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The functional mushroom market size is projected to increase by USD 18.91 billion at a CAGR of 10.05% between 2023 and 2028.
Furthermore, North America, including the US, Canada, and Mexico, stands as a major producer of functional mushrooms. The region experiences robust consumer demand for functional products driven by their health benefits. Mushroom consumption is on the rise due to escalating production rates, coupled with a growing vegan population and a shift toward nutrition-rich diets, fostering expansion in the market within the region. Concord Farms company offers functional mushrooms such as Abalone Mushrooms, Button Mushrooms, Chanterelle Mushrooms, Cordyceps Mushrooms, Enoki Mushrooms, Hanalogo Mushrooms, King Oyster Mushrooms, and others.
The market shows an accelerated CAGR during the forecast period.
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Health-promoting benefits are the key factors driving the market. The following are some of the health advantages of consuming functional ingredients are include several nutrients, including calcium, potassium, vitamin D, vitamin B12, fiber, amino acids, and other nutrients that are necessary for the human body. Functional mushrooms help in increasing antioxidant activity. Medicinal mushrooms such as Chaga and Reishi are known for their antioxidant properties. Reishi mushrooms have been known to reduce activity by free radicals in the body and are also believed to relax and fortify both the mind and body.
Additionally, organic mushroom complex capsules are used in healthcare and pharmaceutical products. Chaga mushrooms are known to increase the white blood cell count in the bone marrow. Functional mushrooms contain long sugar molecules called polysaccharides, which are known to lower cholesterol levels. Also, health-conscious customer base and a good source of protein diet raise the demand for specialty mushrooms. Chaga mushroom applications also reduce inflammation in cells in the colon, which can help in the treatment of inflammatory bowel disease. Therefore, the above-mentioned health benefits are driving market growth during the forecast period.
Expanding the global vegan population is the primary trend shaping the market. Veganism is termed the practice of abstaining from the total consumption of animal products, and individuals who follow veganism are known as vegans. The rise in the number of people adopting vegan and vegetarian lifestyles has led to a growing demand for plant-based products, such as functional mushrooms, which do not contain animal-derived ingredients or by-products. All these products are considered vegan-friendly, appealing to consumers who adhere to plant-based diets for ethical, environmental, or health reasons.
Further, numerous young consumers in the age group of 15-30 years are adopting a vegan diet, and this number is expected to increase during the forecast period. Therefore, the growing number of celebrities endorsing a vegan lifestyle is expected to increase the popularity of the vegan diet among consumers. Thus, the growth in the global vegan population is expected to drive the growth of the market during the forecast period.
Stringent regulations and guidelines is a major challenge that affects market expansion. The various government agencies in different countries regarding the sales, marketing, and labeling of functional mushroom-based products impede market growth. These regulations relate to permits and regulations for the entry of new players, residual management issues, and expiry dates for products. The US Food and Drug Administration (FDA) plays an important role in regulating the manufacturing and distribution of functional mushroom-based products in the US market. The US FDA has placed stringent regulations on the number of ingredients that can be used in mushroom powder products and the various ingredients that should be listed on the labels of functional mushroom-based products.
Furthermore, in Europe, the European Food Safety Authority (EFSA) has framed numerous regulations on the manufacturing, labeling, and marketing of health and wellness food products that involve various claims such as reduced fat, low fat, and others. The EFSA closely inspects all the health claims made by companies on various media, such as on-package labels, hard copy advertisements, and websites, and verifies the same. Therefore, stringent regulations can hamper the expansion of the market during the forecast period.
The offline distribution sector encompasses supermarkets, hypermarkets, discount stores, convenience stores, and individual retailers. Rapid urbanization and evolving consumer lifestyles drive the popularity of hypermarkets and supermarkets, offering diverse functional mushroom products. Retailers' in-house promotions and price comparison convenience attract customers. Collaborations with retail giants like Walmart and Costco expand vendors' reach. Convenience stores cater to time-constrained shoppers with convenient locations and extended hours. Independent retailers also play a significant role in functional mushroom sales, serving local communities. Overall, the offline segment of the market is poised for substantial growth.
The market share by the food and beverage segment will be significant during the forecast period. Functional mushrooms, available year-round, are versatile ingredients used in a variety of dishes and beverages, offering both culinary enjoyment and potential health benefits. While many are unaware of their health advantages, packaging descriptions, and nutritional information can sway consumers to try them.
The food and beverage segment was valued at USD 11.26 billion in 2018.
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Furthermore, rich in vitamins, minerals, and antioxidants, functional mushrooms like Reishi and Chaga are touted for their immune-boosting properties. They're also increasingly popular as snacks and in dishes like soups and kombucha drinks. Cultivating varieties such as shiitake and maitake has become profitable for farmers worldwide, further driving the growth of the market in the food and beverage segment during the forecast period.
North America is estimated to contribute 46% to the growth of the global market during the forecast period
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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The increasing launch of new products based on functional mushrooms will also help in the growth of the market in North America. The popularity of such products is increasing in the US; the expanding purchasing power of the Millennial population in the country is expected to offer tremendous opportunities for players to grow in the market.
Additionally, the Millennial population in North America is open to experimenting with new products, and also the rising trend of consuming healthy food products among them will accelerate the demand for functional mushroom products. In North America, the consumption of healthier food products is an emerging trend among consumers. The growing use of extracts in various consumer products, such as cosmetics and others, is also expected to accelerate the demand and drive the growth of the market in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Banken Champignons B.V., Half Hill Farm Inc., Hirano Mushroom LLC, Hokkaido Reishi, LIANFENG SUIZHOU FOOD CO. LTD, M2 INGREDIENTS, Mitoku Co. Ltd., Monaghan Group, North American Medicinal Mushroom Extracts, Om Mushroom Superfood, Pans Mushroom Jerky, Real Mushrooms, REBBL, Inc., South Mill Mushrooms Sales, Swadeshi Mushroom, and Four Sigmatic Foods Inc.
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research and growth report forecasts market growth analysis by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market sees a surge in demand for functional foods and supplements, offering varieties like lion’s mane mushroom extract and Reishi with cognitive benefits. Utilizing L-theanine and adenosine triphosphate (ATP), these products address anxiety and depression symptoms. With a focus on natural health solutions, the market caters to vegetarian and vegan consumers seeking alternative protein sources. Amidst concerns like shipment delays and GHG emissions, it emphasizes good manufacturing practices and offers bioactive compounds for heart health and blood sugar control. The market is witnessing a surge in demand for medical mushroom supplements, emphasizing natural and organic alternatives over synthetic supplements. Varieties like Lion’s Mane, Turkey Tail, and Reishi cater to traditional medicine systems, addressing ailments such as anxiety and depression.
Additionally, with a focus on plant-based solutions, it intersects with the food and beverages, dietary supplements, and pharmaceuticals segments. Harnessing fungal biodiversity and immunity-boosting properties, these products offer a range of benefits, from diabetes and hypertension to cancer and hypercholesterolemia. Raw materials sourced sustainably contribute to the production of packaged food products and livestock, while considerations such as greenhouse gas emissions, vegetarian or vegan options, and medicinal and health products play crucial roles in enhancing shelf life and promoting overall well-being.
Furthermore, the market embraces Turkey tail mushroom with growing awareness about health, plant-based and natural solutions are gaining traction in the functional food and beverages segment, dietary supplements segment, and personal care and cosmetics segments. Utilizing agricultural and industrial wastes, manufacturers create functional mushroom extracts in various forms like capsules, powders, and tinctures. These products, rich in medicinal or supplement properties, cater to ailments like diabetes, hypertension, and cancer, promoting a protein-rich diet and supporting health supplements for lifestyle diseases. Further, coffee and teas adhere to strict Good Manufacturing Practices (GMP) to ensure quality while offering a delightful umami flavor; additionally, they may provide health benefits such as supporting white blood cells, along with other medicinal or supplement products, including those derived from useful mushrooms, contributing to the overall trend of packaged food consumption.
Market Scope |
|
Report Coverage |
Details |
Page number |
147 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.05% |
Market Growth 2024-2028 |
USD 18.91 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.02 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 46% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Asia Pacific Farm Enterprises Inc., Banken Champignons B.V., CNC Exotic Mushrooms, Concord Farms, Half Hill Farm Inc., Hirano Mushroom LLC, Hokkaido Reishi, LIANFENG SUIZHOU FOOD CO. LTD, M2 INGREDIENTS, Mitoku Co. Ltd., Monaghan Group, North American Medicinal Mushroom Extracts, Om Mushroom Superfood, Pans Mushroom Jerky, Real Mushrooms, REBBL, Inc., South Mill Mushrooms Sales, Swadeshi Mushroom, and Four Sigmatic Foods Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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