Functional Mushroom Market Size, Share, Trends, Growth 2030

Functional Mushroom Industry Perspective:

The global functional mushroom market size was evaluated at $15.3 Billion in 2022 and is slated to hit $23.3 Billion by the end of 2030 with a CAGR of nearly 10.1% between 2023 and 2030.

The functional mushroom market report offers market basket analysis, Porter’s five force analysis, PESTEL analysis, SWOT analysis, market attractiveness analysis, and value chain analysis. We also include factor analysis, key drivers, market restraints, challenges, and opportunities available in the global market. We provide comprehensive information and an overview of each player in the global market along with benchmarking adopted by these players to stay ahead of the competition.  

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Functional Mushroom Market: Overview

Functional mushrooms are particular kinds of fungi that provide health benefits owing to their nutritional compositions. Key advantages offered by functional mushrooms depend upon the use of functional mushrooms. Moreover, they are categorized into medicinal and adaptogenic mushrooms. Reportedly, medicinal mushrooms comprise compounds offering health benefits to consumers. Hence, these products are considered apt food supplements. In addition, adaptogenic mushrooms comprise adaptogens that help the stress response tools of the body function in a seamless way. Furthermore, reishi and shiitake are widely used mushrooms for medicinal purposes.

Key Insights

• As per the analysis shared by our research analyst, the global functional mushroom market is projected to expand annually at the annual growth rate of around 10.1% over the forecast timespan (2023-2030)
• In terms of revenue, the global functional mushroom market was evaluated at nearly $15.3 billion in 2022 and is expected to reach $23.3 billion by 2030.
• The functional mushroom industry is anticipated to record massive growth over the forecast period owing to favorable government policies pertaining to huge investments in the health-conscious diet.
• Based on product, the reishi segment is predicted to register massive growth over the forecast timeline.
• In terms of application, the food & beverages segment is slated to dominate the segmental surge over 2023-2030.
• Region-wise, the Asia-Pacific functional mushroom market is projected to register the highest CAGR during the assessment period.

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Functional Mushroom Market: Growth Factors

Government favoring investments in production of functional beverages to steer the global market trends

Massive use of functional mushroom powder in personal care items and cosmetics is predicted to steer the expansion of the functional mushroom market across the globe. Furthermore, antioxidant, anti-wrinkle, and anti-wrinkle features will steer the expansion of the global market. In addition to this, functional mushrooms are used as skin whitening and moisturizing agents in cosmetic items, thereby enlarging the scope of its application in the cosmetics & personal care sector. In addition to this, a shift in consumer preference toward functional diets can boost global functional mushroom market trends. Rise in the intake of functional mushrooms for health purposes will prop up the scope of growth of the global market.

Moreover, favorable government policies pertaining to huge investments in health-conscious diets will proliferate the size of the functional mushroom market globally. Additionally, functional mushrooms find use in pharmaceutical as well as healthcare items, thereby steering the global market trends. Surging intake of packaged food items owing to hectic lifestyles will aid the global market expansion.

Functional Mushroom Market: Hindrances

Short life of the product can create impediments to the growth of the global industry

Increase in the availability of protein alternatives and high product costs can put brakes on the global functional mushroom industry. In addition to this, strict execution of laws related to the commercialization of functional mushrooms will hinder the growth of the industry across the globe. A large number of mushrooms have a short lifespan and hence are required to be processed, refrigerated, and preserved upon harvesting for minimizing post-harvesting losses. This factor can hinder the industry’s growth globally.

Functional Mushroom Market: Opportunities

Growing focus on research related to manufacture of exotic mushroom variants will open new growth vistas for the global market

Increase in research activities for producing exotic mushroom variants will generate new growth avenues for the global functional mushroom market. Apart from this, the growing demand for healthy diets and natural foods will further enlarge the scope of the global market surge over the ensuing years.       

Functional Mushroom Market: Challenges

Huge product costs can pose a big challenge to the expansion of the global industry

High product costs owing to huge transportation costs and less arable areas available for cultivating the product have posed a huge challenge in the path of growth of the global functional mushroom market.

Functional Mushroom Market: Segmentation

The global functional mushroom market is sectored into product, application, and region.    

In terms of product, the global functional mushroom market is divided into lion’s mane, reishi, chaga, cordyceps, and shilitake segments. Furthermore, the reishi segment, which contributed over half of the global market share in 2022, is slated to record the fastest CAGR over the assessment timeline. The segmental growth in the next eight years can be owing to benefits offered by the product such as improving the body’s immunity and enhancing the functionality of blood cells.

On basis of the application, the global functional mushroom industry is sectored into food & beverages, pharmaceuticals, food supplements, and personal care segments. The food & beverages segment, which contributed the largest revenue share to the global industry in 2022, is set to dominate the global industry even in the upcoming years. The growth of the segment in the coming years can be subject to changing food habits of the customers leading to high demand for functional mushrooms as food. In addition to this, large-scale intake of functional mushrooms in diet owing to its health benefits will steer the segmental surge.

Recent Breakthroughs

• In the second quarter of 2019, For the Biome, a skincare brand, joined hands with Om Mushroom Superfood, a major producer of functional & organic mushroom powder, for introducing health & wellness food products. Furthermore, the partnership has helped in launching new products such as Adapt Essence Spray and Invigorate Powder Mask which make use of Chaga, lion’s mane, and reishi mushrooms. The move will boost the demand for functional mushrooms over the years ahead.
• In the first half of 2021, Nammex, a key Canadian player in the wholesale organic medicinal mushroom extracts industry, went online with a rise in product demand during the COVID-19 pandemic. The move has helped the firm in enhancing its online presence along with contributing majorly towards global industry growth.
• In the second half of 2018, Blackmores Limited, a healthcare supplements firm based in Australia, launched a new kind of medicinal mushroom supplement for boosting body’s immunity. The move is likely to expedite the growth of the business across the globe.

Functional Mushroom Market: Report Scope

Functional Mushroom Market: Regional Insights

North American functional mushroom market to witness exponential growth in the forecasting timeline

The North American region, which contributed for half of the global market share in 2022, is anticipated to dominate the global functional mushroom market growth over the forecast timeline. The regional market expansion over 2023-2030 can be owing to an increase in the use of mushrooms as superfoods. In addition to this, growing consumption of the product in countries such as the U.S. will contribute majorly towards the regional market growth in the coming years. Rise in customer awareness pertaining to improvement in the health of an individual will steer the regional market growth.

On the other hand, the functional mushroom industry in the Asia-Pacific region is slated to record the fastest CAGR in the upcoming years. The regional market surge over the forecast timespan can be owing to a huge demand for mushrooms in the countries such as China. In addition to this, the high demand for functional mushrooms in the food & beverages industry in countries such as India will proliferate the regional market size.

Functional Mushroom Market: Competitive Space

The global functional mushroom market profiles key players such as:

• Way of Will Inc.
• Monaghan Group
• Nammex
• M2 Ingredients
• Rebbl
• Mitoku Company
• Hokkaido Reishi Co. Ltd.
• Monterey Mushrooms Inc.
• Lianfeng (Suizhou) Food Co. Ltd.
• Sotru.

The global functional mushroom market is segmented as follows:

By Product

• Lion’s Mane
• Reishi
• Chaga
• Cordyceps
• Shilitake

By Application

• Food & Beverages
• Pharmaceuticals
• Food Supplements
• Personal Care

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa