The global functional mushroom market was valued at USD 25,415.12 million in 2020, and it is estimated to register a CAGR of 8.44% during the forecast period 2021-2026.
Mushrooms that support immune health have benefited since the start of the COVID-19 pandemic, with high interest from food, beverage, and nutritional supplement manufacturers, which has carried over to the entire mushroom category. There exists a high demand for safe and natural immune-supportive health products, including supplements featuring mushrooms that support immune health, such as chaga, reishi, shiitake, cordyceps, and turkey tail.
Over the long term too, functional mushrooms are expected to find application in a wide variety of healthcare or pharmaceutical products, which has increases the applicability of mushrooms in the food and beverage sector. As products infused with mushroom ingredients are becoming a big part of the trend of self care, offering a recognizable source of delivery formats and impressive health benefits, the market demand is expected to continue to grow over the forecast period.
Chaga, one of the most consumed functional mushroom, is good for the digestive system and produces immune-modulatory effects. Furthermore, Chaga is expected to experience a huge demand over the forecast period. The market studied also experiences huge demand for reishi and cordyceps, followed by other types of medicinal mushrooms. Reishi, a traditional Chinese medicine, is also known as the “elixir of life” as well as the “mushroom of immortality”.
Key Market Trends
Surge in Demand for Functional Food and Dietary Supplements
There has been a considerable shift in the lifestyles and diet habits of consumers over the past two decades. Urbanization and consumerism drove this shift, leading to a rapid rise in the consumption of synthetic food products, resulting in an increased incidence of lifestyle diseases. Thus, people are becoming aware of these problems. As a result, people are gradually moving toward functional foods and beverages that are promoted as being beneficial beyond basic nutrition. These products are purported to provide optimal nutrition and reduce the risk of disease occurrence. Functional foods are gaining high popularity among health-conscious consumers. During the forecasted period, the demand for medicinal mushrooms is expected to increase significantly, as these mushrooms are being incorporated in various functional food and beverages. Reishi, chaga, and Turkey tails are added with coffee and cocoa. Turkey tails are mild enough to be added to soups and broths as well. Maitake and Shiitake are delicious, simply sautéed with garlic. Furthermore, the companies are incorporating functional mushrooms in the product offerings. For instance: Four Sigmatic incorporated medicinal mushrooms in its coffee, tea, and supplement categories. Similarly, Lifehouse Tonics introduced beverages that include mushrooms as a key ingredient.
Asia Pacific Holds the Largest Market Share
In the Asian region, China is the largest producer of mushrooms, globally. The country engages in the production of mushrooms and truffles to meet the large external and internal market demands. With the growing income levels of urban and rural Chinese consumers and with the transformation of comprehensive health awareness and consumption concept, consumers across the market are placing more importance on safety, nutrition, and consumption of healthy food with certain medical benefits. The rapid development of the catering industry stimulates the growth of mushrooms in the respective market. Catering channels are one of the crucial channels for mushroom marketing where the staff is continuously working to ensure the standard on food safety, strengthening the consciousness on raw materials’ safety, and environmental protection. techniques of medicinal mushroom and increasing demand for exotic mushroom varieties, the market for functional mushrooms in the region is expected to witness significant growth in the coming years.
The market studied is highly competitive, with the presence of several small players in the market. Key players, such as Nammex, CNC Exotic Mushrooms, and Mitoku Company, have focused on expansion by increasing the production capacity of mushroom farms. Nammex and Hokkaido Reishi Co. Ltd are the most active companies operating in the functional mushroom market. Product innovation and expansion are the major strategies adopted by the companies in this industry, owing to the rapidly transforming nature of the market. In order to constantly fulfil the increasing demand for these products, expansion and product innovation have become the most followed strategies by key players.
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porters Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 By Product Type
5.1.3 Lion's Mane
5.1.4 Turkey Tail
5.1.7 Other Product Types
5.2 By Application
5.2.1 Food and Beverage
5.2.2 Dietary Supplements
5.2.3 Personal Care
5.3.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of North America
5.3.3 Asia Pacific
126.96.36.199 Rest of Asia Pacific
5.3.4 Rest of the World
6 COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.2 Hirano Mushroom LLC
6.4.3 CNC Exotic Mushrooms
6.4.4 Mitoku Company Ltd
6.4.5 Lianfeng (Suizhou) Food Co. Ltd
6.4.6 Shanghai Finc Bio-tech Inc.
6.4.7 M2 Ingredients
6.4.8 Hokkaido Reishi Co. Ltd.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
8 IMPACT OF COVID-19 ON THE MARKET
A selection of companies mentioned in this report includes:
- Hirano Mushroom LLC
- CNC Exotic Mushrooms
- Mitoku Company Ltd
- Lianfeng (Suizhou) Food Co. Ltd
- Shanghai Finc Bio-tech Inc.
- M2 Ingredients
- Hokkaido Reishi Co. Ltd.