According to Fortune Business Insights, the global functional mushroom market was valued at $31.09 billion in 2024, and is expected to grow from $33.72 billion in 2025 to $62.18 billion in 2032 at a CAGR of 9.14%, driven by rapid manufacturing advancements in the pharmaceutical and personal care spaces, along with advancements in biotechnology and mycology “enabling researchers to explore novel cultivation techniques, optimize growing conditions, and enhance the production of bioactive compounds in mushrooms,” the market research firm reported.

Market Drivers

“One of the most exciting top-level consumer trends we’re seeing in the mushroom supplement space today is a growing demand for products that are both simplified and scientifically validated,” said Julie Daoust, PhD, chief science officer and chief commercial officer at M2 Ingredients. “Modern wellness consumers are no longer just following the advice of social media influencers; they’re becoming increasingly educated, discerning, and data-driven.”

According to Bill Chioffi, COO at Nammex, the biggest purchase drivers in the mushroom supplements space today include consumers’ desire for solutions for cognitive function, immunity, and active lifestyles; whole food nutrition; and product attributes like transparency, geo-authenticity (herbs, botanicals, and fungi sourced from indigenous locations), and corporate social responsibility.

Seasoned mushroom users are inclined to sample lesser-known mushroom varieties, said Daoust. “That growing curiosity is exciting because it reflects a deeper understanding of the diverse and targeted benefits mushrooms can offer.”

Meanwhile, mushrooms have entered the cultural consciousness through influences like “The Last of Us” and “Fantastic Fungi,” so newcomers are reaching for chart-toppers like cordyceps and lion’s mane as they enter the category. The accelerated awareness and adoption of mushrooms is “not replacing the classics, it’s expanding the conversation,” said Daoust.

While the momentum is still strongest behind the “big three” — lion’s mane, reishi, and cordyceps — chaga has seen a groundswell of interest lately, said Brian Zapp, director of marketing at Applied Food Sciences. “What changed is that consumers now recognize mushrooms as a category, not just a one-mushroom wonder. That opens the door for many varietals to play supportive roles.”

“People’s curiosity regarding the potential of other beneficial mushroom species has driven the popularity of a range of other species, such as agarikon, maitake, enoki, and cordyceps,” said Paul Stamets, mycologist and founder of the mushroom research company Fungi Perfecti, LLC, and Host Defense, a subsidiary brand of mushroom products. “With new research regarding the immune-supportive properties of agarikon and its ability to promote innate immune cell functioning, there is increased interest in the potential health benefits of this mushroom, especially combined with turkey tail. Enoki is getting attention for promoting skin hydration and skin tone, and we’ve included this in our formulation for the recently launched MycoBenefits Beauty capsules.”

Mushrooms have not been as extensively studied as botanicals in terms of the volume of research. But consumers are calling for more. “As consumers become increasingly informed and educated regarding mushroom supplements, they are placing a higher value on premium quality of clinically studied mushroom mycelium, like some of the species offered by Host Defense Mushrooms,” said Stamets.

Several of Host Defense’s species have undergone clinical studies and other forms of scientific evaluation, with more research planned. “Besides me, we have eight research scientists, five with PhDs, on staff working full time to discover the many benefits of mycelium for our customers. Our teams frequently publish novel results in peer-reviewed scientific journals supporting the efficacy of mycelium for supporting human health.”

Beyond the Beta-Glucans

Mushrooms are considered a tool to help supplement makers do more with less, as they’re a whole-food source of several health-promoting compounds.

“Consumers want ingredients that do more than one thing, and mushrooms check a lot of boxes,” said Zapp. “They can support immunity, gut health, energy, focus, stress, and sleep. Mushrooms are also recognized for their adaptogenic qualities and role in longevity.”

“Mushrooms offer a remarkably compelling case, especially when compared to more traditional ingredients like isolated nutrients or isolated bioactives,” Daoust said. “A single mushroom species can deliver a wide range of clinically relevant bioactive compounds, which often means one ingredient can support multiple health targets at once.”

For example, she added, “lion’s mane (Hericium erinaceus) is now recognized for multiple classes of bioactive compounds, including hericenones, erinacines, and hericerins, which each play a distinct role in supporting the nervous system and cognitive function. Importantly, these compounds are found in different parts of the fungus. Hericenones are only present in the fruiting body, while erinacines are exclusively found in the mycelium … Until recent studies were conducted, we didn’t fully understand how these compounds worked together to support neuroplasticity and cognitive function.”

With beta-glucans, antioxidants, and prebiotic fibers, a 2-gram serving of lion’s mane can capture as many health claims as a 10-gram multi-ingredient formulation. “This has profound implications for both product formulation and cost efficiency,” Daoust added, and it “can simplify the ingredient panel, reduce formulation complexity, and ultimately lower the cost per serving. For formulators, that’s a huge win. And for consumers, it means a cleaner label, fewer capsules or scoops, and a more streamlined supplement routine.”

While mushrooms are rich in unique compounds not commonly found in other food sources, like ergosterol and ergothioneine in lion’s mane, it’s important that more research is conducted to clarify the specific roles they have in human health. Similarly, brands should highlight the importance of individual tolerances, specific health needs, potential interactions with medications, and other individual factors, Stamets noted.

Because of new research on these species-specific compounds, overall interest in lesser-known mushroom varieties is growing. “Over the past 5 years, there has been a significant increase in interest in lesser-known mushroom species such as chaga, lion’s mane, and Cordyceps militaris. The number of studies on medicinal mushrooms has surged, with many international journals now featuring research on various mushroom varieties in Asia and Eastern Europe,” noted David Law, founder, president, and CEO of Gourmet Mushrooms.

Chioffi noted that authentic mushroom extracts don’t require any excipients, binders, or fillers, thanks to their natural composition, lending to clean label appeal. Herbal supplements, in contrast, often require the use of maltodextrin and other processing agents.

While much of the focus has been on species-specific bioactives, it’s important to note that beta-glucans shouldn’t be thought of in generic terms, said Zapp. “While similar compounds are found in oats and grains, the beta-glucans from fungi have an immunomodulating effect in the gut that doesn’t occur with other cereal-based ingredients.”

Emerging Research Areas

When it comes to emerging research, Daoust said that she’s most excited about the prebiotic benefits mushrooms exhibit. In studies supported by M2 Ingredients, mushrooms have exhibited beneficial effects on multiple microbiome targets, including: lower colon pH; short-chain fatty acid production; moderate increase in gas production, which suggests prebiotic fermentation is occurring; increase in overall microbiota biomass; and increased diversity of microbial species.

Research in the fungi category is vast, and it’s important to keep tabs on drug discovery as well, said Chioffi. One study he pointed to, published in the International Journal of Biological Macromolecules, investigated the effects of two reishi compounds, ganoderic acid A and a species-specific polysaccharide in modulating several inflammatory markers. The study “bridges traditional Chinese medicine concepts with modern molecular pharmacology, providing a blueprint for designing next-generation anti-inflammatory formulations that leverage natural component synergism,” the authors wrote.

Similarly, “Taxol, a chemotherapy drug, derives naturally from mycelium residing under the bark of yew trees. Japan produces two mycelial-based drugs, PSK (polysaccharide Krestin) and Schizophyllan (Schizophyllum commune),” noted Law.

Cognition benefits will continue generating a great deal of interest, noted Zapp. “Certain active compounds in these mushrooms can cross the blood-brain barrier and have benefits such as stimulating nerve growth synthesis (NGF), providing neuroprotective benefits, and even helping calm the nervous system … Much of the activity may be due to interactions in the gut-brain axis.”

Chioffi pointed to another study (Frontiers in Aging Neuroscience, 2020) which found that patients with Alzheimer’s disease who supplemented daily with lion’s mane experienced significant improvements after 49 weeks in Mini-Mental State Examination scores, measures of contrast sensitivity, and more, “suggesting that [erinacine A-enriched lion’s mane extract] is safe, well-tolerated, and may be important in achieving neurocognitive benefits.”

Chioffi noted that this study was an important example of researchers accounting for the chemical composition of a finished product, which, in this case, was a pure mycelium with a verified amount of bioactive material, which is not typical of mycelium products on the market. “The amount of erinacine must be clearly stated and verified by valid analytical methods on the product label, and currently, none of the mycelium fermented grain products in the market have any public data on that or any other common secondary fungal metabolites such as triterpenoids in the products,” said Chioffi.

Compounds unique to lion’s mane, like hericenones and erinacines, can “easily traverse the blood brain barrier,” per a 2024 study (Journal of Functional Foods), and are thought to be responsible for the changes in cognition observed to date.

But short-term benefits also appear possible; in a clinical study (Nutrients, 2023) evaluating 40 healthy adults, those who took a single, 1,000 mg dose of Applied Food Sciences’ MycoThrive lion’s mane had significantly greater measures of working memory, attention, concentration, and reaction time within an hour of dosing compared to the placebo group. According to AFS, the results “contrast the prevailing notion that lion’s mane only produces chronic benefits after 30-60 days of use.”

As lesser-known mushrooms begin to catch on, the research validating health applications of these species in traditional medicine systems will quickly catch up, noted Stamets.

“One particular area I’m excited about is new research on the synergistic effects of agarikon and turkey tail mushroom mycelium when taken in combination. The robustly positive outcomes indicated they may support immune engagement and surveillance capabilities. When taken together, they may also support the adaptive immune system, promoting the body’s natural ability to respond in a more timely and balanced manner,” he said.

An unpublished double-blind clinical study conducted by the University of California (San Diego), for instance, concurrently administered mRNA vaccines for COVID-19 with high-purity turkey tail and agarikon mycelium. “Data suggested support for a faster return of the body’s natural state after vaccination, demonstrating immune supporting benefits. Moreover, data demonstrated a continual support of an increase in native antibody levels including at the 6-month post-vaccination mark when the study ended, in stark contrast to the control. The completed report is being submitted to a medical journal for peer review.”

Because mushrooms are a whole-food source of several compounds that serve as bioactive signaling molecules, their mechanisms of action in areas like cognition and immune health are of significant intrigue. Their roles in “intracellular signaling in the release of different combinations of cytokines such as interferons, interleukins, natural killer cells,” and more are especially compelling compared to the role of essential nutrients, which serve as building blocks the body utilizes to create desired end products, said Law. “The most exciting emerging research in the mushroom category includes the studies of the effects of mushroom supplements in areas of immunomics, metabolomics, epigenomics, microbiomics, and healthy longevity.”

Product Trends

Functional beverages are dominating the functional mushrooms category. The industry is leaning into extraction technology and ingredient standardization to optimize taste, dispersibility, and label-friendliness, said Zapp.

“Products like mushroom coffee, hydration mixes, and ready-to-drink wellness shots are taking off, and it’s been so fun to see mushrooms showcased in a variety of new ways and flavors,” said Daoust. Particularly with coffee, consumers often look to replace their second or third cup of traditional joe with a caffeine-free alternative like lion’s mane or cordyceps. Similarly, cordyceps is emerging in the pre-workout and hydration space.

“There’s still a misconception that tinctures and extracts are the superior delivery form, likely because that’s long been the norm in other areas of herbal medicine,” said Daoust. “But what we now understand is that mushroom extracts often lose key compounds, or isolate just one part of the whole. That can mean the loss of bioactives like beta-glucans, triterpenes, prebiotic fibers, and other secondary metabolites that work best together.”

While gummies dominate across supplement categories, and mushrooms have been no exception, consumers are also turning to powders for both practical reasons and palatability, noted Stamets. “For those who tire of swallowing pills, powders are an adaptable format that easily mixes into shakes, smoothies, yogurt, or even recipes like stews, cookies, and desserts. They also tend to be more budget-friendly, especially for those looking to take higher doses daily.”

However, mushroom powders come with their own challenges, particularly in beverages, where poor solubility can leave a gritty residue at the bottom of a beverage.

“We’ve developed proprietary particle sizing and drying technologies that produce mushroom powders with exceptional dispersibility, meaning they stay suspended in liquid as long or even longer than extracts, while still delivering the full spectrum of benefits from the whole mushroom,” said Daoust.

Popular products often combine functional mushrooms with other vitamins, minerals, and botanicals to provide an entourage of ingredients for a condition-specific purpose.

Supplements in Host Defense’s MycoBenefits line combine the company’s mycelium ingredients with vitamins, minerals, probiotics, and herbs, for condition-specific applications. Mood combines reishi, lion’s mane, ashwagandha, holy basil, 5-HTP, and L-theanine; Focus features lion’s mane, cordyceps, reishi, L-taurine, B vitamins, and choline; Sleep is a combination of reishi, lion’s mane, GABA, vitamin B6, magnesium bisglycinate, passionflower, and L-theanine; and Beauty combines enoki, chaga, reishi, hyaluronic acid, biotin, bamboo silica, and an antioxidant fruit blend.

“We developed these products in direct response to growing consumer demand for trusted brands that lead with science and formulate products based on high-quality data. Modern consumers are looking for more than just trending ingredients on a label, they want effective and well-researched combinations designed to truly support their health goals,” Stamets said.

He also noted that the women’s health category is especially promising for these sorts of multi-ingredient combinations, since the market is driven by needs like energy, mood, cognitive function, hormone balance, digestive health, vaginal health, and beauty from within. “We are seeing increased demand for functional blends that pair mushrooms with complementary botanicals, probiotics, vitamins, and minerals tailored to address specific women’s health goals … For too long, women’s health has been underserved.”

MegaFood recently launched a line of Superfood Mushroom supplements that combine greenhouse-grown mushroom fruiting bodies with botanical ingredients. The Focus Support blend combines lion’s mane with Bacopa monnieri; the Stress Relief blend pairs reishi mushroom with KSM-66 ashwagandha; an Immune Support blend features maitake, elderberry, and holy basil; and the Energy Support blend pairs cordyceps with Panax ginseng.

Four Sigmatic recently introduced its line of capsules to 600 Target stores throughout the U.S. These include: Focus, a blend of lion’s mane, L-theanine, vitamin B12, Bacopa monnieri, rhodiola, and ashwagandha; Calm, a blend of reishi, ashwagandha, tulsi, and vitamin B6; and Memory, which combines cordyceps with folate, gotu kola, turmeric root, and ashwagandha.

Melting Forest is a breakout beverage brand with energy drinks, coffee powders, and “D-Stress” drinks all featuring tailored combinations of mushrooms, adaptogens, and other ingredients. The energy drinks are available in black cherry, mango guava, orange cream, and strawberry lemonade varieties, while the D-Stress beverages come in strawberry lavender, watermelon elderflower, yuzu lime, and coconut pineapple.

Odyssey offers three types of mushroom-forward energy and cognitive support beverages: 222, Elixir, and Revive. 222 combines 222 mg of green tea caffeine with lion’s mane, cordyceps, ginseng, and L-theanine; Elixir is a similar formulation with 85 mg of caffeine; and Revive provides lion’s mane, cordyceps, L-theanine, panax ginseng, and vitamin C in a caffeine-free formulation.

Meanwhile, pet nutraceuticals tend to follow human nutrition trends. Recently, Standard Process launched a Mushroom Complex For Cats and Dogs supplement, formulated to deliver immune, digestive, and general wellness support. Each serving combines a mushroom extract blend, bovine colostrum, beta-glucans, and oats of the Avena strigosa variety.