Press Release

Functional Mushroom Market to Grow with a CAGR of 7.45% through 2031

Increase in the health and wellness trends, diverse product offerings, and evolving regulatory environments are expected to drive the Global Functional Mushroom Market growth in the forecast period, 2027-2031

 

According to TechSci Research report, “Functional Mushroom Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2021-2031F”, The Global Functional Mushroom Market will grow from USD 31.12 Billion in 2025 to USD 47.89 Billion by 2031 at a 7.45% CAGR. This can be attributed to regional variations. Different regions around the world have their preferred mushroom varieties, leading to localized markets. For example, reishi and lion's mane are highly popular in Asian countries, while shiitake and maitake have gained traction in Western markets. This regional diversity fuels global market growth as companies adapts their product offerings to cater to specific consumer tastes.

In addition, climate change poses challenges to agriculture, including mushroom cultivation. Breeders are developing mushroom varieties that are more resilient to climate fluctuations, ensuring a stable supply chain. Climate-resilient mushrooms can mitigate the impact of weather-related disruptions on the market.

           

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Functional mushrooms have various applications in healthcare and pharmaceutical products, and their demand is expected to increase in the foreseeable future. Furthermore, their expanding role as health supplements in the pharmaceutical industry is contributing to industry growth. The COVID-19 pandemic in 2020 led to government-imposed lockdowns in many countries to curb the virus's spread. These measures disrupted the industry's supply chain, with temporary closures of food manufacturing and processing facilities to protect workers' health, thereby reducing production capacity. Global lockdowns also made it difficult to procure raw materials due to restrictions on international trade. Shipping delays caused by restrictions on people's movement further exacerbated raw material shortages, thereby increasing prices and raising the costs of functional mushrooms. However, the demand for functional mushrooms surged during the pandemic due to their immunity-boosting properties, positively affecting global industry.

In recent years, high-protein diets have gained popularity as consumer awareness of overall health maintenance has grown. The increased consumption of packaged food products, driven by busy lifestyles, will also drive industry growth. To cater to health-conscious consumers, packaged food manufacturers are enhancing their products with nutritious ingredients, such as extracts or powders from functional mushrooms. Current livestock-based protein production is negatively impacting the environment, leading to increased greenhouse gas emissions and sustainability concerns. Hence, there is a significant focus on alternative protein sources, a trend expected to drive industry growth in the coming years. Plant-based diets, particularly among environmentally and animal welfare-conscious young people, have gained popularity. According to the Alliance for Science and a Kansas State University study as of January 2022, approximately 10% of Americans aged 18 and older were vegetarian or vegan.

Functional mushrooms are anticipated to find use in various medicinal and health products, expanding their applications in the food and beverage industries. Moreover, the industry is growing due to the increasing use of these mushrooms as functional ingredients in the pharmaceutical and nutraceutical sectors. Scientific studies suggest that functional mushrooms and mushroom-derived products may enhance immune function, thereby further fueling market expansion. Functional mushrooms have a short shelf life of one to three days due to their high-water content, making proper post-harvest transportation and storage crucial. Inadequate transportation practices can reduce quality, even when high-quality mushrooms are grown, ultimately increasing the final product's cost. Many mushrooms, including paddy straw mushrooms, have extremely short shelf lives of only a few hours, necessitating prompt processing, preservation, or refrigeration upon harvest to minimize post-harvest losses. This is expected to pose a challenge in the market.

The Global Functional Mushroom Market is segmented by product, application, region, and company.

Based on its application, the industry has been divided into categories such as food and beverage, dietary supplements, pharmaceuticals, and other uses. The food and beverage application segment led the global industry in 2022, accounting for the largest share of total revenue. Factors such as shifting consumer lifestyles, urbanization, and rising disposable incomes are key drivers of consumers' adoption of healthier eating habits. As a result, people worldwide are incorporating functional mushroom-infused foods and beverages into their diets. Consequently, the global food processing industry has capitalized on this trend, and it is anticipated that this trend will continue to increase demand for functional mushrooms throughout the forecast period.

Meanwhile, the pharmaceutical application segment is projected to experience the swiftest CAGR from 2023 to 2030. Functional mushrooms are abundant in various bioactive compounds, including antioxidants like flavonoids, quercetin, baicalein, polyphenols, polysaccharides, triterpenes, proteins, amino acids, and organic germanium. Consequently, extracts from functional mushrooms are used as ingredients in the development of medicinal and dietary supplements aimed at addressing conditions such as diabetes, hypertension, sleep disorders, vitality enhancement, cancer, and high cholesterol levels. This is expected to drive significant growth within this segment during the forecast period.

Based on region, Asia Pacific held the dominant position in 2022, primarily due to the majority of mushroom cultivation taking place in China. Another significant factor driving the regional market was the strong demand for these mushrooms, given their potential as functional foods. Furthermore, there is high demand for functional mushrooms in the food and beverage industry in the Asia-Pacific region, driven by increased incorporation of these mushrooms into regular diets as a nutritious choice.

North America is expected to experience the most rapid growth within the projected timeframe. This can be attributed to the increasing popularity of functional mushrooms as superfoods. Developed regions are increasingly embracing functional mushrooms as a superior choice to numerous other nutritious foods. Additionally, the region's growth is supported by rising consumer awareness about maintaining overall health and well-being. The growing preference for a vegan diet is also expected to boost the demand for functional mushrooms in North America.

 

Major companies operating in Global Functional Mushroom Market are:

  • Way of Will Inc
  • M2 Ingredients Inc.
  • Nammex
  • Mitoku Co Ltd
  • Hokkaido Reishi
  • Lianfeng Foodstuff Co Ltd
  • REBBL Inc
  • Monterey Mushrooms Inc
  • Monaghan Mushrooms

 

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“The global functional mushroom market is poised for continued growth, driven by the emerging trends. From innovative beverage formulations to personalized nutrition solutions and skincare products, functional mushrooms are diversifying their presence in the health and wellness industry. As consumer awareness and demand for natural health solutions continue to rise, the future of the functional mushroom market looks promising, with ample opportunities for innovation and expansion,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Functional Mushroom Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Reishi, Cordyceps, Lions Mane, Turkey Tail, Shiitake, Chaga, Others), By Application (Food & Beverage, Dietary Supplements, Pharmaceutical, Others), By Region, By Competition Forecast & Opportunities, 2021-2031F”, has evaluated the future growth potential of Global Functional Mushroom Market and provides statistics & information on market size, structure and future market growth. The report aims to provide cutting-edge market intelligence and help decision-makers make sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Functional Mushroom Market.

 

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