GVR Report cover Functional Mushroom Market Size, Share & Trends Report

Functional Mushroom Market Size, Share & Trends Analysis Report By Product Type (Reishi, Shiitake), By Application (Food & Beverage, Pharmaceutical), By Region (EU, APAC, North America), And Segment Forecasts, 2024 - 2030

  • Report ID: GVR-4-68039-932-0
  • Number of Report Pages: 120
  • Format: PDF, Horizon Databook
  • Historical Range: 2018 - 2023
  • Forecast Period: 2022 - 2030 
  • Industry: Consumer Goods

Functional Mushroom Market Size & Trends

The global functional mushroom market size was valued at USD 31.71 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 11.2% from 2024 to 2030. 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.

U.S. Functional Mushroom market size and growth rate, 2024 - 2030

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 2022, 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.

Functional Mushroom Market Concentration & Characteristics

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 2023. 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 2023 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.

Global Functional Mushroom market share and size, 2023

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 2024 to 2030. 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 2024 to 2030. 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.

Functional Mushroom Market Trends, by Region, 2024 - 2030

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 2023 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 2024 to 2030. 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 2024 to 2030.

India functional mushroom market

The functional mushroom market in India is expected to grow at a CAGR of 10.9% from 2024 to 2030. 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.

Key Functional Mushroom Companies:

The following are the leading companies in the organic functional mushroom market. These companies collectively hold the largest market share and dictate industry trends. Financials, strategy maps & products of these functional mushroom companies are analyzed to map the supply network.

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

Recent Developments

  • In November 2023, 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 2023, 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 2023, 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

Report Attribute


Market size value in 2024

USD 34.75 billion

Revenue forecast in 2030

USD 65.83 billion

Growth rate (Revenue)

CAGR of 11.2% from 2024 to 2030


2018 - 2023

Forecast period

2024 - 2030

Quantitative units

Revenue in USD million, and CAGR from 2024 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segment covered

Product, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S., Canada, Mexico, UK, Germany, Poland, Italy, Netherlands, China, Japan, India, Australia, South Korea, Brazil, Argentina, Saudi Arabia, South Africa

Key companies profiled

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

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

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 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global functional mushroom market report on the basis product, application, and region:

Global Functional Mushroom Market Report Segmentation

  • Product Outlook (Revenue, USD Million, 2018 - 2030)

    • Reishi

    • Cordyceps

    • Lions Mane

    • Turkey Tail

    • Shiitake

    • Chaga

    • Others

  • Application Outlook (Revenue, USD Million, 2018 - 2030)

    • Food and Beverage

    • Dietary Supplements

    • Pharmaceutical

    • Others

  • Regional Outlook (Revenue, USD Million, 2018 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • UK

      • Netherlands

      • Italy

      • Poland

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Australia

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

Frequently Asked Questions About This Report

gvr icn


gvr icn

This FREE sample includes data points, ranging from trend analyses to estimates and forecasts. See for yourself.

gvr icn


We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities. Contact us now

Certified Icon

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.