Functional Mushroom Council launched amid market growth

"The market is full and continuing to grow and this creates more of a challenge for consumers to make decisions on what products they want to purchase," said Regan Nally, Ph.D, senior research scientist at Fungi Perfecti.
"The market is full and continuing to grow, and this creates more of a challenge for consumers to make decisions on what products they want to purchase," said Regan Nally, PhD, senior research scientist at Fungi Perfecti. (Getty Images)

The Functional Mushroom Council (FMC) has launched as a nonprofit industry organization representing North American functional mushroom growers, suppliers and brands, with a focus on research, education and quality standards.

The Council debuted last fall and includes Fungi Perfecti, M2 Ingredients, Monterey Mushrooms, Aloha Medicinals, Mycopia and Far West Fungi as founding members.

The timing coincides with continued growth in the U.S. functional mushroom supplement market. According to SPINS data, total category growth for U.S. retail sales reached $74.6 million, representing 7.7% dollar growth year-over-year.

Sales performance varies by species. For example, SPINS data shows lion’s mane supplements generated $22.38 million in U.S. retail sales, growing 3.8% year over year, and cordyceps supplements accounted for $12.59 million in sales, up 8.9%, while reishi reached $9.64 million, growing 22.5% year over year.

Regan Nally, PhD, senior research scientist at Fungi Perfecti, told NutraIngredients that the Council was formed in response to market expansion that has outpaced shared standards and consumer education.

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“What was missing was a unified collective of functional mushroom companies that could work together to help streamline the information and help consumers to make good decisions on supplement purchases through education,” she said.

Concerns about ingredient quality and labeling persist

Nally pointed to ingredient quality and labeling accuracy as recurring challenges, particularly as sourcing has become increasingly global.

“Alongside high competition can be the lessening of quality commitments,” she said. “The FMC members are companies that are committed to growing mushrooms in the USA, which translates to a large vote of confidence in terms of regulatory compliance and quality materials.”

She added that regulatory expectations and manufacturing oversight vary widely outside the United States, characterizing international regulations as “generally not as stringent.”

Therefore, to cut through the noise and address consumer confusion, “the FMC is also to focus on research projects that illuminate labeling requirements and educate consumers on what to look for, as well as conduct studies and provide education on the chemical composition of these supplements,” she explained.

Research program to begin with 2026 report

A central initiative for the Council is a multi-year research program, beginning with a report expected in 2026 that will examine quality standards, bioactive compound profiles and health impacts of functional mushrooms.

“The study is currently in the design phase, and the FMC research committee is working directly with Association of Official Analytical Collaboration (AOAC), alongside independent third party laboratory partners and senior industry scientists,” Julie Daoust, PhD, chief science officer at M2 Ingredients, told NI. “The intent is to evaluate the highest selling functional mushroom species in the U.S. using advanced metabolomic profiling and validated testing methodologies.”

Daoust said the goal is to produce data “by aligning analytical methods, biological relevance and industry needs from the outset” that can be used directly by brands and suppliers, “not just for FMC members but for the entire functional mushroom industry.”

Defining functional mushroom products and re-evaluating domestic supply chains

Matt Cleaver, mycologist and microbiologist at Aloha Medicinals, said the Council’s focus on full–life-cycle, whole-mushroom products reflects growing alignment around verified active compounds rather than individual mushroom components “because they combine the chemistry and corresponding benefits of mycelium and fruit body.”

Cleaver added that testing protocols are already under development.

“Analytical testing for these compounds is therefore an appropriate way to ensure quality metrics are met, and consumers are getting the benefits they are looking for,” he said.

The formation of the FMC also reflects changes in North American production capacity, according to Amir Karian, director of nutraceuticals at Monterey Nutra. Historically, many brands have imported or sourced functional mushroom ingredients internationally, but “that dynamic has changed,” he said in the FMC press release.

Domestic growers have expanded both scale and technical infrastructure, he added, noting that brands no longer need to rely on overseas suppliers but can partner directly with North American growers.

Daoust echoed this sentiment, adding that FMC members are working directly with U.S.-based contract manufacturers and R&D teams.

“The council’s role is to shorten the learning curve by connecting brands and manufacturers with validated science, practical formulation guidance and emerging technologies,” she said.

As the FMC is only recently formed, she cautioned that the council’s success should be measured by concrete outputs rather than visibility.

“The next 12 to 24 months will make clear that this is not a marketing seal but a working industry body,” she said.