Medicinal Mushroom Market Report 2025

The medicinal mushroom market size has grown rapidly in recent years. It will grow from $37.88 billion in 2024 to $41.76 billion in 2025 at a compound annual growth rate (CAGR) of 10.2%. The growth in the historic period can be attributed to rising awareness about medicinal mushrooms of their potential health benefits, increasing desire for functional foods, growth in sports nutrition, increasing desire for functional foods, and increasing high utilization of medicinal mushrooms.

The medicinal mushroom market size is expected to see rapid growth in the next few years. It will grow to $61.41 billion in 2029 at a compound annual growth rate (CAGR) of 10.1%. The growth in the forecast period can be attributed to the growing vegan population, rising adoption of vegan food, growth in the shift to preventative health and wellness-oriented lifestyles, health-promoting benefits of medicinal mushrooms, and increasing demand for mushroom-based products. Major trends in the forecast period include growing interest in alternative and natural medicines, the growing shift towards natural and holistic health approaches, a rise in research and development activities, expansion of product diversity and accessibility, and advancements in cultivation and processing technologies.

The forecast of 10.1% growth over the next five years reflects a modest reduction of 1% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff barriers are expected to hamper U.S. supplement producers by increasing the cost of organic reishi and chaga mushroom extracts sourced from China and Poland, thereby limiting product availability and raising nutraceutical market prices. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The medicinal mushroom market is poised for growth due to an increasing vegan population. This demographic shift is fueled by ethical, environmental, health-related, informational, and cultural factors, underscoring the rising awareness and acceptance of veganism as a beneficial lifestyle choice. Medicinal mushrooms offer crucial nutritional support, health benefits, and culinary versatility, making them integral to a balanced vegan diet and lifestyle. For instance, as reported by the Vegan Society in 2023, 2.6 million Europeans are now vegan, constituting 3.2% of the population, up from 2020. This trend is a significant driver behind the expanding medicinal mushroom market.

Leading companies in this sector are innovating with advanced technologies such as pulsed UV light to boost cultivation efficiency and enhance bioactive compounds in their products. Pulsed UV light technology involves intense, brief bursts of ultraviolet light to improve the safety, quality, and nutritional content of medicinal mushrooms. For example, in October 2023, Nammex introduced ErgoGold and mushroom-derived vitamin D, leveraging pulsed UV light to convert ergosterol into vitamin D2. This innovation caters to vegan consumers seeking natural, nutrient-rich alternatives.

In March 2022, Vibe Mushrooms Inc., based in British Columbia, acquired Qi Mushrooms, a move aimed at utilizing Qi Mushrooms' systems, team, and research pipeline to bolster supply chain capabilities and accelerate growth in their mushroom extracts line. Qi Mushrooms, renowned for scientifically-backed medicinal mushroom extracts, strengthens Vibe Mushrooms' position in the market.

Major companies operating in the medicinal mushroom market are Costa Group, Monterey Mushrooms LLC, Nature's Way Brands, Bio-Botanica, Banken Champignons B.V., Aloha Medicinals, Fungi Perfecti, Hirano Mushroom LLC, Fungi Ally, Far West Fungi, FreshCap Mushrooms, Swadeshi Mushroom, Asia Pacific Farm Enterprises, Gourmet Mushrooms Inc., Mycoterra Farm, Green Box Mushrooms, Shroomery, Four Sigmatic, Woodland Mushrooms, Fungaia Farm, Vitality Mushrooms, Annanda Chaga Mushrooms.

North America was the largest region in the medicinal mushroom market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the medicinal mushroom market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the medicinal mushroom market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The medicinal mushroom market consists of sales of mushroom extract capsules, mushroom powder, mushroom tea, and mushroom supplements. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a significant impact on the pharmaceutical sector. Companies are grappling with higher costs on imported active pharmaceutical ingredients (APIs), glass vials, and laboratory equipment - many of which have limited alternative sources. Generic drug manufacturers, already operating with minimal profit margins, are particularly affected, with some scaling back production of low-margin medications. Biotech firms are also experiencing delays in clinical trials due to shortages of specialized reagents linked to tariffs. In response, the industry is shifting API production to regions like India and Europe, building up inventory reserves, and advocating for tariff exemptions on essential medicines.

The medicinal mushrooms market research report is one of a series of new reports that provides medicinal mushrooms market statistics, including the medicinal mushrooms industry global market size, regional shares, competitors with medicinal mushrooms market share, detailed medicinal mushrooms market segments, market trends, and opportunities, and any further data you may need to thrive in the medicinal mushrooms industry. These medicinal mushrooms market research reports deliver a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

Medicinal mushrooms encompass a variety of fungi known for their health benefits, attributed to bioactive compounds that bolster immunity, reduce inflammation, combat infections, and demonstrate anti-cancer properties. Their primary purpose is to promote health and wellness through therapeutic qualities.

The key types of medicinal mushrooms include Shiitake, Reishi, Maitake, Chaga, Cordyceps, Turkey tail, and others. Shiitake mushrooms (Lentinula edodes), originating from East Asia, are edible and among these beneficial species. These mushrooms are available in fresh, dried, and other forms, offering diverse applications such as antioxidants, immune boosters, anti-cancer agents, and skincare solutions. Distribution channels range from supermarkets and hypermarkets to convenience stores and e-commerce platforms.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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