The functional mushroom market is projected to be valued at USD 9,698 million in 2023. Expanding at a CAGR of 9% during the forecast period, the market size could reach USD 22,023.8 million by 2033. Newly released data from Future Market Insights shows that global functional mushroom demand grew year-on-year (Y-o-Y) by 8.8% in 2022.
Functional mushroom refers to mushroom varieties specifically having health benefits beyond providing nutrition. Out of the 2,000 species of currently known fungi, only 15 are recognized as medicinal, which are edible and have functional benefits. These mushrooms can help support overall well-being and health while sharpening cognitive function, lowering stress levels, and providing an energy boost.
There is also a significant demand for functional mushrooms in the food and beverage sector particularly in the ready-to-drink category products. The increasing demand for functional mushrooms as a consequence of their higher potential for use in packaged functional foods is also an important element.
| Attributes | Details |
|---|---|
| Functional Mushroom Market Valuation in 2022 | USD 9,324.7 million |
| Estimated Global Market Share in 2023 | USD 9,698 million |
| Forecasted Global Market Size by 2033 | USD 22,023.8 million |
| Projected Global Market Growth Rate from 2023 to 2033 | 9% CAGR |
| Market Share of Top 3 Companies | 33.6% |
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| Market Statistics | Details |
|---|---|
| Jan to Jun (H1), 2021 (A) | 8% |
| Jul to Dec (H2), 2021 (A) | 7% |
| Jan to Jun (H1), 2022 Projected (P) | 8% |
| Jan to Jun (H1), 2022 Outlook (O) | 8% |
| Jul to Dec (H2), 2022 Outlook (O) | 8% |
| Jul to Dec (H2), 2022 Projected (P) | 7% |
| BPS Change : H1,2022 (O) - H1,2021 (A) | 7.6% |
| BPS Change : H1,2022 (O) - H1,2022 (P) | 7% |
| BPS Change : H2, 2022 (O) - H2, 2022 (A) | 7% |
| BPS Change : H2, 2021 (O) - H2, 2022 (P) | 6% |
By the end of the year 2022, the net worth of the overall market was figured out to be around USD 8,226.4 million. Functional mushroom demand grew at a 3.2% CAGR between 2018 and 2022.
The COVID-19 epidemic caused mushroom demand to soar in 2021, and Nammex's online business of functional mushrooms went up at the same time. So it set up a new plant to produce up to 25 tons of powdered mushroom extracts per month. All of the extracts, including Reishi, Lion's Mane, Chaga, Cordyceps, Shiitake, Maitake, Turkey Tail, and others, are kosher and USDA organically certified.
They have anti-inflammatory properties and provide a high amount of antioxidants to boost energy in the body while boosting blood flow and helping to cope with stress. As a result, people all around the world are incorporating functionally enhanced foods and drinks into their diets.
All such mushrooms are nutritious along with high fiber, high protein, and vitamin-rich components. It has enough proteins, enzymes, lipids, essential oils like triterpenes, and polysaccharides like beta-glucans, which is boosting functional mushroom sales.
Recent research activities conducted by market players are driving product innovations, which are expected to propel sales at a CAGR of 9% over the forecast period.
USDA Certification of Organic Ingredients is Driving Functional Mushroom Sales
Functional mushrooms with USDA organic certification have a high growth potential when made as whole mushroom powders with fruiting bodies and mycelium. Brands like MUD\WTR are using both fruiting bodies and mycelial biomass of mushrooms, allowing the product to complete its full growth cycle.
This is enabling brands to derive kosher, organic, gluten-free, non-GMO, and vegan-certified mushroom powders. These powders are further incorporated with turmeric, rooibos tea, cinnamon, and herbs like valerian root and ashwagandha to create nutrition supplements and other products.
Expansion of the Sports Nutrition Sector in China is Spurring Demand for Functional Mushroom
Cordyceps are being used in traditional Chinese medicine as an ingredient in lung and kidney tonics. The product is best known to improve stamina and support athletic performance as it increases respiratory function with enhanced aerobic capacity and also regulates the flow of oxygen to the brain.
As a result, cordyceps are being adopted in sports nutrition products in China. Players are launching cordyceps as a coffee ingredient, to be taken 30 minutes before exercise to deal with training stress.
| Regional Market Comparison | Global Market Share in Percentage |
|---|---|
| United States | 16.4% |
| Germany | 6.6% |
| Japan | 7.3% |
| Australia | 1.5% |
Applications of Functional Mushroom in Alcohol-free Craft Beer in the United Kingdom May Boost Sales
Fungtn, a United Kingdom-based alcohol-free craft beer brand, launched its first range of 0.5% ABV IPAs and lagers brewed with functional mushrooms such as Reishi, Lion’s Mane, and Chaga. These beverages contain myco adaptogens to enhance the spirit body, depth, and mouthfeel of the beer, without adding any additives, which is uncommon in the non-alcoholic beer segment.
The incorporation of functional mushrooms in non-alcoholic beverages in the United Kingdom is anticipated to create opportunities for growth in the market over the forecast period.
| Regional Markets | CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 5.9% |
| China | 4.5% |
| India | 8.9% |
Benefits of Lion’s Mane are Fueling Demand for Functional Mushroom
Based on nature, sales of organic functional mushrooms are forecast to remain high over the assessment period. These mushrooms are cultivated indoors and grown organically to limit toxic chemicals like fertilizers and pesticides. Catering to the growing demand for chemical-free edible ingredients.
Brands like Mushroom Revival are crafting certified organic mushrooms like Chaga with high cultivation standards including routine tests for biological contaminants, heavy metals, and chemical contaminants. The products are also tested for main compounds, such as beta-glucans, alpha glucans, adenosine, cordycepin, and ganoderic acid. Such developments are expected to bode well for the market in the forthcoming years.
| Category | By Nature |
|---|---|
| Top Segment | Organic |
| Market Share in Percentage | 21.3% |
| Category | By Form |
|---|---|
| Top Segment | Powdered |
| Market Share in Percentage | 23.7% |
Surging Demand for Powdered Reishi Mushrooms Will Augment Growth
In terms of form, demand in the powdered functional mushroom segment is forecast to gain traction over the forecast period. Growth can be attributed to various benefits of the product such as balancing body energy levels, improving digestion, and the presence of polysaccharides, polyphenols, antioxidants, and beta-glucans.
Demand for Functional Mushroom in the Pet Care Industry May Gain Momentum
By application, sales of functional mushrooms in the pet care industry account for a dominant share of the global functional mushroom market in the forthcoming years. These mushrooms are effective in improving pet health, treating allergies, and avoiding diseases like cancer.
As all functional mushrooms have medicinal properties, they are considered a very versatile supplement for holistic pet care. Driven by this, the pet care industry may emerge as the leading application segment for functional mushrooms over the forecast period.
Key functional mushroom manufacturers are investing in joint ventures, partnerships, mergers, and acquisitions while focusing on research for innovative product lines. Top functional mushroom brands are focusing on upgraded and modified products to cater to the growing demand from the food and beverage sector.
Recent Developments by the Functional Mushroom Industries
To offer a range of unique health and wellness benefits, such as cognitive function improvement, supportive gut and immunity health, and sleep enhancement. The company intends to launch additional functional mushroom products including capsules, gummies, and cosmetics.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | MMT for Volume and USD million or billion for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and Middle East and Africa(MEA) |
| Key Countries Covered | The United States, Canada, Brazil, Mexico, Argentina, Chile, Peru, Germany, France, Italy, Spain, the United Kingdom, Netherlands, Belgium, Nordic, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Singapore, Australia, New Zealand, GCC Countries, South Africa, Central Africa, North Africa, and others |
| Key Market Segments Covered | By Nature, By Product Species, By Form, By Application, and By Regions |
| Key Companies Profiled | Hokkaido Reishi Co., Ltd.; Om Mushrooms; Rainbo; Nammex; Half Hill Farm Inc.; Marley One; Optimi Health Corp.; Wuling (Fuzhou) Biotechnology Co., Ltd.; Landish Foods; Functional Mushrooms; Hekate; Others |
| Pricing | Available upon Request |
The market in 2023 is valued at USD 9,698 million.
The market will reach USD 22,023.8 million by 2033.
The market will register a 9% CAGR until 2033.
From 2018 to 2022, the market expanded at a 3.2% CAGR.
Om Mushrooms, Rainbo, and Nammex are some key players.
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Functional Mushroom Market
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