Chaga Mushrooms Market Size, Share & Industry Analysis, By Nature (Conventional and Organic), By Form (Powder and Liquid), By Application (Food and Beverages, Dietary Supplements, Personal Care & Cosmetics, and Pharmaceuticals), and Regional Forecast, 2025-2032

The global chaga mushrooms market size was valued at USD 1.36 billion in 2024. The market is projected to grow from USD 1.47 billion in 2025 to USD 2.63 billion by 2032, exhibiting a growth at a CAGR of 8.65% during the forecast period. Asia Pacific dominated the chaga mushrooms market with a market share of 58.09% in 2024.

A few key players in the market include BASF SE, Malama Mushrooms, Pawse, and others. 

Chaga mushrooms, commonly known as Inonotus obliquus, are a parasitic fungus that grows on birch trees, especially in Northern regions. These mushrooms are characterized by their black, hard exterior and have a similar appearance to burnt charcoal. For centuries, it has been utilized as a traditional medicine in parts of Northern European countries, owing to its various health advantages. Predominantly, this mushroom is utilized in folk medicine, specifically for its antiviral, anti-inflammatory, and potential antioxidant properties. Moreover, it is helpful in treating high blood sugar and acts as a prebiotic, which promotes healthy gut bacteria. Additionally, chaga offers hepatoprotective properties and supports the immune system. Besides this, mushrooms are also used in the cosmetics, food & beverage, and supplements industry.

The increasing awareness of plant-sourced ingredients and improved technological advancements are the crucial factors responsible for the market’s growth.

Global Chaga Mushrooms Industry Key Takeaways

Market Size & Forecast:

• 2024 Market Size: USD 1.36 billion
• 2025 Market Size: USD 1.47 billion
• 2032 Forecast Market Size: USD 2.63 billion
• CAGR: 8.65% from 2025–2032

Market Share:

• Asia Pacific dominated the chaga mushrooms market with a market size of USD 0.79 billion in 2024, driven by rising demand for natural health-boosting products, growing popularity of traditional medicine, and expansion of the functional food & beverage sector across China, Japan, and South Korea.
• By nature, the conventional segment led the market in 2024 owing to its cost-effectiveness and wide availability, while the organic segment is expected to witness the fastest growth, supported by increasing consumer awareness of sustainable and chemical-free products.

Key Country Highlights:

• China: Growing acceptance of alternative medicine practices and expanding supplement industry are boosting the adoption of chaga-based health and wellness products.
• Japan: High consumer preference for natural supplements and traditional functional ingredients fuels demand in the cosmetics and nutraceutical sectors.
• United States: Rising awareness of adaptogens and functional ingredients drives chaga’s incorporation into coffee, tea, and dietary supplements, with companies like Laird Superfood introducing mushroom-based products.
• Germany: Growing popularity of plant-based diets and clean-label wellness trends support market growth through increased use of chaga in beverages and pharmaceutical formulations.
• Brazil: Expansion of private-label players and rising consumer focus on natural ingredients contribute to emerging market potential.
• UAE: Increasing interest in preventive health solutions and availability of chaga-infused supplements are fueling adoption across premium wellness markets.

MARKET DYNAMICS

Market Driver

Increasing Awareness of Health Benefits Drives Industry’s Growth

The surging awareness of the health advantages of chaga mushrooms is a key driver fueling the market’s growth. In today’s health-conscious era, the majority of consumers are seeking clean-label and natural substitutes to synthetic items, which benefits chaga fungi. This demand is further supported by a sudden shift toward functional ingredients and the popularity of adaptogens amongst Gen Z and millennials. Additionally, the market expansion of supplements and nutraceuticals has improved the incorporation of chaga into capsules, powders, and immunity-boosting products. As a result, by witnessing such advantages, the companies are focusing on launching chaga-enriched supplements/cosmetics/beverages which appeal to consumers globally.

Market Restraints

Rising Health Concerns and Tough Competition from Substitutes Inhibit the Market’s Potential

One pivotal challenge faced by producers is the growing prevalence of health ailments. Compared to other fungi, such mushrooms have a high amount of oxalates, which increases the risk of osteoporosis and kidney stone formation, and are not advisable for consumers with sclerosis and those who are on insulin medication. Moreover, this variety of mushrooms can reduce blood sugar and increase the risk of hypoglycemia for individuals with diabetes. Additionally, chaga fungi contain a protein known for lowering blood clotting, further creating risk for individuals with bleeding disorders. Beyond this, it can also worsen autoimmune diseases, such as rheumatoid arthritis and lupus. As a result, the aforementioned factors hamper the industry’s growth.

Stiff competition from alternatives is another strong hurdle in the global market. The chaga mushroom market faces tough competition from medicinal mushrooms (cordyceps, lion’s mane, and shiitake) and other adaptogenic botanicals, which impede the market’s momentum.

Market Opportunities

Technological Advancements in Extraction Methods Create Growth Chances

The rising adoption of advanced technology in extraction methods opens numerous growth opportunities in the global market. Techniques such as microwave-assisted extraction and ultrasonic-assisted extraction are being used by companies to improve extraction efficiency and enhance the release of beneficial components. Moreover, the dual extraction method can be utilized to isolate both terpenoids (alcohol-soluble compounds) and beta-glucans/polysaccharides (water-soluble compounds). Apart from this, subcritical water extraction is emerging as an eco-friendly technology that yields large amounts of glucans and polysaccharides. Furthermore, advanced technology can be utilized to cultivate chaga in a sterile and controlled environment, which leads to a standardized and more consistent item.

Chaga Mushrooms Market Trends

Surging Inclination Toward Functional Cosmetics is the Prominent Trend

Functional cosmetics are an ongoing and substantial trend, characterized by items that offer specific advantages more than simple aesthetics. Predominantly, these beauty products utilize active ingredients such as vitamins, peptides, and acids to improve their efficacy and stability. Moreover, mushrooms are also widely used in functional personal care items for their skin brightening, anti-inflammatory, and antioxidant properties. Moreover, chaga has melanin, which offers natural defense against sun damage. Additionally, the polysaccharides in mushrooms act as humectants, which contribute to skin hydration. Furthermore, according to research studies, chaga minimizes wrinkles and fine lines of skin and protects it from oxidative stress caused by UV radiation. 

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SEGMENTATION ANALYSIS

By Nature

Conventional Segment Leads Market Owing to Its Cost-Effectiveness

On the basis of nature, the market is distributed into conventional and organic.

The conventional segment dominated the global marketplace in 2024. Compared to organic mushrooms, conventional chaga is economical and provides numerous potential health advantages. These mushrooms offer anti-inflammatory properties and also help to reduce low-density lipoproteins. Moreover, it possesses antiviral and antibacterial properties and enhances insulin sensitivity. Additionally, it is packed with antioxidants, which protect the consumer’s body from oxidative damage.

The organic category is the fastest-growing segment and held the highest CAGR during the forecast period. The increasing awareness of the harmful effects of chemicals and the growing demand for sustainably sourced products are anticipated to augment the global chaga mushrooms market growth. 

By Form

Powder Form Dominated Market Owing to Its Versatility

Based on form, the market is segmented into powder and liquid.

The powder segment leads in the market and generated the highest share in 2024. In comparison to liquid, powdered ingredients have a prolonged shelf life and can be easily stored and handled. Moreover, they are more stable as compared to liquids and can be incorporated into numerous food & beverage recipes. Additionally, the precise dosing advantage and cost-effective factor over the liquid ingredient drive the segment’s growth.

The liquid sector held the highest CAGR during the forecast period. The faster absorption rate and flexibility in dosing boost its usage in various applications.

By Application

Pharmaceutical Sector Led Market Due to Therapeutic Benefits

Depending on application, the market is distributed into food and beverages, dietary supplements, personal care & cosmetics, and pharmaceuticals.

Amongst all, the pharmaceutical sector led the industry in 2024. This variety of mushrooms has gained utmost traction in the pharmaceutical industry owing to its potential health advantages. Chaga is known to be well-tolerated by individuals and offers bioactive compounds that aid in combating infections. Moreover, its high beta-glucan and antioxidant content help to enhance the immune system and protect human cells from damage. Thus, such benefits escalate the consumption rate of chaga.

The personal care & cosmetics sector emerged as the fastest-growing segment in the global market. The rising awareness of functional cosmetics and the wide availability of natural ingredients promote the global chaga mushrooms market share.

Chaga Mushrooms Market Regional Outlook

Based on regions, the market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific

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Asia Pacific dominated the global market and held the highest share in 2024. In this region, the majority of Asians are seeking natural health boosting substitutes that improve the demand for supplements and functional food products, composed of chaga. Moreover, the growing acceptance of alternative medicine practices in the region boosts the use of chaga as a natural supplement for numerous health ailments. Beyond supplements, it is also utilized in personal care & cosmetics products, owing to its potential skin health advantages. Moreover, the expanding network of online retailers and flourishing functional food & beverage sector further boost its utilization rate. By witnessing such benefits, the manufacturers are focusing on launching new functional mushroom-based food/beverages/cosmetics for consumers.  

North America

North America ranked second in the global marketplace. The growth is backed by rising consumer focus on health & wellness, brand trust, and product innovation in the region. Compared to other regions, North America has a high focus on the organic food sector, which fuels its reliance on mushrooms. Moreover, in the context of cognitive fatigue and surging chronic stress, functional mushrooms, including chaga, can be used as natural solutions for overall health optimization. Additionally, the growing popularity of adaptogenic ingredients in the region fuels their usage in the functional supplements and beverages sector. For instance, in July 2025, Laird Superfood, a functional creamers and coffee producer in the U.S., introduced Perform Decaf Coffee and Perform Whole Bean Coffee, which are blended with cordyceps, lion’s mane, and chaga mushrooms.

The U.S. is the leading nation in the North American region, followed by Canada and Mexico. The increasing trend of health consciousness and the growing number of functional mushroom extract producers supports the nation’s potential.

Europe

Europe is a prominent region and secured third position globally. The sudden spike in plant-based diets and awareness of the health benefits of chaga mushrooms are key factors driving the market’s growth. Moreover, the growing interest in natural remedies, especially for their health advantages, such as immune-boosting and antioxidant properties, makes chaga an attractive substitute for conventional medicines. Furthermore, to entice consumers, the manufacturers are incorporating mushrooms into coffee, tea, and other edible forms. Additionally, the technological innovation and surging trend of personalized nutrition boost the usage of mushrooms in the region. As a result, the aforementioned factors augment the market’s growth.

South America

South America is at its nascent stage and is expected to grow to a greater extent in the future. The growing number of private label players and rising demand for natural ingredients upgrade the region’s potential.

Middle East & Africa

Similar to South America, the Middle East & Africa are at their progressing stage and are anticipated to soar at the same pace in the upcoming years. The surging focus on proactive health and increased demand for chaga mushrooms contribute to the market’s growth.

COMPETITIVE LANDSCAPE

Prominent Players are Introducing New Products to Strengthen Brand Image

The dominating players in the market include BASF SE, Malama Mushrooms, Pawse, and others. All the companies operating in the global space are concentrating on launching novel products for consumers, which can improve their health. Moreover, the firms are introducing mushroom-based extracts for the cosmetics sector, further fueling its usage.

List of Key Chaga Mushrooms Companies Profiled

• Huisong Pharmaceuticals (China)
• Applied Food Sciences (U.S.)
• Pacific Rim Mushrooms (Canada)
• Pawse (U.S.)
• Malama Mushrooms (U.S.)
• Mahogany Organics Private Limited (India)
• Revive Collagen (U.K.)
• BASF SE (Germany)
• Integrity Ingredients Corporation (U.S.)
• Natural Thrive (U.S.)

KEY INDUSTRY DEVELOPMENTS

• May 2025: Seppic, a French specialty ingredients producer, introduced “CHAGADVANCE,” an organic and natural chaga mushroom-based nutraceutical ingredient. This component is available in powder form in France and is utilized for improving immune health.
• March 2025: Revive Collagen, a skin care brand in the U.K., launched a liquid collagen composed of chaga, lion’s mane, and reishi mushrooms. This product is helpful in enhancing clarity and sleep cycle, and overall brain health.
• February 2025: Dennis Allen Walker, an English footballer, revealed its latest functional mushroom chocolate, “Mycoday,” for consumers. This dark chocolate comprises four mushroom species (chaga, reishi, cordyceps, and lion’s mane) supplied by Nordic Mushrooms, an ingredients manufacturer based in Finland. 
• December 2023: Applied Food Sciences, a well-known producer and supplier of organic ingredients in the U.S., released a new line of functional mushrooms. The four varietals launched include chaga, lion’s mane, reishi, and cordyceps, sourced from Finland.
• January 2023: Pawse, a U.S.-based pet wellness firm, announced the launch of Mighty Mushrooms, a functional mushroom-based item for pets. These freeze-dried soft chews are made up of maitake, reishi, turkey tail, and chaga mushroom varieties, and are available across the U.S. market.

REPORT COVERAGES

The market research report includes quantitative and qualitative insights into the market. It also offers a detailed global chaga mushrooms market analysis of the market sizing and growth rate for all possible segments. Key insights in the report include an overview of related markets, a competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory environment in critical countries, and current market trends. 

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