Medicinal Mushroom Market Analysis

Global Medicinal Mushroom Market Overview

The Medicinal Mushroom market size was valued at USD 4.5 Billion in 2022. The medicinal mushroom industry is anticipated to grow from USD 4.9 Billion in 2024 to USD 9.69 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.9% during the forecast period (2024 - 2032). The rise in research and development activities, increased desire for functional foods among most health-conscious consumers and rising adoption of vegan food due to its health-prompting benefits are the major market drivers expanding the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Medicinal Mushroom Market Trends

• Growing vegan population is driving the market growth

The market CAGR for medicinal mushrooms is being driven by the growing vegan population. Veganism is the practice of abstaining from the dietary consumption of animal products, and individuals who follow veganism are known as vegans. A growing population of vegans worldwide is adopting a vegan diet primarily due to its health-promoting benefits. Over the last decade, the number of people opting for vegan diets has increased by about 300%. Foodservice outlets are also promoting veganism and adding various menu options to attract vegan consumers. Numerous young consumers aged 15-30 years are adopting a vegan diet, and this number is expected to increase the medicinal mushrooms market during the forecast period.

Additionally, eating a plant-based diet has become popular, particularly among young individuals who care about animal welfare and the environment. According to the Alliance for Science and Analysis by Kansas State University, as of January 2022, nearly 10% of Americans over 18 years were vegetarian or vegan. Medicinal mushrooms are expected to be utilized in different medicinal and health outcomes in the long run. This widens the range of product applications in the food and beverage industries. Moreover, the industry is growing due to the growing usage of mushrooms as medicinal ingredients in the pharmaceutical and nutraceutical sectors.

A protein-rich diet has gained popularity with expanding consumer knowledge about preserving general health. Increased packaged food consumption by busy lifestyles will also allow the industry to extend. Manufacturers of packaged foods are upgrading food products with nutritional elements, like functional mushroom extracts or powders, to demand a health-conscious consumer base. Over the long term, medicinal mushrooms are expected to be utilized in numerous healthcare and pharmaceutical products. Medicinal mushrooms can fight against the virus and strengthen immunity.

Governments across several countries are investing in producing high-quality types of these edible fungi that are safe for human consumption and can also be exported to other countries to generate revenue. Adopting the developed pest management system to prevent damage can further provide higher yields, which, in turn, aids market growth. With the expansion of the industry, its commercial production and distribution have improved significantly. Furthermore, growing international trade and the initiation of exotic types of cultivation in the primary producing countries drive the medicinal mushroom market revenue.

Medicinal Mushroom Market Segment Insights

Medicinal Mushroom Type Insights

Based on type, the medicinal mushroom market segmentation includes shiitake, reishi, maitake, chaga, cordyceps, turkey tail, and other types. The shiitake segment dominated the market, accounting for 35% of market revenue (1.72 Billion). In developing countries, category growth is driven by increasing demand for its healthy and medicinal advantages. These mushrooms strengthen the immune procedure, promote cardiovascular health, assist with weight loss, and enhance energy levels. Shiitake mushrooms are utilized in the food industry and the dietary supplements industry. As shiitake mushrooms have an umami flavor, dried shiitake mushrooms are highly famous among customers across the globe. However, reishi is the fastest-growing category as these mushrooms are useful for strengthening the immune system and the consumption of reishi mushrooms affects white blood cells and expand the immune function of the human body.

Medicinal Mushroom Form Insights

The medicinal mushroom market segmentation, based on form, includes fresh, dried, and other form. The fresh category generated the most income (70.4%) due to the growing demand for more nutritious preservatives-free food developments and rising consumer inclination toward organic food products. However, dried is the fastest-growing category owing to its wide application in food and extended shelf life. The demand for medicinal mushrooms is growing with the nutritional value of food.

Medicinal Mushroom Function Insights

The medicinal mushroom market segmentation, based on function, includes antioxidant, immune enhancer, anti-cancer, skincare, and other functions. The immune enhancer category generated the most income due to the rising prevalence of infectious disorders, diabetes, and several other disorders due to lack of immunity. However, anti-cancer is the fastest-growing category due to the rising prevalence of cancer and the commercialization of novel treatments to treat different types of cancers.

Figure 1: Medicinal Mushroom Market, by Function, 2022 & 2032 (USD Billion)

Source: Primary Research, MRFR Database, Secondary Research, and Analyst Review

Medicinal Mushroom Regional Insights

By region, the study delivers market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American medicinal mushroom market will dominate due to the expansion in the cultivation of shiitake on biological and synthetic logs, and improved consumer awareness about sustaining overall health and well-being will expand the market growth in this region. Further, the US medicinal mushroom market held the largest market share, and the Canadian medicinal mushroom market was the fastest-growing market in the North American region.

Further, the prominent countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: MEDICINAL MUSHROOM MARKET SHARE BY REGION 2022 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe's medicinal mushroom market accounts for the second-largest market share owing to the rising favor of medicinal mushroom cosmetics. Further, the German medicinal mushroom market held the largest market share, and the UK medicinal mushroom market was the fastest-growing market in the European region.

The Asia-Pacific medicinal mushroom market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the growing preference for a vegan diet and increased usage of these mushrooms in regular diets as a nutritious food option. Moreover, China’s medicinal mushroom market held the largest market share, and the Indian medicinal mushroom market was the fastest-growing market in the Asia-Pacific region.

Medicinal Mushroom Key Market Players & Competitive Insights

Leading market participants are investing heavily in research and development to develop their product lines, which will allow the medicinal mushroom market to grow even more. Market players are also undertaking various strategic activities to develop their footprint, with significant market developments including recent product launches, higher investments, contractual agreements, mergers and acquisitions, and collaboration with other associations. To develop and survive in a more competitive and growing market climate, the medicinal mushroom industry must deliver cost-effective articles.

Manufacturing locally to undervalue operational costs is one of the essential business tactics manufacturers utilize in the medicinal mushroom industry to benefit clients and increase the market sector. Major players in the medicinal mushroom market, including Hokkaido Reishi, Banken Champignons B.V., Far West Fungi, Swadeshi Mushroom, Gourmet Mushrooms Ltd, and others, are attempting to expand market demand by investing in research and development operations.

Om, Organic Mushroom Nutrition (formerly known as Mushroom Matrix) produces organic functional mushroom powders. It uses chaga, cordyceps, reishi, lion's mane, turkey tail, and maitake mushrooms to produce its supplements. In September 2019, Om Organic Mushroom Nutrition introduced new functional drink sticks and mushroom superfood everyday boost capsules. These developments are projected to produce an on-the-go boost of mushroom superfoods and operational components to deliver effective nutrition and supplement fundamental well-being states.

Sun European Partners LLP operates as a private equity firm. The Company focuses on food and beverage, industrial, packaging, chemical, building products, automotive, restaurant, and retail sectors. Sun European Partners serves clients worldwide. In November 2020, Sun European Partners LLP announced the acquisition of CNC Holding BV (CNC), a well-known European supplier and producer of mushroom culture substrate.

Key Companies in the Medicinal Mushroom market include

• Aloha Medicinals


• Asia Pacific Farm Enterprises Inc.


• Banken Champignons B.V.


• Bio Botanica Inc.


• Concord Farms


• DXN Holdings Bhd


• Far West Fungi


• Four Sigmatic Foods Inc.


• Fungi Perfecti LLC


• Gourmet Mushrooms Ltd.


• Natures Way Products LLC


• Nikkei Canada Marketing Ltd.


• Nyishar


• Oriveda BV


• PREMIUM HOKKAIDO Co. Ltd.

Medicinal Mushroom Industry Developments

July 2022: Ethical Naturals has launched a new line of organic mushroom extracts in collaboration with Nammex called Mushroom-Plus, formulated for specific health concerns. The new ingredients contain organic mushroom extracts from Nammex blended with other bioactive ingredients that enhance their beneficial effects and marketability.

May 2022: Grove Inc. expands into the rapidly growing medicinal mushrooms and superfoods market with their most recent product line, Cure Mushrooms. The brand delivers a US-based product line of mushroom excerpts. With cultivation in the Pacific Northwest and formulation in California, the USDA Certified Organic brand produces a full line of liquid sections and gummies.

June 2021: The Marley, in partnership with Silo Wellness Inc., a major psychedelic company in Toronto, launched a new psychedelic and functional mushroom consumer brand, Marley One. The initial product offering such as a variety of functional mushroom tinctures, including lion's mane, cordyceps, reishi, turkey tail, and Chaga, which provide benefits such as boosting immunity, supporting gut health, sleep enhancement, and cognitive function.

Medicinal Mushroom Market Segmentation

Medicinal Mushroom Type Outlook

• Shiitake


• Reishi


• Maitake


• Chaga


• Cordyceps


• Turkey Tail


• Other Types

Medicinal Mushroom Form Outlook

• Fresh


• Dried


• Other Form

Medicinal Mushroom Function Outlook

• Antioxidant


• Immune Enhancer


• Anti-Cancer


• Skin Care


• Other Functions

Medicinal Mushroom Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America