Market Trends of Psychedelic Drugs Industry
Hospitals Pharmacies Segment Expected to Witness a Growth in the Psychedelic Drugs Market Over the Forecast Period
The hospital pharmacy segment is likely to witness growth over the forecast period owing to the factors such as increasing awareness of mental health among people, psychedelic drugs requiring a mandatory prescription from a medical practitioner, and usage of psychedelic drugs for specific indications that are driving the growth of hospital pharmacies as distribution channels.
The increasing prevalence of depression and other mental disorders among the population across the globe resulted in the need for handling mental health for a better quality of lifestyle. The treatment for such mental illness conditions using psychedelic drugs is expected to drive the market's growth. For instance, as per the Mental Health America 2022 report, the number of people affected by mental illness in Texas is found to be 3.6 million in 2022. As the number of mental illness cases such as depression or anxiety increases, the chance of utilizing psychedelic drugs rises, thereby boosting the market growth. Consumers tend to visit hospital pharmacies for safe and authorized drugs, which results in the hospital pharmacies' distribution channel growth. Psychedelic drugs are highly potent, and they are considered prescription drugs. Psychedelic drugs like ketamine come under 'Schedule X,' which is a class of prescription drugs in India appearing as an appendix to the Drugs and Cosmetics Rules. These are drugs that cannot be purchased over the counter without the prescription of a qualified doctor. Hence, as psychedelic drugs are prescribed through a medical practitioner, the drugs are most commonly available through hospital pharmacies, which thereby boosts segment growth.
Furthermore, a rise in product approvals and psychedelic drugs research center launches are anticipated to drive segment growth over the forecast period. For instance, in August 2021, the University of Wisconsin-Madison launched a new research center to coordinate ongoing research and education in psychedelic compounds as evidence grows for their utility in treating substance abuse and psychiatric disorders, such as major depression and post-traumatic stress disorder (PTSD). As the development of psychedelic drugs increases, the chances of approvals and marketing and distribution through authorized hospital pharmacies increase, thereby boosting the market growth over the forecast period.
Thus, due to the rise in mental health issues, and the increase in demand for psychedelic drugs requiring a mandatory prescription from a medical practitioner, the studied segment is anticipated to witness growth in the studied market over the forecast period.
North America Expected to Hold a Significant Share and Expected to do the Same Over the Forecast Period
North America is expected to hold a major market share in the global psychedelic drugs market due to the rise in the research and development of psychedelic drugs, the increase in awareness regarding the treatment of mental health issues, and the increasing prevalence and incidence of mental disorder problems. For instance, as per the Adult Prevalence of Mental Illness (AMI) 2022 statistics, 19.86% of adults are experiencing a mental illness. Equivalent to nearly 50 million Americans. 4.91% are experiencing a severe mental illness. The state prevalence of adult mental illness ranges from 16.37% in New Jersey to 26.86% in Utah. Hence, the high prevalence of these mental disorders leads to severe health issues, which leads to the increase in demand for psychedelic drugs, thereby boosting market growth over the forecast period.
Furthermore, a rise in awareness of mental health issues that requires treatment with psychedelic drugs is expected to boost the psychedelic drug market growth. For instance, in October 2022, the Canadian Government conducted Mental Illness Awareness Week, which is a national campaign that seeks to inform and educate Canadians about the reality of Mental illness. It allows the public to address misconceptions about mental illness and improve the understanding of mental health. This, in turn, promotes public acceptance, respect, and equitable treatment of people suffering from mental illnesses while also reducing stigma. Hence, such awareness programs are likely to raise the need for taking medications, which is anticipated to boost market growth over the forecast period.
Moreover, an increase in company expansions and psychedelic treatment center launches are anticipated to greatly fuel the overall regional market growth. For instance, in March 2022, Canada-based- Delic Corporation expanded its locations for Ketamine Wellness Centers (KWC) in Salt Lake City and Reno. The KWC contains their FDA-approved SPRAVATO(esketamine) for treatment options.
Hence, due to the rise in mental illness, the increase in awareness programs relating to mental illness that require psychedelic drug therapy, and the surge in psychedelic drug product launches, North America is anticipated to witness growth in the studied market over the forecast period.
