Functional Mushroom Market Report

Functional Mushroom Market Report, By Type (Shiitake Reishi Chaga Lion's Mane Cordyceps Maitake Turkey Tail Tremella Others), Form (Liquid Sprays & Drinks, Powders, Capsules/Supplements), Nature (Organic, Conventional), Category (Regular, Full Spectrum), Product (Cultivated, Wild), Cultivation Method (Bed Cultivated, Log/Wood Cultivated), Application and By Geography - Global Market Share, Trend Analysis & Forecast , 2019 - 2029

Report Code : 11596 | Publish Date : February 2023 | Industry : Food_Beverage | Geography : Global


Functional mushrooms are the mushrooms specifically cultivated for health benefits rather than just as a food source. They can help consumers in many ways, from reducing inflammation to managing the stresses of everyday life to improving overall health. Mushrooms are found deep in forests, under logs or in mountains, where they can grow with little human intervention. Functional mushrooms are types of mushrooms that are touted for health benefits beyond their nutritional composition. The exact benefits depend on the type of mushroom used. Many of these mushrooms offer antioxidant and cytotoxic properties1, meaning they may be able to inhibit the harmful process of oxidation as well as kill harmful cells. While these mushrooms may provide medicinal benefits, it is important to note that they are considered dietary supplements.


High protein diets have become increasingly popular over the past few years as consumers become more aware of maintaining overall health. Rising consumption of packaged food due to a hectic lifestyle will also boost the growth of the industry. To appeal to a health-conscious customer base, packaged food manufacturers are enhancing food products with nutritional ingredients such as functional mushroom extracts or powders. Current protein production through livestock is negatively impacting our planetary life support systems. To meet protein needs, livestock production is also increasing, leading to significant increases in greenhouse gas (GHG) emissions, creating sustainability issues. The main emphasis is therefore on alternative protein sources. This trend is expected to fuel the growth of the industry in the coming years.


Functional sponges have a short shelf life of one to three days due to their high water content. Hence innovative post-harvest value chain will pose a better opportunity for the market players. Consequently, post-harvest transport and storage is essential for a functional mushroom value chain. The effectiveness of the immune system can be increased by consuming functional mushrooms and products derived from them, which has further led to the expansion of this market.


Even when high-quality mushrooms are grown, poor transport practices can cause quality to drop, reducing the final price of the product. Most mushrooms, including unpeeled straw mushrooms, have a very short shelf life of only a few hours. Additionally, they must be processed, preserved, and refrigerated immediately after harvest to reduce postharvest losses. This is expected to be a market constraint.


Consumption of functional mushrooms can result in serious illness in humans and can even cause fatal allergies. Since the beta-glucans present in mushrooms stimulate immune function, people with autoimmune diseases such as lupus, asthma, arthritis and multiple sclerosis should avoid eating them.


The report provides an in-depth analysis of the global functional mushroom market, including market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. Technological advancements and innovations in functional mushrooms are expected to witness growth at a specific CAGR from 2022-2029.



The global functional mushroom market consists of different market segments like types, product type, form, by nature, category, application and geography.


The functional mushroom market finds key types like:

  • Shiitake
  • Reishi
  • Chaga
  • Maitake
  • Lion's Mane
  • Cordyceps
  • Turkey Tail
  • Tremella
  • Others

The shiitake segment is expected to dominate the market over the forecast period. This was due to the growing demand for the product because of its nutritional and medicinal benefits. These mushrooms help boost the immune system, support cardiovascular health, help with weight loss, and increase energy levels. Also, shiitake mushrooms have an umami flavor, dried shiitake mushrooms very popular among consumers around the world.


The functional mushroom market finds key product types like:

  • Cultivated
  • Wild

The cultivated segment is expected to dominate the market over the forecast period. Cultivated mushrooms have more advantages than wild mushrooms. The study found that wild mushrooms provide less energy/calories than cultivated mushrooms because they contain higher protein content and lower fat concentrations. At the same time, cultivated mushrooms seem to have a higher concentration of sugars. In terms of fatty acids, wild mushrooms appear to contain lower levels of monounsaturated fatty acids, but also higher levels of polyunsaturated fatty acids. Hence, consumers prefer cultivated mushrooms over wild mushrooms leading to better market growth for the cultivated segment in the forecasted period.


The functional mushroom market finds key form like:

  • Liquid Sprays & Drinks
  • Powders
  • Capsules/Supplements

The liquid sprays and drinks segment is expected to dominate the market over the forecast period. Functional mushrooms can be found in a variety of health and pharmaceutical products. Consequently, their demand is likely to increase during the forecast period. In addition, the increasing scope of application of products in the pharmaceutical industry as health supplements is further driving the growth of the industry. The increasing number of cases of COVID-19 led the governments of various countries to implement lockdowns in 2020 to prevent the spread of the infection.


The functional mushroom market finds key categories like:

  • Organic
  • Conventional

The organic segment is expected to dominate the market over the forecast period owing to organic mushroom having many advantages over non-organic, most recently a study showing much higher antioxidant content in organic than non-organic produce. Organic standards do not allow animal testing, GM practices, manufactured herbicides or artificial fertilizers. The aforementioned health benefits is expected to lead market growth in the forecasted period.


The functional mushroom market finds key cultivation method like:

  • Bed Cultivated
  • Log/Wood Cultivated

The bed cultivated segment is expected to dominate the market over the forecast period owing to higher awareness regarding bed cultivated mushrooms. Mushroom beds are usually used in underground holes like duffers and sometimes in empty vegetable and poultry warehouses etc. Prepared compost is put in the beds on the surface of the floor or on polythene sheet. As the raw materials required for bed cultivated mushrooms are highly accessible, bed cultivated mushrooms are expected to dominate this market segment.


The functional mushroom market finds key applications like:

  • Pharmaceutical
  • Food & Beverages
  • Dietary Supplements
  • Nutraceutical
  • Sports Nutrition
  • Personal Care
  • Others

The food and beverage applications segment dominated the global industry in 2021. Changing lifestyles of consumers, a growing urban population, and increasing levels of disposable income are some of the key factors influencing consumers to adopt healthy eating habits. Consumers all over the world are thus adopting functional foods and beverages containing mushrooms into their diets. This has resulted higher penetration of functional mushrooms in food and beverages segment.


The functional mushroom market is studied for the following region: 

  • North America
  • Europe
  • Asia Pacific
  • Rest of World 

North America is expected to register the fastest growth rate during the projected timeframe. This is attributed to the rise in popularity of these mushrooms as superfoods. Functional mushrooms are becoming increasingly popular in developed areas because they are an excellent alternative to many other nutritious foods. In addition, increased consumer awareness about maintaining overall health and well-being will support the region's growth. Growing preference for vegan diets is expected to boost demand for functional mushrooms in North America. Asia Pacific was the dominant region in 2021 as most mushrooms are grown in China. Another key factor driving the regional market was the high demand for these mushrooms due to their potential as functional foods. Functional mushrooms are also in high demand in the food and beverage industry in the Asia Pacific region due to the increase in the use of these mushrooms in the regular diet as nutritional foods.


During the COVID-19 pandemic, many industries have suffered economic outcries, and the functional mushroom market is one of them. This has caused disruption to the industry's supply chain. Food plants and processing plants were closed for a short time to protect the health of workers, which in turn affected production capacity. Additionally, the global blockade made obtaining raw materials difficult due to restrictions on international trade activities. Delays in shipments due to restrictions on the movement of people also caused shortages of raw materials, increasing their prices, which ultimately increased the cost of functional mushrooms. However, demand for functional mushrooms increased during the pandemic due to their health benefits, such as their immune-boosting properties, which had a positive impact on the global industry.


The competitive landscape analysis of the functional mushroom is primarily focused on expanding the global growth of the functional mushroom market with new technology innovation, business expansion, and the increasing presence of a range of manufacturers operating in the functional mushroom market has led to growing demand for the market.  

The key players studied in the market are 

  • Nammex
  • CNC Exotic Mushrooms
  • Mitoku Company Ltd
  • Hokkaido Reishi Co. Ltd
  • Hirano Mushroom LLC
  • Lianfeng (Suizhou) Food Co. Ltd.
  • Shanghai Finc Bio-tech Inc.
  • M2 Ingredients
  • Half Hill Farm Inc.
  • Pan's Mushroom Jerky


September 2022: Innomy, a Spanish mushroom-based meat substitute firm, revealed that it has raised USD 1.26 Million in Pre Series A funding to expand, market and sell its products across Europe. According to Innomy, mycelium is high in nutritional value, low in cholesterol and low in saturated fat, making it one of the most promising sources of protein for the future.

December 2021: Psyence Group Inc. has entered into a joint venture, Goodmind, has partnered with one of South Africa's largest coffee retail chains - Vida e Caffè - to launch its functional mushroom brand in South Africa.

June 2021: The Marley partners with Silo Wellness Inc., the world's leading psychedelic company in Toronto, has launched a new product named Marley One, a functional and psychedelic consumer brand of mushrooms.


Global functional mushroom market is segmented into, type, product type, nature, form, category, cultivation method, application and geography. Functional mushroom types are segmented into shiitake, reishi, chaga, lion's mane, Cordyceps, Maitake, turkey tail, tremella, and others. The functional mushroom is applied in various filed such as pharmaceutical food and beverages dietary supplements nutraceutical sports nutrition personal care others. The cultivation methods of functional mushroom are bed cultivated, log/wood cultivated. The available nature of functional mushroom are organic, conventional. Forms of functional mushroom are liquid sprays and drinks, powders, capsules/supplements. The functional mushroom market product types are segmented into, cultivated, wild. And also, market studied for the following countries: North America, Europe, Asia Pacific, and the Rest of World.


Market Sizing for Year:
Base Year:
Forecast Period:
USD Million
Market Segment studied:




Cultivation Method



Market Players and its Competitors:


CNC Exotic Mushrooms

Mitoku Company Ltd

Hokkaido Reishi Co. Ltd

Hirano Mushroom LLC

Lianfeng (Suizhou) Food Co. Ltd.

Shanghai Finc Bio-tech Inc.

M2 Ingredients

Half Hill Farm Inc.

Pan's Mushroom Jerky


What are the drivers for the global functional mushroom market?

Technological advancements and innovations in functional mushroom is likely to drive the market.

Which is the leading application for the global functional mushroom market?

Food and beverages segment has accounted for the major market share and is expected to witness growth at the highest pace during the forecast period.

Which region is gaining the majority of market share during the forecast period (2023-2029)?

North America is expected to gain major market share during the forecast period (2023-2029).