Psychedelic Drugs Market size was valued at USD 543.9 Million in 2022 and is poised to grow at a significant CAGR of 38.5% over 2023-2029. Psychedelic drugs enhance or change sensory perceptions, energy levels, cognitive processes, and spiritual experiences. Psychedelic drugs are classified into dissociative medications (such as phencyclidine), empathogens, and serotonergic drugs (such as lysergic acid diethylamide). These drugs treat many conditions, including major depression, treatment-resistant depression, panic disorder, post-traumatic stress disorder, and opiate addiction. Based on the end user, the psychedelic drug market is segmented into Hospitals, Homecare, Specialty Clinics, and Others. The hospital/pharmacy segment is anticipated to grow at a significant CAGR over the forecast years, During the COVID-19 pandemic, demand for psychedelic drugs increased as hospital pharmacies were overburdened with treating patients' mental health disorders, boosting segment growth even further. The growing global awareness of people's mental health and the use of psychedelic drugs for specific indications is driving the growth of hospital pharmacies as a distribution channel. The anti-inflammatory activity of psychedelic drugs has also contributed to the market's growth. Growing acceptance of psychedelic drugs for treating depression, increasing prevalence of depression and mental disorders, rising awareness of mental health, and growing r&d activities in psychedelic drugs are a few factors driving the industry's growth over the forecasting period.

Psychedelic Drugs Market Key Developments:
In August 2020, Janssen Pharmaceuticals, Inc.'s Spravato nasal spray was approved to treat suicidal patients. According to published data, approximately 11-12% of Americans suffer from major depressive disorder, which leads to suicide. As a result, this approval provided these patients with exceptional therapy while also allowing the company to generate more revenue.