The international market for psychedelic drugs will be worth nearly twice what it was last year by the end of 2026, according to Fairfield Consultancy Services OPC Pvt Ltd.
The United Kingdom-based financial researcher also estimated that market would have a compound annual growth rate (CAGR) of 14.5 per cent during the 2021-2026 forecast period. It was valued at US$3.2 billion in 2021 and is expected to reach US$6.3 billion in the next four years.
Fairfield says a “staggering” increase of mental health issues needing treatment will be the primary driver of the market’s growth along with affirmation from the World Health Organization (WHO) that efficacious mental health treatments are desperately needed now more than ever.
“Depression accounted for over 40 per cent market share in 2021 and will remain the largest demand generating segment in the long run,” says Fairfield.
The market researcher also claims that oral drugs are the most preferred category of psychedelics, accounting for over 55 per cent of the market share. The report indicates that there will be a 17 per cent revenue increase for oral psychedelic drugs during the 2021-2026 forecast period.
The market analysis revealed that ketamine would generate 16 per cent more revenue by 2026 largely attributed to its proven ability to improve mental health conditions. Ketamine is also the most sought-after drug category, according to Fairfield.
Naturally-derived psychedelic drugs are expected to gain momentum in the years to come but synthetic psychedelics currently hold nearly an 85 per cent market share.
North America has and will continue to dominate the market primarily due to its “flourishing clinical trials landscape,” rate of general awareness regarding mental health conditions and ideal progressive regulatory structure. The continent’s psychedelic drugs market accounts for about 50 per cent of the market value share.
Key market players include Jazz Pharmaceuticals, Inc. (NASDAQ: JAZZ), Mind Medicine Inc. (NASDAQ: MNMD), (NEO: MMED), atai Life Sciences N.V. (NASDAQ: ATAI), Janssen Pharmaceuticals, Inc., PharmaTher Holdings Ltd. (OTCQB: PHRRF) (CSE: PHRM) and COMPASS pathways plc (NASDAQ: CMPS).