Functional Mushroom Global Market Report 2025

The functional mushroom market size has grown rapidly in recent years. It will grow from $35.97 billion in 2024 to $40.19 billion in 2025 at a compound annual growth rate (CAGR) of 11.7%. The growth in the historic period can be attributed to increasing consumer awareness of health benefits, rising demand for natural and organic products, growing adoption in dietary supplements, expanding use in traditional medicine, and rising functional food and beverage industry.

The functional mushroom market size is expected to see rapid growth in the next few years. It will grow to " $63.04 billion in 2029 at a compound annual growth rate (CAGR) of 11.9%. The growth in the forecast period can be attributed to increasing research on medicinal properties, growing investment in functional food sector, rising consumer preference for plant-based alternatives, expanding applications in pharmaceuticals, and increasing government support for mushroom cultivation. Major trends in the forecast period include advancements in extraction technologies, innovations in functional mushroom-based supplements, developments in cultivation techniques, investment in research and development in nutraceuticals, and technological improvements in mushroom processing.

The forecast of 11.9% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market.This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US by disrupting the supply of medicinal mushroom extracts from China and Korea, impacting supplement and wellness product manufacturers.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 growing consumer interest in immune-boosting foods is expected to drive the expansion of the functional mushroom market in the coming years. Immune-boosting foods, such as citrus fruits, garlic, ginger, yogurt, and leafy greens, are nutrient-dense and support the immune system, contributing to overall health. This demand for immune-boosting foods is increasing as individuals become more health-conscious and recognize the connection between diet and well-being. As people become more educated about how nutrition directly impacts immunity, they are actively seeking foods that are rich in vitamins, antioxidants, and other nutrients that promote immune health. Functional mushrooms contribute to this trend by offering natural compounds that boost immunity, making them a popular choice in health-focused diets. For example, in June 2024, the International Food Information Council (IFIC) reported that consumer interest in immune-supporting foods rose to 35% in 2024, up from 29% in 2022, while demand for natural ingredients such as mushrooms, berries, and nuts increased to 60%, compared to 54% previously. Thus, the rising consumer interest in immune-boosting foods is fueling the growth of the functional mushroom market.

Leading companies in the functional mushroom market are concentrating on innovations in nutraceuticals, such as functional mushrooms combined with premium dark chocolate, offering a health-conscious indulgence that merges cognitive and immune benefits with rich flavor. Functional mushrooms with dark chocolate combine the health-promoting properties of mushrooms, which are known for supporting cognition and immune health, with the rich taste of high-quality chocolate, providing both wellness and indulgence in one product. For instance, in February 2025, Mycopreneur, a Canada-based community of mushroom entrepreneurs, introduced Mycoday, a functional mushroom dark chocolate designed to support cognition, immune health, and cholesterol management. Made with four mushroom species sourced from Nordic Mushrooms, this product highlights the growing trend of incorporating functional ingredients into confectionery, delivering both health benefits and delightful flavor.

In September 2024, Applied Food Sciences Inc., a US-based supplier of functional and organic ingredients, partnered with KÄÄPÄ Biotech to advance functional mushroom innovation. This collaboration aims to expand the cultivation of functional mushrooms with the establishment of a new high-tech facility in Finland, ensuring premium quality and sustainability. KÄÄPÄ Biotech, an innovation-driven biotechnology company based in Finland, provides cutting-edge solutions for functional mushroom cultivation and extraction.

Functional mushrooms are a type of fungi known for their health benefits that go beyond basic nutrition. They contain bioactive compounds that support immune function, brain health, stress relief, and overall well-being. These mushrooms are typically divided into two main categories: medicinal mushrooms and adaptogenic mushrooms. Popular types include Reishi, Lion’s Mane, Cordyceps, Chaga, and Turkey Tail, often found in supplements, teas, and wellness products.

The primary types of functional mushrooms include Lion’s Mane, Chaga, Shiitake, Reishi, Cordyceps, and Turkey Tail. Lion's Mane mushrooms are easily recognizable by their white, shaggy appearance, resembling a lion's mane. Functional mushrooms are available in various product forms such as powders, capsules, tinctures, teas, extracts, and functional foods and beverages. These products may contain ingredients such as carotenoids, fatty acids, minerals, prebiotics, probiotics, vitamins, and other nutrients. Functional mushrooms appeal to a wide range of consumer demographics, including different age groups, health-conscious individuals, athletes and fitness enthusiasts, and people with specific health conditions. They are used in various applications such as food and beverages, dietary supplements, pharmaceuticals, and more.

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 rapid implementation of U.S. tariffs and the resulting trade tensions in spring 2025 are having a notable impact on the food and beverage sector. Rising costs for imported ingredients such as olive oil, cheese, and tropical fruits are pressuring food manufacturers to either reformulate their products or absorb reduced profit margins. Beverage producers are similarly affected, with tariffs on aluminum cans driving up packaging costs. Meanwhile, retaliatory tariffs on U.S. agricultural exports like soybeans and pork are disrupting farm-to-processor supply chains. In response, companies are adjusting recipes, increasing local sourcing, and using commodity hedging strategies to manage price volatility.

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

Major players in the functional mushroom market are Monterey Mushrooms Inc., Laird Superfood Inc., Aloha Medicinals Inc., M2 Ingredients, Fungi Perfecti LLC, Host Defense Mushrooms, RYZE Superfoods, Hirano Mushroom LLC, Pan’s Mushroom Jerky, Nammex, Real Mushrooms, Mycotrition GmbH, Half Hill Farm LLC, Life Cykel Pty Ltd., MUD\WTR Inc., Mushroom Wisdom Inc., Alice Mushrooms, Eversio Wellness Inc., Om Mushroom Superfood, The Functional Mushroom Company.

Asia-Pacific was the largest region in the functional mushroom market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in functional mushroom report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the Functional Mushroom market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The functional mushroom market consists of sales of enoki mushrooms, maitake mushrooms, and tremella mushrooms. 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.

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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