Increasing demand for psilocybin-assisted therapy will propel the psychedelic mushroom market’s growth immensely in the coming years. Ireland’s analytics firm Research and Markets (R&M) recently made this assessment.
According to R&M, the psychedelic fungi industry’s valuation will ascend with a compound annual growth rate of 11.3 per cent between now and 2029. It will be worth nearly double what it was valued at in 2023 by that year at approximately US$3.4 billion.
The firm says magic mushrooms have been gaining widespread acceptance for their therapeutic applications.
“Clinical trials have demonstrated promising results, showing that psilocybin-assisted therapy can lead to profound and sustained improvements in mental health,” R&M says.
An ongoing mental health crisis in the United States is one of the key catalysts driving the market’s expansion, the firm explained. A growing number of American states, such as Colorado, Oregon and California, have now decriminalized the possession of psilocybin in certain cities as knowledge of its value spreads.
“Psychedelic mushrooms represent a natural, non-addictive option that has the potential to address the root causes of mental health disorders,” the firm added.
Many people are seeking an alternative to conventional mental health treatments that merely serve as a band-aid without alleviating underlying issues and trauma.
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Venture capitalists invest heavily in psilocybin and other psychedelics
As regulations in various nations become more relaxed, venture capital firms and pharmaceutical companies have been taking steps to position themselves accordingly. A growing amount of innovative research and clinical trials yielding data on the efficacy of magic mushrooms is another major market driver.
“Research and clinical trials provide a crucial layer of credibility to the psychedelic mushroom market,” R&M says.
Dublin’s market researcher listed a series of private companies that it thinks will become key players in the industry. Namely Shroomland LA, Psychedelic Mushy, Galaxy Treats, One Up Mushroom and Blissmushrooms.
Contemporary investors have been taking an interest in companies that develop other psychedelic drugs too.
The MDMA and ketamine drug developer Awakn Life Sciences Corp. (CSE: AWKN) (OTCMKTS: AWKNF) just received a C$2 million dollar private placement. Awakn’s investor decided to double their previously announced investment this week.
A recent study completed by Quantum Research Group LLC determined that 66 per cent of stock investors interested in the sector planned to increase their stake in the immediate future. Similar to R&M’s expansion outlook, about 70 per cent of them think that robust returns will result in the next few years.
Several other public operators are involved in developing psilocybin drugs and variations of psychedelics like 5-MeO-DMT, LSD and MDMA. ATAI Life Sciences NV (NASDAQ: ATAI), GH Research PLC (NASDAQ: GHRS) and Mind Medicine (MindMed) Inc (NASDAQ: MNMD) are notable stocks.
rowan@mugglehead.com
