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

Functional Mushroom Market Size, Share & Trends Analysis Report By Product Type (Reishi, Cordyceps, Lions Mane, Turkey Tail, Shiitake, Chaga), By Application, By Region, And Segment Forecasts, 2022 - 2028

  • Report ID: GVR-4-68039-932-0
  • Number of Pages: 72
  • Format: Electronic (PDF)

Report Overview

The global functional mushroom market size was valued at USD 24.97 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.5% from 2022 to 2028. This can be credited to the rising adoption of these mushrooms as superfoods, owing to their various health benefits. Functional mushrooms have a variety of applications in pharmaceutical and healthcare products. Owing to this, their demand will be on the rise in the coming years. Also, increasing product application in the medicinal industry as a health supplement is further driving the market growth.

U.S. functional mushroom market size, by application, 2019 - 2028 (USD Billion)

Additionally, a number of research and medical studies on these mushrooms have resulted in screening abilities to improve both adaptive and innate immune systems. The rising adoption of functional beverages and foods among people owing to their benefits beyond basic nutrition food items is also boosting the market growth. These functional foods are also gaining popularity among health-conscious customers.

All these factors are anticipated to drive the market growth during the forecast period. Growing investments by key players to launch new products is further expected to boost the industry sales. However, storage and transportation of mushrooms post-harvest is a critical factor, as mushrooms have a limited shelf life, which may hamper the growth of the functional mushroom market.

In the long run, functional mushrooms are expected to be used in various health and medicinal products. This increases the applicability of these mushrooms in the food and beverage sector. The application of these mushrooms as functional ingredients in the medical industry is driving the growth of the market, as functional mushrooms are increasingly being incorporated into nutraceuticals. Several scientific studies have confirmed that functional mushrooms and mushroom-derived products can increase the effectiveness of the immune system, thereby contributing to the growth of this category.

The major restraining factor affecting the market growth is the strong market presence of other protein substitutes. In addition, the high product prices may also restrain the market growth. Whereas, increasing spending on exotic mushroom variants is providing a lucrative opportunity for the growth of this target market. The challenge in the face of market growth is the implementation of stringent regulations on the commercialization of functional mushroom products.

In the wake of COVID-19, the functional mushrooms market was greatly affected by the lack of workers, which in turn affected the production capacity. In addition, with the wholesale markets closed, the producers had to rely entirely on supermarkets and e-commerce traders to sell mushroom products. Therefore, the functional mushroom industry was significantly impacted during this period. On the other hand, it also had a positive effect on functional mushrooms, as the demand for medicinal mushrooms increased due to their perceived properties and health benefits.

Application Insights

The food and beverage application segment contributed to the highest revenue share of over 42% in the global market in 2021. As these mushrooms are consumed on a large scale as a functional food owing to their healthier food properties, the segment is expected to experience significant growth in the coming years.

The use of functional mushrooms, particularly in powdered form, in dietary supplement formulations is expected to grow significantly in the coming years due to the increasing adoption of dietary supplements, especially in developing economies such as China and Japan. The pharmaceutical segment is poised to register the highest growth during the forecast period, owing to the rising application of these mushrooms in the medicine industry.

Product Type Insights

The shiitake segment accounted for a revenue share of more than 34% in the global functional mushroom market in 2021, due to its increasing demand for its known medicinal and nutritional benefits. These types of mushrooms have the ability to improve the immune system, support cardiovascular health, aid in weight loss, increase energy levels, fight cancer cells, etc., thus driving their demand during the forecast period.

Global functional mushroom market share, by product type, 2021 (%)

On the other hand, the reishi segment is poised to register the highest growth rate of 10.4% during the forecast period. Reishi is consumed on a large scale in China, as it is used as traditional Chinese medicine, known as the mushroom of mortality or elixir of life. Owing to this, the reishi product type is expected to witness huge demand in the coming years. All these factors are expected to drive the growth of this segment. Other product types of mushrooms are also likely to showcase momentous growth during the forecast period, owing to their various benefits as functional food and beverages.

Regional Insights

The Asia Pacific held more than 53% of the overall industry revenue share in 2021, owing to the majority of mushrooms being produced in China. The growing demand for these mushrooms due to their functional food abilities is the main factor that drives industry growth. There is also a huge demand for these mushrooms in the food and beverages industry in the Asia Pacific, owing to an upsurge in the consumption of these mushrooms in diets as a healthier food option.

North America is expected to witness a CAGR of 11.1% from 2022 to 2028. This can be attributed to the growing demand for these mushrooms as superfoods in diets. These mushrooms are gaining popularity in developed regions as they are a superior alternative to various other nutrition foods.

Key Companies & Market Share Insights

Key players are focusing on R&D and also innovating new products. Furthermore, they are investing in new production plants to increase their expansion and product innovation, in order to fulfill the rising demand for these products.

For instance, in 2021, The Marley partnered with Silo Wellness Inc., a leading global psychedelic company in Toronto, to launch Marley One, the world's first functional psychedelic mushroom consumer brand. In 2020, a subsidiary of Sun European Partners LLP (Sun European) acquired CNC Holding BV (CNC), which is a leading European producer and supplier of mushroom growing substrates. Major companies operating in the global functional mushroom market are as follows: -

  • New Wave Holdings Corp

  • M2 Ingredients

  • Nammex

  • CNC Exotic Mushrooms

  • Mitoku Company

  • Hokkaido Reishi Co. Ltd

  • Shanghai Finc Bio-tech Inc

  • Lianfeng (Suizhou) Food Co. Ltd

  • Hirano Mushroom LLC

Functional Mushroom Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 26.7 billion

Revenue forecast in 2028

USD 47.2 billion

Growth Rate

CAGR of 9.5% from 2022 to 2028

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2028

Quantitative units

Revenue in USD Million/Billion and CAGR from 2022 to 2028

Report coverage

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

Segments covered

Product type, application, region

Regional scope

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

Country scope

U.S.; Italy; Netherlands; Poland; China; Japan; South Africa; Brazil

Key companies profiled

New Wave Holdings Corp; M2 Ingredients; Nammex; CNC Exotic Mushrooms; Mitoku Company; Hokkaido Reishi Co. Ltd; Shanghai Finc Bio-tech Inc; Lianfeng (Suizhou) Food Co. Ltd; Hirano Mushroom LLC

Customization scope

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

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Segments Covered in the Report 

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global functional mushroom market report on the basis of product type, application, and region:

  • Product Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Reishi

    • Cordyceps

    • Lions Mane

    • Turkey Tail

    • Shiitake

    • Chaga

    • Others

  • Application Outlook (Revenue, USD Million, 2017 - 2028)

    • Food and Beverage

    • Dietary Supplements

    • Pharmaceutical

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

    • Europe

      • Italy

      • Netherlands

      • Poland

    • Asia Pacific

      • China

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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