Functional Mushroom Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Functional Mushroom Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global functional mushroom market is projected to grow with a CAGR of 8.04% during the forecast period (2022 - 2027).

The COVID-19 pandemic has affected every sector in the market positively or negatively, including the functional mushroom market. It has positively impacted functional mushrooms as there was an increase in demand for medicinal mushrooms due to their properties and health benefits. Human and goods movement restrictions imposed by governments, deglobalization, and breakdown of the supply chain of food markets due to both demand shocks and supply constraints affected the market. The pandemic led to an increase in demand for medicinal mushroom supplements, which benefited the market. As COVID-19 directly affects the immune system, functional mushrooms can fight against the virus and rebuild immunity. Thus, consumers are demanding more supplements made of functional mushrooms.

Over the long term, functional mushrooms are expected to be used in a wide variety of healthcare and pharmaceutical products. This increases the applicability of these mushrooms in the food and beverage sector. The application of these mushrooms as a functional ingredient in the medical industry is driving the growth of the market, as functional mushrooms are being increasingly incorporated into health supplements. A number of scientific studies have confirmed the ability of functional mushrooms and mushroom-derived supplements to increase the effectiveness of both innate and adaptive immune systems, hence boosting the growth of the category.

Chaga, one of the most consumed functional mushrooms, is good for the digestive system and produces immune-modulatory effects. Furthermore, Chaga is expected to experience a huge demand over the forecast period. The market studied is expected to experience huge demand for Reishi and Cordyceps, followed by the other types of medicinal mushrooms.

There has been a considerable shift in the lifestyles and diet habits of people over the past two decades. Urbanization and consumerism drove this shift, leading to a rapid rise in the consumption of synthetic food products, resulting in 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 beverages 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 United States, functional foods are gaining high popularity among health-conscious consumers. During the forecast period, the demand for medicinal mushrooms is expected to increase significantly, as these mushrooms are being incorporated in various functional food and beverages. For instance, Reishi, Chaga, and Turkey tails are added with coffee and cocoa. Turkey tails are mild enough to be added to soups and broths. Maitake and Shiitake are delicious, simply sautéed with garlic.

In the Asian region, China is the largest producer of mushrooms, globally. The country engages in the production of mushrooms and truffles to meet the large external and internal market demands. With the growing income levels of urban and rural Chinese consumers and with the transformation of comprehensive health awareness and consumption concept, consumers across the market are placing more importance on safety, nutrition, and consumption of healthy food 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 crucial channels for mushroom marketing where the staff is continuously working to ensure the standard on food safety, strengthening the consciousness on raw materials’ safety, and environmental protection. techniques of medicinal mushroom and increasing demand for exotic mushroom varieties, the market for functional mushrooms in the region is expected to witness significant growth in the coming years

The market studied is highly competitive, with the presence of many small players in the market. Key players, such as Nammex, CNC Exotic Mushrooms, and Mitoku Company, have focused on expansion by increasing the production capacity of mushroom farms. Nammex and Hokkaido Reishi Co. Ltd are the most active companies operating in the functional mushroom market. Product innovation and expansion are the major strategies adopted by the companies in this industry, owing to the rapidly transforming nature of the market. In order to constantly fulfill the increasing demand for these products, expansion and product innovation have become the most followed strategies by key players.

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