The global medicinal mushrooms market is projected to experience substantial growth over the coming decade, anticipated to reach a valuation of approximately USD 53.3 billion by 2034. This marks a significant increase from USD 24.0 billion in 2024, reflecting a compound annual growth rate (CAGR) of 8.3% between 2025 and 2034. North America currently leads the industry in value, accounting for 43.8% of the market share, with a market worth around USD 10.5 billion as of 2024.

Medicinal mushrooms, distinct from common culinary varieties, are specific fungi species recognised for their health-promoting properties, including immune system enhancement, inflammation reduction, and cognitive function improvement. Traditionally utilised in ancient healing systems such as Ayurveda and Traditional Chinese Medicine, these mushrooms contain bioactive compounds like polysaccharides, beta-glucans, and triterpenoids, which contribute to their therapeutic effects. prominent examples include reishi, chaga, lion’s mane, and cordyceps. These mushrooms are typically consumed in forms such as extracts, capsules, powders, and functional beverages aimed at wellness enhancement.

The market for medicinal mushrooms encompasses the global trade of products derived from these fungi for health and wellness applications. This segment includes dried mushrooms, liquid extracts, dietary supplements, and functional foods. The rise in consumer interest in natural remedies and immune-supporting nutrition has spurred market expansion, particularly in sectors such as nutraceuticals, pharmaceuticals, and food.

India’s mushroom industry has demonstrated significant growth in recent years, with production increasing from approximately 113,000 metric tons in 2010 to 242,000 metric tons in 2020. Forecasts suggest production will reach 331,000 metric tons by 2030. Despite this growth, India holds only about a 2% share of the global mushroom market. The Indian market is dominated by white button mushrooms (Agaricus bisporus), comprising 73% of production, followed by oyster mushrooms at 16%, and paddy straw mushrooms at 7%. In the fiscal year 2022-23, India exported 7,768 metric tons of fresh and processed mushrooms valued at ₹123.64 crore (approximately USD 16.16 million). This represents a 173.8% increase in export volume and a 151.8% rise in export value compared to the previous year. Major export destinations include the European Union, the Middle East, and North America, with button mushrooms constituting the most exported variety.

Government initiatives have been instrumental in promoting mushroom cultivation within India. The Indian Council of Agricultural Research–Directorate of Mushroom Research (ICAR-DMR), alongside the All India Coordinated Research Project on Mushrooms (AICRPM), provides extensive research and farmer training programmes across 27 states. Furthermore, the Department of Biotechnology supports projects focusing on medicinal mushrooms such as Shiitake and Maitake, particularly in the Northeastern regions.

By species type, reishi mushrooms held a commanding 29.4% market share in 2024. Known for their adaptogenic and immune-enhancing properties, reishi mushrooms attract considerable consumer interest, especially in natural wellness and functional food sectors. Their broad acceptance is enhanced by their adaptability to varied product forms including powdered extracts, capsules, and ready-to-consume health drinks. Reishi’s deep roots in Traditional Chinese Medicine contribute to their cultural trust and global market acceptance. Supplement manufacturers are standardising reishi products by polysaccharide content to meet demand for product transparency and efficacy.

Regarding product forms, mushroom extracts dominated the market with a 69.9% share in 2024. These extracts provide high potency, improved bioavailability, and standardised dosages, making them preferable choices for consumers seeking convenient and effective supplements. Extracts are prevalent in capsules, tinctures, and functional beverages and have gained popularity among health-conscious urban populations. Manufacturers increasingly employ dual extraction methods to preserve both water- and fat-soluble compounds, enhancing product quality and consumer trust.

In terms of applications, dietary supplements held a 44.1% market share in 2024. Demand is driven by consumers looking for natural health boosters for immunity, cognitive support, energy, and stress relief. Popular medicinal mushroom varieties for supplements include Reishi, Lion’s Mane, and Cordyceps. Consumers favour supplement formats such as capsules, tablets, and powders due to the convenience of daily use and the growing focus on preventive health care.

Distribution channels reveal supermarkets and hypermarkets as market leaders, accounting for 34.6% of sales in 2024. These outlets offer consumers easy access and visibility to medicinal mushroom products, including supplements, teas, powders, and extracts. The in-store experience allows customers to compare products and read labels, enhancing trust in these health-related items. The prominence of these retail formats is especially noted in urban and semi-urban areas, supported by promotional activities and product education.

Several factors are driving the growth of the medicinal mushrooms market. Increased health awareness has heightened interest in natural immune boosters and adaptogenic health products. People are incorporating medicinal mushrooms into their diets through capsules, teas, and powders. This trend is particularly strong in North America and Europe, where consumers are actively seeking wellness, immunity, and mental clarity solutions.

However, growth is tempered by a lack of comprehensive clinical proof supporting some health claims related to medicinal mushrooms. This lack of robust scientific evidence and regulatory approvals causes hesitation among some consumers and cautiousness among healthcare providers. Regulations requiring rigorous testing before market approval can delay product availability and slow growth, despite rising consumer interest.

An emerging growth opportunity lies in the functional foods segment, where consumer preferences move beyond simple nutrition towards foods that offer tangible health benefits. Medicinal mushrooms are being incorporated into a variety of food products, including soups, chocolates, teas, coffee, snacks, and protein bars. This trend aligns with consumer demand for clean-label, plant-based ingredients that boost immunity. Companies have begun developing mushroom-infused daily foods, making wellness benefits more accessible without requiring supplement intake.

Mushroom-infused beverages represent another notable trend. Mushroom coffee, combining traditional coffee with extracts from reishi, lion’s mane, and chaga mushrooms, is gaining consumer attention for its potential to enhance focus, reduce stress, and support immunity. This reflects increasing interest in functional drinks that offer health advantages alongside traditional nutrition.

Geographically, North America is the dominant market in 2024, driven by high consumer preference for natural supplements and mushroom-based wellness products. The United States and Canada lead demand for dietary supplements and functional foods. Europe follows, with strong markets in Germany, France, and the UK supported by established nutraceutical industries and rising organic food consumption. Asia Pacific is a growing market, benefitting from the traditional use of medicinal mushrooms in countries such as China, Japan, and South Korea. The Middle East, Africa, and Latin America regions are witnessing gradual market development largely fuelled by urbanisation and expansion of health-focused retail chains.

Key players influencing the global medicinal mushrooms market in 2024 include Monterey Mushrooms, LLC, Nammex, and Bio Botanica, Inc. Monterey Mushrooms, based in Watsonville, California, is a significant producer and distributor of fresh, dried, and powdered mushrooms, emphasising sustainability and local sourcing. Nammex specialises in certified organic mushroom extracts, focusing on transparency, quality, and consumer education. Bio Botanica supplies botanical extracts for the nutraceutical sector, with expertise in extraction processes that support a wide range of health and wellness products. Other noteworthy companies include Hirano Mushroom LLC, Agro Dutch Industries Ltd, Mitoku Company Ltd, and CNC Exotic Mushrooms.

Recent developments highlight innovation within the industry. In February 2025, Hokkaido Reishi Co., Ltd. utilised a patented hot-water extraction technique to produce powders for capsules, teas, coffees, and fermented enzyme drinks, enhancing the bioavailability of active compounds. Moreover, in August 2024, CNC Group acquired DTO BV, a firm specialised in supplying mushroom substrate to farms in 40 countries. DTO’s patented loading system optimises substrate quality during transport, enhancing CNC’s global export capabilities.

Overall, the medicinal mushrooms market is positioned for significant expansion, propelled by rising consumer interest in natural health products, evolving product formats, and expanding geographical reach. Growth will continue alongside emerging applications in functional foods and beverages, albeit alongside challenges related to clinical validation and regulatory acceptance.