Psychedelics Market Could Reach $12B By 2029, Says New Report

A new analysis of the global market for psychedelics performed by Brandessence Market Research shows an expected growth from 2022’s $4.87 billion to an annual valuation of nearly $12 billion before 2030.

According to the report, the market for psychedelic drugs used for therapeutic purposes -including LSD, ketamine, MDMA, psilocybin and ayahuasca- would expand at a Compound Annual Growth Rate (CAGR) of 13.49%. 

The analysis highlights what it considers to be the world’s key players in the industry, including a couple of businesses that have been specifically created for the purpose of developing psychedelics -see COMPASS Pathways CMPS and PharmaTher Holdings PHRRF, among others.

The document’s authors state that these companies “are trying to attain a firm grip over this intensely competitive market” by formulating “extensive business-centric strategies to amplify their global footprint” such as M&As, R&D investment, product launches, partnerships and collaborations.

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The report also identifies factors that will likely contribute to the market’s growth all the way to 2030. One of them would be the higher awareness of psychedelics’ mental health benefits and the “rising prevalence” of depression and other mental health disorders on a global scale. 

According to the report’s authors, “changes in lifestyle and the desire for a higher and better quality of life” would also contribute towards this market growth. 

This point could be related to the fact that the coronavirus pandemic actually held a positive impact on the psychedelic drugs market.

“People were confined to their homes and had no scope for social interaction. This impacted the mental health of many. In fact, during the pandemic era, the world witnessed a steep rise in the number of suicides triggered by mental health disorders. This escalated the demand for effective drugs to treat such disorders.” 

Photo: Benzinga edit with photo by chrissmith12 and Bru-nO on Pixabay.