The global functional food market is forecasted to reach USD 34.3 billion by 2024, growing at a CAGR of 8.04% during the forecast period (2019 - 2024). Functional mushrooms are used in a wide variety of healthcare and pharmaceutical products. This increases the applicability of these mushrooms in the food and beverage sector. The application of these mushrooms as a functional ingredient in medical industry is driving the growth of the market as functional mushrooms are being increasingly incorporated into health supplements. The market studied is expected to experience huge demand for Reishi and Cordyceps, followed by the other types of medicinal mushrooms. Reishi, a traditional Chinese medicine, is also known as the “Elixir of Life” as well as the “Mushroom of Immortality”.
Scope of the Report
The functional mushroom market (henceforth referred to as the market studied) is segmented based on product type. The market studied is segmented into Reishi, Cordyceps, Lion’s Mane, Turkey Tail, Shiitake, Chaga, and other types. By application, the market is segmented into food and beverage, dietary supplements, personal care, and pharmaceutical products. On the basis of region, the market has been segmented into North America, Europe, Asia-Pacific, and Rest of the World.
Key Market Trends
Surge in Demand for Functional Food and Dietary Supplements
There has been a considerable shift in the lifestyle and dietary habits of people over the past two decades. Urbanization and consumerism drove this shift, leading to a rapid rise in the consumption of synthetic food products, thereby resulting in an increased incidence of lifestyle diseases. People are becoming aware of these problems and are gradually moving toward functional foods and beverages, which are being promoted as being beneficial beyond basic nutrition. These products are purported to provide optimal nutrition and reduce the risk of disease occurrence. Companies are incorporating functional mushrooms into their product offerings. Lifehouse Tonics introduced beverages that include mushroom as a key ingredient. For instance, Four Sigmatic incorporated medicinal mushroom in its coffee, tea, and supplement categories.
Increase in the Use of Functional Mushroom in Personal Care and Cosmetics
Functional mushrooms have, in recent years, been considered to be a traditional source of natural bioactive compounds. Recently, they have been exploited as potential components in the cosmetics industry. A variety of mushrooms and their ingredients are known to promote wellness of skin and hair. The representative ingredients present in functional mushrooms are phenolics, polyphenolics, terpenoids, selenium, polysaccharides, vitamins and volatile organic compounds. These compounds exhibit excellent antioxidant, anti-aging, anti-wrinkle, skin whitening and moisturizing effects, which make them ideal for cosmetics products. Several functional mushroom varieties contain kojic acid, which is a renowned skin lightener. Kojic acid is used as a natural alternative to dangerous and often toxic chemical skin lighteners such as hydroquinone, which has been linked to skin cancer in the past.
The market studied is highly fragmented with the presence of many small players in the market. Key players, such as Nammex, CNC Exotic Mushrooms, and Mitoku Company, have focused on expansion by increasing the production capacity of mushroom farms. Nammex and Hokkaido Reishi Co. Ltd are the most active companies operating in the global functional mushroom market. Product innovation and expansion are the major strategies adopted by the companies in this industry owing to the rapidly transforming nature of the market. In order to constantly fulfill the increasing demand for these products, expansion and product innovation have become the most followed strategies by key players.
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