The Psychedelics Market Continues to Thrive with No End In Sight
The market size for psychedelics is expected to reach $6.85 billion by 2027.
A rising number of psychedelics such as psilocybin (magic mushrooms) and ketamine are moving from the fringes of medicine to the mainstream. Clinical trials also show that psychedelics have great potential in helping to treat mental illnesses like depression and anxiety. With the first investment fund dedicated to psychedelic healthcare launching in the U.K., this could be a sign that more European countries may invest in the sector.
The psychedelics market size is expected to reach $6.85 billion by 2027. This market is capturing the interest of both serious investors and academics. Interest is soaring in a way that we haven't seen since the 1960s..
An overview of the psychedelics market
Let’s look at the hard numbers of the market’s potential according to Psychedelic Stock Watch:
“Psychedelic drug R&D is producing next-generation medical solutions for an ever-growing list of mental health disorders and other medical conditions. Many of the largest medical treatment markets are currently being targeted. Potential revenue streams for these markets range from billions to 100s of billions of dollars per year.”
With a rise in illnesses such as depression and anxiety being reported, off-label drugs are in need. They are driving the growth of the psychedelic market.
Many technological investments of late have quietly been seeping into the psychedelics market. Data Bridge Market Research states that the psychedelic market is growing, with a CAGR of 13.3% forecase for 2021 to 2028. The market is expected to reach $7.567 billion by 2028.
In fact, around 25 companies on the Canadian Stock Exchange are in the psychedelics sector. While Canadian companies can seek government authority for research, a citizen’s petition has been called to decriminalize “entheogenic” or spiritual plants and fungi — citing the drugs’ potential for therapy.
In August 2021, Cybin, a leading biotech company in the psychedelics space, began listing its stock on the New York Stock Exchange, opening the floodgates to wider acceptance of psychedelics by the general public.
The rise in popularity of psychedelic drugs
An extensive study on psychedelic drugs’ health and medicinal benefits that begain in the 1960s was abruptly halted when the U.S. government classified the drugs as a schedule one controlled substance in 1970. Now, however, the potential of psychedelics used in treating PTSD, anxiety and depression are regaining public interest.
Over 100 million Americans reported symptoms of depression near the end of 2020. With more and more people experiencing depression and anxiety due to the Covid-19 pandemic, it seems that psychedelics are the next frontier in the treatment of common mental illnesses and distress.
New players on the scene
Canada-based Cybin is a leading player in the field. Just three years old, this publicly-traded company is dedicated to changing the mental healthcare experience for those affected by mental illness and their loved ones through new psychedelic-based therapies. They have already completed 50 pre-clinical trials for proprietary psychedelic molecules.
Besides having entered the New York Stock Exchange Market recently, the company has also recently raised almost $40 million (Canadian) in investments on top of $88 million (Canadian) that has already been invested. The company’s share values have doubled, and it looks like this is only the beginning for them as their stock continues to increase in value.
“Today's treatment options focus on managing symptoms, versus healing the underlying condition, often with unpleasant side effects and low rates of success. Psychedelic therapies offer a novel approach to mental healthcare, focused on treating the underlying conditions and improving the patient experience and outcome. We founded Cybin after witnessing the mental suffering of loved ones and their struggle to obtain medication. With our background and expertise, we knew there was an opportunity to help and set out to revolutionize mental health.The sector was already in high demand, but when the pandemic arrived and the lockdowns began, we were suddenly in the spotlight. Funding flooded in, and we could accelerate the development of a range of products to help those suffering from a diverse range of issues.” says Doug Drysdale, CEO of Cybin.
Another key player is Compass Pathways, a U.K. based company actively conducting clinical experiments to demonstrate the safety of psilocybin and how it can tackle treatment-resistant depression.
MindMed is another psychedelic medicinal company with a focus on using formulations of Ibogaine and LSD to treat mental health issues. One of their major trials is the "candyflipping" trial that seeks to understand whether combined dosing of MDMA and LSD could mitigate bad trips.
The driving factors behind the growth of the global psychedelics market
The growth we are seeing in the psychedelics market includes an increased number of people suffering from mental health disorders such as depression and anxiety. An estimated 264 million people around the world suffer from depression. A report last year by the Lancet Commission even estimated that mental health disorders could cost the global economy $16 trillion by 2030.
Additionally, the rise of research into the potential of psychedelic therapeutic also contributes to the growth of the market. For instance, in a 2016 study on the use of psilocybin for treatment-resistant depression, 67% of patients were symptom-free after two psilocybin-based treatments.
With the rising demand for mental health treatments, psychedelics are definitely a trend to watch going forward. Be sure to research the experiment methods and outcomes of a company, as well as your local regulations, before investing in any psychedelic companies and stepping into the market yourself.