United States Psychedelic Mushroom Market By Product Type (Psilocybe (Psilocybe cubensis, Psilocybe semilanceata, Psilocybe azurescens, Psilocybe cyanescens, Psilocybe baeocystis), Gymnopilus (Spectabilis, Others), Panaeolus), By Form (Fresh/Whole, Dried, Processed), By Application (Depression Relief, Anxiety Relief, De-addiction, Recreational, Others), By Region, Competition, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1929.71 Million
CAGR (2026-2031)	11.39%
Fastest Growing Segment	Fresh/Whole
Largest Market	Northeast
Market Size (2031)	USD 3686.12 Million

Market Overview

The United States Psychedelic Mushroom Market will grow from USD 1929.71 Million in 2025 to USD 3686.12 Million by 2031 at a 11.39% CAGR. The United States psychedelic mushroom market centers on the cultivation, processing, and distribution of fungi containing psilocybin, a psychoactive compound utilized increasingly for therapeutic interventions and regulated adult use. The primary drivers fueling market expansion include the escalating prevalence of treatment-resistant mental health disorders, such as depression and PTSD, which has catalyzed urgent demand for alternative pharmacological treatments. Furthermore, the establishment of state-regulated frameworks in jurisdictions like Oregon and Colorado provides a legal pathway for service delivery, encouraging capital investment and legitimizing the sector despite broader restrictions.

However, the industry faces a significant challenge in the form of federal prohibition, as psilocybin remains classified as a Schedule I substance under the Controlled Substances Act, creating substantial barriers to banking, insurance reimbursement, and interstate commerce. This regulatory dichotomy complicates operational scalability and limits patient access to affordable care. According to the Multidisciplinary Association for Psychedelic Studies, in 2024, the organization supported seven psychedelic research studies and facilitated the training of over 3,000 first responders to advance the safety and efficacy of the ecosystem.

Key Market Drivers

Progressive Decriminalization and Legalization Initiatives Across Key States act as the foundational catalyst for the United States Psychedelic Mushroom Market by transitioning psilocybin from illicit networks to state-sanctioned service models. Oregon and Colorado lead this regulatory shift through the establishment of licensing infrastructures that enable the legal cultivation, testing, and administration of psilocybin products. This legislative evolution mitigates legal risks for operators and fosters a regulated ecosystem of service centers. For instance, according to Oregon Psilocybin Services, January 2025, in the '2024 Year in Review' report, the state program had successfully authorized 31 licensed service centers and 345 licensed facilitators by the end of 2024. Such frameworks not only legitimize the industry but also provide a blueprint for other jurisdictions considering similar measures, thereby expanding the addressable market for legal psilocybin services.

Growing Clinical Validation and FDA Breakthrough Therapy Designations are propelling the market toward mainstream medical acceptance, particularly for treating mental health conditions. As biotech firms advance through late-stage trials, the tangible efficacy of psilocybin in clinical settings challenges conventional psychiatric paradigms and attracts institutional interest. A pivotal milestone occurred when, according to Compass Pathways, June 2025, in the 'Compass Pathways Successfully Achieves Primary Endpoint in First Phase 3 Trial' press release, their COMP360 psilocybin treatment demonstrated a clinically meaningful reduction in depression severity with a mean difference of 3.6 points on the MADRS scale compared to placebo. This scientific progress correlates with broader consumer adoption as indicated by Rocky Mountain Poison and Drug Safety, August 2025, in the 'Use of Psychedelic Substances in the United States 2024' report, which stated that approximately 5.5 million adults reported utilizing psilocybin within the prior year.

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Key Market Challenges

The classification of psilocybin as a Schedule I substance under the Controlled Substances Act creates a fractured operational landscape that severely restricts market scalability. Because federal law supersedes state regulations, businesses are largely excluded from the national banking system, forcing reliance on high-risk cash transactions and complicating basic asset management. Additionally, the prohibition against interstate commerce compels companies to build redundant cultivation and processing supply chains within each legalized state rather than centralizing production for efficiency. This regulatory fragmentation significantly increases operational costs and creates uncertainty that deters the large-scale institutional investment required to transition the sector from a niche cottage industry to a robust national market.

Moreover, federal prohibition erects an insurmountable barrier to insurance reimbursement, which is essential for patient affordability and broad market expansion. Since private insurers and federal healthcare programs cannot cover federally illegal substances, the market is constrained to a cash-pay model that inevitably excludes lower-income demographics. This limitation on accessible care directly impacts consumer adoption rates and stalls revenue growth. According to the Healing Advocacy Fund, in 2024, the Oregon state-regulated psilocybin program served approximately 8,000 clients. This relatively low volume, compared to the millions of adults suffering from mental health disorders, demonstrates how the lack of insurance integration hampers the market's ability to capture its full total addressable market.

Key Market Trends

The Development of Synthetic and Deuterated Psilocybin Analogs is rapidly advancing to resolve the pharmacokinetic inconsistency and long duration associated with natural psilocybin. Biotechnology companies are engineering proprietary molecules to fit scalable clinical models, offering shorter treatment sessions and stronger patent protection. This innovation is producing superior clinical outcomes compared to standard treatments by minimizing variability. According to Cybin Inc., November 2024, in the 'Cybin Reports Positive Phase 2 Data for CYB003' press release, their deuterated psilocybin analog demonstrated a 71% remission rate in Major Depressive Disorder patients at 12 months. These optimized compounds represent a critical move towards pharmaceutical-grade consistency that natural strains cannot reliably provide.

The Rapid Proliferation of Microdosing Regimens signifies a consumer shift from recreational "tripping" to functional, sub-perceptual use for wellness and productivity. This behavior fuels the gray market demand for standardized, low-dose products like capsules, contrasting with the high-dose service models currently being legalized. This evolving consumption pattern is evident in recent prevalence data which highlights a significant departure from traditional usage. According to the RAND Corporation, June 2024, in the 'Considering Alternatives to Psychedelic Drug Prohibition' report, 47% of past-year psilocybin users indicated they microdosed during their last use. Such significant adoption of microdosing suggests the future market must accommodate consistent, low-potency formats alongside high-dose therapeutic protocols.

Segmental Insights

The Fresh and Whole segment is currently positioning itself as the fastest-growing category in the United States Psychedelic Mushroom Market. This expansion is primarily driven by a rising consumer preference for natural, unprocessed products over synthetic alternatives. Market analysis suggests that users prioritize the perceived purity and potency found in the organic state of the fungi, valuing the integrity of the whole product. Furthermore, as legal frameworks in jurisdictions such as Oregon and Colorado open pathways for regulated access, the demand for these authentic, unadulterated forms is accelerating significantly compared to other market segments.

Regional Insights

The Northeast United States currently stands as the leading region in the Psychedelic Mushroom Market, driven by a convergence of advanced biotechnology infrastructure and progressive policy reform. According to industry analysis, this dominance is primarily fueled by the region's dense concentration of premier medical research institutions, which accelerates clinical validation and therapeutic product development. Furthermore, legislative initiatives by local municipal councils in major urban centers to decriminalize natural psychedelics have fostered a supportive commercial climate. This strategic alignment of intellectual capital, evolving regulatory frameworks, and high consumer receptiveness positions the Northeast as the primary engine for innovation in the sector.

Recent Developments

• In July 2024, Kaya Holdings announced the grand opening of "The Sacred Mushroom," its first licensed psilocybin service center located in Portland, Oregon. Operated by its subsidiary Fifth Dimension Therapeutics, the facility began offering supervised psilocybin administration sessions to eligible adults, operating under the state's regulated legal framework. The center was designed to provide a supportive therapeutic environment featuring private treatment rooms and sensory amenities. This launch represented a tangible expansion of the commercial psychedelic mushroom market in the United States, as the company moved from the planning phase to active service delivery, capitalizing on Oregon's pioneering legalization of psilocybin services.
• In March 2024, Enveric Biosciences announced that the United States Patent and Trademark Office issued U.S. Patent No. 11,918,594, titled "Multi-Substituent Psilocybin Derivatives." This intellectual property achievement covered a new class of psilocybin-inspired compounds designed to provide therapeutic benefits for mental health disorders such as depression and anxiety. The patent protected the composition of matter for these novel molecules, which were engineered to potentially offer improved stability and pharmacological profiles compared to natural psilocybin. This development strengthened Enveric Biosciences' portfolio, supporting its strategy to develop neuroplastogenic small-molecule therapeutics and expand its research capabilities within the psychedelic-derived pharmaceutical market.
• In March 2024, Cybin Inc. received Breakthrough Therapy Designation from the U.S. Food and Drug Administration for CYB003, its proprietary deuterated psilocybin analog. This regulatory milestone was granted for the adjunctive treatment of Major Depressive Disorder, following positive Phase 2 clinical trial results that demonstrated robust and sustained symptom remission. The designation provided the company with an expedited review pathway and increased access to agency guidance, significantly accelerating the drug development timeline. This achievement highlighted the potential of CYB003 to address unmet medical needs in mental health and positioned Cybin Inc. as a leading developer in the United States psychedelic therapeutic sector.
• In January 2024, Compass Pathways entered into a research collaboration agreement with Hackensack Meridian Health, a prominent non-profit healthcare network in New Jersey. The partnership aimed to inform the clinical delivery model for COMP360, the company’s investigational psilocybin treatment, contingent upon potential FDA approval. This collaboration focused on understanding the real-world challenges of administering psychedelic therapies to patients with treatment-resistant depression. By leveraging Hackensack Meridian Health's extensive clinical expertise, Compass Pathways sought to optimize the patient and provider experience, marking a significant step toward the potential commercialization of its proprietary synthetic psilocybin formulation in the United States healthcare system.

Key Market Players

• Shroomland LA
• Galaxy Treats
• Blissmushrooms
• One Up Mushroom
• Psychedelic Mushy

By Product Type	By Form	By Application	By Region
Psilocybe (Psilocybe cubensis Psilocybe semilanceata Psilocybe azurescens Psilocybe cyanescens Psilocybe baeocystis) Gymnopilus (Spectabilis Others) Panaeolus	Fresh/Whole Dried Processed	Depression Relief Anxiety Relief De-addiction Recreational Others	Northeast Midwest South West

Report Scope:

In this report, the United States Psychedelic Mushroom Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Psychedelic Mushroom Market, By Product Type:

• Psilocybe (Psilocybe cubensis
• Psilocybe semilanceata
• Psilocybe azurescens
• Psilocybe cyanescens
• Psilocybe baeocystis)
• Gymnopilus (Spectabilis
• Others)
• Panaeolus

• United States Psychedelic Mushroom Market, By Form:

• Fresh/Whole
• Dried
• Processed

• United States Psychedelic Mushroom Market, By Application:

• Depression Relief
• Anxiety Relief
• De-addiction
• Recreational
• Others

• United States Psychedelic Mushroom Market, By Region:

• Northeast
• Midwest
• South
• West