The global market for psychedelic drugs will be worth US$8.3 billion in four years, according to the French market researcher ReportLinker.
ReportLinker released details from its global psychedelic drugs market report on Wednesday and foresees the market ascending from its current value of US$4.83 billion at a compound annual growth rate of 14.5 per cent.
The list of psychedelic drugs referenced in the report includes psilocybin, MDMA, cannabis, LSD and psychoactive plants like peyote — substances which have promising potential for the treatment of mental health conditions and substance use disorders.
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In 2022, North America dominated the market and ReportLinker expects that Asia-Pacific will be the most rapidly growing region during the four-year forecast period. Countries covered in the report include Australia, the United States, Brazil, South Korea, China, Russia, India, Germany, Japan and Indonesia.
ReportLinker says rising cases of various mental illnesses will propel the market’s growth going forward and says the acquisition of Novamind by Numinus Wellness Inc. (TSX: NUMI) (OTCQX: NUMIF) for US$20.77 million in 2022 was a significant development for the market.
Numinus is anticipated to expand its psychotherapy clinics in the United States and create sophisticated psychedelic programs as a result of this acquisition. The company saw a 581 per cent increase in year-over-year revenue this February generating US$5.4 million.
Key market players include Johnson & Johnson (NYSE: JNJ), Celon Pharma SA (WSE: CLN), Pfizer Inc. (NYSE: PFE), Compass Pathways PLC (NASDAQ: CMPS), Hikma Pharmaceuticals (LON: HIK), Jazz Pharmaceuticals (NASDAQ: JAZZ), Roche Holding AG Genussscheine (SWX: ROG) and Merck & Co Inc (NYSE: MRK).
rowan@mugglehead.com
