After Cannabis, Is The Next Startup Boom Mushrooms?
The widespread legalization of psychogenic products has created a multi-billion-dollar boom in cannabis tech, research, and investment. Cannabis used to be illegal and used for only recreational purposes before legalization. But, due to a large number of research and proven medical benefits, cannabis became a favorite among investors. It led to the launch of many cannabis products like edibles, oil, tinctures, skincare, and personal care products that will help in your Sleep Relief.
Similarly, the psychogenic mushroom is also all set to create a new strand of food and medicines. But, the question is, do mushrooms hold the same potential as cannabis?
Post cannabis legalization, regulators, investors, and manufacturers are looking into other natural remedies lawfully possible for consumers. The burgeoning cannabis products are showing a new opportunity for another naturally occurring psychedelic drug called magic mushroom. Magic mushrooms have a significant impact on brain chemistry and are set to create the next significant wave in America.
Investors are hopeful of making the most of this new space. New businesses are sprouting up to present consumers with shrooms products and health benefits, whereas investors are looking for opportunities in this new, formative market.
In this article, we are listing some of the business parameters and factors that make the shroom boom a lucrative idea for startups.
- Medical Research backing shroom
Before starting any venture in natural drugs or supplements, it is vital to have scientific data to back up the claims of the product and verify that it will not be just a fad. One can understand the magic mushroom industry’s potential by studying medical research on psilocybin, one of the key active psychedelic compounds in magic mushrooms. Even though the effect of psilocybin has been recognized for centuries, it is only now that many pieces of research conducted have begun to explore and unlock its medical potential.
The studies show tremendous acceptance from health professionals and institutions. As per a ScienceDaily article, the psilocybin compound in mushrooms helps alleviate anxiety in people. Research reveals that drinking mushroom tea can induce calming sensations in people with anxiety. Similarly, another Journal states that magic mushroom can be an excellent remedy for digestive issues by increasing bile secretion. It can help people who have stomach pain, irregular bowel movement, and low appetite.
Just like cannabis is an excellent supplement for fitness enthusiasts, Magic mushrooms also contribute to the gym-goers or even people who work hard to maintain a healthy lifestyle. Sipping mushroom tea can be a great way to reduce fatigue and speed up muscle recovery. It helps a person feel energized and rejuvenated.
Cancer is also a relevant field of study for magic mushrooms efficacy. Researchers experimented on the effect of psilocybin on the brain and found that it can be useful in curing mental problems and promoting the growth of new brain cells. It is big news for the shroom industry, as psilocybin can help protect cancer patients from any nerve damage caused by chemotherapy.
In fact, Johns Hopkins University has inaugurated a new psychedelic research center, funded by an Angel Investor, Tim Ferriss, focuses on studying psilocybin’s potential. Now that we know shrooms have notable scientific credibility let us look at the next essential factors for a startup shroom business: investors and markets.
- Investors and Markets
Tim Ferris is not the only investor interested in magic mushroom growth. MindMed, a company that focuses on turning psychedelic into medicine, is funded by angel investors. The restrictions on firms on the use and trade of psilocybin shrooms are relaxing. This is a huge chance for many startups to find financial stability in the psychedelic market with investor funding backed by medical research.
Recently Champignon shares became listed on the Canadian Securities Exchange, demonstrating the trust that international markets have in magic mushrooms. Like the cannabis market started from North America and then expanded to different parts of the world, the Mushroom industry is also targeting health-conscious consumers worldwide. That brings us to our third parameter, the target audience or potential customers of magic mushroom.
For a startup boom to happen in any industry, one has to analyze their target audience and potential consumers. First, let’s see the consumers of the cannabis industry. As per market analysts, there are over 272 million cannabis users worldwide. Almost 67 percent of cannabis consumers are baby boomers, which is more than the Millennials also. They consume cannabis for its health and medicinal properties.
For magic mushrooms, the number of existing users is mind boggling. According to a DrugPolicy.Org article on psychedelic use in the US, the estimated number of annual psilocybin mushroom users is close to 200000. For lifetime users of psilocybin mushrooms, the figure is a staggering 15 million according to a 2010 survey.
This is the situation only in the United States. Wait till you look at the existing consumers in South-East Asian countries like Indonesia, Thailand, Laos, etc. where the number is in the upper millions. Some of these countries have used magic mushrooms for centuries as traditional medicine. Imagine the diversified consumer base that a startup can tap into.
With the latest news articles like the one in the Guardian, psychedelic consumers realize that magic mushrooms are the safest among all psychedelic drugs, thus providing for a shift from harmful drugs to shrooms. The health benefits of shrooms are also attracting non-psychedelic consumers, especially those in the food industries.
- Shroom products
Like popular cannabis concentrates, such as baked goods, gummies, and chocolates, psilocybin products have high demand not only in the health sector but also in the retail space. The organic foods industry has an annual double-digit growth rate, with annual revenues of over 200 billion dollars globally.
There will be an exponential boom in creative mushroom products with companies manufacturing drinks like mushroom-infused cold coffee, tea, and other psilocybin edibles.
Based on the above parameters, psilocybin or magic mushrooms provide a fantastic opportunity to budding entrepreneurs in the startup space of natural psychedelics. The science behind shrooms, the investors, and the shrooms’ product space are well-poised for the next disruption in the alternative natural products industry.