The United States psychedelic drug market is estimated to continue expanding for the remainder of the decade, according to a new report by data firm Data Bridge Market Research.
Rising rates of societal acceptability and enthusiasm for therapeutic potential are propelling the industry forward while legal challenges and policy issues continue to thwart development.
In the report released on Thursday by the American analytics firm, It was estimated that the psychedelic drug market in the U.S. could total US$9.8 billion by 2029 recording an estimated compound annual growth rate (CAGR) of 16.8 per cent going forward prior to 2030.
In 2021, DBMR estimated the market value to be only US$2.8billion.
DBMR alleges that rapid industry growth can be partially attributed to a 13 per cent rate of people who suffer from mental health disorders globally.
According to a study published in the Canadian Medical Association Journal, many people have turned to psychedelics like psilocybin mushrooms, LSD or MDMA to remedy their severe conditions when nothing else has worked
According to DBMR analysts, psychedelic substances can be divided into three different categories: serotonergic drugs, empathogens and dissociative drugs. Those three substance categories have all shown high efficacy in treating disorders such as post-traumatic stress disorder (PTSD), major depressive disorder, opiate addiction and treatment-resistant depression.
“Psychedelic substances have become more well-known due to advertisements, public awareness initiatives, and other means. People have been encouraged to choose the proper treatment for mental disorders processes and specialists due to the awareness campaigns, which has increased demand for psychedelic medications,” reads the DBMR report.
Other key factors DBMR points out include an ever-escalating healthcare expenditure, the decentralization of apothecaries, research and development endeavours and rising rates of investments in the market. High levels of disposable income combined with the growing societal acceptance of psychedelics is also a noteworthy contributor.
Despite the overwhelming range of positive factors contributing to the steady growth projections made by DBMR, there are also several legal and medical factors that will impede the growth of the market.
Lengthy drug approval processes and inefficient correspondence between pharmacists and physicians will certainly hinder the market growth rate. Strict policies and regulations combined with high rates of side effects in test subjects for new psychedelic drugs will also contribute to disrupting the market expansion rate for the 2022-2029 forecast period from DBMR.
According to DBMR, the major global contributors to the U.S. psychedelics market include Douglas Pharmaceuticals Limited in New Zealand, Jazz Pharmaceuticals Inc. (JAZZ: NASDAQ) in Ireland, COMPASS Pathways (CMPS: NASDAQ) in the United Kingdom, Celon Pharma S.A. (WSE: CLN) in Poland and Develco Pharma Schweiz AG in Switzerland.
Lastly, the hardships endured globally throughout the COVID-19 pandemic and the inherent mental health issues experienced by many during such difficult times are another key driving factor for the rising psychedelic drug market in the U.S.