Global Functional mushrooms are special fungi used in a variety of products. For example, the reishi mushroom is beneficial for the immune system. It has anti-viral, anti-microbial, and anti-inflammatory properties. It can survive up to 100 years and is revered for its powerful defense against harmful fungi and bacteria. Other functional mushrooms, such as chaga, have been used for centuries for a number of ailments and for general well-being.
The Global Functional Mushroom Market is estimated to account for US$ 54.04 Bn in terms of value by the end of 2023.
Global Functional Mushroom Market: Drivers
Growing investment by key players in research and development activities
Growing investment by key players in research and development activities in the field of functional mushroom is projected to augment market growth. For instance, in September 2019, The Giorgi Cos. Inc. has invested an undisclosed amount in FreshCap Mushrooms Ltd., Edmonton, Alberta, which sells functional mushroom extract powders
Global Functional Mushroom Market: Opportunities
The expanding food and beverage industry
The expanding food and beverage industry due to the growing purchasing power of consumers across developing countries is anticipated to provide major growth opportunities over the forecast period. According to the IndianCompanies.in, the total organised Indian Food and Beverage Industry [F&B industry] is expected to be ~Rs. 4,00,000 Crores market as on 2019 and projected to grow by 2.5x to ~Rs. 10,00,000 Crores by 2025 (CAGR of 16%) – leveraging India’s favourable demographic (1.4 Billion strong population, rising income levels and higher urbanisation).
Global Functional Mushroom Market: Restraints
Due to the daily increase in worldwide demand, the prices of items connected to mushrooms are increasing.
Due to the daily increase in worldwide demand, the prices of items connected to mushrooms are increasing. Since functional mushrooms are hand-picked for the retail market, their high manufacturing costs are driving up the price of these goods. Picker training programmes have made a significant impact on labour expenses. Over 30% of the total cost of production is attributable to harvesting expenditures alone. The need for a contemporary cold storage facility and fully functional processing facilities also adds to the cost, which raises the price of the finished product
Global Functional Mushroom Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 outbreak has affected the lives of consumers as well as the supply chains of manufacturers worldwide. In addition to the serious implications for people's health and healthcare services, COVID-19 has a significant impact on businesses and the economy. The World Health Organization declared COVID-19 a pandemic on March 11, 2020, causing a huge impact on people's lives, families, and communities.
Before the onset of the COVID-19 pandemic, mushrooms were already on a steep upward trajectory in both food and beverage applications and nutritional supplements. The growing health awareness among consumers and the increasing consumer inclination toward a vegan diet have largely contributed to the demand for medicinal mushrooms in recent years. Research is underway on mushrooms, focusing on their ability to boost immune system. For example, a research paper released in August 2020 focused on the virome-modulating and anti-inflammatory effects of mushrooms and herbs on SARS-CoV-2 infection and stated that "one of the potential candidates against the SARS-CoV-2 virus may be Inonotus obliquus, also known as chaga mushroom".
The global functional mushroom market was valued at US$ 29.8 Bn in 2022 and is forecast to reach a value of US$ 54.04 Bn by 2030 at a CAGR of 7.7% between 2022 and 2030.
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Increasing adoption of dietary supplements among health-conscious and geriatric populations is expected to boost market growth. Moreover, the growing prevalence of chronic disease will further boost the sale of dietary supplements. According to the National Health Council, chronic diseases affect approximately 133 million Americans, representing more than 40% of the total population of this country. By 2020, that number is projected to grow to an estimated 157 million, with 81 million having multiple conditions.
The growing focus of key players on expanding the production capacity of mushrooms is projected to be a major trend in the market. For instance, in April 2021, Optimi Health Corp., developer of a vertically integrated functional mushroom brand focused on the health and wellness sector, announced to offer an activity update at its 20,000 sq. ft. production and research facility in Princeton, British Columbia.
Global Functional Mushroom Market: Competitive Landscape
- Hirano Mushroom LLC
- Mitoku Company Ltd
- Lianfeng (Suizhou) Food Co. Ltd
- Monterey Mushrooms Inc.
- M2 Ingredients
- Fresh Mushroom Europe NV
- Mycotrition GmbH
- Hokkaido Reishi Co. Ltd
- Verhoeckx Paddenstoelen BV