Medicinal Mushroom Extract Market Size, Trends, Share, Growth, and Opportunity Forecast, 2023 - 2030 Global Industry Analysis By Type (Shiitake, Reishi, Maitake, Chaga, Cordyceps, Turkey Tail, And Others), By Category (Fresh, Dried), By Function (Antioxidant, Immune Enhancer, Anti-Cancer, Skin Care, And Others), End Use (Pharmaceutical, Nutraceutical & Dietary Supplements, and Cosmetics & Personal Care) and By Geography (North America, Europe, Asia Pacific, South America, and Middle East & Africa)

The Global Medicinal Mushroom Extract Market was valued at USD 11.2 Billion in 2022 and is anticipated to reach a value of USD 19.48 Billion by 2030 expanding at a CAGR of 7.3% between 2023 and 2030.

Microscopic fungi known as medicinal mushrooms are employed for their therapeutic properties. Medicinal mushrooms are rich in calcium, potassium, vitamin B, vitamin D, amino acids, and fiber. These nutrients are necessary for reducing the body's levels of free radicals and boosting antioxidant activity. They are used in many extraction processes, such as those involving powder, capsules, fluids, and other forms. The growing global incidence of health issues is driving the demand for medicinal mushrooms. The majority of health-conscious customers' growing need for functional foods is fueling the market expansion for medicinal mushrooms. The widespread use of medicinal mushrooms to treat bronchitis, asthma, seasonal allergies, inflammation, and the common cold is another important reason driving the market's development rate. Furthermore, emergence of private-labelled brands and the rise in the number of applications in various end-use industries such as cosmetics, healthcare and food and beverages are the primary drivers that will buffer the market’s development pace.

Medicinal Mushroom Extract Market Major Driving Forces

Global Wellness Trend: The emphasis on consuming healthful foods that can act as a conventional and natural cure for certain diseases is growing around the world. Many civilizations include medicinal mushrooms in their ancient medical practices.

Demand for Food Products Sourced Sustainable: Consumers are gravitating more and more toward food and beverages that are sourced sustainably, such as those with easily readable labeling, no added chemicals or preservatives, no genetically modified organisms, and a simple ingredient list. This is one of the main things driving the market for medicinal mushroom extract.

Demand in Cosmetic Industry: The use of powdered medicinal mushroom extract as an ingredient in cosmetics and personal hygiene products has become increasingly popular. This is owing to its remarkable anti-aging, anti-wrinkle, skin-whitening, and hydrating properties, which make it a perfect ingredient for makeup.

Application in Skincare Formulations: Medicinal mushrooms are useful ingredients in skincare formulations owing to their moisturizing and hydrating qualities, which are attributed to the presence of polysaccharides in them. Furthermore, their capacity to uphold skin elasticity and promote collagen creation has made them a highly sought-after ingredient in anti-aging solutions.

Medicinal Mushroom Extract Market Key Opportunities

Eco-Friendly and Sustainable Options: The market for medical mushroom extracts has a potential to create and promote sustainable options due to the growing demand for eco-friendly products. Producers who provide therapeutic mushroom extracts with ethical sourcing and production practices can profit from this trend.

Online Retail and E-commerce Growth: The persistent expansion of virtual retail and e-commerce platforms presents a prospect for manufacturers of medicinal mushroom extracts to broaden their market penetration and enhance their brand awareness. Global market expansion and product accessibility are made easier by online sales channels.

Opportunities in the Cosmetics Industry: A growing number of skincare products, such as serums, lotions, and masks, are being made with extracts or derivatives of mushrooms by cosmetic businesses. The industry is growing, owing to consumers looking for clean beauty solutions are drawn to substances with natural origins. Formulations for different skin types are using mushroom extracts since they provide calming effects for sensitive skin, balancing qualities for oily or acne-prone skin, and renewing advantages for aged skin.

Medicinal Mushroom Extract Market Key Trends

·         The industry is witnessing a boom in product diversification and innovation, with businesses offering novel formulations, combinations, and delivery modalities.

·         The use of medicinal mushroom extracts in functional food and beverage items is growing.

·         Customers are learning more about the various kinds of mushrooms and their special health advantages.

·         Raw materials from ethical and ecological sources are becoming more and more important in the market.

·         Products with transparent ingredient lists and clean labels are becoming more and more in demand.

·         The market for medicinal mushroom extract is growing through e-commerce channels due to the ease of shopping online.

·         The market for medical mushroom extract is being impacted by the move toward customized nutrition.

Region-wise Market Insights

Asia-Pacific accounted for the largest market share at 35.7% in 2022 whereas, North America is expected to register the fastest growth, expanding at a CAGR of 7.8% between 2023 and 2030.

Over the projected timeframe, North America is expected to grow at the fastest rate. An increase in interest in these mushrooms as superfoods has been connected to this. Functional mushrooms are gaining popularity in developed regions since they are a superior replacement for many other nutrient-dense foods. Additionally, increased consumer awareness of maintaining general health and well-being will help the region's expansion. The Asia Pacific area is expected to grow as a result of China being the world's leading producer of mushrooms. The promise of these mushrooms as useful foods led to a growing demand for them, which in turn drove the area business. The Asia Pacific food and beverage industry has a sizable demand for functional mushrooms as a result of the growing popularity of these mushrooms as a nutrient-dense food alternative in regular diets. Europe’s market is expanding. This resulted from the product's growing popularity due to its nutritional and medicinal qualities. These mushrooms boost energy levels, stimulate the immune system, promote weight loss, and support cardiovascular health. In addition, shiitake mushrooms are used in the food and nutritional supplement industries. People all throughout the world enjoy dried shiitake mushrooms due to their umami flavor.

Market Competition Landscape

The competitive environment of the medicinal mushroom extract market is defined by the existence of both domestic and international rivals. The medicinal mushroom extract sector has consolidated as a result of mergers and acquisitions, wherein larger companies have acquired smaller firms in order to strengthen their market position and expand their capabilities. Due to this trend, notable companies with a wide range of products and services and a global presence have emerged. Innovative technologies are being quickly adopted by businesses in the medicinal mushroom extract market in order to improve the extract’s efficiency, safety, and medicinal properties.

Businesses having a wide geographic reach are better able to access a variety of markets and possibilities. They can increase their market share and diversify their project portfolio by utilizing their regional or worldwide footprints. Prominent players in the market include:

·         Nammex (North American Medicinal Mushroom Extracts)

·         New Roots Herbal Inc.

·         Host Defense (Fungi Perfecti)

·         Real Mushrooms

·         Four Sigmatic

·         Sayan Health

·         Mushroom Wisdom, Inc.

·         Swanson Health Products

·         Terrasoul Superfoods

·         Nature's Way

·         Pure Essence Labs

·         Life Cykel

·         Sun Potion

·         North Spore Mushroom Company

·         Alphay International