Global Mushroom Extracts Market Size, Share, And Business Benefits By Source Type (Organic, Conventional), By Product (Shiitake Extract, Reishi Extract, Lion's Mane Extract, Cordyceps Extract, Turkey Tail Extract, Chaga Extract, Others), By Form (Powder, Liquid), By Application (Dietary Supplements, Functional Foods and Beverages, Pharmaceuticals, Cosmetics and Personal Care, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Mushroom Extracts Market is expected to be worth around USD 32.2 billion by 2034, up from USD 12.2 billion in 2024, and is projected to grow at a CAGR of 10.2% from 2025 to 2034. Rising health awareness drives the Mushroom Extracts Market growth in North America at 45.80%.

Mushroom extracts are concentrated forms of medicinal or edible mushrooms obtained through hot water or alcohol extraction. These extracts are rich in bioactive compounds such as polysaccharides, beta-glucans, triterpenes, and antioxidants, which are known for supporting immune health, reducing inflammation, improving energy levels, and promoting overall well-being.

Unlike whole mushrooms, extracts deliver higher potency and are widely used in dietary supplements, functional foods, cosmetics, and traditional wellness products. KÄÄPÄ Biotech has secured €900K in fresh funding, reflecting rising investor interest in mushroom-based innovations.

The mushroom extracts market represents the global trade and utilization of these extracts across industries, including nutraceuticals, food and beverages, pharmaceuticals, and personal care. With growing consumer interest in natural remedies and plant-based wellness, the market has been witnessing significant growth.

Rising awareness about immunity and preventive healthcare after the pandemic has also played a major role in strengthening demand. Mushroom supplement start-up OtherNature is targeting a $25 billion market opportunity, highlighting the scale and potential within this sector.

A key growth factor driving this market is the rising adoption of natural and plant-based supplements over synthetic alternatives. Consumers are increasingly seeking products that offer immunity support, stress reduction, and cognitive benefits, where mushroom extracts fit strongly due to their rich nutritional profile. Bilbao-based Innomy raised €1.3 million to advance mushroom-based alternative proteins, which further underlines the expanding applications of fungi in health and nutrition.

The demand for mushroom extracts is also fueled by their growing use in functional foods and beverages. Smoothies, teas, coffees, and snack bars infused with mushroom extracts are gaining traction among health-conscious buyers, especially in urban and developed markets. MycoWorks, known for creating leather from fungi, closed $125M to expand production, showing how the mushroom industry is also branching into sustainable materials alongside health applications.

Key Takeaways

• The Global Mushroom Extracts Market is expected to be worth around USD 32.2 billion by 2034, up from USD 12.2 billion in 2024, and is projected to grow at a CAGR of 10.2% from 2025 to 2034.
• In 2024, organic sources led the Mushroom Extracts Market, capturing 57.3% due to rising natural wellness preferences.
• Shiitake extract held a 21.9% share in the Mushroom Extracts Market, driven by strong functional food applications.
• Powder form dominated the Mushroom Extracts Market with 68.1% share, favored for versatility, storage stability, and easy formulation.
• Dietary supplements accounted for 49.5% of the Mushroom Extracts Market, fueled by growing demand for immunity-boosting products.
• North America’s Mushroom Extracts Market reached USD 5.5 Bn, showing strong consumer preference.

By Source Type Analysis

In 2024, organic mushroom extracts dominated the market with 57.3%.

In 2024, Organic held a dominant market position in the By Source Type segment of the Mushroom Extracts Market, with a 57.3% share. This leadership reflects the growing preference of consumers for clean-label, chemical-free, and sustainably sourced products.

Organic mushroom extracts are perceived as safer and more effective due to the absence of synthetic fertilizers, pesticides, and additives, which aligns with the global shift toward healthier and eco-conscious lifestyles. Rising health awareness has encouraged buyers to prioritize products certified as organic, particularly in nutraceuticals, dietary supplements, and functional foods, where purity and natural integrity are essential.

The strong market presence of organic mushroom extracts is also supported by government-backed initiatives promoting organic farming and certifications, which enhance consumer confidence and trust. In addition, premium positioning of organic products allows manufacturers to achieve higher margins, further driving investment in this category.

Demand is particularly high in regions such as North America and Europe, where organic certifications hold strong value and consumer willingness to pay more for natural wellness products is evident. With ongoing trends favoring plant-based nutrition, immune-boosting supplements, and sustainable sourcing, organic mushroom extracts are expected to maintain their lead, reinforcing their dominance in the global marketplace.

By Product Analysis

Shiitake extract accounted for 21.9%, reflecting its strong demand in health products.

In 2024, Shiitake Extract held a dominant market position in By By-Product segment of the Mushroom Extracts Market, with a 21.9% share. The popularity of shiitake extract is largely driven by its well-recognized health benefits, particularly its role in supporting immune function, cardiovascular health, and overall vitality.

Rich in beta-glucans, polysaccharides, and essential amino acids, shiitake extract has become a preferred choice in the nutraceutical and dietary supplement industry, where consumers are increasingly turning to natural solutions for preventive health. Its reputation as both a culinary and medicinal mushroom has helped expand its reach into food and beverage applications, including soups, teas, and functional snacks.

The demand for shiitake extract has also been strengthened by the growing consumer shift toward plant-based nutrition. Its adaptogenic and antioxidant properties make it appealing to wellness-focused buyers who are seeking natural energy, stress relief, and anti-inflammatory support.

Additionally, traditional knowledge surrounding shiitake mushrooms in Asian medicine continues to influence global consumption trends, boosting confidence in its therapeutic potential. With continued innovation in functional foods, supplements, and personal care formulations, shiitake extract is set to retain its strong position, backed by increasing awareness of natural remedies and lifestyle-driven health choices.

By Form Analysis

Powder form led the mushroom extracts market, capturing 68.1% share globally.

In 2024, Roller Bearing held a dominant market position in the By Form segment of the Mushroom Extracts Market, with a 68.1% share. This dominance is closely tied to the versatility and efficiency of powdered mushroom extracts, which have become the most preferred form across nutraceuticals, functional foods, and pharmaceutical applications.

The fine consistency of powder allows for easy blending into capsules, tablets, teas, coffees, smoothies, and other formulations, making it a practical option for both manufacturers and consumers. Its extended shelf life and stability during storage and transportation further enhance its appeal, especially in global trade, where maintaining product quality is essential.

The significant share of powdered extracts is also supported by consumer demand for convenience and precise dosage. Unlike liquid formats, powders provide higher concentration and purity, enabling effective delivery of bioactive compounds such as beta-glucans, polysaccharides, and antioxidants. This makes them highly sought after in preventive healthcare and immunity-boosting supplements.

Additionally, the adaptability of powdered mushroom extracts for bulk production and large-scale distribution aligns with the rising popularity of functional foods and wellness products worldwide. With expanding applications in nutraceuticals and personal care, the powdered form continues to lead the market, reinforcing its dominance in the mushroom extracts industry.

By Application Analysis

Dietary supplements remained the top application, contributing 49.5% to overall sales.

In 2024, Dietary Supplements held a dominant market position in By Application segment of the Mushroom Extracts Market, with a 49.5% share. This leading position reflects the growing global shift toward preventive healthcare, where consumers are increasingly turning to natural and plant-based supplements to boost immunity, improve energy, and support overall wellness.

Mushroom extracts, rich in beta-glucans, antioxidants, and polysaccharides, are particularly valued in dietary supplements for their role in strengthening the body’s defense system, managing stress, and enhancing cognitive health. The rising awareness of lifestyle-related health issues has further driven consumers to incorporate mushroom-based capsules, powders, and tablets into their daily routines.

The strong share of dietary supplements is also supported by the expanding reach of e-commerce and health-focused retail channels, which have made these products more accessible to a wider audience. Additionally, clean-label trends and the preference for organic and chemical-free solutions are pushing manufacturers to highlight the natural benefits of mushroom extracts in supplement formulations.

With growing adoption among fitness enthusiasts, working professionals, and aging populations, dietary supplements continue to serve as the primary driver for mushroom extract demand. This segment is expected to maintain its dominance, fueled by rising health consciousness and long-term preventive care trends.

Key Market Segments

By Source Type

• Organic
• Conventional

By Product

• Shiitake Extract
• Reishi Extract
• Lion’s Mane Extract
• Cordyceps Extract
• Turkey Tail Extract
• Chaga Extract
• Others

By Form

• Powder
• Liquid

By Application

• Dietary Supplements
• Functional Foods and Beverages
• Pharmaceuticals
• Cosmetics and Personal Care
• Others

Driving Factors

Rising Health Awareness Boosts Mushroom Extracts Demand

One of the main driving factors for the mushroom extracts market is the rising health awareness among consumers worldwide. People are becoming more conscious of their lifestyle choices and are actively looking for natural ways to maintain their health.

Mushroom extracts are rich in important compounds like beta-glucans, antioxidants, and polysaccharides, which support immunity, reduce stress, and improve energy levels. This makes them a preferred choice for those who want natural supplements instead of synthetic products.

The trend of preventive healthcare, where individuals focus on avoiding illnesses rather than just treating them, has also increased demand. With growing interest in clean-label and plant-based solutions, mushroom extracts are gaining popularity in both developed and developing markets.

Restraining Factors

Limited Awareness in Developing Regions Slows Growth

A key restraining factor for the mushroom extracts market is the limited awareness about their health benefits in many developing regions. While mushroom extracts are well recognized in developed countries, large sections of consumers in emerging markets still lack proper knowledge of their uses and advantages.

Many people continue to rely on traditional supplements or low-cost alternatives, which reduces the demand for mushroom-based products. In addition, the higher price of organic and high-quality extracts can discourage price-sensitive buyers in these regions.

Without strong awareness campaigns and education about the proven benefits of mushroom extracts, their adoption may remain slower in certain parts of the world, holding back overall market growth potential.

Growth Opportunity

Expanding Use in Functional Foods and Beverages

A major growth opportunity for the mushroom extracts market lies in their expanding use in functional foods and beverages. Consumers today are looking for everyday products that not only provide nutrition but also offer additional health benefits.

Adding mushroom extracts to teas, coffees, smoothies, snack bars, and soups gives these products an immunity-boosting and energy-enhancing edge. This trend is especially strong among urban populations and younger consumers who prefer convenient, on-the-go options that support a healthier lifestyle.

With growing interest in plant-based and clean-label food choices, manufacturers are experimenting with innovative formulations that highlight the natural goodness of mushrooms. This opens significant potential for mushroom extracts to become a regular part of daily diets worldwide.

Latest Trends

Rising Popularity of Organic and Clean-Label Extracts

One of the latest trends in the mushroom extracts market is the rising popularity of organic and clean-label products. Consumers are becoming more careful about what they consume and prefer extracts that are free from chemicals, pesticides, and artificial additives.

Organic mushroom extracts are seen as safer and more effective, which builds trust among health-conscious buyers. This trend is also driven by the increasing demand for transparency in product labeling, where customers want to know the source and quality of ingredients.

With strong global interest in sustainable farming and eco-friendly production, organic-certified mushroom extracts are gaining wider acceptance. This clean-label movement is shaping purchasing decisions and encouraging manufacturers to focus more on natural and pure formulations.

Regional Analysis

In 2024, North America held a 45.80% share of the Mushroom Extracts Market.

The Mushroom Extracts Market shows strong regional dynamics, with North America emerging as the leading region in 2024. North America accounted for 45.80% of the market, valued at USD 5.5 billion, making it the dominant region globally. This leadership is supported by high consumer awareness of natural supplements, strong demand for organic and clean-label products, and a well-established nutraceutical and functional food industry.

The U.S. and Canada have particularly driven growth due to the rising preference for preventive healthcare and the integration of mushroom extracts into dietary supplements, beverages, and functional snacks. Europe follows closely, supported by increasing adoption of plant-based wellness products and government regulations favoring organic sourcing. The Asia Pacific region is witnessing fast growth, driven by traditional knowledge of medicinal mushrooms in China, Japan, and South Korea, combined with expanding urban demand.

Meanwhile, the Middle East & Africa and Latin America are gradually adopting mushroom extracts, supported by growing health-conscious urban populations. However, North America remains the clear market leader in 2024, holding nearly half of the global share, reflecting its advanced wellness industry, innovation in functional products, and strong consumer trust in natural remedies.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Bio Answer Holdings Inc. has focused on supplying high-grade mushroom extracts tailored for dietary supplements and wellness applications. Their emphasis on purity and active compound concentration has positioned them well in meeting the rising demand for functional ingredients in nutraceutical formulations. The company continues to strengthen its role as a reliable supplier in global health markets.

Nammex, widely recognized for its leadership in medicinal mushroom extracts, has leveraged decades of expertise in sourcing and extraction. In 2024, the company maintained its competitive edge by offering certified organic extracts with standardized levels of bioactive compounds like beta-glucans. Its strong credibility among supplement manufacturers has reinforced consumer trust and fueled its growth. Nammex’s positioning reflects the increasing importance of organic and clean-label sourcing in North America and Europe, regions where demand for authenticity and transparency is at its peak.

Nutri Avenue Inc., on the other hand, has carved its space by supplying diverse mushroom extract powders and bulk ingredients to global supplement manufacturers. Its flexibility in meeting large-scale orders and providing cost-effective yet high-quality extracts has supported its global reach. In 2024, Nutri Avenue has benefited from the expanding functional food and beverage sectors, where mushroom-infused powders and blends are seeing significant traction.

Top Key Players in the Market

• Bio Answer Holdings Inc.
• Nammex (North American Medicinal Mushroom Extracts)
• Nutri Avenue Inc
• Applied Food Sciences, Inc.
• Hamilton’s Mushroom Extracts
• Naturalin Bio-Resources Co, Ltd
• Oriveda BV
• Ethical Naturals Inc.
• Sempera Organics
• Nordic Mushrooms

Recent Developments

• In September 2024, Hamilton’s Mushroom Extracts served as a sponsored participant at the Telluride Mushroom Festival, where founder Hamilton Pevec shared a creatively filmed recap of winning the Best-in-Show costume contest—blending mycology with artistic storytelling and boosting branding in a fun, community-driven way.
• In July 2024,  Nammex launched two new mushroom-derived ingredients: ErgoGold, an ergothioneine extract powder from Golden Oyster mushrooms, and a whole-food, mushroom-derived Vitamin D2 made using pulsed UV light. These additions showcase Nammex’s commitment to innovative, natural wellness solutions.

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