12.7 Psychedelic Industry Growth & Challenges
Emerging Psychedelic Industry
Along side the growing body of third wave research, as governmental policies evolve away from the prohibitionist orientation of the last century, the psychedelic industry has started to take form. Speculation of a potentially large market and growing demand for treatment products, has entrepreneurs and investors vying to become part of the potential future psychedelic industry (Brown, July 25, 2022). Investment continues into the dozens of publicly listed companies, many of which are relatively new startups (Jacobs, October 25, 2022). Despite steep stock price dips in 2022 (e.g., two of the largest publicly traded companies, Atai and Compass, fell 66%) (Filament Health, February 16, 2023), market projections like those by InsightAce Analytic are driving investments, with predictions of market growth increase from $3.94 billion in 2022 to $13.29 billion by 2031 (Insight Ace Analytic, June 27, 2023).
In this uncertain market with high pressure for returns, there are a variety of challenges that companies in this industry may face including: changing regulations and compliance rules; difficulties with trying to develop and patent products based on natural substances; the stigma associated with psychedelics (Bock, September 22, 2022); and pressure to produce large profits for investors (Phelps et al., 2022). As noted by Filament Health (February 16, 2023), in order for market projections to be realized, such as those of InsightAce Analytic (June 27, 2023) (and regulatory hurdles passed), a continuation of scientifically sound quality research is needed, as is the development of treatments that exceed the effectiveness of those currently used for identified mental health conditions. Developed treatments also need to be less-expensive/more cost-effective. In light of these pressures, Phelps et al. (2022) warn that the many companies funding their own research need to ensure that bias is not introduced into the studies.
Click the following links to learn more about the emerging psychedelic industry:
Investing in psychedelic stocks
The psychedelic industry’s next hurdle is to go mainstream
EDI Issues in Psychedelic Research & Treatment
One significant problem with the existing body of medical psychedelic literature is the lack of diversity of research participants and researchers. Under-representation among research participants is problematic from a scientific perspective because it can lead to limited generalizability of research findings (Thistle, February 3, 2022; George et al., 2020). Exclusion and underrepresentation in research means a lack of knowledge of the effectiveness of psychedelic-assisted treatments for mental health issues experienced in Indigenous and racialized communities (Thrul & Garcia-Romeu, 2021) and unequal access to psychedelic-assisted treatments (George et al., 2020). In terms of researchers, practitioners, and the science of psychedelics, the absence and/or extreme underrepresentation of the psychedelic knowledge base of Indigenous and racialized peoples is a form of cultural appropriation, failing to recognize traditional healing methodology and expertise and “the value of a cross-cultural approach to understanding” for mental health care (George et al., 2020, p.5). According to Rush et al. (2022a, p. 9), those engaged in psychedelic research “need to acknowledge the risks to Indigenous people associated with appropriation of these medicines and to treat their origins with respect.”
Click the links below to learn more about EDI issues in psychedelic medicine research:
How does Race and Ethnicity Influence Psychedelic Mental Health Outcomes? Psychedelic Spotlight
Cultural appropriation occurs when someone claims ownership of another culture’s norms and traditions without regard or recognition of the initial source (Blue Cross & Blue Shield of Minnesota, July 25, 2022, Para. 2).
