Press Release

Functional Mushroom Market to Grow with a CAGR of 10.92% through 2028

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, 2024-2028.

 

According to TechSci Research report, “Functional Mushroom Market – Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Functional Mushroom Market stood at USD 26.95 billion in 2022 and is anticipated to grow with a CAGR of 7.17% in the forecast period, 2024-2028. 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 outbreak of COVID-19 in 2020 led to government-imposed lockdowns in many countries to curb the spread of the virus. These measures disrupted the supply chain of the industry, with temporary closures of food manufacturing and processing facilities to protect workers' health, impacting production capacity. Global lockdowns also made it challenging to procure raw materials due to restrictions on international trade activities. Shipping delays caused by restrictions on people's movement further led to raw material shortages, subsequently increasing their 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. Increased consumption of packaged food products due to 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 protein production through livestock 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 study by Kansas State University as of January 2022, around 10% of Americans over 18 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 can enhance the efficiency of the immune system, 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 lead to a decline in quality even if high-quality mushrooms are grown, ultimately impacting the final product's cost. Many mushrooms, including paddy straw mushrooms, have an extremely short shelf life of just 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 into product, application, regional distribution, 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 took the lead in the global industry in 2022, contributing the largest share of total revenue. Factors such as shifting consumer lifestyles, the expanding urban population, and rising disposable incomes are among the key drivers prompting consumers to embrace 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 seized this trend, and it is anticipated that this inclination will continue to boost the 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 employed as ingredients in the development of medicinal or supplement products 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 a high demand for functional mushrooms in the food and beverage industry in the Asia Pacific region, driven by the increased incorporation of these mushrooms into regular diets as a nutritious food 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 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, 2018-2028F”, 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 intends to provide cutting-edge market intelligence and help decision makers take 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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