Forecast Period |
2025 –2032 |
Market Size (Base Year) |
USD 7.12 Billion |
Market Size (Forecast Year) |
USD 18.27 Billion |
CAGR |
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Major Markets Players |
Global Psychedelic Mushroom Market Segmentation, By Product (Psilocybe, Gymnopilus, and Panaeolus), Form (Fresh/Whole, Dried, and Processed), Application (Depression Relief, Anxiety Relief, De-addiction, Recreational, and Others) – Industry Trends and Forecast to 2032
Psychedelic Mushroom Market Analysis
The psychedelic mushroom market is witnessing technological advancements in cultivation, extraction, and drug delivery systems. Innovations such as controlled-environment agriculture (CEA) and precision farming optimize growing conditions, ensuring higher yields and quality. Nanotechnology and advanced extraction methods enhance psilocybin purity for therapeutic use, enabling more effective treatment. In addition, digital platforms aid in research, clinical trials, and patient monitoring, facilitating the safe application of psychedelic therapy.
The market is growing significantly due to increasing mental health awareness and research on psilocybin's efficacy in treating depression, PTSD, and anxiety. Legalization and decriminalization trends in regions such as the U.S., Canada, and parts of Europe are boosting demand. Companies such as Compass Pathways and Atai Life Sciences are advancing clinical trials, driving medical acceptance. Furthermore, growing investments in psychedelic-assisted therapy clinics support market expansion. Rising consumer interest in alternative treatments and wellness supplements ensures steady growth, positioning psychedelic mushrooms as a promising segment in mental healthcare.
Psychedelic Mushroom Market Size
The global psychedelic mushroom market size was valued at USD 7.12 billion in 2024 and is projected to reach USD 18.27 billion by 2032, with a CAGR of 12.50% during the forecast period of 2025 to 2032. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
Psychedelic Mushroom Market Trends
“Rising Adoption of Psychedelic Mushrooms in Mental Health Treatment”
A significant trend driving the growth of the psychedelic mushroom market is its increasing adoption for mental health treatments. Psychedelic mushrooms, particularly those containing psilocybin, are gaining traction for addressing conditions such as depression, anxiety, and PTSD. Clinical trials and regulatory shifts are fueling acceptance. For instance, Compass Pathways' psilocybin therapy has shown promising results in treatment-resistant depression, encouraging investment and research. In addition, decriminalization in regions such as Oregon and California is fostering market growth. With growing recognition of their therapeutic benefits, the psychedelic mushroom industry is witnessing a surge in demand and innovative product development, contributing to its expansion globally.
Report Scope and Psychedelic Mushroom Market Segmentation
Attributes |
Psychedelic Mushroom Key Market Insights |
Segments Covered |
|
Countries Covered |
U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America |
Key Market Players |
MindMed Inc (U.S.), One Up Bars Mushroom (U.S.), ATAI LIFE SCIENCES N.V. (Germany), Cybin Inc. (Canada), Mydecine Innovations Group (Canada), Revive Therapeutics (Canada), Numinus Wellness (Canada), Champignon Brands Inc. (Canada), Hollister Biosciences Inc (U.S.), Red Light Holland (Canada), Axsome Therapeutics Inc (U.S.), Johnson & Johnson (U.S.), Compass Pathways PLC (U.K.), GH Research PLC (Ireland), Artisan Growers Ltd. (Canada), Novo Formulations Ltd. (U.S.), Herbalife Nutrition Ltd. (U.S.), and Monterey Mushroom, Inc (U.S.) |
Market Opportunities |
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Value Added Data Infosets |
In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework |
Psychedelic Mushroom Market Definition
Psychedelic mushrooms, also called magic mushrooms, are fungi containing psilocybin, a psychoactive compound that causes hallucinations and altered perception. Psilocybin is converted into psilocin in the body, affecting serotonin levels in the brain, leading to visual distortions, enhanced emotions, and spiritual experiences. These mushrooms have been used for centuries in religious and cultural rituals. Found in various species, such as Psilocybe cubensis, they typically grow in humid, tropical environments. While some use them recreationally or for therapeutic purposes, they remain illegal in many regions. Recent studies highlight their potential for treating depression, PTSD, and anxiety under controlled medical settings.
Psychedelic Mushroom Market Dynamics
Drivers
- Increasing Prevalence of Mental Disorders
The rising prevalence of mental disorders worldwide is a major driver for the psychedelic mushroom market. According to the World Health Organization, depression and anxiety cost the global economy $1 trillion annually. Similarly, the PLOS ONE study (2022) highlighted increased suicide rates during the COVID-19 pandemic in Nepal. The UNODC’s World Drug Report 2021 revealed that 36 million people suffer from drug use disorders globally, with projections indicating an 11% increase by 2030, especially in Africa’s growing population. Pharmaceutical companies are increasingly using processed mushrooms, such as dephosphorylated psilocybin, to address these mental health burdens. This rising demand for innovative treatments is propelling market growth.
- Increased Demand for Natural Products
The growing consumer preference for natural and plant-based alternatives over synthetic pharmaceuticals is significantly driving the psychedelic mushroom market. Many individuals are turning to holistic treatments, such as psilocybin, to address mental health issues such as depression and anxiety. For instance, psilocybin is being embraced for its natural origins and minimal chemical processing compared to traditional antidepressants. A rising segment of health-conscious consumers also sees microdosing psychedelic mushrooms as a natural way to boost mental clarity and productivity. This demand aligns with the broader wellness movement favoring plant-based solutions, which is fostering increased acceptance and fueling market growth globally.
Opportunities
- Increasing Public Awareness Towards Mental Illness Aid
Efforts by global and regional organizations to raise awareness about mental illness are significantly boosting market growth. The World Health Organization (WHO) runs global campaigns promoting mental health, while the U.K.-based Mental Health Organization initiates various programs. In India, the National Health Mission focuses on early detection and treatment of mental illnesses, with INR 597 crore allocated in 2021 for mental healthcare. The European Union’s investment of over 600 billion euros, or 4% of GDP, in mental health across 28 member states further emphasizes the importance of mental illness aid. This increased funding creates significant market opportunities, particularly for polyphyletic and hygrophorus mushrooms used in therapeutic applications.
- Technological Advancements in Extraction
Recent advancements in extraction technologies are significantly enhancing the scalability and purity of psilocybin products, creating opportunities for growth in the psychedelic mushroom market. New methods, such as solvent-free extractions and precision distillation, are improving the efficiency of extracting psilocybin while maintaining the quality of the compound. For instance, researchers have developed advanced techniques to isolate psilocybin from mushrooms with minimal degradation, leading to higher-quality formulations for medical use. This improvement in extraction not only ensures consistency and potency but also reduces production costs, making it more viable for large-scale manufacturing. Consequently, these innovations are driving the development of psilocybin-based therapies and wellness products, expanding market potential.
Restraints/Challenges
- Safety and Efficacy Concerns
Safety and efficacy concerns are major challenges for the psychedelic mushroom market. Although research suggests potential therapeutic benefits, the long-term safety and effectiveness of psychedelic mushrooms remain uncertain. Dosing variability is a significant issue, as the appropriate dosage for different conditions is not well-established, leading to inconsistent therapeutic outcomes. Moreover, clinical trials have shown mixed results, with some studies demonstrating positive effects while others raise concerns about adverse side effects, such as anxiety or psychosis in certain individuals. This inconsistency in trial results, combined with the unknown long-term impacts, hinders the widespread adoption of psychedelic mushrooms, limiting their commercial viability and growth in the therapeutic market.
- Legal and Regulatory Hurdles
Legal and regulatory hurdles are a significant restraint for the psychedelic mushroom market. In many countries, psychedelic mushrooms are classified as illegal substances, which restricts their research and commercial use. Strict regulations surrounding their production, sale, and use further complicate market expansion. Despite the growing interest in their therapeutic potential, particularly for mental health conditions, regulatory approval remains slow and complex. The lengthy approval process for clinical trials and the lack of clear guidelines for medical use make it difficult for companies to enter the market. These barriers significantly hinder the growth of the psychedelic mushroom market and delay its widespread adoption for medical purposes.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.
Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.
Expected Impact of Economic Slowdown on the Pricing and Availability of Products
When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.
Psychedelic Mushroom Market Scope
The market is segmented on the basis of product, form, and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Product
- Psilocybe
- Psilocybe Cubensis
- Psilocybe Semilanceata
- Psilocybe Azurescens
- Psilocybe Cyanescens
- Psilocybe Baeocystis
- Others
- Gymnopilus
- Spectabilis
- Others
- Panaeolus
Form
- Fresh/Whole
- Dried
- Processed
Application
- Depression Relief
- Anxiety Relief
- De-addiction
- Recreational
- Others
Psychedelic Mushroom Market Regional Analysis
The market is analyzed and market size insights and trends are provided by country, product, form, and application as referenced above.
The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, U.A.E, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA)
Asia-Pacific is expected to dominate the psychedelic mushroom market due to increasing awareness of the therapeutic benefits of psilocybin mushrooms for mental health conditions such as depression, anxiety, and PTSD. The region’s rich diversity of mushroom species, along with favorable regulatory shifts in countries such as Thailand, is fueling local cultivation and research efforts. This, combined with a growing interest in traditional practices involving psychedelics, is creating a supportive environment for market growth and responsible consumption.
North America is expected to show significant growth in the psychedelic mushroom market due to the high burden of mental health disorders and increasing demand for alternative treatments. With 50 million adults affected by mental illness in 2021 and a substantial portion facing substance use disorders, the region is seeing a growing interest in psychedelic therapies such as lysergic acid diethylamide (LSD) as potential solutions. The rising number of individuals with mental health challenges drives market expansion in this region.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Psychedelic Mushroom Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Psychedelic Mushroom Market Leaders Operating in the Market Are:
- MindMed Inc (U.S.)
- One Up Bars Mushroom (U.S.)
- ATAI LIFE SCIENCES N.V. (Germany)
- Cybin Inc. (Canada)
- Mydecine Innovations Group (Canada)
- Revive Therapeutics (Canada)
- Numinus Wellness (Canada)
- Champignon Brands Inc. (Canada)
- Hollister Biosciences Inc (U.S.)
- Red Light Holland (Canada)
- Axsome Therapeutics Inc (U.S.)
- Johnson & Johnson (U.S.)
- Compass Pathways PLC (U.K.)
- GH Research PLC (Ireland)
- Artisan Growers Ltd. (Canada)
- Novo Formulations Ltd. (U.S.)
- Herbalife Nutrition Ltd. (U.S.)
- Monterey Mushroom, Inc (U.S.)
Latest Developments in Psychedelic Mushroom Market
- In July 2024, In a pioneering agreement, BASF and Graphit Kropfmühl, a subsidiary of AMG, joined forces to reduce product carbon footprint (PCF). BASF will supply renewable energy certificates for Graphit Kropfmühl's Hauzenberg production site in Germany. The reduced PCF graphite will be used by BASF to manufacture Neopor with a lower carbon footprint, advancing sustainability efforts
- In March 2023, SGL Carbon signed a crucial supply agreement with Wolfspeed, a global leader in Silicon Carbide (SiC) technology. Under the agreement, SGL Carbon will provide key graphite components for Wolfspeed’s SiC production facilities in the United States, ensuring efficient and high-quality manufacturing of SiC products crucial for the semiconductor and power electronics markets
- In October 2022, Syrah Resources Ltd. revealed plans to supply a critical component for lithium-ion batteries to LG Energy Solutions Ltd., a leading South Korean manufacturer. This strategic move aligns with the growing demand for electric vehicle (EV) batteries and reinforces Syrah's position in the global battery supply chain, supporting the transition to sustainable energy solutions
- In October 2022, SGL Carbon announced a significant expansion of its graphite production capacities for the semiconductor industry. The company is enhancing facilities in Shanghai (China), St. Marys (USA), and Meitingen (Germany) to increase purification and high-precision processing capabilities. This expansion reflects the growing demand for specialized graphite components in the semiconductor sector
- In May 2022, Resonac Holdings Co., Ltd. executed an absorption-type company split with its wholly-owned subsidiary, Shinshu Showa K.K., to strengthen its graphite electrode business. The split will enable better global operations management and accelerate decision-making. This strategic move aims to optimize, stabilize, and expand their graphite electrode production, essential for various industrial applications
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Research Methodology
Data collection and base year analysis are done using data collection modules with large sample sizes. The stage includes obtaining market information or related data through various sources and strategies. It includes examining and planning all the data acquired from the past in advance. It likewise envelops the examination of information inconsistencies seen across different information sources. The market data is analysed and estimated using market statistical and coherent models. Also, market share analysis and key trend analysis are the major success factors in the market report. To know more, please request an analyst call or drop down your inquiry.
The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market and primary (industry expert) validation. Data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Patent Analysis, Pricing Analysis, Company Market Share Analysis, Standards of Measurement, Global versus Regional and Vendor Share Analysis. To know more about the research methodology, drop in an inquiry to speak to our industry experts.
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