Global Functional Mushroom Market - 2023-2030

Global Functional Mushroom Market - 2023-2030

Market Overview

The global functional mushroom market was valued at USD YY million in 2021. It is forecasted to reach USD YY million by 2029, growing at a CAGR of 10.2% during the forecast period (2022-2029).

A mushroom is a vegetable with a fleshy fungus that contains nutrients such as vitamins, potassium, and selenium. Functional mushrooms are types of fungi that are heralded for health benefits beyond their nutritional compositions. The exact benefits depend on the species of mushrooms used, which are rich in antioxidants and nutritionally dense, with myriad health claims for each. Because of their medicinal and superfood properties, these mushrooms have been used for hundreds of years.

It is anticipated that the functional mushroom market will expand as more people worldwide become aware of the health benefits of eating mushrooms. The market expansion of functional mushrooms is anticipated to be driven by the rising trend of functional food consumption in both developed and developing economies. Furthermore, increased demand for functional mushrooms from various end-use sectors is likely to substantially impact the worldwide functional mushrooms market in the coming years.

Market Dynamics Growing functional mushroom market with increased demand for functional food and nutraceuticals

There has been a considerable change in people's lifestyles and diet habits over the past two decades. Urbanization and consumerism forced this change, leading to a rapid rise in the consumption of functional food products and 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 nutraceuticals that are promoted as being beneficial beyond basic nutrition. These products are purported to provide optimal nutrition and reduce the risk of disease occurrence. In the United States, functional foods are gaining popularity among health-conscious consumers.

During the forecast period, the demand for functional mushrooms is expected to increase significantly as these mushrooms are incorporated into various functional foods and nutraceuticals. For instance, on May 26, 2022, Grove Inc. (GRVI) launched its newest product line of mushroom extracts, Cure Mushrooms, to take advantage of the growing demand in the medicinal mushroom space. The Cure Mushrooms products are vegan and free of preservatives, chemicals, corn syrup, allergens, soy, dairy, wheat, salicylates, artificial ingredients, artificial sweeteners, flavors, or colors.

However, the high price of functional mushrooms compared to conventional mushrooms is predicted to restrain the growth of the global functional mushroom market during the forecast years.

Market Segmentation

The lions mane type segment had the most increased demand in the functional mushroom market

Lions mane is a type of mushroom with a high amount of nutritional content that can benefit human health in many ways, such as improving memory, concentration, recovery from sickness, and helping to serve as a rejuvenator. Lion's mane is considered one of the most powerful brain foods, as it can stimulate nerve growth factors (NGF), which are responsible for the brain's processing and transmission of information. Consumers are looking for different and multiple nutritional contents in their food, pushing the use of lion’s mane across several categories of food products. Furthermore, lion’s mane mushrooms contain potassium, beta-glucan polysaccharides, potassium, and zinc. It helps provide overall growth for human health. Companies promoted campaigns designed to engage consumers and raise awareness about the health benefits of mushrooms. Awareness of mushrooms' benefits for human health increases the demand for mushrooms. For instance, Nature Rise introduced Lion's Mane Mushroom Powder, an organic supplement, on December 20, 2022. This supplement can help to focus and memory of body processes.

Geographical Penetration: Asia Pacific is the dominating region during the forecast period

Asia Pacific dominated the functional mushroom market in 2021 and accounted for the maximum market share. It can be attributed to the tremendous popularity and substantial consumption of functional mushroom products in the region for centuries. In the Asian region, China is the largest producer of mushrooms globally. The country produces mushrooms and truffles to meet the large external and internal market demands. With the growing income levels of urban and rural Chinese consumers and the transformation of comprehensive health awareness and consumption concepts, consumers across the market are placing more importance on safety, nutrition, and healthy foods 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 most crucial channels for mushroom marketing. With techniques for medicinal mushrooms and an increasing demand for exotic mushroom varieties, the market for functional mushrooms in the region is expected to witness significant growth in the coming years.

Furthermore, another key factor driving the regional market was the high demand for such mushrooms due to their potential as functional foods. There is also a high demand for functional mushrooms in the food and beverage industry of the Asia Pacific region, owing to an increase in the usage of these mushrooms in regular diets as a nutritious food option. For instance, on August 4, 2022, a Shanghai-based mycelium protein company launched its vegan shredded chicken in China in a national first. The new vegan chicken shreds made from biomass-fermented protein will be a first for China, which has seen an uptick in vegan protein offerings. Mycelium—the root structure of mushrooms—is used for meat, leather, and other sustainable applications.

North America is projected to register the fastest growth rate during the projected timeframe. It is attributed to a rise in the popularity of these mushrooms as superfoods. Functional mushrooms are becoming more popular in developed areas because they are a superior alternative to numerous other nutritious foods. Furthermore, increased consumer awareness about maintaining overall health and well-being will support the region’s growth.

Competitive Landscape

Major players invest heavily in R&D to focus on new product development while expanding their distribution network. Product innovation and business expansion are the primary business strategies companies in this sector use due to the market's rapid change. Expansion and product innovation have become the major players' most popular strategies for consistently meeting the rising demand for these products. Some of the key companies operating in the global functional mushroom market are Way of Will Inc., M2 Ingredients, Nammex, Mitoku Company, Hokkaido Reishi Co. Ltd., Lianfeng (Suizhou) Food Co. Ltd., Monterey Mushrooms Inc., Rebbl, Sotru and Monaghan Group. For instance, in 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 includes 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.

In February 2022, Optimi Health Corp. launched functional mushroom supplements targeting novel and functional psychedelic compounds for Canadian consumers in the health and wellness sector. The supplements have the highest quality and most fruitful mushroom formulations for mind and body optimization. The one-of-a-kind and original psychedelic and functional mushroom brand from Marley One, launched in June 2021 in collaboration with Silo Wellness, will contain remedies made from species like lion's mane, cordyceps, reishi, chaga, and turkey tail.

COVID-19 Impact: Positive impact on the global functional mushroom market

Increasing cases of COVID-19 have led governments in different countries to impose lockdowns in 2020 to contain the spread of the infection. It created a disturbance in the supply chain of the industry. Food manufacturing and processing plants were shut down for a brief period to safeguard the health of workers, which, in turn, affected production capacity. Because of the widespread presence of COVID-19, the functional mushroom market has been severely impacted by a lack of available workers and hampered production capacity. Furthermore, due to the closure of wholesale markets, producers had to rely on supermarkets and e-commerce traders to market mushroom products. Hence, the functional mushroom market is impacted positively.

Moreover, due to the global lockdown, the procurement of raw materials took time owing to restrictions on international trade activities. Delays in shipments due to restrictions on the movement of people also caused a shortage of raw materials, increasing their prices and eventually raising the cost of functional mushrooms. However, the demand for functional mushrooms increased during the pandemic due to their health benefits, such as their immunity-boosting properties, which positively impacted the global industry. According to the National Agriculture Statistics Service (NASS), the sales value for the 2019–2020 mushroom crop was $1.15 billion, up 3 percent from the previous season. The average reported price was $1.41 per pound, up 7 cents from the previous year. Brown mushrooms (Portabella and Crimini) saw increases in volume, price per pound, and value of sales from 2019 to 2020. Sales volume increased 2.6 percent from last season, the price per pound increased from $1.55 to $1.57, and sales value jumped 3.6 percent from last season.

The global functional mushroom market report would provide access to approximately 61 market data tables, 54 figures and 170 pages