Global Functional Mushroom Market By Application (Pharmaceutical, nutraceutical & dietary supplements; Food & Beverage and Personal Care & Cosmetics), By Product Type (Reishi, Cordyceps, Lion’s Mane and Others), By Distribution Channel (Specialty Stores,

Global Functional Mushroom Market By Application (Pharmaceutical, nutraceutical & dietary supplements; Food & Beverage and Personal Care & Cosmetics), By Product Type (Reishi, Cordyceps, Lion’s Mane and Others), By Distribution Channel (Specialty Stores, Supermarkets & Hypermarkets, Online Distribution Channel and Others), By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027

The Global Functional Mushroom Market size is expected to reach $13.6 billion by 2027, rising at a market growth of 8.7% CAGR during the forecast period.

Functional mushrooms, also known as medicinal mushrooms are relatively uncommon mushrooms that grow in dark forests, on fallen logs, or on the Himalayan plateau. These mushrooms are famous for being high in antioxidants and nutritional content, with a variety of health benefits. Because of their medical properties and superfood benefits, these mushrooms have been used for hundreds of years.

The popularity of these mushrooms has increased owing to the extensive study that has accompanied them over the years, as well as the increased demand for natural health remedies. Certain functional mushrooms can help in enhancing immune system, which would enable a person’s body to fight against infections more effectively.

Chaga mushrooms are a powerhouse of antioxidants, making them the strong product in the fight against free radicals and inflammation. It is a dark black mushroom that fights oxidative stress (which has been linked to skin aging), may prevent or reduce cancer growth, and has been proven to reduce LDL or bad cholesterol. The majority of research on chaga has been done on human cells and mice, yet all evidence points to this mushroom being beneficial for human consumption.

There are many people who are increasingly incorporating functional mushrooms in their diet. There are a wide range of functional mushroom products available in the market like mushroom powders. Additionally, searching a high-quality mushroom supplement is the simplest method to enrich a person’s diet. Functional mushroom supplements are not freshly available in supermarkets, but they can be used for a longer period of time in cooking, making smoothies, protein drinks, and teas.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic has significantly impacted the demand and growth of the functional mushroom market. Since supply chain was severely disrupted owing to the imposition of complete lockdown in many countries, the demand for functional mushroom supplements was declined in the market.

On the other hand, the growing awareness among people regarding the importance of maintaining a good health and better immune system along with the increasing adoption of nutraceuticals and dietary supplements would positively impact the demand for functional mushroom in the recovery phase of the pandemic.

Market Growth Factors:

Rising prevalence of cardiovascular and chronic diseases

The market for functional mushrooms is growing as the prevalence of cardiovascular disorders rises. Unhealthy diets, cigarette use, and physical inactivity are only a few of the key causes of cardiovascular disease, which elevate blood pressure and blood glucose levels, resulting in overweight and obesity. According to the World Health Organization, heart attacks and strokes account for four out of every five cardiovascular fatalities.

Rapid increase in the demand for functional foods and dietary supplements

Over the last two decades, people's lifestyles and eating habits have changed dramatically. This transition was fuelled by urbanisation and consumerism, which resulted in a massive rise in the use of synthetic food products, leading to an increase in the incidence of lifestyle diseases. Hence, people are becoming more aware of the issues. As a result, individuals are rapidly moving to functional foods and beverages, which are marketed as providing benefits beyond basic nutrition.

Market Restraining Factors:

Availability of numerous alternatives and lack of skilled workforce

There is an availability of various products and ingredients that are substitute of functional mushrooms and its products. In addition, many people prefer plant-based products who will not readily adopt functional mushroom products. Also, some people are allergic to mushrooms, which would restrict the consumption of functional mushroom products. Along with that, there are many manufacturers who are using different alternatives of functional mushrooms in the manufacturing of their products.

Application Outlook

By application, the functional mushroom market is divided into Food and Beverage; Pharmaceutical, nutraceutical & dietary supplements; and Personal Care & Cosmetics. The pharmaceutical, nutraceutical & dietary supplements segment procured the maximum share in the functional mushroom market in 2020. Since functional mushrooms contain various chemical elements with potential nutritional and therapeutic value, they are highly used in various medicinal products. In China, Japan, North America, and other parts of the world, mushroom fruiting bodies have become popular as nutritional supplements.

Product Type Outlook

Based on product type, the functional mushroom market is segmented into Cordyceps, Reishi, Lion’s Mane and others. The reishi mushroom segment acquired the highest share in the functional mushroom market in 2020, and is estimated to maintain its dominance over the forecast period. The growing trend of developing natural drugs in order to protect and cure people with numerous immunological diseases has gained a momentum in the last few years. In addition, reishi mushroom is one of the most popular mushroom used in the making of various dietary supplements.

Distribution Channel Outlook

Based on distribution channel, the functional mushroom market is fragmented into supermarket/hypermarket, specialty stores, online stores, and convenience stores. Specialty stores segment dominated the functional mushroom market in 2020 and is estimated to continue this trend during the forecast period. Specialty stores are among the top places to be consider for growing the penetration of functional mushrooms among consumers. Any type of goods can be found in these specialist shops. As a result, specialised retailers are expected to have a significant impact on the functional mushroom industry.

Regional Outlook

Region-wise, the functional mushroom market is analyzed across North America, Europe, Asia Pacific and LAMEA. Asia Pacific emerged as the leading region in the functional mushroom market in 2020 with the highest market share. It is owing to the high popularity of functional mushroom and significant consumption of functional mushroom products across various nations of the region. China is also the world's leading producer and user of functional mushroom products.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Hokkaido Reishi Co. Ltd., Real Mushrooms, Pan's Mushroom Jerky, Om Mushroom Superfood, Four Sigmatic, Banken Champignons B.V., South Mill Mushrooms Sales, Inc. (The Mushroom Company), and Half Hill Farm, Inc.

Recent Strategies deployed in Functional Mushroom Market

Dec-2021: Four Sigmatic introduced the latest product line of coffee creamers, which include the market's highest dosage (500mg) of functional mushrooms. This line is developed to offer the brand's unique mushroom heritage and support its mission of bringing healthy and accessible products to coffee routines across the world.

Dec-2021: South Mill Champs expanded its geographical footprint by opening its seventh US distribution center in Sacramento, California. This Sacramento Distribution Center is built with a cheese-stuffing line, which would enable the company to fulfill the high demand for its Stuffed Baby Bella Caps sold within its Champs Mushrooms brand.

Oct-2021: Four Sigmatic released Immune Support Ground Coffee and Perform Ground Coffee. This latest product includes mushrooms for functional benefits. Along with that, this coffee is made for high performers who are seeking energy and productivity.

Jul-2021: South Mill Champs came into a partnership with Loveday Mushroom Farms. Under this partnership, Loveday Mushroom Farms joined South Mill Champs's North American family of mushroom producers. This partnership aimed to enhance the production ability of the companies along with supporting their future planned compost and mushroom expansion plans.

Jan-2021: South Mill Champs took over The Mushroom Company, one of North America's largest mushroom processors. This acquisition aimed to expand capacity and abilities at the Cambridge facility, in line with its growing North American operations.

Nov-2020: South Mill Champs expanded its geographical footprint by purchasing a new distribution center in Lakeland, Florida. This expansion aimed to support the company's mission to fulfill the growing demand from its customers in this key market.

Jul-2020: Four Sigmatic unveiled a line of shots with functional mushrooms and adaptogens. This portfolio provides wellness products that are manufactured with fruit juice and vitamins. In addition, this line would also feature three ‘high impact’ shots that are claimed to have benefits in the areas of beauty, health, and productivity.

May-2020: Four Sigmatic launched a gut-friendly coffee, which is a combination of functional mushrooms, probiotics, and prebiotics. This Mushroom Ground Coffee with Probiotics helps in boosting the immune and digestive systems with functional mushrooms to reduce the potential negative impacts of drinking normal coffee on human health.

Sep-2019: Om Organic Mushroom Nutrition unveiled new mushroom superfood functional drinks sticks and mushroom superfood daily boost capsules. These products would provide an on-the-go boost of mushroom superfoods plus functional components to offer efficient nutrition and complement key wellness states.

Feb-2019: South Mill Champs released a new mushroom-based snack called Shroom Snacks. This launch aimed to offer a delicious, better-for-you snack utilizing mushrooms, grown and hand-picked on South Mill farms, along with introducing four product lines blended with 14 flavors.

Jul-2018: Four Sigmatic expanded its beauty category with the launch of the latest Golden and Chai Latte products that offer beauty benefits. By using the extraordinary benefits of mushroom superfoods, the company would provide amazing beauty benefits and offer a way for people to literally eat their way to glowing skin.

Scope of the Study

Market Segments covered in the Report:

By Application

• Pharmaceutical, nutraceutical & dietary supplements
• Food & Beverage and
• Personal Care & Cosmetics

By Product Type

• Reishi
• Cordyceps
• Lion’s Mane and
• Others

By Distribution Channel

• Specialty Stores
• Supermarkets & Hypermarkets
• Online Distribution Channel and
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Companies Profiled

• Hokkaido Reishi Co. Ltd.
• Real Mushrooms
• Pan's Mushroom Jerky
• Om Mushroom Superfood
• Four Sigmatic
• Banken Champignons B.V.
• South Mill Mushrooms Sales, Inc. (The Mushroom Company)
• Half Hill Farm, Inc.

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