Psychedelic Mushroom Industry Insights for 2022

Psychedelic Mushroom Industry Insights for 2022

The psychedelic mushroom industry mainly operates in the shadows at this point. However, this soon may change as the industry becomes more legitimate with psychedelic research outlining medicinal applications for natural psychedelic compounds.

In our opinion, much like the recreational and medical cannabis industry, the psychedelic space is poised to explode exponentially. This, of course, includes hallucinogenic shrooms.

Medicinal mushrooms already have their place in alternative medicine history and have been used by indigenous cultures for thousands of years. But as more research is conducted on psychedelic treatments, we believe a legal psychedelics industry is bound to emerge.

From psychedelic therapies to psychedelics utilization for therapeutic therapies, we expect to see natural psilocybin and other psychedelic treatments as components of a legitimate psychedelics industry. While we’re a ways away from federal legalization, we already see psychedelics companies running clinical trials.

Companies like Atai Life Sciences and Mind Medicine are part of this burgeoning industry, and we’re excited to worth with other businesses interested in this emerging market capitalization.

Currently in the mushroom space and looking to scale your operation to include hallucinogenic shrooms? Let’s talk!

Contact us at Northstar to speak with one of our experts. We’ll handle your finances and examine ways to guide your business through all regulatory hurdles as the psychedelics industry emerges.

What are Magic Mushrooms?

What are Magic Mushrooms?

First, let’s go over the basics. Magic mushrooms, or shrooms, are a fungus that contains the natural psychedelic alkaloids psilocybin and psilocin.

As you may know from health class in high school or watching “Fear & Loathing in Las Vegas,” ingesting these mushrooms induces a hallucination-type effect. Other names associated with this type of mushroom include hallucinogenic mushrooms, shrooms, and more.

What are Magic Mushrooms Good for?

While more research is being allocated towards mushroom drug development, some research and anecdotal evidence suggests magic mushrooms are good for more than just hallucinogenic trips.

As clinical trials for mushroom drug development have been ongoing, study results indicate hallucinogenic mushrooms may be good for mental health-related illnesses. Psychedelic mushrooms and other psychedelics may be effective as a depression treatment, addiction treatment, and Post Traumatic Stress Disorder treatment.

Shrooms are even showing promising results to treat cancer patients with anxiety.

Moreover, research has shown that it’s possible for a natural psychedelic can help people quit smoking. But these psychedelics may also have their place in the addiction treatment industry, as well.

All of these potential benefits are poised to lead the psychedelic industry towards legitimacy.

psilocybin mushroom industry farming cultivation

Magic Mushshrooms Legal States

While not federally legal nor even legal at the state level just yet, several states and cities have decriminalized magic shrooms and allowed for possession and transportation.

These are significant strides in the right direction, especially when considering the fact that many areas have made it easier for researchers to get ahold of and conduct research on psychedelic drugs. This is opening more doors than ever before, allowing legitimate studies to be conducted on a wide assortment of topics, like psychedelic mushrooms for mental health conditions like Post Traumatic Stress Disorder (PTSD), Major Depressive Disorder (MDD), treatment-resistant depression, alcohol use disorder, and more.

As more research uncovers what psychedelic mushrooms can do for society in terms of mental health treatment, other studies highlight more applications that could eventually result in psychedelic companies becoming commonplace. Despite the current taboo nature of this space, we already see more than one publicly-traded company delving into psychedelic compounds and psychedelic stocks receiving more attention than in previous years.

While distributing psychedelics is still illegal in every state, psilocybin-assisted therapy has been decriminalized in some areas. And the Food and Drug Administration even granted psilocybin “breakthrough” therapy designation.

Washington State Magic Mushroom Legality

Some believe that legalization is on the verge of happening in Washington state.

But Oregon already legalized the supervised therapeutic use of psilocybin in 2020.

Oregon Psilocybin Therapy: A Burgeoning Industry

Oregon’s psilocybin program is already beginning to take shape. With Measure 109 focused on creating the framework for legal, controlled psilocybin therapy within the state’s borders by 2023, there’s a lot to look forward to for people suffering from mental health disorders in Oregon.

The Oregon advisory board has even been quoted saying that there’s promise in using psilocybin for mental health therapy. This statement alone has a chance to pave the way for more psychedelics companies to conduct research that will ultimately lead to drug development and a legal psilocybin marketplace framework.

While the state has conducted its own clinical trials, drug development among psychedelic companies in Oregon is underway. These drugs stand to benefit people suffering from various mental health issues, including but not limited to PTSD and mild traumatic brain injury.

Pennsylvania Working Towards Psilocybin Regulatory Approval

Pennsylvania now has introduced House Bill 1959, also known as their Public Health Benefits of Psilocybin Act. This stands to permit psilocybin research in PA to determine whether it’s effective for treating various mental health diagnoses.

If HB 1959 passes, the state plans to give research with veterans and retired first responders priority.

Will Psychedelics Become Legal in California?

Many wonder if psychedelics will become legal in California. The state has already decriminalized psilocybin in order to conduct research into therapeutic uses for psychedelic drugs.

So decriminalization is already underway, but will legalization be next? Not so fast. But there has been plenty of action in the realm of lessening the punishments for psychedelic-related crimes.

California could pass more psychedelic-related measures in 2022 and beyond after an overwhelming amount of support for the legalization of recreational marijuana passed last year. However, 2022 isn’t guaranteed to bring another vote on psychedelics legalization.

Texas Magic Mushroom Legality

Texas governor, Greg Abbott, has also seen the light, resulting in his signature on legislation that permits study on the use of psilocybin mushrooms to treat PTSD in combat veterans.

Virginia Psilocybin Legality

Virginia is on the verge of decriminalizing psilocybin and other psychedelics. Rather than sending violators to prison, any capital collected from psychedelics violations would be allocated towards the state’s Drug Offender Assessment and Treatment fund.

Utah Psilocybin Legality

A GOP Utah lawmaker also recently filed a bill to demand a task force study. The bill has the potential to create a Mental Illness Psychotherapy Drug Task Force that would focus on studying and making recommendations on drugs that have a chance to help with treating mental illness. This, of course, includes drugs that can be used in psychedelic therapies, like psilocybin.

New York Magic Mushroom Legality

Last month, a New York lawmaker filed a bill that would legalize medical psilocybin, as well. If it passes, this would yield positive results that it’s time to begin investing in psychedelics for therapeutic purposes in the state.

Psychedelic Mushroom Industry

Business Ideas for Psychedelic Mushroom Legalization

Magic mushrooms aren’t the only consumer product we can expect to become part of the legal psychedelics marketplace. While the production of the psychoactive compounds will become a significant part of the space, we expect product manufacturers, distribution, ancillary services, and other businesses to play their own roles in developing this emerging industry.

Here’s a list of the shroompreneur opportunities we expect to see in the psychedelic shroom sector:

Psilocybin Mushroom Farming

Psilocybin mushroom farming is essential to the legal psychedelics industry. Functional mushrooms are becoming increasingly popular, and we can expect the same to happen for hallucinogenic shrooms once legalized.

While magic mushrooms can be grown at home, there’s a lot of overhead involved in running a lab, equipment, and even processing facilities. This will likely handcuff many shroompreneurs to wholesale operations instead of having their own cultivation labs.

Psilocybin mushroom cultivation will likely happen in-house for some of the major psychedelic companies. However, there’s also a strong chance for there to be a few large, global mushroom farms that supply small psychedelics companies, with functional mushrooms and psilocybin chemical compounds.

Magic Mushroom Lab Equipment Manufacturers

The production process for magic mushrooms is extremely scientific. This means that lab equipment manufacturers can have an exciting future in the space as well.

Who knows? Perhaps there will be a magic mushroom fractional crystallization lab equipment manufacturer that grows alongside the demand for psilocybin.

Psychedelic Shroom Sales & Distribution Companies

Sales and distribution are likely to become the most dynamic parts of the legal psychedelic industry. We can expect everything from niche businesses that cater to high-end consumers to companies with a global reach.

The demand for psychedelics will likely require niche businesses to produce and distribute products. On the other hand, major distribution companies should also play a role in this emerging industry.

We can expect there to be several distribution companies that specialize not just in psilocybin mushrooms but many different types of psychedelic compounds as well, all with unique benefits.

Psychedelic Mushroom-Focused Service Businesses

In addition to the entrepreneurs who grow, distribute, and sell psychedelics, ancillary businesses will likely spring up as well. These include everything from lawyers to industry experts.

With the shift in legality comes a change in public opinion as well. Psychedelics are arguably safer than alcohol, and we can expect the public to begin demanding that psychedelics be made available for therapeutic and recreational purposes.

Psilocybin Truffle Farming

Psilocybin truffles are also poised to be big business in the psychedelic space. These truffles may become more of a specialty product than magic mushrooms, and this makes it an attractive option for shroompreneurs.

Magic truffle cultivation will likely follow the same model as magic mushroom farming, with large-scale producers catering to smaller manufacturers and distributors.

Psychedelic Shroom Extract Makers

Psychedelic companies will need to extract psilocybin from magic mushrooms and truffles in order to make products for consumers. This makes it a great opportunity for extract manufacturing companies to get involved with the emerging industry.

We can expect many psychedelic companies–and even some smaller mushroom growers–to have in-house extraction labs to make these products.

Psychedelic Shroom Suppliers

Many mushroom growers are likely to have their own extraction labs so that they can extract psilocybin from magic mushrooms or truffles for use in other products. As a result, there will likely be many mushroom suppliers to the legal psychedelic industry.

We can expect that the strongest suppliers in this space will provide both mushrooms and extracts, while also offering their own extraction services (where possible).

Psilocybin Drug Discovery Operation

As more psychedelic companies enter the space, there will be a greater need for research and development. This means that shroom scientists are likely to become an integral part of this emerging industry.

These shroom scientists will play a major role in drug discovery and the R&D of psilocybin extract compounds, which will likely be used to produce many psychedelic products. With so much evidence highlighting the efficacy of using psilocybin for Post Traumatic Stress Disorder, end of life treatment for anxiety, treatment-resistant depression, and more, functional mushrooms for medical use have their place in the mental health treatments niche.

Psilocybin Venture Capitalist Firms & Angel Investors

With the rapid expansion of psychedelic companies, there will be a need for venture capital. This means that we can expect to see VC firms and private equity groups enter this space and provide funding to entrepreneurs and researchers.

We can expect this market to attract many VC firms–and perhaps even some angel investors –that specialize in early-stage investment into the psychedelic industry.

As the space for psychedelic products expands, it will attract investors from a variety of backgrounds. In addition to VC firms and private equity groups, we can expect to see angel investors enter this industry as well.

In addition to looking for emerging companies with strong management teams and innovative ideas, many legal psychedelic investors will likely look for companies that offer them a diversified portfolio of products and services.

We expect even more investment firms to emerge over the next few years as they decide to focus on this emerging submarket within the industry.

Thus, it’s important for entrepreneurs who are looking to enter this niche to stay up-to-date with recent changes and developments by following leading researchers and their work in academic journals.

Psychedelic Shroom Co-Packers & Contract Manufacturing Firms

Another way for mushroom growers to expand their businesses is by entering into co-packing agreements with smaller manufacturers in order to make psychedelic products. There will be a big demand in this space for both mushroom growers and co-packers that can supply a variety of psilocybin products to market.

One advantage for smaller manufacturers entering this space is that they will be able to diversify their product mix by selling extracts along with dried mushrooms. This means that contract manufacturing companies could see significant growth in the near future as the psychedelic industry expands.

Financial institutions that are open to working with companies in the psychedelic industry will also be important for co-packers and manufacturers.

Psychedelic Shroom Exporters

As this market expands, it will likely start exporting products overseas to countries where psilocybin is still illegal. This means that there could be a need for shroom exporters that can legally export psilocybin products to sell in other countries.

We can expect the first exporters entering this market to be the larger companies with access to bigger budgets. Similar to the cannabis industry, these operations will need to invest heavily in legal representation and compliance to bypass costly infractions.

Psychedelic Shroom Distributors & Brokers

We expect there to be a big demand for distributors and brokers for this market as well. Shroom growers and manufacturers will look for ways to increase their distribution.

Thus, in the future, we could see a handful of very large distributors that control much of the flow of products into retail shops around the globe.

Psychedelic Marketplaces

As this market expands, we can expect to see the rise of many psychedelic marketplaces. Similar to multilevel marketing companies such as Herbalife and Amway, it is likely that small start-up companies will look for ways to monetize other businesses in this industry by selling products through a variety of different marketplaces.

Since this market is still in its infancy, we can expect to see a lot of smaller operators enter this industry and look for ways to monetize it by selling products over the internet through multiple marketplaces. This provides entrepreneurs with an opportunity to get involved with emerging psychedelic businesses and develop new distribution channels for their own mushroom growing operations.

Psychedelic Shroom Edible Manufacturing

We expect this market to develop a lot of smaller edible manufacturers that will be able to meet the growing demand for psychedelic products. Many of these companies will be co-packers and manufacturers, but we can also expect a number of start-up companies entering this space as well.

As the industry grows, we could see a few large edible manufacturers that specialize in making psilocybin products emerge.

Magic Mushroom Microdose Supplements

This market will likely see a lot of growth over the next few years, driven by both domestic and international demand. The big opportunity here is that many consumers will be looking for ways to consume psychedelic substances without having to eat dried mushrooms or deal with the negative side effects that come with them.

Thus, we can expect to see a huge demand for microdose supplements over the next few years as consumers look for ways to experience psychedelic drugs without having to take large doses. There will also be an increasing number of people entering this industry who are interested in exploring different psychedelics without undergoing intense trips.

Mushroom Grow Kits

Mushroom grow kits are likely to be one of the fastest-growing submarkets in this industry. As more people become aware of this market and start looking for ways to grow their own psychedelic mushrooms, companies that offer grow kits are likely to experience a significant boost in sales over the next few years.

As shipments of these products continue to rise around the world, we could see the emergence of a handful of large companies that focus on selling grow kits to this consumer market. However, equally important to keep in mind is the fact that mushroom grow kits are already available. Thus, we can expect this niche of the mushroom industry to become quite saturated upon legalization.

Mushroom Growing Supplies

There are still so many unmet needs of shroompreneurs who want to start growing psilocybin mushrooms. Not only will there be a need for bulk mushroom spores, but also tools and supplies that cultivators need on an ongoing basis to maintain their cultivation efforts.

As this market develops over the next few years, we can expect to see a wide range of different supplies and tools being offered by multiple suppliers. Additionally, there will likely be a handful of companies that enter this space to offer consulting services for people who want to start growing psychedelic mushrooms.

Psychedelic Art & Apparel

Psychedelic art and clothing are likely to be one of the most popular submarkets as more people become interested in this type of drug. This niche will likely feature a lot of artist-designed clothes and accessories which consumers can use to express their love for psychedelics.

The main opportunity here is that we could see a handful of new companies emerging if they choose to focus on this emerging market. In terms of the competition, there are a number of people who already sell psychedelic art and apparel to the local markets that we expect to enter this niche. And with no need for regulatory approval as with psychedelic products, this industry is likely to be filled with many producers.

Psychedelic Tourism & Travel

Psychedelic tourism is expected to be one of the fastest-growing submarkets of this industry. Not only will there be a need for guided psychedelic trips, but also outdoor activities that can take people off the beaten path to experience nature in a different way.

As the demand for psychedelic drugs continues to rise over the next few years, we could see more tour operators enter this niche as it becomes even more profitable. There’s also potential for unique tour operators to emerge as they look for ways to provide services that aren’t readily available elsewhere.

Thus, another opportunity here is for entrepreneurs who want to start their own venture by providing unique psychedelic experiences out in nature and other locales around the world.

Psychotherapy Services

Research into the therapeutic benefits of psychedelic drugs is increasing at an exponential rate. As more people become interested in these drugs, there will be a need for third-party investors who want to support this type of research with financial resources.

We expect psychotherapy services surrounding psilocybin mushrooms to become increasingly popular. Therefore, these investors will be looking for operations to propel forward with capital.

There are already some investment groups that exist today which provide financing for nearly any clinical trial involving psychedelics. Thus, it’s possible that we could see the emergence of new psychotherapy services focused on speaking with patients ahead of any psychedelic trip.

Psychotherapy Training & Certification

Psychedelic therapy is still a very young industry and the services provided by trained therapists could be in high demand ahead of legalization. New certification programs will likely emerge that look to train people on how to handle psychedelic trips.

Similarly, we could see an increased interest in required training courses for therapists who want to work with clients looking for treatment with psychedelics.

Given the general lack of understanding about psilocybin, we could see the psychotherapy training and certification industry grow larger in the future. As such, this creates an opportunity where entrepreneurs can step up to meet the demand with courses for therapists looking to work with psychedelic drugs.

Psilocybin Mushroom Software

Much like the cannabis industry, we can expect to see a number of new pieces of technological software aimed at helping growers, distributors, and retailers. For example, we could see an increased demand for inventory management software that helps with the tracking of psychedelic drugs from start to sale.

In addition, there will likely be a need for point-of-sale (POS) systems that dispensaries can use to manage customer sales. This could be useful for retailers operating out of the internet, but also brick-and-mortar businesses that want to update their customers on the latest deals and new products.

Another possibility here is for POS systems focused entirely around psilocybin mushrooms. While there are currently no POS systems available online, it’s possible that we could see trends like this emerge as the market for these drugs becomes more popular.

Given the unique nature of these mushrooms and the lack of competition in the industry, there could be a great opportunity for entrepreneurs who want to start working on mushroom-themed POS software solutions.

Legal Services

As the psychedelic industry continues to grow, more service providers will be needed for legal advice. This is especially true for businesses that are running afoul of current laws or facing charges due to conflicts with law enforcement.

Entrepreneurs looking to start their own business in the psychedelic space could potentially develop a consultancy offering legal services for potential clients within the industry. This will be especially helpful for dispensaries, which are currently engaging in illegal business practices across the United States.

For example, entrepreneurs could create a consultancy that helps with everything from obtaining permits to running background checks on employees to make sure they’re not facing prior convictions. These services will likely be expensive and we can expect individuals looking for help to pay a premium price.

Industries to Join in Preparation for Legal Psychedelic Marketplace

Here’s a list of the shroompreneur opportunities that could prepare operations to work with these psychoactive compounds:

Medicinal Mushroom Supplements Manufacturing & Distribution

Those manufacturing and distributing medicinal mushroom supplements have a unique opportunity to establish a customer base in preparation for psilocybin legalization. While these individuals are working with legal mushrooms for medical use, they’re serving the people who are most likely to turn to psilocybin once it becomes legal.

The functional mushroom industry is also experiencing impressive growth. This space’s rapid growth is expected to expand from $20 billion in 2018 to $34.3 billion by 2024.


Mycotextiles are another potentially lucrative business idea that will help businesses prepare for psychedelic regulation. For example, entrepreneurs could start up a textile manufacturing business that makes textiles using dried and molded mycelium. These materials can replace plastic parts, packaging material, and insulation.

Growing mushrooms for mycotextiles can offer experience working with these types of plants, which can be helpful in the future for those who are looking to grow psilocybin mushrooms.


Mycoremediation involves using mycelium to minimize toxins on Earth. Since waste issues are expanding, these types of solutions are essential to focus on.

In addition, mushroom cultivation can help with mycoremediation. This process uses fungi to break down contaminants in the environment and improve soil quality. In particular, entrepreneurs could use mushroom growing processes to clean up polluted land or waterways that have been affected by oil spills.

This can prepare shroompreneurs for a legal mushroom space as it offers hands-on experience working with mushrooms. Ultimately, this experience provides specialty mushroom cultivation experience that may translate to the legal psilocybin mushroom space.

Psychedelic Drugs for Mental Health

Psychedelics have been used for mental health therapies, including PTSD treatment. This is especially true for MDMA-assisted treatment protocols, which are currently being researched by various institutions across the globe.

Due to the rapid growth of psychedelic legal development, entrepreneurs with an eye toward mental health could look into creating private or government-funded clinics that work on psychedelic treatments.

It’s important to note that these clinics won’t just be limited to psilocybin and MDMA. Experiences such as Ayahuasca will also play a role in mental health treatments, either in the form of treatment centers or people using these substances on their own to self-medicate.

For example, entrepreneurs could look into creating retreat spaces where people can take psychedelics and explore their inner selves without the risk of legal repercussions. Individuals who are looking to take these substances without the guidance of medical professionals could also look toward creating experiences where they can be supervised.

A Legal Marketplace for Psychedelic Mushrooms

The world is already seeing a legal shift for psilocybin and other substances. As the landscape for a legal marketplace for psilocybin mushrooms becomes clearer, entrepreneurs who want to play a role in this industry need to start preparing.

Having access to dried and fresh mushrooms can help these businesses serve customers during the legal market launch. But keep in mind, there are ancillary businesses that will be essential for the mushroom industry to grow.

Also, having experience growing fungi is an asset in preparation for working with psychedelic mushrooms. For those interested in farming these mushrooms with federal legalization, begin practicing by growing medicinal mushrooms. This is a currently legal marketplace for medicinal fungi and can be profitable as you wait for psilocybin legalization.

Looking for assistance scaling your legal mushroom operation in preparation for psilocybin legalization? Northstar is here to help!

Contact us now to speak with one of our experts about how we’ll grow your business with the right insights and financial services.

Where are Magic Mushrooms Legal?

Where are Magic Mushrooms Legal?

You likely found this post by searching about the legal status of psilocybin mushrooms (magic mushrooms). For those interested in magic mushroom consumption, we’ll answer some of your questions in this post. But for the purpose of preparing for the inevitable legality of psilocybin mushrooms, we’ll also discuss where you can currently operate a legal magic mushroom grow.

Keep reading to learn more about where magic mushrooms are legal and how you can transform these little spores into your share of a marketplace that’s set to become the next cannabis industry.

What are Magic Mushrooms?

What are Magic Mushrooms?

Magic mushrooms, also known as psilocybin mushrooms, are categorized as psychedelic drugs. Unlike the mushrooms you’ll find on most pizzas, these hallucinogenic mushrooms are one of the many psychedelic substances humans consume for recreational and medical use.

Psilocybin mushrooms are found throughout Mexico, Central America, and the United States. But they’re grown globally, despite the fact that many countries have made these so-called magic mushrooms explicitly illegal.

You’re likely wondering what gives magic mushrooms their “magic.” The psilocybin these fungi produce offers impressive hallucinogenic effects in large doses. But in small doses, the use of magic mushrooms has been known to offer a unique form of mental health treatment that demands more scientific research.

We’ll talk more about that later.

These fungal species have been used in religious ceremonies, for medical use, and recreational use. But it’s crucial to remember that just because some use this recreationally for an unforgettable psychedelic experience does not mean that these psychedelics don’t have other impressive applications.

We expect these psychedelics to become fully legal throughout the United States, and as more research highlights the applications for therapeutic uses, we believe a thriving mushrooms marketplace will rise.

how does psilocybin work

How Does Psilocybin Work?

Psilocybin is found in certain species of mushrooms. But it’s not present in all magic mushrooms. The trick behind how these mushrooms work is that they contain a high concentration of psilocybin and psilocin, which are psychoactive substances that have hallucinogenic properties when consumed.

When someone eats these mushrooms, the psilocybin is converted into psilocin in the stomach, which then binds to serotonin receptors in the brain. These experiences are often described as spiritual or mystical by those who have used them.

We’ll save some of the science for another post on magic mushrooms. But rest assured that you can continue to eat these fungi (or grow them) and with minimal risk.

This drug, when used responsibly, can lead to extremely powerful and unique experiences that we believe will change the world in the near future.

why are shrooms illegal

Why Are Shrooms Illegal?

Before talking about where magic shroom production is legal, it’s essential that you gain a better understanding of why a substance is made illegal in the first place.

In countries where magic shrooms are considered a “controlled substance,” they’re categorized as psychedelics, stimulants, or hallucinogens. This means that these fungi can impact your thought process and change how you perceive the world around you.

For some, this may sound appealing. But it’s important to remember that with this legal classification comes a long list of health risks. And not all countries have taken to the approach of legalization.

Are Psilocybin Mushrooms on the Federal List of Controlled Substances?

Are Psilocybin Mushrooms on the Federal List of Controlled Substances?

While many people are working hard to legalize magic mushrooms at the federal level, it’s always going to be an uphill battle to legalize psychedelic drugs. Despite scientific research highlighting several benefits that could make magic mushrooms an option for several forms of mental health treatment, more research is essential.

Psilocybin, the hallucinogenic substance that comes from several types of magic mushrooms, is on the list of illegal substances banned by the federal government. Thus, psilocybin-containing mushrooms are still considered banned substances at the federal level.

Magic mushrooms are consumed orally, commonly brewed as tea or added to other foods to mask their flavor. Chocolate is one of the most common.

Public health is a concern as it is possible to abuse this drug. It’s commonly used at raves, clubs, and even on college campuses. The people who tend to abuse psilocybin the most are teenagers and young adults.

This is why psilocybin is illegal. Even though many would prefer to legalize magic mushrooms, psilocybin is listed as a Schedule I substance under the Controlled Substances Act. This is the same list of drugs that includes heroin and LSD.

However, many believe that this is a wrongful addition. While magic mushrooms have recreational use applications and a high potential for abuse, they also have medical applications that are proven to be effective.

The fact that magic mushrooms offer a lot of versatility in their consumption methods also speaks volumes for this evolving industry. As these psychedelic drugs become legal across the nation, we can expect entrepreneurs to go beyond distributing fresh mushrooms and mushroom spores by creating a vast line of products that contain various species of magic mushrooms.

Are Magic Mushrooms Illegal Everywhere?

Are Magic Mushrooms Illegal Everywhere?

Some regions allow magic mushrooms for personal use and adult possession. Others permit the possession, sale, transportation, and cultivation of these special mushrooms.

For example, the British Virgin Islands have these mushrooms growing naturally. This country has made it legal to have and use these mushrooms. However, selling these mushrooms is still prohibited, albeit, unenforced.

Even with the illegal nature of selling this drug, businesses continue to openly sell them. Thus, the British Virgin Islands miss out on tax revenue that would otherwise come with this drug use.

Austria has decriminalized personal possession and consumption. It’s also legal to cultivate as long as the mushrooms are not being grown for use as drugs. But transporting and selling them is still prohibited.

The Bahamas, Brazil, and Jamaica have some of the most relaxed laws pertaining to magic mushrooms. It’s legal to possess, sell, transport, and cultivate them in the Bahamas. However, equally important to note is that psilocybin and psilocin are banned by the United Nations Convention on Narcotic Drugs.

Brazil has legal shrooms, too. But psilocybin and psilocin are prohibited. However, the fungal species themselves have not been outlawed.

Jamaica has never prohibited shrooms. With this being the case, they’re openly sold throughout the country.

Many countries – including Canada, Chile, Croatia, Cyprus, Czech Republic, France, and many in South America – have banned shrooms while allowing grow kits, spores, and mycelium.

As you can see, thriving mushroom marketplaces exist throughout the world. And as more insight is uncovered, whether by researchers, the Health Committee, or more anecdotal evidence – and more countries permit shroom sales, we can expect entrepreneurs to jump at the opportunity to gain their share of this emerging market.

Shroom Decriminalization in the U.S.

Shroom Decriminalization in the U.S.

Back in May 2019, Denver, Colorado became the first city in the U.S. to decriminalize psilocybin mushrooms following an ordinance being admitted to the ballot after obtaining enough signatures. It won with just 50.6% of the vote.

However, this initiative didn’t actually legalize shrooms. With this initiative, Denver no longer allocates resources to prosecute shroom consumption or possession, which is still a massive win for consumers.

A month after, thirty people testified to the Oakland, California city council. They discussed their experiences with psilocybin, and with these testimonies, the city council unanimously voted to decriminalize adult psilocybin possession and cultivation. However, commercial sales are still prohibited.

Santa Cruz, California also voted to decriminalize adult possession and cultivation for psilocybin in January 2020. But commercial sales aren’t allowed.

In September 2020, Ann Arbor, Michigan’s city council voters passed a resolution that de-prioritized investigations and arrests of people who plant, cultivate, buy, transport, distribute, engage in practices with, or possess entheogenic plants or plant compounds.

Then, in November 2020, Oregon became the first state to decriminalize and legalize psilocybin for therapeutic utilize with Ballot Measure 109’s passing. That same month, initiative 81 was passed in the District of Columbia. This was titled the Entheogenic Plant and Fungus Policy Act of 2020 and decriminalized psilocybin drugs.

By January 2021, even more progress was made. Washtenaw County Michigan also decriminalized. Later that month, Somerville, Massachusetts’s city council voted unanimously on decriminalization for possessing entheogenic plants, which includes psilocybin mushrooms and ibogaine.

The following month (February 2021), Cambridge, Massachusetts’s city council was pressured by outreach from the Bay Staters for Natural Medicine. Northampton, Massachusetts also voted to decriminalize.

In October 2021, Seattle, Washington, and Arcata, California’s city councils both held unanimous votes to deprioritize entheogen prohibition enforcement. That same month the city council of Easthampton, Massachusetts voted to cease arrests for growing entheogenic plants and fungi, along with decriminalization for possession of many other substances commonly controlled in other states.

Detroit voters recently approved Proposal E on November 3, 2021. This makes Detroit the most current city to decriminalize. The ballot initiative passed with 61% of voters supporting a law that makes it a minimal priority for law enforcement to go after adults who possess and therapeutically use entheogenic plants.

magic mushroom controversy

The Psilocybin Mushroom Controversy

Lawmakers are actually working to legalize magic mushrooms, even though psilocybin is listed as a Schedule I drug. There are people who support legalizing magic mushrooms so they may be used for medicinal purposes.

We also expect these psychedelics to be used in several medicinal applications in the future. There are people who believe that psilocybin can help them cope with severe mental illnesses, including depression and bipolar disorder.

Here are just a few of the potential benefits that magic mushrooms have to offer.

Magic Mushroom Applications

Magic Mushroom Applications

While it might be challenging to imagine a world in which psychedelic substances like psilocybin and psilocin are legal, the idea isn’t so farfetched. Scientific research highlights real-world applications besides recreational use, all of which will offer legitimate business opportunities as the marketplace evolves.

Here’s a list of some of the applications of psilocybin and psilocin we can expect to see with legal magic mushrooms:

Psilocybin Mushrooms for Depression

Psilocybin Mushrooms for Depression

Depression is one of the most common mental health issues in the United States. It’s also a leading cause of suicide, which is why legalizing magic mushrooms could help save countless lives.

As mentioned earlier, psilocybin contains a substance called psilocin that’s been linked to several antidepressant properties. The scientific study on this topic is ongoing, but early studies reveal the great potential for psychedelic drugs like magic mushrooms to help patients suffering from depression.

For now, psilocybin and psilocin remain psychotropic substances of interest. As both drugs are listed as Schedule I substances, the U.S. government closely monitors their study and experimentation. But when considering the fact that so many people try treating depression with various medications that don’t always work, there’s definitely room for magic mushroom businesses to gain their share of the market.

Psilocybin Mushrooms for Anxiety

Psilocybin Mushrooms for Anxiety

As we saw with depression, researchers continue to learn more about how magic mushrooms can help treat anxiety disorders and related health concerns.

In 2020, magic mushroom research showed considerable promise in clinical trials with patients suffering from anxiety. The effects of psilocybin on this condition highlighted the potential provision of long-term relief for anxiety and depression in cancer patients.

The cancer patients that took a single dose of psilocybin actually reported a reduction in anxiety, along with depression, demoralization, hopelessness, and death anxiety for beyond four years following receiving their dose in conjunction with psychotherapy.

With this being the case, we can expect magic mushroom business operators to target this specific issue. According to Biospace, the anxiety disorder and treatment market size is expected to reach $19.81 billion by 2028. Once legalized even by state law, it’s likely that magic mushroom products – including grow kits – once considered illegal will obtain a large share of this market.

Psilocybin Mushrooms for Migraines

Psilocybin Mushrooms for Migraines

Not only are magic mushrooms legal in some countries, they’re also prescribed as a treatment for migraines.

There’s currently no concrete evidence suggesting that magic mushrooms actually prevent or treat the symptoms of migraines. However, early research has found compounds like psilocybin to be effective at helping patients reduce pain and discomfort caused by these debilitating headaches.

The global migraine drugs market was evaluated at $1.713 billion in 2017. It’s believed that this will expand to $2.19 billion by 2025. With this being the case, as more information is uncovered about how these psychedelics can help reduce the symptoms of these painful headaches, entrepreneurs working with these psychedelic plants stand to profit while helping people.

Psilocybin Mushrooms for PTSD

Psilocybin Mushrooms for PTSD

Post-traumatic stress disorder (PTSD) is tied to anxiety disorders, which explains why magic mushrooms can help treat patients suffering from PTSD.

There are several trials that highlight the benefits of psychedelic drugs like psilocybin and LSD in treating severe cases of PTSD. The results were so positive that these substances were considered breakthrough therapies for this mental health condition.

By 2026, the PTSD therapeutics market is expected to grow to $10.679 billion. With this in mind, the therapeutic use of these drugs may become commonplace as criminal prosecution eventually transforms to legal tax revenue.

Once the cultivation, sale, and use of magic mushrooms becomes legal, we expect these therapeutic medications to be openly sold in much the same way cannabis is sold today.

Psilocybin Mushrooms for Sleep Disorders

Psilocybin Mushrooms for Sleep Disorders

The psychoactive properties of magic mushrooms may also help patients suffering from various sleep disorders.

Psilocybin and its effects on the human brain have been studied as a treatment for sleep apnea, narcolepsy, and other conditions. Clinical trials illustrate the great potential for psilocybin in treating these health concerns.

Looking at the total market for Rx and over-the-counter sleep drugs, its estimated value is $2.1 billion in 2020. Once the use of magic mushrooms becomes legal, we can expect these currently uncontrolled substances to obtain their share of the sleep drug use market, offering opportunities for magic mushroompreneurs.

Psilocybin Mushrooms for Pain

Psilocybin Mushrooms for Pain

Pain is one of the most common reasons why people seek medical treatment and relief.

Psilocybin has been linked to several pain-relieving qualities, but not as a means for patients to actually “forget” about their aches and pains entirely. Clinical studies indicate that psilocybin might help some patients cope with pain more effectively.

It’s important to note that magic mushrooms aren’t a quick fix for any of these health concerns or treatments for opioid addiction. The team behind the research is still in the early stages of exploring psychedelic substances as a viable alternative to existing treatments and medications.

The global pain management drugs market is massive, valued at $71.432 billion in 2020. It’s projected to expand to $91.649 billion by 2027, highlighting impressive opportunities for those interested in capitalizing on selling psilocybin mushrooms for pain relief.

Psilocybin Mushrooms for OCD

Psilocybin Mushrooms for OCD

Obsessive-compulsive disorder is a mental health condition that has reached near-epidemic levels, according to the National Institute of Mental Health (NIMH).

As with other mental disorders and addictions, research indicates great potential for psilocybin in treating OCD. Some clinical trials show magic mushrooms to be more effective than conventional treatments like SSRIs (selective serotonin reuptake inhibitors) and clomipramine.

Globally speaking, the OCD drugs market is expected to grow at a rate of nearly 4.8% from 2021 to 2026. At this point, the main products dominating this market include SSRI, TCA, and a small percentage of others.

This expected growth shows an industry that has plenty of space for new products, including but not limited to magic mushrooms in dried form. We can expect mushroom business operators to carve into this space once this drug becomes fully legal.

Psilocybin Mushrooms for Addiction Recovery

Psilocybin Mushrooms for Addiction Recovery

Recovering from addiction isn’t easy. In some cases, the only way to escape a dangerous or uncomfortable situation is by using more of a specific substance.

That’s why psilocybin and its effects on the brain have been linked to drug rehabilitation and treatment programs for patients struggling with addiction.

The addiction treatment industry has plenty of room for mushroom-related drugs. This industry is worth over $35 billion annually, and with so many people interested in turning to psychedelics that heal, it’s apparent that these products will eventually obtain their share of this industry.

Psilocybin Mushrooms Legality

Psilocybin Mushrooms Legality FAQ

Is it legal to consume magic mushrooms? girl eating magic mushroom in dried form

Is it legal to consume magic mushrooms?

This all depends on where you find yourself in the world. Currently, magic shrooms are illegal in many countries including the USA, but some cities have decriminalized or approved using psilocybin for medical reasons.

Are magic mushrooms legal in the UK?

Are magic mushrooms legal in the UK?

The UK continues to outlaw psilocybin despite support from medical professionals to approve it as a treatment for depression. The UK’s home office has cited concerns about their safety and possible long-term effects.

Is it legal to buy or sell magic mushrooms?

Is it legal to buy or sell magic mushrooms?

While some countries have decriminalized or legalized the consumption of psilocybin, it’s still illegal to sell or buy shrooms. Actors in this market can be punished for their part if caught and brought to justice, so it’s important to recognize legal risks before making business decisions.

Equally important to note is that many regions are decriminalizing and legalizing this drug. The benefits far outweigh the risks of a bad trip, and with so many possibilities for this space to flourish, illegal psychedelics are well on their way to becoming a legitimate industry like cannabis.

Are mushrooms illegal in Texas?

Are mushrooms illegal in Texas?

Mushrooms are not fully legalized or decriminalized in the U.S., so it’s currently illegal to buy and sell magic mushrooms in Texas. If you’re caught in possession of any amount of shrooms in Texas, this is a felony-level offense. Even those who are caught with a small bag containing remnants of shrooms can be arrested on a felony charge.

Are mushrooms legal in Vegas?

Are mushrooms legal in Vegas?

Shrooms are illegal in Vegas. Just as it is a felony to have cocaine, heroin, ecstasy (MDMA), LSD, methamphetamine, or ketamine, it’s also a felony to possess psilocybin in Vegas. Even if you’re in a private place with any of these drugs for personal consumption, you can be arrested and charged.

Is it legal to grow psychedelic mushrooms?

Is it legal to grow psychedelic mushrooms?

This all depends on where you are in the world. For example, you might find grow kits are legal to obtain. However, it might still be illegal to grow the shrooms. In California, cultivating “any spores or mycelium capable of producing mushrooms or other substance” that contain psilocybin or psilocin is illegal if it’s an activity that’s done with the intent of producing the illegal chemicals, psilocybin or psilocin.

Concluding on Magic Mushroom Legality

As legalization continues to make progress, we believe the magic mushroom industry has the potential to become the next cannabis sector. Through continuous efforts to decriminalize and legalize these fungi for recreational and therapeutic utilization, the marketplace will become established.

At Northstar, we want to provide financial services to this industry as it develops. We’re here at the spore of it, and we plan to continue offering support as the mushroom industry continues its expansion.

Have questions about how to scale your magic fungus operation? Contact us now to learn how our team of experts will support your goals!