The global functional mushroom market size was valued at USD 31.71 billion in 2023 and is projected to reach USD 65.83 billion by 2030, growing at a CAGR of 11.2% from 2024 to 2030. The market’s robust growth can be attributed to the rising popularity of functional mushrooms as superfoods, driven by their wide range of nutritional and health benefits, including immune support, stress reduction, and enhanced cognitive function.

Functional mushrooms are increasingly being incorporated into healthcare and pharmaceutical products due to their medicinal properties. This growing integration across multiple industries is expected to fuel demand over the forecast period. Furthermore, their expanding application as natural health supplements in the pharmaceutical sector is playing a vital role in accelerating market growth.

However, the industry faced significant challenges during the pandemic period. Disruptions in the global supply chain led to temporary closures of food manufacturing and processing facilities, as companies prioritized the safety of their workforce. These shutdowns adversely impacted production capacity. Additionally, restrictions on international trade activities made it difficult to procure raw materials, while shipment delays and mobility restrictions further constrained the supply chain. The shortage of raw materials resulted in increased prices, consequently driving up the overall production costs of functional mushrooms.

Despite these challenges, the market witnessed a surge in demand during the pandemic, primarily due to the growing awareness of the health-promoting properties of functional mushrooms, particularly their ability to strengthen the immune system. This heightened consumer interest in natural and preventive health products positively influenced the global functional mushroom industry, contributing to its overall resilience and growth trajectory.

Key Market Trends & Insights:

• The North America functional mushroom market is expected to witness substantial growth, projected to expand at a CAGR of over 12% from 2024 to 2030. This strong growth outlook can be attributed to the increasing consumer awareness regarding the health and nutritional benefits of functional mushrooms, along with the rising adoption of plant-based and natural dietary supplements. Additionally, the growing demand for immunity-boosting and adaptogenic products, coupled with the expanding functional food and beverage industry in the region, is further fueling market expansion.

• By product, the shiitake mushroom segment held the dominant position in 2023, accounting for the highest revenue share of nearly 34%. Shiitake mushrooms are widely recognized for their rich umami flavor and numerous health benefits, including immune support, cholesterol regulation, and potential anti-inflammatory properties. Their increasing use in both culinary and nutraceutical applications, as well as the growing popularity of traditional Asian cuisines across Western countries, has contributed to their strong market performance.

• On the basis of applications, the food and beverage segment led the global functional mushroom industry in 2023, capturing the highest share of 41.9%. This dominance is largely driven by the growing incorporation of functional mushrooms in various food and beverage products such as soups, teas, coffees, snacks, and dietary supplements. Consumers are increasingly seeking foods that not only offer nutrition but also deliver health-enhancing benefits, which has encouraged manufacturers to innovate and introduce mushroom-infused functional products. This trend is expected to continue, further strengthening the role of the food and beverage segment in the overall market growth.

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Market Size & Forecast:

• 2023 Market Size: USD 31.71 Billion

• 2030 Projected Market Size: USD 65.83 Billion

• CAGR (2024-2030): 11.2%

• Asia Pacific: Largest market in 2023

Key Companies & Market Share Insights:

Major players in the market are making significant investments in research and development (R&D) to drive innovation and introduce new and improved products that cater to evolving consumer needs and preferences. These companies are focusing on developing advanced formulations, enhancing product quality, and incorporating additional health benefits to strengthen their market position.

In addition to product innovation, leading players are also actively expanding their distribution networks to increase market reach and accessibility. By establishing strong partnerships with retailers, e-commerce platforms, and regional distributors, they aim to ensure a wider availability of their products across different geographies. This dual strategy of continuous innovation and distribution expansion is enabling these companies to enhance brand visibility, capture new customer segments, and maintain a competitive edge in the global market.

Key Players

• Way of Will Inc.

• M2 Ingredients

• Nammex

• Mitoku Company

• Hokkaido Reishi Co. Ltd.

• Lianfeng (Suizhou) Food Co. Ltd.

• Monterey Mushrooms Inc.

• Rebbl

• Sotru

• Monaghan Group

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Conclusion:

The functional mushroom market is set for strong expansion, driven by rising consumer demand for super-food mushrooms and their growing use in food, beverage, nutraceutical and pharmaceutical applications. Increased health and wellness awareness, coupled with sustainable-source ingredients, are further bolstering growth.