Medicinal Mushroom Extracts Market Size, Share, Growth, and Industry Analysis By Type (Powder and Liquid) By Application (Medicine and Health Products), Regional Insights and Forecast From 2025 To 2033

Last Updated: 14 July 2025
SKU ID: 27874604

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MEDICINAL MUSHROOM EXTRACTS MARKET OVERVIEW

The global medicinal mushroom extracts market size was USD 0.46 billion in 2024 and is projected to touch USD 0.79 billion by 2033, at a CAGR of 6.9% during the forecast period 2025 To 2033.

Eastern medicine has long recognized the health advantages of medicinal mushrooms, and traditional medicine has employed them for thousands of years. These medicinal mushrooms have been shown in studies to include a variety of antioxidants, immune system boosters, and even components that assist cellular health and function. Tiny fungi known as medicinal mushrooms are employed for their therapeutic properties. Medicinal mushrooms are rich in vitamin B, vitamin D, amino acids, calcium, potassium, and fiber. These nutrients are crucial for boosting antioxidant activity and reducing the body's free radical levels. They are used in many different extraction processes as powder, capsules, fluids, and other forms.

The market for medicinal mushrooms is currently in its high growth stage and is anticipated to see a striking expansion during the anticipated period. The functional food movement, living like your ancestors did, eastern herbal medicine, and gut-healthy goods are some other convergent trends that are helping the market for medicinal mushrooms flourish. At the intersection of all these trends, medicinal mushrooms happen to be present. However, all health claims made in the name of medicinal mushrooms must be backed by scientific evidence because after learning about the health advantages, consumers turn to the opinions of the medical communities.

KEY FINDINGS

  • Market Size and Growth: Valued at USD 0.46 billion in 2024, projected to touch 0.79 billion by 2033 at a CAGR of 6.9%.
  • Key Market Driver: Medicine segment accounted for around 65% of total market value due to therapeutic applications.
  • Major Market Restraint: Low-cost alternatives constrained demand, affecting roughly 50% of potential herbal product buyers.
  • Emerging Trends: Powder extracts dominate with about 70% share, while liquid formulations represent the remaining 30%.
  • Regional Leadership: Asia-Pacific led the market with over 35% share due to traditional medicine usage and growing health awareness.
  • Competitive Landscape: Top 10 players captured nearly 45% of global market share through product innovation and partnerships.
  • Market Segmentation: (By Type: Powder – 70%, Liquid – 30%; By Application: Medicine – 65%, Health Products – 35%)
  • Recent Development: Post-pandemic wellness trend drove a 40% surge in functional health product launches containing mushroom extracts.

COVID-19 IMPACT

Changes in Consumer Purchasing Behavior Led to A Drop in Demand

Following the pandemic, consumer consumption habits shifted. Due to its health benefits and consumers' significant interest in plant-based foods, edible fungus consumption rose among these. Although the foodservice industry experienced a sharp decline in sales during the first few months of the lockdown due to the rigorous closure of restaurants and cafes and limitations on public mobility, mushroom manufacturers saw a revenue decline of 50–80%. As a result of people staying inside and the HORECA sector suffering a setback, more food goods, especially fresh ones, were consumed at home.

LATEST TRENDS

Rise of Health Problems to Promote Market Expansion

The market for therapeutic mushrooms is expanding as health problems become more commonplace in the world. Most of the health-conscious consumers' increased desire for functional foods is what is causing the industry to expand with the introduction of therapeutic mushrooms. Another significant factor accelerating the market's growth is the growing use of medicinal mushrooms in the treatment of bronchitis, asthma, inflammation, seasonal allergies, and colds. The advent of private-label brands and the rise in the number of applications in several end-use industries, including as cosmetics, healthcare, and food & beverage, are further reasons that will slow the market's growth rate.

  • According to functional food usage data, more than 25,000 tons of medicinal mushrooms such as reishi, chaga, and lion’s mane were processed globally for extract-based products in 2023.
  • Over 1,200 new nutraceutical formulations using mushroom extracts were launched globally in 2023, with more than 40% focused on immunity, cognitive function, and anti-inflammatory benefits.
Global-Medicinal-Mushroom-Extracts-Market-Share,-By-Type,-2033

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MEDICINAL MUSHROOM EXTRACTS MARKET SEGMENTATION

By Type

According to type, the market can be segmented into Powder, liquid. The powder segment is slated to dominate the market share in the future.

By Application

Based on application, the market can be divided into Medicine, Health Products. The medicine segment is slated to dominate the market in the future.

DRIVING FACTORS

Need for the Medicinal Mushroom Extracts to Boost Market Growth

Market expansion for medicinal mushrooms will be aided by increasing consumer awareness and instructional marketing. The high-end customer is the main target market for therapeutic mushrooms. Spas, other beauty supplement retailers, and fashion magazines can all be used to sell the items. The market for medicinal mushrooms is predicted to expand, especially in developing nations where the shelves of grocery stores are stocked with uncommon and exotic functional foods and drinks. Collaborations with different chains that sell herbal supplements and targeted education of the target market could further spur the market expansion for medicinal mushrooms.

Growing Awareness Towards Health Benefits to Promote Growth

The market for medicinal mushrooms is currently in its high growth stage and is anticipated to see a striking expansion during the anticipated time frame. The functional food movement, living like your ancestors did, eastern herbal medicine, and gut-healthy goods are some other convergent trends that are helping the market for medicinal mushrooms flourish. At the intersection of all these developments, medicinal mushrooms happen to be present. However, all health claims made in the name of medicinal mushrooms must be backed by scientific evidence since after learning about the health advantages, consumers turn to the opinions of the medical communities.

  • According to dietary supplement regulations, medicinal mushroom extracts were included in over 60% of herbal immunity-boosting products sold across regulated pharmacies and wellness chains in 2023.
  • Clinical trials registered in 2023 showed that more than 350 studies globally were focused on the health benefits of mushroom extracts, supporting their adoption in pharmaceuticals and functional foods.

RESTRAINING FACTORS

Availability of Low Cost Alternatives to Hamper Demand

Easy access to replacements is one of the challenges facing the market for medicinal mushroom extracts. Another barrier in the market is the low cost of alternatives. The flavor is one of the most obvious obstacles facing the therapeutic mushroom business. Industrial end users of medicinal mushrooms may incur additional expenditures by applying a significant number of masking agents to cover up their bitter and muddy flavors. Finding medicinal mushrooms may be challenging because they reflect the environment in which they are grown. Additionally, growers find it very challenging to maintain product transparency.

  • Based on agricultural cultivation statistics, the production of high-quality medicinal mushroom biomass requires humidity control between 85%–95% and takes up to 90 days, limiting scalability for some producers.
  • Import-export regulation reviews show that more than 20 countries classify unstandardized mushroom extracts as “novel food,” resulting in trade limitations and additional regulatory approval delays.

MEDICINAL MUSHROOM EXTRACTS MARKET REGIONAL INSIGHTS

Easy Availability to Boost Market Penetration in Asia Pacific

Due to the growing popularity of medicinal mushroom cosmetics, Asia Pacific currently dominates the market for medicinal mushrooms and will keep up its trend of dominance during the forecast period. The highest CAGR is anticipated for North America due to the region's increased shiitake cultivation on both natural and synthetic logs. The market for medicinal mushrooms is predicted to expand, especially in developing nations where the shelves of grocery stores are stocked with uncommon and exotic functional foods and drinks. The functional food movement, living like your ancestors did, eastern herbal medicine, and gut-healthy goods are some other convergent trends that are helping the market for medicinal mushrooms flourish.

KEY INDUSTRY PLAYERS

Market Players Focus on New Product Launches to Strengthen Market Position

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.

  • Verygrass (China): Verygrass supplies over 3,500 tons of mushroom extract powders annually, including reishi, maitake, and shiitake, with extraction ratios ranging from 4:1 to 20:1 depending on the application.
  • Amino Up Chemical Co., Ltd. (Japan): Amino Up produces more than 120 metric tons of AHCC® (Active Hexose Correlated Compound) each year, used in clinical immune-support formulations in over 30 countries.

List of Top Medicinal Mushroom Extracts Companies

  • Verygrass
  • Amino Up Chemical
  • Nammex
  • Baikal Herbs Ltd.
  • Johncan international
  • Aloha Medicinals
  • Limonnik
  • Fungi Perfecti
  • Kangxin
  • Shaanxi Undersun Biomedtech
  • GanoHerb
  • NutraGenesis
  • Naturalin
  • Lgberry
  • Nyishar
  • Oriveda bv
  • Real Mushrooms
  • Innophos

REPORT COVERAGE

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change. The research offers a thorough analysis of the market by focusing on data regarding many factors, such as drivers, constraints, opportunities, and threats. Before making an investment, stakeholders can use this knowledge to make wise judgments.

Medicinal Mushroom Extracts Market Report Scope & Segmentation

Attributes Details

Market Size Value In

US$ 0.46 Billion in 2024

Market Size Value By

US$ 0.79 Billion by 2033

Growth Rate

CAGR of 6.9% from 2025 to 2033

Forecast Period

2025-2033

Base Year

2024

Historical Data Available

Yes

Regional Scope

Global

Segments Covered

By Type

  • Powder
  • Liquid

By Application

  • Medicine
  • Health Products

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