Psychedelic Drugs Market Size, Share, and Industry Analysis By Product Type (Psilocybin, Lysergic acid diethylamide (LSD), Dimethyltryptamine (DMT), Methylenedioxymethamphetamine (MDMA), and Others), By Indication (Depression, Post-Traumatic Stress Disorder (PTSD), Pain Management, and Others), By Route of Administration (Transmucosal, Intravenous, Intramuscular, and Others), By Distribution Channel (Hospital Pharmacies, Retail Pharmacies, and Online Pharmacies), and Regional Forecast 2026-2034

The global psychedelic drugs market size was valued at USD 1.82 billion in 2025. The market is projected to grow from USD 2.04 billion in 2026 to USD 5.16 billion by 2034, exhibiting a CAGR of 12.27% during the forecast period.

Psychedelics refer to psychoactive substances that are used to alter perception and mood among patients suffering from depression, anxiety, stress, and other disorders. They function by affecting the numerous cognitive processes by promoting new pathways between neurons. Psychedelic drugs are synthetic derivatives of natural psychedelics, including psilocybin lysergic acid diethylamide (LSD), among others. The increasing prevalence of mental disorders, including post-traumatic stress disorder, anxiety, and depression, among others, is resulting in a growing number of patient admissions for the treatment of these disorders. Furthermore, increasing the benefits of these psychedelic substances in treating these conditions is likely to foster R&D activities in the market.

• For instance, according to 2022 research published by Imperial Centre for Psychedelic Research, it was reported that psilocybin could be helpful for patients suffering from treatment-resistant depression.

Additionally, the increasing focus of key players toward research and development activities is supporting the growing number of clinical trials for a wide range of applications among patients. Along with this, rising awareness about the benefits of these substances in treating depression-related disorders is contributing to the growing adoption of psychedelic drugs among patients.

• For instance, in February 2022, the John Hopkins Center for Psychedelic and Consciousness Research expanded research on psychedelics for illness and wellness, with an aim to develop new treatments for a wider variety of psychiatric and behavioral disorders and tailoring of these drugs to the specific needs of individual patients.

Along with this, the increasing focus of governmental organizations on strategic initiatives to promote the treatment of various mental health disorders is likely to support the adoption of psychedelic drugs in the market.

Impact of COVID-19 on Psychedelic Drugs Market

The COVID-19 pandemic positively impacted the psychedelic drugs market. Increased prevalence of stress, depression, anxiety, among others, during the pandemic resulted in high demand for these psychedelic drugs in the market. This, along with other factors including uncertainty about jobs, confinement to home, among others, also contributed to the growing demand for these drugs.

• For instance, in March 2022, according to an article published by the World Health Organization (WHO), it was reported that there was approximately a 25.0% increase in the prevalence of anxiety and depression worldwide during the pandemic.

Furthermore, the pandemic also led the focus of key players toward research and development activities to launch innovative psychedelic drugs with an aim to cater the growing demand for these drugs in the market.

Key Insights:

The report covers the following key insights:

• Prevalence of Key Mental Disorders, By Key Region/Countries, 2023
• Overview of Pipeline Analysis
• New Product Launches, By Key Players
• Key Industry Developments- Partnerships, Mergers, and Acquisitions
• Impact of COVID-19 on Psychedelic Drugs Market

Segmentation:

Analysis by Product Type:

Based on product type, the market is divided into psilocybin, lysergic acid diethylamide (LSD), dimethyltryptamine, methyl​enedioxy​methamphetamine, and others. Amongst these, the psilocybin segment is anticipated to hold a dominant position in the market. The dominance is due to increasing benefits of psilocybin, including efficacy, speed, and rapid effects, among others, in treating mental health disorders in patients. This, along with the increasing number of research centres for research on psychedelic drugs, is likely to support this drug option in the market.

• For instance, in April 2019, Imperial College London announced the opening of the world’s first center for psychedelic research at Imperial College London, increasing the R&D activities for psychedelic drugs and is anticipated to contribute to the segmental growth in the market.

On the other hand, methylenedioxy​methamphetamine (MDMA) is anticipated to register considerable growth during the forecast period. This is attributed to the increasing focus of key players on research and development activities, along with receiving approvals for these psychedelic drugs, which is likely to support the growing adoption of these drugs in the market.

• For instance, according to a 2023 article published by Morning Brew, Inc., it was reported that the first FDA–approved MDMA therapy will be marketed in 2024.

Regional Analysis:

North America holds the largest share in the market due to the increasing prevalence of mental health disorders, including treatment-resistant depression (TRD) and post-traumatic stress disorder (PTSD), among others, resulting in a growing diagnosis rate in the market. The increasing number of patients is further supporting the growing demand for psychedelic drugs among the patient population in the market.

• For instance, according to a 2020 article published by the U.S. Department of Veterans Affairs, it was reported that about 5.0% of the population is suffering from post-traumatic stress disorder (PTSD) in the U.S.

The Europe market is anticipated to register a considerable CAGR during the forecast period. The growth is attributed to the increasing focus on research and development activities to launch innovative psychedelic drugs in the market. This, along with growing new entrants with an aim to invest in the manufacturing of these drugs, is likely to support the growing demand for these drugs in the region.

Key Players:

The report includes the profiles of psychedelic drugs market key players such as Janssen Pharmaceuticals, Inc., Cybin Corp., Celon Pharma, PharmaTher Holdings Ltd., Braxia Scientific Corp., CERUVIA LIFESCIENCES, NUMINUS, Enveric Biosciences, and HAVN Research Inc.

Key Industry Developments:

• In September 2023, Enveric Biosciences announced the psychedelic drug MDMA edged closer toward FDA approval for the treatment of post-traumatic stress disorder (PTSD) after promising results of trial in the U.S.
• In February 2022, HAVN Research Inc., entered into a distribution agreement with Mycrodose Therapeutics with an aim to export naturally derived psilocybin from its Jamaica facility and to foster its supply channel in the U.S.
• In December 2021, HAVN Research Inc., exported psilocybin from Jamaica with an aim to conduct investigational research as potential active pharmaceutical ingredients (APIs) to support brain health among the patient population.