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Functional Mushroom Market Size, Share & Industry Analysis, By Type (Lion’s Mane Mushrooms, Chaga Mushrooms, Shiitake Mushrooms, Reishi Mushrooms, Cordyceps Mushrooms, Turkey Tail Mushrooms, and Others), By Application (Food and Beverages, Dietary Supplements, Pharmaceuticals, and Personal Care and Cosmetics), and Regional Forecast, 2024-2032

Last Updated: June 03, 2024 | Format: PDF | Report ID: FBI101511

 

KEY MARKET INSIGHTS

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The global functional mushroom market size was valued at USD 28.69 billion in 2023 and is projected to grow from USD 31.09 billion in 2024 to USD 62.18 billion by 2032, exhibiting a CAGR of 9.05% during the forecast period.


Functional mushrooms are mushrooms that have health as well as adaptogenic benefits beyond their nutritional value. The global market is expected to exhibit significant growth during the forecast period owing to the rising awareness related to the benefits offered by consuming specialty mushrooms. The rising inclination of consumers toward functional foods further boosts market growth. Furthermore, increasing industry developments such as R&D activities to expand mushroom applications in different sectors and the launch of new products are influencing global market growth. For instance, in August 2023, Four Sigmatic, a wellness products manufacturing company, launched organic mushroom complex capsules in Calm, Focus, and Memory varieties. These capsules contain lion’s mane mushroom extract, vitamin B12, and L-theanine.


The COVID-19 pandemic positively impacted the growth of the global functional mushroom market. This is primarily due to health-conscious consumers' heightened awareness of health and immunity. Medical mushrooms were observed as a natural way to boost immunity, leading to increased sales of medical mushroom supplements in recent years. In addition, the pandemic triggered a growing interest in medicinal mushrooms as a preventive measure against the COVID-19. According to the study published by the Frontiers Journal, Reishi mushroom exhibits antiviral activity against SARS-CoV-2, the virus responsible for the COVID-19.


Functional Mushroom Market Trends


Increased R&D Activities to Improve Commercial Cultivation Aid Market Growth


The increasing popularity and acceptance of mushroom products among individuals creates ample space for industries owing to the rapid development of new and innovative products. Thus, manufacturers in the mushroom industries, owing to the rapid advancements, are constantly working on innovative formulations and delivery methods to make medical mushroom products more palatable and convenient for consumers. Ongoing research into the medical properties and applications of various mushroom species in personal care and pharmaceuticals has led to the development of new mushroom-based products.


Advancements in biotechnology and mycology have further enabled researchers to explore novel cultivation techniques, optimize growing conditions, and enhance the production of bioactive compounds in mushrooms. For instance, in May 2023, Optimi Health Corp., a Canadian-based company, opened a new mushroom research and development facility. The new facility consists of two 10,000-square-feet facilities with ten growing rooms producing approximately 2,000 kilograms of dried psilocybin mushrooms a month. Thus, the global functional mushroom market share is anticipated to exhibit a promising growth rate during the forecast period.


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Functional Mushroom Market Growth Factors


Diversified Applications of Mushrooms in the Pharmaceutical and Nutraceutical Industry to Fuel Market Growth


The nutraceutical and dietary supplements industry has recognized the market potential of medical mushrooms. Moreover, the growing awareness of mushrooms' health-promoting properties in the food has spurred its demand in the pharmaceutical sector. Research into mushrooms' bioactive compounds and medical properties has further led to the development of new drugs and therapies. For instance, in March 2023, Ilesol Pharmaceuticals, one of the premier cannabis manufacturers in Europe, expanded its new product line. The new product line includes innovative offerings made from functional mushrooms, botanical extracts and food supplements. Thus, the increasing adoption of functional mushrooms in pharmaceutical and nutraceutical applications will boost industry revenue in the upcoming years.


Growing Preference for Natural and Organic Products to Augment Market Development


Consumers are increasingly looking for natural and organic alternatives to synthetic supplements, and medical mushrooms fit this preference, being perceived as a natural and holistic source of wellness. Moreover, the rising trend toward alternative medicines has driven interest in functional mushrooms, such as chaga, shiitake, and lion’s mane mushrooms, which have been used in traditional medicine systems for centuries. This trend is propelling market growth.


RESTRAINING FACTORS


High Prices of the Product to Restrain Market Growth


The major restraint affecting the market is the high prices of medical mushrooms. High prices may make the products less accessible to a broader consumer base, limiting market expansion. The premium pricing of medical mushroom products might encourage consumers to opt for lower-priced alternatives or substitutes, which may adversely affect the market growth in the upcoming years. Compared to other dietary supplements, the market for medical mushrooms is still relatively niche. Moreover, the high prices and limited consumer awareness may hinder the market’s ability to reach a critical mass of buyers.


Functional Mushroom Market Segmentation Analysis


By Type Analysis


Cordyceps Mushroom Segment to Expand Due to its Endurance Enhancement and Athletic Performance Improvement Properties


Based on type, the market is segmented into Lion’s Mane mushrooms, Chaga mushrooms, Shiitake mushrooms, Reishi mushrooms, Cordyceps mushrooms, Turkey Tail mushrooms, and others. The cordyceps segment is expected to hold the major share of the market. Cordyceps have been known for their potential to boost energy levels and endurance. These mushrooms are thought to increase the production of the molecule Adenosine Triphosphate (ATP) in the body. This essential molecule provides energy to the muscles, improving the individual's athletic performance. The growing awareness of the potential benefits of cordyceps prompted manufacturing companies to launch innovative food products and develop treatments for various conditions. For instance, in May 2022, Awshad, a New Delhi-based medical cannabis wellness startup, entered the mushroom wellness segment with the launch of Calmashroom Vijaya and Cordyceps Capsules. The new product type offers holistic support to the body and effectively enhances endurance and energy levels.


The Reishi mushroom segment is one of the fastest-growing segments in the market. Reishi mushrooms are among several functional mushrooms traditionally used in Asian countries to treat infections. They also enhance the immune system, improve sleep, reduce stress, and lessen fatigue. According to the Centers for Disease Control and Prevention, more than 32% of adults in the U.S. have anxiety or depression symptoms. As consumers have become more conscious of their health and wellness, the demand for plant-based and natural solutions, such as reishi, would grow significantly in the coming years. Further, with a fast-paced lifestyle, individuals face stress and sleep deficiency. Thus, consumers opt for natural stress relief supplements, which will positively influence the sales of functional mushroom products.


The Lion’s Mane mushroom segment is expected to grow substantially. Lion’s Mane is renowned for its potential cognitive-enhancing properties, particularly in supporting memory, focus, and overall brain health. Moreover, Lion’s Mane is a key ingredient in many nootropic supplements, propelling the increase in product demand.


By Application Analysis


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Pharmaceutical Segment to Lead Owing to Medical Mushrooms’ Potential Therapeutic Properties and Bioactive Compounds


Based on application, the market is segmented into food and beverages, dietary supplements, pharmaceuticals, and personal care and cosmetics.The pharmaceutical segment is expected to hold a major share of the global market. Functional mushrooms such as Reishi, Lion’s Mane, Shiitake, and Chaga have gained attention in the pharmaceutical industry owing to their potential health benefits. According to the National Center for Biotechnology Information, functional mushrooms contain a broad spectrum of pharmacological activities, such as antiallergic, antifungal, anti-inflammatory, antibacterial, antioxidative, antiviral, cytotoxic, neuroprotective, and others. Moreover, ongoing research activities are continuously exploring the bioactive compounds in medical mushrooms for the development of pharmaceutical drugs. These compounds may have applications in treating various diseases, including cancer, infectious diseases, and neurodegenerative disorders such as Alzheimer's.


The dietary supplements segment is expected to grow at a high CAGR over the forecast period as functional mushrooms are increasingly used as dietary supplements. Functional mushroom supplements are typically available in various forms, including capsules, powders, and extracts. Medical mushrooms, as supplements, can enhance a healthy lifestyle as they possess various health benefits, including antioxidant properties, promote gut health, enhance energy levels, and others.


The food and beverages segment is expected to grow considerably during the forecast period. Medical mushrooms have been integrated into a variety of food and beverage products due to rising awareness of functional foods and their unique flavors.


REGIONAL INSIGHTS


Based on region, the market has been analyzed across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.


Asia Pacific Functional Mushrooms Market Size, 2023 (USD Billion)

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Asia Pacific is expected to hold a major share of the global market. This is owing to the varied agroclimatic conditions, relatively low-cost labor, rich fungal biodiversity, and availability of agricultural and industrial wastes in the region, favoring optimal production of mushrooms. China is known to be one of the prominent producers of medical mushrooms such as Shiitake, Chaga, Lion’s Mane, and others. Moreover, mushrooms have been traditionally used for maintaining physical well-being and treating several diseases since ancient times, especially in Asian regions. Moreover, growing urbanization and rising busy schedules in the region propel consumers to seek optimal nutrition to reduce the risk of disease occurrence. This leads to increasing consumption of medical mushrooms as functional food or dietary supplements.


North America is expected to grow at a high CAGR over the forecast period. Consumers in the region are inclined toward functional food and beverages owing to the increasing incidence of age-related disorders and hectic lifestyles. This has led to the growing adoption of a healthy lifestyle with optimum nutrition and wellness, driving the demand for functional supplements with botanical ingredients. Medical mushrooms, including varieties such as Shiitake, Lion’s Mane, and Cordyceps, have gained popularity among health-conscious consumers seeking natural remedies and supplements. Manufacturers in the region are incorporating medical mushroom extracts in dietary supplements in capsules, powders, and gummy forms. For instance, in October 2022, Troomy Nootropics, a Southern California-based nootropics brand, launched a new line of mushroom-powered gummies. The new product range consists of triple-extracted mushrooms, including Lion's Mane, Reishi, and Cordyceps, formulated to support a wide range of lifestyles and functional needs.


Europe is expected to grow at a considerable pace during the forecast period. The region’s population is increasingly focused on health and wellness, leading to a greater demand for natural and functional foods and supplements. Moreover, medical mushroom supplements, powders, and extracts are becoming increasingly popular in Europe as consumers seek convenient ways to incorporate the potential health benefits of these mushrooms into their diets. According to the European Food Safety Agency, medical mushrooms are used as supplements owing to their health-promoting and disease-preventing activities. The most popular medical mushrooms consumed in Europe are Shiitake, Chaga, Reishi, Cordyceps, Turkey tail, Lion’s Mane, and others.


South America is expected to grow at a high CAGR during the forecast period. The wellness and dietary supplements industry is on the rise in South America, and medical mushrooms align well with this trend. According to the Brazil Food Trends Report 2020, health and wellness are a popular trend in the country, revealing that Brazilian consumers value consuming foods with potential health benefits. Moreover, mushroom cultivation has been increasing in the region, especially in Brazil, as Brazilians recognize the medicinal value of mushrooms.


The medical mushroom market in the Middle East and Africa is still emerging. Consumers in the region, including South Africa, UAE, and the rest of the Middle East and Africa, are increasingly interested in nutritious, healthy, and safe foods. Hence, the food processors in the region constantly seek natural bioactive ingredients that offer health benefits beyond their nutritional values. The food and beverage and pharmaceuticals industry in the region is rapidly growing, creating opportunities for incorporating functional mushrooms into new products.   For instance, in August 2021, Psyence Group Inc., a biotechnology company, partnered with Goodleaf, one of the leading wellness and lifestyle brands, to bring a range of medical mushroom products under the GOODMIND banner in South Africa.


List of Key Companies in Functional Mushroom Market


Focus on Agreements and Base Expansion Strategies by Major Companies to Increase Global Presence


Prominent functional mushroom manufacturers are focusing on expanding their global presence by adopting strategies such as investing in joint ventures, partnerships, mergers and acquisitions, and research and development in innovative product lines. For instance, in September 2022, Avida Global, a producer of sustainably produced, high-quality medical cannabis oils, entered an exclusive distribution agreement with Optimi Health, a Canadian-based producer of mushroom products and supplements. The agreement would help the company to expand its presence in the wider plant-based medicines category. The company would achieve this by offering Optimi Health’s medical mushroom supplements in the U.K., Europe, Switzerland, India, Japan, Thailand, Indonesia, and Israel via Avida Labs, white-labeling and manufacturing business.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • August 2023 – Applied Food Sciences Inc. (AFS), one of the leaders in supplying functional and organic ingredients, announced its equity investment and partnership with KÄÄPÄ Biotech, a Finland-based company. The strategic partnership would help AFS expand its botanical portfolio by adding Nordic-grown medical mushroom extracts. The extracts would be used in food, beverages, and supplements.

  • January 2023 – Pawse, a pet wellness company, introduced Mighty Mushrooms, a new medical mushroom-based pet product. The new product included USDA Certified Organic extracts made from Chaga, Maitake, Shiitake, Reishi, and Turkey Tail mushroom varieties.

  • October 2022 –  Nature's Rise, a manufacturer of organic mushroom products, launched Lion’s Mane organic powder extract on Amazon.

  • September 2022 Shroomwell Biotech, one of the largest growers of medical mushrooms, opened a new mushroom research center in Estonia. The company focuses on the study of medical mushrooms to increase knowledge and understanding and establish the country as a global leader in the field of mushrooms.

  • February 2022 – Lifeway Foods, Inc., a U.S. supplier of kefir and fermented probiotic products, launched a new line of adaptogenic medical mushroom beverages at the Winter Fancy Food Show in Las Vegas. The new product range is an extensive portfolio of cultured oat beverages. It is available in three flavors, including reishi and vanilla flavor, mushroom immune blend with Aronia, and lion's mane golden milk with L-Theanine from green tea.

  • October 2021 – Om Mushroom Superfood, a U.S.-based organic functional food company, launched a new Morning Energy Blend. The new product contained two species of Cordyceps, Lion’s Mane and Rhodiola mushrooms, and vitamin D2 from Agaricus bisporus, which supports energy, mood, and vitality.


Report Coverage


An Infographic Representation of Functional Mushrooms Market

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The global market report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market share, size, and growth rates for all possible segments in the market. Moreover, the report provides an elaborative analysis of the market dynamics and competitive landscape. The report presents various key insights: an overview of related markets, research methodology, recent industry developments such as mergers and acquisitions, the regulatory scenario in critical countries, and key industry trends.


Report Scope & Segmentation










































ATTRIBUTE



DETAILS



Study Period



2019-2032



Base Year



2023



Estimated Year



2024



Forecast Period



2024-2032



Historical Period



2019-2022



Growth Rate



CAGR of 9.05%  from 2024 to 2032



Unit



Value (USD billion)



 


 


 


 


 


 


 


 


 


 


Segmentation


 


 


 


 


 



By Type



  • Lion’s Mane Mushrooms

  • Chaga Mushrooms

  • Shiitake Mushrooms

  • Reishi Mushrooms

  • Cordyceps Mushrooms

  • Turkey Tail Mushrooms

  • Others


By Application



  • Food and Beverages

  • Dietary Supplements

  • Pharmaceuticals

  • Personal Care and Cosmetics


By Geography



  • North America (By Type, Application, and Country)

    • U.S.

    • Canada

    • Mexico



  • Europe (By Type, Application, and Country)

    • Germany

    • France

    • Spain

    • Italy

    • U.K.

    • Rest of Europe



  • Asia Pacific (By Type, Application, and Country)

    • China

    • India

    • Japan

    • Australia

    • Rest of Asia Pacific



  • South America (By Type, Application, and Country)

    • Brazil

    • Argentina

    • Rest of South America



  • Middle East & Africa (By Type, Application, and Country)

    • South Africa

    • UAE

    • Rest of the Middle East & Africa








Frequently Asked Questions

According to Fortune Business Insights, the value of the market was USD 28.69 billion in 2023.

The market will grow at a CAGR of 8.83% during the forecast period (2023-2030).

Based on application, the pharmaceutical segment is expected to be the leading segment in the global market.

Growing applications in the pharmaceutical and nutraceutical industry and a growing preference for natural and organic products are driving the growth of the market.

Hokkaido Reishi Co. Ltd., Half Hill Farm Inc., Real Mushrooms, and Mitoku Co. Ltd. are a few of the key players in the market.

Asia Pacific is expected to hold a prominent share in the global market.

The Reishi mushroom segment is expected to grow at the fastest pace during the forecast period.

Increased R&D activities to improve commercial cultivation is one of the emerging trends in the global market.

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