awareness of mental health issues that requires treatment with psychedelic drugs and a rise in research and development of psychedelic drugs.

The development of psychedelic drugs and increased awareness of the significance of treating issues with mental health are major factors boosting the market growth over the forecast period. The need for handling excess stress, anxiety, and other mental disorders plays a vital role in the market's growth. Because psychedelic drugs offer new mechanisms to address mental illness, some have shown promise, whereas other treatments have been ineffective. Government initiatives, alliances, and awareness programs associated with mental health are anticipated to boost market growth over the forecast period. For instance, the Mental Health Foundation has set the theme and organized and hosted Mental Health Awareness Week for the last 22 years, during which time the event has grown to become one of the biggest awareness weeks across the UK and globally. In May 2022, Mental Health Foundation conducted Mental Health Awareness Week under the theme' loneliness', as it is anticipated to explore the experience of loneliness, its effect on mental health, and how people can all play a part in reducing loneliness in the communities. Hence, these programs increase awareness related to the treatment of mental disorders such as depression, anxiety, bipolar disorders, and other severe mental health issues that require the use of psychedelic drugs. Thus, this boosts the drug demand, thereby driving the market.

Mental health issues are one of the major factors boosting the market growth over the forecast period since mental health issues like anxiety and depression, psychosis, and some forms of panic attacks require treatment with psychedelic drugs. For instance, as per the State of Mental Health in America 2022 report, The number of youths experiencing a severe major depressive episode (MDE) increased by 197,000 from the 2021 dataset. Thus, the rise in the incidence of depressive disorders leads to a surge in demand for psychedelic drugs, which thereby boosts the market growth over the forecast period. Furthermore, research studies stating the benefits offered by psychedelic drugs in various fields of mental illness are anticipated to boost market growth as there is an opportunity for many researchers to understand the advantages of psychedelic drugs. For instance, the study published in May 2021 by PubMed stated that the studied randomized clinical trial found that psilocybin-assisted therapy was efficacious in producing large, rapid, and sustained antidepressant effects in patients with major depressive disorder.

Hence, due to the rise in awareness regarding the importance of treatment of mental illnesses and the rise in research and development of psychedelic drugs, and the growing acceptance of psychedelic drugs for depression, the psychedelic drugs market is likely to witness growth over the forecast period. However, the increasing side effects of psychedelic drugs and the stringent regulatory framework restrain the market growth over the forecast period.