Psychedelics, also known as hallucinogens, are powerful mind-altering substances that can temporarily induce hallucinations by affecting serotonin receptors in the brain responsible for controlling the senses. Currently, the most popular psychedelics include lysergic acid diethylamide (LSD), psilocybin (magic mushrooms), and ketamine.

Historically used in religious settings, psychedelics became illegal in the US in 1970 due to the social stigma surrounding their recreational use in the 1960s. However, there is a re-emerging demand for psychedelics as potential treatments for challenging and rising mental health conditions, such as depression and post-traumatic stress disorder (PTSD). Public perception toward psychedelics has also shifted, resulting in greater acceptance as evidenced by legalizations of its use in states like Oregon and Colorado. Furthermore, in May 2019, the US Food and Drug Administration (FDA) approved a ketamine derivative for therapeutic use, raising the potential for more widespread commercialization of psychedelics. The nascent industry—still largely in the research stage—has garnered significant investor interest, with many anticipating a cannabis-like boom.

However, challenges such as extensive regulatory approval processes, high treatment costs, and patent issues must be addressed to facilitate the successful transition of psychedelic therapies into mainstream healthcare.