Global Medicinal Mushrooms Market Size, Share, And Business Benefits By Species Type (Reishi, Lion’s Mane, Cordyceps, Shiitake, Chaga, Others), By Product Form (Extract (Powder, Liquid), Whole Mushrooms), By Application (Dietary Supplements, Pharmaceuticals, Cosmetics and Personal Care Products, Food and Beverages, Other Applications), By Distribution Channels (Supermarkets/Hypermarkets, Pharmacies/Drugstores, Specialty Stores, Other Distribution Channels), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

Global Medicinal Mushrooms Market is expected to be worth around USD 53.3 billion by 2034, up from USD 24.0 billion in 2024, and grow at a CAGR of 8.3% from 2025 to 2034. With 43.8% market share, North America leads the medicinal mushroom industry in value.

Medicinal mushrooms are specific fungi species known for their health-promoting properties, such as boosting immunity, reducing inflammation, and improving cognitive functions. Unlike regular culinary mushrooms, these are traditionally used in ancient healing systems like Ayurveda and Traditional Chinese Medicine.

They contain bioactive compounds like polysaccharides, beta-glucans, and triterpenoids that offer therapeutic effects. Common examples include reishi, chaga, lion’s mane, and cordyceps. These mushrooms are often consumed as extracts, capsules, powders, or in functional beverages for wellness benefits.

The medicinal mushrooms market refers to the global trade of mushroom-based products used for health and wellness purposes. This market includes dried mushrooms, liquid extracts, dietary supplements, and functional foods. It caters to rising consumer interest in natural remedies and immune-boosting nutrition. With increased awareness of preventive healthcare and plant-based diets, the market has expanded across nutraceuticals, pharmaceuticals, and food sectors.

India’s mushroom industry has witnessed significant growth, with production escalating from 1.13 lakh metric tons in 2010 to 2.42 lakh metric tons in 2020. Projections estimate a rise to 3.31 lakh metric tons by 2030. Despite this growth, India contributes only about 2% to the global mushroom market. The sector is predominantly led by white button mushrooms (Agaricus bisporus), accounting for 73% of production, followed by oyster mushrooms (16%) and paddy straw mushrooms (7%).​

The surge in demand for medicinal mushrooms is driven by increasing health consciousness and the shift towards plant-based diets. In 2022-23, India exported 7,768 metric tons of fresh and processed mushrooms, valued at ₹123.64 crore (approximately US$16.16 million), marking a 173.8% increase in volume and a 151.8% rise in value compared to the previous year. Key export destinations include the European Union, the Middle East, and North America, with button mushrooms being the most exported variety.

Government initiatives play a pivotal role in promoting mushroom cultivation. The ICAR-DMR, along with the All India Coordinated Research Project on Mushrooms (AICRPM), conducts extensive research and provides training to farmers across 27 states. Additionally, the Department of Biotechnology supports projects focusing on medicinal mushrooms like Shiitake and maitake in the Northeastern regions.

Key Takeaways

• Global Medicinal Mushrooms Market is expected to be worth around USD 53.3 billion by 2034, up from USD 24.0 billion in 2024, and grow at a CAGR of 8.3% from 2025 to 2034.
• In 2024, Reishi mushrooms held a 29.4% share due to their immunity-boosting properties.
• Extracts dominated the market with 69.9% share, offering concentrated health benefits and convenient usage options.
• Dietary supplements accounted for a 44.1% share, reflecting consumer preference for natural wellness and daily nutrition.
• Supermarkets/Hypermarkets led distribution with a 34.6% share, supporting easy accessibility and wider consumer outreach.
• Growing demand for wellness products supports the market in North America, reaching USD 10.5 Bn.

By Species Type Analysis

Reishi dominates the Medicinal Mushrooms Market with a strong 29.4% species preference share.

In 2024, Reishi held a dominant market position in the By Species Type segment of the Medicinal Mushrooms Market, with a 29.4% share. Known for its adaptogenic properties and immune-enhancing effects, Reishi continued to attract growing consumer attention, especially within the natural wellness and functional food sectors.

The rising inclination towards holistic health approaches and natural immunity boosters played a significant role in strengthening Reishi’s leadership in this segment. The consistent consumer shift towards ancient medicinal practices and plant-based therapies further reinforced demand across nutraceuticals, herbal teas, and tonic formulations.

Additionally, Reishi’s strong foothold is supported by its compatibility in various product forms, including powdered extracts, capsules, and ready-to-consume health drinks. Its long-standing association with traditional Chinese medicine also drives cultural trust and global acceptance. Supplement manufacturers are increasingly standardizing Reishi products for polysaccharide content, aligning with evolving consumer demand for transparency and efficacy.

By Product Form Analysis

Extracts lead Medicinal Mushrooms Market with 69.9%, offering high potency and versatility.

In 2024, Extract held a dominant market position in the By Product Form segment of the Medicinal Mushrooms Market, with a 69.9% share. This strong lead is attributed to the rising preference for concentrated and easy-to-consume mushroom supplements.

Extracts are favored due to their higher bioavailability and standardized dosage, offering a consistent and potent form of medicinal benefits. Consumers increasingly seek convenience without compromising on health efficacy, and mushroom extracts fit well into capsules, tinctures, and functional beverages.

The demand for extracts has surged across dietary supplements and alternative medicine formulations, especially among urban health-conscious populations. Their long shelf life, ease of formulation, and compatibility with various delivery forms make extracts more appealing than whole or powdered forms.

Manufacturers are also promoting dual extraction methods to retain both water-soluble and fat-soluble compounds, adding value to the final product. The 69.9% market share reflects not just consumer preference, but also growing trust in processed natural ingredients supported by clinical research.

By Application Analysis

Dietary supplements hold a 44.1% share in the Medicinal Mushrooms Market for health support.

In 2024, Dietary Supplements held a dominant market position in the By Application segment of the Medicinal Mushrooms Market, with a 44.1% share. This leadership is mainly driven by the growing demand for natural health boosters and preventive wellness products.

Consumers are increasingly opting for mushroom-based dietary supplements to support immunity, cognitive health, energy levels, and stress management. Medicinal mushrooms like Reishi, Lion’s Mane, and Cordyceps have gained widespread popularity in capsule, tablet, and powder formats.

The convenience of daily supplementation and the rising focus on proactive health maintenance have made dietary supplements the most preferred application format. Brands are developing targeted formulas that cater to specific health concerns, including immunity, anti-aging, and memory support.

The 44.1% market share highlights the segment’s alignment with consumer lifestyles that favor quick, reliable, and scientifically backed wellness products. Furthermore, the supplements channel benefits from multi-platform accessibility, ranging from pharmacies and wellness stores to e-commerce platforms.

By Distribution Channels Analysis

Supermarkets dominate with 34.6%, offering easy access to mushroom health products.

In 2024, Supermarkets/Hypermarkets held a dominant market position in the By Distribution Channels segment of the Medicinal Mushrooms Market, with a 34.6% share. This segment’s leadership is driven by strong consumer preference for in-store product visibility and trust in well-established retail chains.

Shoppers value the ability to compare products, read labels, and receive immediate availability, factors that are highly influential in the purchase of health-related products like medicinal mushrooms.

The 34.6% share reflects the wide reach and convenience these retail formats offer, especially in urban and semi-urban areas. Supermarkets and hypermarkets continue to stock a diverse range of mushroom-based supplements, teas, powders, and extracts, often supported by promotional campaigns and in-store education. Their prominent shelf placement helps new and existing brands attract mainstream consumers who are gradually adopting medicinal mushrooms for daily wellness needs.

These retail outlets also benefit from foot traffic driven by broader health and organic food aisles, making medicinal mushrooms a cross-category product. Bulk availability and discounts further appeal to cost-conscious buyers.

Key Market Segments

By Species Type

• Reishi
• Lion’s Mane
• Cordyceps
• Shiitake
• Chaga
• Others

By Product Form

• Extract
  • Powder
  • Liquid
• Whole Mushrooms

By Application

• Dietary Supplements
• Pharmaceuticals
• Cosmetics and Personal Care Products
• Food and Beverages
• Other Applications

By Distribution Channels

• Supermarkets/Hypermarkets
• Pharmacies/Drugstores
• Specialty Stores
• Other Distribution Channels

Driving Factors

Rising Health Awareness Boosts Mushroom Market Growth

People are becoming more aware of natural ways to stay healthy. Medicinal mushrooms are gaining popularity because they help boost the immune system, reduce stress, and support heart health. As more people prefer plant-based and organic supplements, demand for mushrooms like Reishi, Chaga, and Lion’s Mane is rising.

These mushrooms are often used in capsules, teas, and powders. Health-conscious consumers, especially in North America and Europe, are actively adding them to their diets. The growing interest in wellness, immunity, and mental clarity is pushing the market upward.

Easy availability in health stores and online platforms is also encouraging more people to try these products, supporting steady growth in the global medicinal mushrooms market.

Restraining Factors

Lack of Clinical Proof Slows Market Expansion

Medicinal mushrooms are popular for their health benefits, but not all claims are backed by science. Many people are unsure if these mushrooms work, especially in treating serious health problems. Without strong clinical trials or government approvals, some buyers hesitate to trust these products.

Doctors and healthcare providers may also avoid recommending them due to the limited medical evidence. This lack of trust can stop new customers from trying medicinal mushroom products.

Also, regulatory bodies in some countries require strict testing before selling health supplements, which delays product launches. Until more scientific research confirms the full health benefits, this market may grow slower than expected despite rising consumer interest in natural wellness.

Growth Opportunity

Functional Foods Trend Opens New Market Opportunities

People are now looking for food that does more than just fill their stomachs—they want food that improves health. This trend, called “functional foods,” creates a big opportunity for medicinal mushrooms.

These mushrooms can be added to soups, chocolates, teas, coffee, snacks, and even protein bars. As consumers shift toward clean-label, plant-based, and immunity-boosting ingredients, mushroom-infused foods can meet these demands.

Companies are starting to use Reishi, Cordyceps, and Lion’s Mane in everyday food products. This allows customers to enjoy health benefits without taking pills or powders. The mix of health and taste makes this a growing space, especially in urban areas where convenience and wellness are top priorities for busy consumers.

Latest Trends

Mushroom Coffee and Beverages Gain Popularity

A notable trend in the medicinal mushroom market is the rising popularity of mushroom-infused beverages, particularly mushroom coffee. Consumers are increasingly seeking functional drinks that offer health benefits beyond basic nutrition.

Mushroom coffee combines traditional coffee with extracts from medicinal mushrooms like reishi, lion’s mane, and chaga, aiming to provide enhanced focus, reduced stress, and immune support. This trend is driven by a growing interest in natural wellness products and the desire for alternatives to conventional caffeinated beverages

Regional Analysis

North America held a 43.8% share in the Medicinal Mushrooms Market, worth USD 10.5 Bn.

In 2024, North America held a dominant position in the Medicinal Mushrooms Market, accounting for 43.8% of the global share, valued at USD 10.5 billion. The region’s strong market performance is driven by increasing consumer preference for natural health supplements and growing awareness of mushroom-based wellness products.

The United States and Canada are leading this demand, particularly for functional foods and dietary supplements that include Reishi, Chaga, and Lion’s Mane. Europe followed, supported by a mature nutraceutical industry and rising organic food consumption across Germany, France, and the UK. The Asia Pacific market is also emerging steadily due to the historical use of medicinal mushrooms in countries like China, Japan, and South Korea.

Meanwhile, the Middle East & Africa region and Latin America are witnessing gradual market growth, primarily driven by urbanization and the expansion of health-focused retail chains. However, North America remains the key revenue contributor in this landscape, reflecting a highly health-conscious population, advanced distribution networks, and the early adoption of mushroom-based health products.

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

In 2024, three key players—Monterey Mushrooms, LLC, Nammex, and Bio Botanica, Inc.—​significantly influenced the global medicinal mushrooms market through their distinct strategies and operations.​

Monterey Mushrooms, LLC, headquartered in Watsonville, California, is a prominent producer of fresh, dried, and powdered mushrooms. The company’s extensive distribution network caters to consumers, retailers, and foodservice providers, emphasizing sustainability and local sourcing. Their commitment to quality and innovation has solidified their position in the market.​

Nammex has established itself as a leading supplier of certified organic mushroom extracts. The company focuses on transparency and quality, sourcing mushrooms from dedicated farms and ensuring rigorous testing. Nammex’s advocacy for accurate labeling and consumer education underscores its dedication to integrity in the industry.​

Bio Botanica, Inc. specializes in botanical extracts, including medicinal mushrooms, catering to the nutraceutical sector. Their expertise in extraction processes and commitment to high-quality ingredients support a range of health and wellness products. Bio Botanica’s collaborations and product innovations contribute to their strong market presence.​

Top Key Players in the Market

• Monterey Mushrooms, LLC
• Nammex
• Bio Botanica, Inc.
• Hirano Mushroom LLC
• Agro Dutch Industries Ltd
• Mitoku Company Ltd
• CNC Exotic Mushrooms
• Hokkaido Reishi Co. Ltd
• Drinkwater Mushrooms Ltd.
• Half Hill Farm Inc.
• Banken Champignons B.V
• M2 Ingredients
• Lianfeng (Suizhou) Food Co. Ltd.
• Shanghai Finc Bio-tech Inc.
• Pan’s Mushroom Jerky
• Other Key Players

Recent Developments

• In February 2025, Hokkaido Reishi Co., Ltd. employs a patented hot-water extraction method to produce powders for capsules, teas, coffees, and fermented enzyme drinks, enhancing the bioavailability of active compounds. ​
• In August 2024, CNC Group acquired DTO BV, a company supplying mushroom substrate to farms in 40 countries. DTO’s patented loading concept ensures optimal substrate quality during transport, enhancing CNC’s global export capabilities.

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