Table of Contents
Overview
New York, NY – September 10, 2025 – The Global Mushroom Extracts Market is projected to reach USD 32.2 billion by 2034, rising from USD 12.2 billion in 2024, with a strong CAGR of 10.2% between 2025 and 2034. In North America, growth is being fueled by rising health awareness, accounting for 45.80% of the market.
Mushroom extracts, derived through hot water or alcohol extraction, are concentrated sources of compounds such as polysaccharides, beta-glucans, triterpenes, and antioxidants. These bioactives are linked to immune support, reduced inflammation, improved energy, and overall wellness. Unlike whole mushrooms, extracts provide higher potency and are widely applied in dietary supplements, functional foods, cosmetics, and wellness products.
The market is supported by strong investor confidence, with KÄÄPÄ Biotech securing €900K for mushroom-based innovations and Innomy raising €1.3 million for alternative proteins. Similarly, OtherNature is eyeing a $25 billion opportunity in mushroom supplements, highlighting the sector’s vast potential.
Functional foods and beverages enriched with mushroom extracts—such as teas, coffees, smoothies, and snack bars—are gaining popularity among urban and health-focused consumers. The industry is also branching into sustainability, with MycoWorks raising $125M to expand fungi-based leather production.
A key driver behind this market expansion is the global shift toward natural, plant-based supplements that support immunity, stress relief, and cognitive performance. Post-pandemic awareness of preventive healthcare has further accelerated adoption, positioning mushroom extracts as a core element of the growing natural wellness movement.
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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.
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Report Scope
| Report Features | Description |
|---|---|
| Market Value (2024) | USD 12.2 Billion |
| Forecast Revenue (2034) | USD 32.2 Billion |
| CAGR (2025-2034) | 10.2% |
| Segments Covered | 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) |
| Competitive Landscape | 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 |
Key Market Segments
By Source Type Analysis
In 2024, Organic mushroom extracts dominated the By Source Type segment with a 57.3% share, highlighting the rising consumer demand for clean-label, chemical-free, and sustainably sourced products.
Their popularity stems from being free of synthetic fertilizers, pesticides, and additives, making them more appealing to health-conscious buyers. This aligns with the global move toward eco-friendly and wellness-driven lifestyles, particularly in nutraceuticals, dietary supplements, and functional foods, where purity is highly valued.
Government-backed support for organic farming and certification has further strengthened trust in these products, while their premium positioning enables manufacturers to secure higher margins. Demand is especially strong in North America and Europe, where organic labels carry significant consumer influence.
By Product Analysis
In 2024, Shiitake Extract led the By-Product segment of the Mushroom Extracts Market with a 21.9% share, reflecting its strong reputation for health-promoting properties. Known for supporting immune health, cardiovascular function, and overall vitality, shiitake extract has secured a firm position in the wellness industry.
Packed with beta-glucans, polysaccharides, and essential amino acids, it is a favored ingredient in nutraceuticals and dietary supplements, where consumers seek natural and preventive health solutions. Beyond supplements, its dual role as a culinary and medicinal mushroom has expanded applications into foods and beverages such as soups, teas, and functional snacks.
The rise in plant-based nutrition trends has further boosted demand, with its adaptogenic and antioxidant qualities appealing to consumers focused on energy, stress management, and inflammation relief. Traditional use of shiitake in Asian medicine also continues to enhance global trust in its therapeutic value.
With growing innovation across functional foods, supplements, and personal care, shiitake extract is positioned to sustain its market strength, supported by rising awareness of natural remedies and lifestyle-driven health choices.
By Form Analysis
In 2024, Powdered Mushroom Extracts held the leading position in the By Form segment with a 68.1% share, underscoring their versatility and efficiency across industries. Their fine consistency makes them easy to incorporate into capsules, tablets, teas, coffees, smoothies, and functional snacks, offering both practicality and convenience for manufacturers and consumers.
Powdered extracts are also favored for their long shelf life, stability, and purity, ensuring quality during storage and global distribution. Their concentrated nature allows precise dosing and effective delivery of key bioactive compounds like beta-glucans, polysaccharides, and antioxidants, which are central to preventive healthcare and immunity support.
This form’s dominance is further reinforced by its adaptability for large-scale production and distribution, meeting the growing global demand for functional foods, nutraceuticals, and personal care products. As wellness-driven consumption continues to expand, powdered mushroom extracts remain the most trusted and widely adopted format, solidifying their stronghold in the global market.
By Application Analysis
In 2024, Dietary Supplements led the By by-application segment of the Mushroom Extracts Market with a 49.5% share, reflecting the strong global movement toward preventive healthcare. Consumers are increasingly choosing natural, plant-based solutions to strengthen immunity, boost energy, and support overall wellness.
Mushroom extracts, rich in beta-glucans, antioxidants, and polysaccharides, are highly valued in supplement formulations for their ability to enhance the immune system, reduce stress, and improve cognitive health. Growing concern over lifestyle-related health issues has encouraged wider adoption of mushroom-based capsules, powders, and tablets in daily routines.
This dominance is further supported by the rise of e-commerce platforms and health-focused retail outlets, which have expanded product accessibility. Clean-label and organic trends are also driving manufacturers to emphasize the purity and natural benefits of mushroom extracts.
With strong adoption among fitness enthusiasts, working professionals, and aging populations, dietary supplements remain the key growth driver of the mushroom extracts market. Backed by rising health awareness and the focus on long-term preventive care, this segment is expected to retain its leadership in the years ahead.
Regional Analysis
In 2024, North America led the Mushroom Extracts Market with a 45.80% share, valued at USD 5.5 billion, securing its position as the top regional market. This dominance is driven by strong consumer awareness of natural supplements, high demand for organic and clean-label products, and a mature nutraceutical and functional food industry.
The U.S. and Canada have been central to this growth, with mushroom extracts widely incorporated into dietary supplements, beverages, and functional snacks, reflecting the region’s strong focus on preventive healthcare. Europe follows as the second-largest market, supported by plant-based wellness trends and favorable regulations for organic sourcing.
The Asia Pacific region is expanding rapidly, where the traditional use of medicinal mushrooms in China, Japan, and South Korea combines with rising urban health-conscious demand. In contrast, Latin America and the Middle East & Africa are still at earlier stages of adoption, though growing urban populations are gradually fueling interest.
Overall, North America remains the clear global leader in 2024, holding nearly half of the total share, supported by advanced wellness industries, innovation in functional products, and strong consumer trust in natural remedies.
Top Use Cases
- Boosting the Immune System: Mushroom extracts are widely used to strengthen immune defenses. Measuring sticks like beta-glucans and polysaccharides help activate immune cells, making them popular in supplements to ward off illnesses.
- Supporting Brain Health & Mood: Certain mushrooms—particularly lion’s mane—are linked to improved memory, focus, and mood support. Animal studies suggest it may help combat anxiety, depression and promote nerve repair. Small human trials also note some mood improvements.
- Soothing Skin & Reducing Aging Signs: Extracts from reishi and chaga mushrooms are prized in skincare for their antioxidant and anti-inflammatory properties. They help reduce fine lines, calm irritation, and boost skin resilience.
- Lowering Blood Sugar & Supporting Gut Health (Chaga): Chaga extract may help manage blood sugar levels and, digestively, act like a prebiotic by nurturing healthy gut bacteria. This dual role supports metabolism and digestive wellness.
- Experimental Use in Fermented Drinks (Reishi in Wine): Innovative applications of reishi (Ganoderma lucidum) include infusing its extract into fermented beverages like wine. It may add unique flavors while delivering immune and anti-aging benefits.
Recent Developments
- In June 2025, Nutri Avenue produced content on how supply chains are adjusting to rising demand for organic mushroom powders, reflecting broader industry trends.
- In April 2025, the European Food Safety Authority (EFSA) officially approved KÄÄPÄ Biotech’s NordRelease™ extraction method for mushroom extracts, classifying it as a non-novel, approved process in the EU. This marks a major step forward for quality and regulatory acceptance in functional mushroom ingredients.
- In September 2024, Nammex reported significant progress in the farming of organic Turkey Tail mushrooms in China. Their partners produced 60–80 tons of dried mushrooms—more than double the previous year’s yield—with a goal to reach over 200 tons annually in the next 2–3 years.
Conclusion
Mushroom extracts are becoming an essential part of the global health and wellness movement, blending traditional knowledge with modern applications. Rich in beta-glucans, polysaccharides, antioxidants, and other bioactive compounds, they are valued for supporting immunity, brain health, energy, and overall well-being. Their versatility has led to widespread use in dietary supplements, functional foods, beverages, cosmetics, and even sustainable materials.
Growing consumer awareness of natural and plant-based solutions, alongside rising demand for organic and clean-label products, continues to strengthen their appeal. With expanding applications and scientific backing, mushroom extracts are set to remain a key force in natural health innovation.
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