The psychedelic mushroom biz is simmering

Like cannabis, several municipalities are likely to legalize magic mushrooms. Entrepreneurs are getting ready.

Source: Alexander_Volkov / Getty Images

These days, charismatic budtenders will tell you all about the latest weed tinctures and terpenes in stores across the US.

Could the same thing happen with magic mushrooms?

So-called “magic” mushrooms contain psilocybin, a non-addictive hallucinogen. Though legal in Jamaica and the Netherlands, they’ve been outlawed in the US since 1970.

But now…

studies have shown promising results for conditions including depression, anxiety, addiction, and PTSD, leading advocates to push for legalization.

In 2019, Denver voters decriminalized shrooms, and cities including Detroit, Oakland, Santa Cruz, and Vancouver, Canada followed suit.

  • Decriminalization typically means a substance still isn’t legal, but you won’t go to jail for usage or possession. You might get a fine, like a drug parking ticket.

Oregon has already legalized mushrooms for adults in therapeutic settings and is working on its regulatory framework now.

The blooming biz

Decriminalization was a precursor to medicinal and recreational cannabis use — a global market worth $17.8B in 2021.

Entrepreneurs are getting ready for the same thing to happen with shrooms, where the global pharmaceutical market is expected to hit $6.9B by 2027.

Their methods vary, but it gives them a head start before future legalization — and its fees and regulations — take hold, according to Bloomberg.

  • In Vancouver, Coca Leaf Café blatantly sells magic mushrooms and other psychedelics, netting ~$5k in sales per day.
  • First Person sells functional mushrooms — legal, non-psychoactive mushrooms believed to have various health benefits like chaga and reishi — as a foot in the door.
  • Others are popping up underground or online, or taking advantage of loopholes like religious exemptions as some groups have done with ayahuasca.

And if you’re looking to invest, there are several companies that are already publicly traded like these picks from The Motley Fool — a few of which have market caps (pun intended) in the hundreds of millions.

At this point, our psychedelic future seems nothing short of inevitable. Groovy.

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