Functional Mushroom Market Analysis & Forecast: 2025-2032

Functional Mushroom Market is estimated to be valued at USD 37.22 Bn in 2025 and is expected to reach USD 62.56 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 7.7% from 2025 to 2032. Functional mushrooms can be found in many forms and are packed with nutrients and health benefits. They contain essential vitamins and minerals, antioxidants, amino acids, prebiotics, and polysaccharides, among other nutrients.

Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 epidemic increased mushroom demand in 2021, and Nammex's online functional mushroom business expanded at the same time. As a result, it established a new plant capable of producing up to 25 tons of powdered mushroom extract every month. Reishi, Lion's Mane, Chaga, Cordyceps, Shiitake, Maitake, Turkey Tail, and other extracts are all kosher and USDA organically certified. Increasing cases of COVID-19 had led governments in different countries to impose lockdowns in 2020 to contain the spread of the infection.

Market Drivers

Growing demand for functional food &beverage

Growing consumption of functional foods and dietary supplements is fueling growth of the functional mushroom market. Consumers 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. Factors such as the medicinal benefits of functional mushrooms are again propelling market growth. All functional mushrooms work to balance energy levels, strengthen immune function, smooth digestion, and enhance the skin's natural glow. However, the presence of substances like antioxidants also helps to boost blood flow, reduce stress, strengthen immunity, and offer many other benefits that drive the functional mushroom market globally.

Rising awareness regarding medicinal benefit of functional mushroom

With expanding consumer awareness of general health, a high-protein diet has grown increasingly popular in recent years. Increased consumption of packaged food products as a result of hurried lifestyles is expected to further aid industry expansion. To appeal to a health-conscious customer base, packaged food makers are improving food products with nutritive additives such as functional mushroom extracts or powders. The current livestock protein production has a negative influence on our planet's life-support systems. To meet protein demands, livestock production is increasing, resulting in a considerable increase in GHG emissions and raising concerns about sustainability.

Market Restraints

The high cost of the functional mushroom is expected to limit its adoption among consumers

The high cost of the functional mushroom is expected to limit its adoption among consumers. This is expected to hinder market growth. Reishi mushroom and dried Cordyceps mushroom prices in the Asian market are about USD 51.65 and USD 2,152.41, respectively. Additionally, wild Cordyceps sinensis costs over USD 20,000 per kilogram, which makes it the most expensive mushroom in the world. They are almost exclusively sold in Asia and rarely make it into the North American market.

Market Trends

A number of studies are being conducted to examine the medical efficacy

Currently, a number of studies are being conducted to examine the medical efficacy and safety of psychedelics, including psilocybin, as well as the potential benefits of psychedelics as a treatment for cluster headaches, anxiety, addiction to alcohol and other drugs, depression, and obsessive-compulsive disorder. These studies also involve neuroimaging experiments to better understand how psychedelics affect the brain. This factor will favor market growth.

Global Functional Mushroom Market: Market segmentation

On the basis of application, in 2025, personal care held the largest revenue share of 41% in the global functional mushroom market followed by dietary supplements, food and beverage, pharmaceutical respectively. Consumers’ changing lifestyles, growing urban populations, and rising disposable income are among the reasons why people around the world are turning to functional mushroom-based foods and drinks.

Figure1: Global Functional Mushroom Market Value Share (%), By Application, 2025

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Global Functional Mushroom Market: Regional Analysis

Asia Pacific held a dominant position in the global functional mushroom market in 2025, accounting for 49.00% of the share in terms of volume, followed by North America and Europe, respectively. One of the reasons for this is that these mushrooms are becoming more popular as super foods. Functional mushrooms are gaining popularity in developed countries because they are a better alternative to many other high-nutrient foods. In addition, there is a growing awareness among consumers about the importance of overall health and wellbeing, which will also contribute to the growth of the region. As vegan diets become more popular, functional mushrooms are expected to be in high demand in North America as well. In 2021, Asia Pacific accounted for the largest share of the global functional mushroom market, mainly due to the cultivation of mushrooms in China. Additionally, functional mushrooms are in high demand due to their functional food potential. Functional mushrooms are also in high demand in the Asia Pacific food and beverage sector due to the increased use of functional mushrooms in daily diets as a healthy food option.

Figure 2: Global Functional Mushroom Market Value Share (%), By Region, 2025

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Recent Developments:

• In February 2021, Nammex, which specializes in mushroom ingredients and is the premier supplier of organically certified mushroom extracts, went online as mushroom demand skyrocketed amid the COVID-19 pandemic. The new facility can produce up to 25 tons of mushroom extract powders per month, including Reishi, Lion’s Mane, Chaga, Cordyceps, Shiitake, Maitake, Turkey Tail, and others. All the extracts are USDA organically certified and kosher.
• In June 2021, Marley one, an artist, 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 September 2022, Innomy, a Spanish business focused on mushroom-based meat substitutes, revealed it had secured €1.3 million (USD 1.26 million) in a Pre-Series a fundraising round to expand, market, and sell its products throughout Europe. According to Innomy, mycelium has a high nutritional value, low cholesterol, and low saturated fat content, making it one of the most promising protein sources for the future.
• In December 2021, Psyence Group Inc., a science-led psychedelic platform led by experts in neurology, neuroscience, and drug development, announced that its joint venture, Goodmind, partnered with one of South Africa's largest coffee retail chains, Vida e Caffè, to roll out its functional mushroom brand in South Africa.