Reishi mushroom market projected to hit €4.24 billion by 2027

15-Apr-2021 - Last updated on 15-Apr-2021 at 10:12 GMT

Getty | James Mahan

Related tags adaptogens Cognitive function

The global Reishi mushroom market is projected to reach €4.24 billion by 2027, thanks largely to growing interest in functional food and drink, according to a new report from Allied Market Research (AMR).

Reishi mushrooms are an ancient adaptogen used for centuries in Chinese medicine. They have a high content of polysaccharides, peptides, and triterpenoids, as well as dietary fiber, various minerals, vitamins (B, D, K, and sometimes A and C), and amino acids. They have been linked to benefits for the immune system, stress, sleep, fatigue, blood sugar control, viral infections, and more.

AMR's Industry Forecast for 2021–2027 reveals that the global reishi mushroom industry was pegged at €2.59 billion in 2019, and is projected to grow at a CAGR of 8.1% over the next six years.

The report states that increased demand for functional beverage ingredients, rise in consumer spending and health consciousness, a rise in product awareness and knowledge through advertisements, and inclination toward sustainable food and drink, are all trends driving the growth.

There is also an increase in demand for organically grown products with high nutritional value, leading AMR to predict a rise in adoption of organic Reishi mushroom products.

According to the report, the powdered Reishi mushroom category accounted for the maximum market share in 2019, owing to its versatility of applications as well as the fact it provide similar essential nutrients as compared to its fresh version, but with lower calories.

However, the liquid Reishi mushroom segment is expected to grow at a higher CAGR during the forecast period as this format comprises less impurities and provides a more concentrated nutrition version of the mushrooms. This format can also be easily added to beverages.

The market analysts also predict that the organic segment will showcase the highest CAGR (8.3%) during the forecast period, owing to rise in awareness regarding the ill effects of synthetic chemicals on health.

Asia-Pacific was the prominent Reishi mushroom market region in 2019 due to the tremendous popularity and substantial consumption of Reishi mushroom products in the region for centuries. Plus China has been the largest producer and consumer of Reishi mushroom products. However, North America is showing strong growth thanks to the increased interest in functional food and drink.

Tapping into the market

The environmentally-conscious Finnish startup company KÄÄPÄ Biotech has quickly grown into the largest medicinal mushroom producer outside of Asia thanks to its high quality ingredients and innovative sustainable solution to mushroom foraging.

Speaking about the opportunity in the European nutraceuticals space, CEO and co-founder of KÄÄPÄ, Eric Puro, says his medicinal mushrooms seem to be ticking all the key boxes right now - natural, sustainable, nootropic, and transparent.

He says that while the market is currently mostly concentrated in Asia and the US, he is receiving a lot of interest from startups in the UK so he expects the trend will really start to kick off in Europe from 2021 onwards.

Puro will join a NutraIngredients' webinar entitled 'Immunity and Botanicals: Adaptogens in Focus' taking place on May 6th (3pm CET).

The webinar will be joined by a host of experts in the fields of botanicals and immunity and will take place as part of a global series of immunity focused webinars with each focusing on different topics such as sports nutrition, clinical trials, sleep, and beauty.