Functional Mushroom Market Size And Share Report, 2030

Functional Mushroom Market Size & Trends

The global functional mushroom market size was valued at USD 31.71 billion in and is expected to grow at a compound annual growth rate (CAGR) of 11.2% from to . This can be attributed to the growing popularity of functional mushrooms as superfoods due to their numerous health advantages. Functional mushrooms can be found in a variety of healthcare and pharmaceutical products. As a result, their demand is likely to grow over the forecast period. In addition, increasing product application scope in the pharmaceutical industry as a health supplement is further driving industry growth.

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This created a disturbance in the supply chain of the industry. Food manufacturing and processing plants were shut down for a brief period to safeguard the health of workers, which, in turn, affected the production capacity. Moreover, due to the global lockdown, the procurement of raw materials was difficult owing to restrictions on international trade activities. Delays in shipments due to restrictions on the movement of people also caused a shortage of raw materials, thereby increasing their prices that eventually raising the costs of functional mushrooms. However, the demand for functional mushrooms increased during the pandemic due to their health benefits, such as immunity-boosting properties, which had a positive impact on the global industry.

A diet high in protein has become increasingly popular over the past few years with the growing consumer awareness about maintaining overall health. Rising consumption of packaged food products due to hectic lifestyles will also support industry growth. To appeal to a customer base that is health-conscious, packaged food manufacturers are enhancing food products with nutritive ingredients, such as functional mushroom extracts or powders. The present production of protein through livestock is negatively impacting our planetary life-support systems. To fulfill the protein needs, livestock production is also growing, which is leading to a significant increase in the emission of Greenhouse Gases (GHG), creating sustainability issues.

Thus, a major focus is being laid on alternative protein sources. This trend is expected to boost industry growth in the coming years. Eating a plant-based diet has become popular, particularly among young people who care about animal welfare and the environment. As per the Alliance for Science and a study by Kansas State University, as of January , about 10% of Americans over the age of 18 years were vegetarian or vegan. Functional mushrooms are anticipated to be used in a variety of medicinal and health products in the long run. This broadens the range of product applications in the food and beverage industries. Moreover, the industry is expanding as a result of the growing use of such mushrooms as functional ingredients in the pharmaceutical and nutraceutical sectors.

Functional mushroom extracts have been experiencing a notable trend in recent years, driven by a growing interest in natural health solutions. Consumers are increasingly drawn to the concentrated and potent forms of functional mushrooms, such as Reishi, Lion's Mane, and Cordyceps, available in extract form. This trend is evident in various product offerings, including tinctures, powders, and liquid extracts. The appeal lies in the convenience and versatility of incorporating these extracts into daily routines, whether through beverages, smoothies, or other culinary creations.

The immune system efficiency can be increased by consuming functional mushrooms and products derived from mushrooms, according to numerous scientific studies, which has further led to the expansion of this market. Functional mushrooms have a short shelf life of one to three days because of the high water content in them. As a result, post-harvest transportation and storage are essential for a functional mushroom value chain. Even when high-quality mushrooms are grown, poor transportation practices can cause quality to decline, which lowers the product&#;s final cost. The majority of mushrooms, including paddy straw mushrooms, have a very short shelf life of only a few hours; as a result, they must be processed, preserved, or refrigerated as soon as they are harvested to reduce post-harvest losses. This is anticipated to be a market restraint.

The medicinal mushroom market is growing in popularity due to its various health benefits. Some of the functional mushroom benefits include immune support, with varieties like Reishi, Shiitake, and Turkey Tail exhibiting immunomodulatory properties. Lion's Mane is associated with cognitive benefits, potentially enhancing memory and concentration. Cordyceps is known for its potential to boost energy and endurance, making it popular among athletes. Many functional mushrooms, including Chaga and Maitake, are rich in antioxidants, providing a defense against oxidative stress. Reishi is often linked to stress reduction, promoting a sense of relaxation .

Market Concentration & Characteristics

The functional mushroom market has demonstrated a notable degree of innovation, marked by diverse product offerings and a focus on meeting evolving consumer preferences. Companies in this space have expanded beyond traditional supplement formats, introducing functional mushrooms in various convenient forms such as capsules, powders, tinctures, and infused products like coffee and teas. Mushroom blends, strategically formulated to address specific health concerns, have gained popularity, reflecting a trend toward personalized wellness solutions. The integration of functional mushrooms into everyday products like coffee and snacks has provided consumers with accessible ways to incorporate these health-promoting ingredients into their daily routines. Sustainability and organic practices are emphasized, catering to the growing demand for ethical and environmentally friendly sourcing.

Companies focus on strategic acquisitions to expand their presence overseas and reinforce their position in the market. Over the next few years, internationally reputed companies are likely to acquire small-and medium-sized companies operating in the industry in a bid to facilitate regional expansion.

Regulations play a pivotal role in shaping the functional mushroom supplements market, influencing various facets of the industry. One significant impact lies in the establishment of quality and safety standards, ensuring that products meet specific criteria and maintain consumer health and confidence. Strict regulations governing labeling and marketing claims contribute to transparent information dissemination, preventing misleading practices and providing consumers with accurate details about the products they purchase. Adherence to Good Manufacturing Practices (GMP) is essential for consistent product quality, fostering trust and reliability. Product registration and approval processes, where required, underscore safety and efficacy evaluations before market entry. International trade and market access are influenced by varying regulatory landscapes, necessitating compliance with diverse standards.

Product Insights

The shiitake product segment dominated the industry with the highest revenue share of nearly 34% in . This was owing to the product&#;s rising demand for its nutritional and medicinal benefits. These mushrooms help strengthen the immune system, promote cardiovascular health, help with weight loss, and boost energy levels. Furthermore, shiitake mushrooms are used in the food industry as well as the dietary supplements industry. As shiitake mushrooms have an umami flavor, dried shiitake mushrooms are highly popular among consumers across the globe. Moreover, both fresh & dried shiitake mushrooms are used in stir-fries, soups, stews, and other Asian cuisines.

The reishi segment is estimated to register the fastest CAGR during the forecast period. Reishi mushrooms are beneficial for strengthening the immune system as the consumption of reishi mushrooms impacts white blood cells and improves the immune function of the human body. Moreover, along with the immune system benefits, it also reduces fatigue and depression. Reishi mushrooms also have other potential health benefits that include improved heart health and blood sugar control and can act as an antioxidant in food & dietary supplement applications. These factors are expected to boost segment growth in the coming years.

Application Insights

On the basis of applications, the industry has been categorized into food & beverage, dietary supplements, pharmaceuticals, and others. The food and beverage application segment dominated the global industry in and accounted for the highest share of 41.9% of the overall revenue. The changing lifestyle of consumers, the increasing urban population, and growing disposable income levels are some of the key factors influencing consumers to opt for healthy eating habits. Thus, consumers across the globe are adopting functional mushroom-infused foods and beverages in their diets.

Therefore, the global food processing industry has been capitalizing on this trend, and it is expected that this trend is likely to boost the demand for functional mushrooms over the forecast period. The pharmaceutical application segment is expected to witness the fastest CAGR from to . Functional mushrooms are rich in various bioactive compounds, including antioxidants, such as flavonoids, quercetin, baicalein, polyphenols, polysaccharides, triterpenes, proteins, amino acids, and organic germanium. Thus, functional mushroom extracts are used as an ingredient in formulating medicinal or supplement products for diabetes, hypertension, sleeplessness, vitality, cancer, and hypercholesterolemia. This is expected to fuel the segment growth during the forecast period.

Functional mushroom supplements have witnessed a surge in popularity due to increasing consumer awareness of their potential health benefits. Recognized for their adaptogenic properties, functional mushrooms like Reishi, Chaga, Cordyceps, Lion's Mane, and Shiitake are being incorporated into various wellness routines. Blends of multiple mushroom varieties are common, offering a broader spectrum of health advantages.

Regional Insights

The North America functional mushroom market is projected to grow at a CAGR of over 12% from to . This is attributed to a rise in the popularity of these mushrooms as superfoods. Functional mushrooms are becoming more popular in developed areas because they are a superior alternative to numerous other nutritious foods. Furthermore, increased consumer awareness about maintaining overall health and well-being will support the region&#;s growth.

The growing preference for a vegan diet is also anticipated to drive demand for functional mushrooms in North America. Asia Pacific was the dominant region in owing to the majority of mushrooms being grown in China. Another key factor driving the regional market was the high demand for such mushrooms as a result of their potential as functional foods. There is also a high demand for functional mushrooms in the food and beverage industry of the Asia Pacific region owing to an increase in the usage of these mushrooms in regular diets as a nutritious food option.

The Europe functional mushroom market is expected to grow at a CAGR of 11.4% from to . The global influence of holistic health and the exploration of traditional remedies contribute to the acceptance of functional mushrooms as a part of preventive health practices. The functional mushroom market in the UK is expected to grow at a CAGR of 11.5% from to .

India functional mushroom market

The functional mushroom market in India is expected to grow at a CAGR of 10.9% from to . The traditional use of mushrooms in Ayurvedic medicine has played a role in fostering acceptance and awareness among people in India.

U.S. functional mushroom market

The growth of the functional mushroom market in the U.S. is fueled by scientific research that validates the traditional uses of mushrooms and explores their therapeutic properties. Innovations in product formulations, including mushroom-infused supplements, beverages, and food products, have also played a crucial role in making functional mushrooms more accessible to a wider consumer base in the U.S.

Germany functional mushroom market

The functional mushroom market in Germany is experiencing growth, driven by increased awareness of health and wellness, with consumers seeking natural and plant-based solutions to support their well-being.

Key Functional Mushroom Company Insights

Major players are investing heavily in R&D to focus on new product development while expanding their distribution network.

Recent Developments

• In November , South Mill Champs, a North American grower and provider of fresh and functional mushrooms, has completed the acquisition of World Fresh Produce, a global organization specializing in sourcing fresh produce. This strategic move strengthens South Mill Champs' presence in the produce market, leveraging its mushroom expertise alongside World Fresh Produce's focus on specialty produce items.

• In September , American Rapper & Singer, Wiz Khalifa launched a new brand called MISTERCAP'S, in partnership with Red Light Holland, which promotes healthy living through the use of mushrooms. The brand is marketed as a "mushroom-forward brand promoting healthy living via natural organic mushrooms.

• In August , Applied Food Sciences Inc. (AFS) revealed a strategic collaboration with KÄÄPÄ Biotech, a Finnish company known for its expertise in fungi cultivation and research. This partnership includes AFS making an equity investment and seeks to diversify AFS' predominantly botanical range by incorporating functional mushroom extracts sourced from Nordic cultivation. The objective is to meet the increasing demand in the functional mushroom market through a partnership with a mycology-focused company, ensuring the supply of top-notch ingredients for product formulators.

Functional Mushroom Market Report Scope

Global Functional Mushroom Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segment from to . For the purpose of this study, Grand View Research has segmented the global functional mushroom market report on the basis product, application, and region:

Mushrooms are having a moment in the Western world. As indoor and outdoor mushroom cultivation, psychedelic mushroom therapy, and myceliated meat replacements have entered the zeitgeist so has the medicinal potential of fungi. People are increasingly seeking ways to improve their health and well-being. As a result, the nutritional supplement market has become flush with products of all types&#;including numerous mushroom powders, mushroom capsules, and mushroom extracts.

Before you invest in mushroom tinctures, drops, mushroom powders, mushroom capsules, elixirs&#;or the like&#;be aware that not all mushroom-branded supplements are created equal. Or, as many mycologists and industry experts would point out, not even close. Let's navigate the world of mushroom supplements together.

The Basics

The kingdom Fungi is estimated to be one of the most diverse groups of organisms on earth&#;second only to insects. Those fungi that have been identified and catalogued represent a small percentage of the total estimated diversity, meaning there is an abundance of undiscovered species still waiting to be found and described.

The cap and stem that most people would pick and identify as &#;a mushroom&#; is actually just the fruiting body, or reproductive structure of a larger fungal organism. The majority of the fungus exists underground, in the wood, soil, or other material the mushroom is growing from. This filamentous web, the mycelium, serves as the vegetative body of the fungus, accessing resources and growing through its environment. Think of it like this: a mushroom is akin to an apple and mycelium is akin to an apple tree.

Let's touch on a little bit of fungal biology. The kingdom Fungi is estimated to be one of the most diverse groups of organisms on earth&#;second only to insects. Those fungi that have been identified and catalogued represent a small percentage of the total estimated diversity, meaning there is an abundance of undiscovered species still waiting to be found and described.

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The cap and stem that most people would pick and identify as a mushroom is actually just the fruiting body, or reproductive structure of a larger fungal organism. The majority of the fungus exists underground, in the wood, soil, or other material the mushroom is growing from. This filamentous web, the mycelium, serves as the vegetative body of the fungus, accessing resources and growing through its environment. Think of it like this: a mushroom is akin to an apple and mycelium is akin to an apple tree.

The reason fungi produce mushrooms is to create a structure that is capable of releasing billions of spores&#;some of which will eventually find a suitable growing medium, germinate, and produce a tiny strand of tissue one cell thick called a hypha. Hyphae grow out through their environment in a dendritic pattern, seeking water and nutrients. This massive branching network is called mycelium. Eventually, the mycelium will encounter a compatible mycelium and fuse together, swapping nuclei. Once joined, this dikaryotic (having two sets of nuclei) mycelium is capable of sexual reproduction. Environmental conditions, like a loss of food, space, change in humidity or temperature, can trigger the mycelium to condense and form a mushroom, starting the process anew.

Although mushrooms are fundamentally composed of mycelium, supplements made from mushrooms are not the same as supplements made from mycelium. Remember it, memorize it, live by it.

The reason fungi produce mushrooms is to create a structure that is capable of releasing billions of spores - some of which will eventually find a suitable growing medium, germinate, and produce a tiny strand of tissue, one cell thick called a hypha. Hyphae grow out through their environment in a dendritic pattern, seeking water and nutrients. This massive branching network is called mycelium. Eventually, the mycelium will encounter a compatible mycelium and fuse together, swapping nuclei. Once joined, this dikaryotic (having two sets of nuclei) mycelium is capable of sexual reproduction. Environmental conditions, like a loss of food, space, change in humidity or temperature, can trigger the mycelium to condense and form a mushroom, starting the process anew.

Although mushrooms are fundamentally composed of mycelium, supplements made from mushrooms are not the same as supplements made from mycelium. Remember it, memorize it, live by it.

Many health benefits of mushrooms were identified by ancient cultures. In addition to being a culinary delight, they have been used for thousands of years in Traditional Chinese Medicine. Though mushrooms in their wild form have been used as food and medicine by numerous peoples throughout history, Asia is the home to the first documentation of mushroom cultivation; the cultivation of shiitake mushrooms, for instance, is believed to have originated in China in the 12th century. Still today, China produces the vast majority of the world&#;s mushrooms.

In fact, China has been a pioneer in modern scientific research of medicinal mushrooms as well as medicinal mushroom growing. While commercial mushroom production in the US is still primarily conducted indoors, in climate controlled rooms, with racks full of substrate in plastic bags, another technique is used in China. There, low tech outdoor methods produce medicinal mushrooms more efficiently and sustainably.

It is also important to point out that, while fruit bodies have a long history of human use, humans have only been able to grow the mycelium from an isolated species for roughly 100 years.

The potential of medicinal mushrooms are vast: Chaga (Inonotus obliquus), Reishi (Ganoderma lucidum), Turkey Tail (Trametes versicolor), Maitake (Grifola frondosa), and Shiitake (Lentinula edodes) have all been found to bolster the immune system, promote longevity and support overall health. Cordyceps (Cordyceps militaris) boosts energy and virility. Lion&#;s Mane (Hericium erinaceus) has the potential to relieve cognitive impairment, Alzheimer&#;s and dementia and assist in nervous system trauma recovery. Many of these medicinal mushrooms are helpful in the prevention and treatment of diabetes and cancer. What&#;s more, medicinal mushrooms can increase protection against viral, bacterial, fungal and parasitic infections.

On the other hand, mushroom supplements that aren&#;t made with fruiting bodies&#;the classic, recognizable parts of mushrooms&#;involve growing mycelium on grain, which is then dried and ground into mushroom powder. It&#;s a simpler and faster process, but one that yields a far inferior mushroom supplement. Essentially, the product is mostly grain with some added mushroom mycelium for good measure.

Many mycologists believe making mushroom extracts from fruiting bodies is the most efficacious, natural, tried-and-true method to extracting supplements. This is because, they say, the mushroom supplement being extracted is 100 percent mushroom-based&#;thus, the end supplement is of a higher quality, offering a concentrated form of glyconutrients and other medicinal mushroom constituents. Not to mention the accumulated knowledge of generations of healers that have worked exclusively with mushroom fruit bodies.

He points out that the mycelial structure of the mushroom fruit body is much more complex than the vegetative mycelium, and the mushroom also produces numerous natural compounds that the mycelium simply does not.

Although, it should be pointed out, the mycelium does contain similar nutritional value to the fruiting body&#;in fact, some food products like tempeh are made only from mushroom mycelium&#;but the important thing to remember is that the mycelium is not concentrated like it is when in fruit body form.

Mycelium: The Other Side

Meanwhile, one of the most prolific proponents of mycelium products is mycologist Paul Stamets, who has penned several books&#;including &#;Mycelium Running: How Mushrooms Can Help Save the World&#;&#;and given numerous talks on the subject. He is the owner of Fungi Perfecti LLC, which cultivates a wide variety of fungi for supplements through Host Defense Mushrooms.

As explained on its website, Host Defense&#;s process for its powder or capsule products involves inoculating pure, certified organic fungal strains onto a brown rice substrate, growing them under controlled conditions, freeze drying them and then heating them to 200 F. Only the tincture line contains true extracts (solubilizing compounds in water and/or alcohol). Though even there, the extracts are primarily of mycelium grown on brown rice, rarely of fruiting bodies.

As Paul Stamets posits, during cultivation, the mycelium digests rice substrate by secreting enzymes to break down the grain; in the end, this increases the mycelial mass while reducing the presence of grain. The two become enmeshed&#;so, in the end, removing what is left of the grain substrate is simply not practical at a production scale. Reflecting this difficulty of separation, even in their published study the authors chose to just scrape off the aerial mycelium they could see with a scalpel blade, then ignore what remained in the leftover substrate and call them separate. This makes the resulting comparisons somewhat questionable. Furthermore, the study tried to compare two parts of a product that some of the authors were selling, the mycelium and its substrate, but not the fruiting bodies that are the industry standard for medicinal extracts.

The findings from the study do show it is possible that this immunological activity occurs from mycelium and its substrate. Unfortunately, the sample sizes in the study were so small as to be statistically meaningless (ever rolled the same number three times in a row with a six-sided die?). This means that although the authors might like to make some assertions, they don&#;t have the data to do so. Even one of the study reviewers asked for an additional reviewer with statistical expertise to provide review, but the editor for whatever reason chose not to have this review done.

Proponents of mycelium-based products, including Stamets&#; company, will use this study to support their use of rice media in medicinal supplements. As the study authors suggest, &#;The rice is not simply a filler...The rice is the starting material, but during the fermentation process a biotransformation occurs, altering the substrate, which gives it health-supporting properties.&#;

Paul Stamets himself asserts, &#;In my scientific opinion, mushroom products not incorporating mycelium are at a decided disadvantage.&#;

Still, many mycologists, Jeff Chilton included, refute these claims. He and Paul Stamets have taken divergent paths on the subject over the past several decades; the two actually wrote a book together in , &#;The Mushroom Cultivator: A Practical Guide to Growing Mushrooms at Home.&#;

According to Chilton, the worldwide market value of medicinal mushrooms is growing rapidly, having more than doubled from $6 billion USD in to $18 billion USD in . The North American market has likewise expanded exponentially over the last 25 years, he adds, and today just about every company that offers all manner of nutritional supplements has at least one mushroom supplement&#;or two or three&#;in its product line.

That&#;s not to mention the many companies (North Spore included) that are specifically dedicated to growing and selling mushrooms, mushroom products, and at-home grow kits. As Chilton puts it: &#;One might say that medicinal mushrooms have arrived, and in view of their growth trajectory, are destined to become a much bigger market in North America.&#;

Still, despite the high growth, there is little to no quality control in the industry. His ultimate goal: To have a comprehensive screening process that qualitatively and quantitatively measures any given medicinal mushroom product. This is essential, he notes, to keep the marketplace stocked with high-quality products with medicinal value, while also promoting strong consumer confidence.

At this point, however, that level of quality control remains problematic. There are medicinal mushroom product labeling requirements from the U.S. Food and Drug Administration (FDA) directing manufacturers to distinguish whether the product contains actual mushroom or just mycelium. But many respected mycologists like Chilton point out that these are not highly enforced and that many companies simply flout the requirements. The same is true of labeling guidelines from the American Herbal Products Association.

As a point of fact: One scientific report published in tested 19 batches of reishi supplement products, most of which were sold through Amazon and eBay. Of those, just five tested in accordance with their labels. According to the study, that meant they only contained some element of reishi.

On June 7th, , Jeff Chilton filed a citizen petition requesting that the Food and Drug Administration "address the mislabeling of dietary supplements and functional foods as 'mushroom' or containing 'mushrooms' when they contain other fungal parts, and do not contain 'mushrooms' as claimed, or fail to disclose added grain ingredients." On November 30th, the FDA issued an interim response stating that they had not yet made a decision but their staff continue to evaluate the petition.

On July 3rd, Fungi Perfecti, along with M2 Ingredients, Gourmet Mushrooms, and Monterey Mushrooms published an open letter in response to the citizen petition, claiming the Nammex petition &#;obfuscates the use of well-established mycological definitions&#; by advocating to &#;eliminate the use of the word &#;mushroom&#; in products using mushroom mycelium.&#; The open letter goes on to claim that &#;the word &#;mushroom&#; can both be a noun and used as a qualifier as to the stage of the life cycle&#; and according to Nutraceutical Business Review, the &#;collective industry use of &#;mushroom mycelium&#; is scientifically accurate, just as the use of &#;mushroom spores&#;, &#;mushroom fruit bodies&#; are "descriptively accurate" and removal of the word &#;mushroom&#; from fungi-derived products would cause unnecessary confusion on the part of the consumer. The open letter concludes with the following statement: &#;We do not have any issues with mushroom fruit bodies. We utilize this life stage as well. We find mushroom mycelium has added benefits as demonstrated by scientific research.&#;

On August 8th, the Natural Products Association filed their own citizen petition, calling on the FDA to amend the Federal Food, Drug and Cosmetic Act to incorporate mushroom labeling guidelines put forth by the American Herbal Products Association and call for the agency to &#;issue a labeling guidance of its own, and exercise enforcement discretion in the meantime.&#;

On November 30th, , the FDA issued an interim response stating that they had not yet made a decision but their staff continue to evaluate the petition. Given that the market for North American mushrooms is expected to nearly double from $12 billion to $20 billion per year by , &#;regulating the definition of a mushroom puts billions of dollars on the line&#;and could impact consumer health as well.&#;

Then there is the importance of the color: If your mushroom supplement is a mushroom powder or mushroom capsule the color of the mushroom powder inside should be dark and rich. If the mushroom powder is light, it&#;s most likely grain-based. If it&#;s difficult to tell if a medicinal mushroom supplement seems lighter than it should be, Chilton suggests doing an iodine starch test, which is as simple as it sounds: Add a few drops of iodine to the mushroom powder. If it turns black, it is high in grain starch. Genuine mushroom supplements do not change color when subjected to iodine.

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