Medicinal Mushroom Extract Market

The global medicinal mushroom extract market is expected to register a notable growth rate during the forecast period. Health benefits associated with medicinal mushrooms, followed by an increasing focus on preventive healthcare, are the major factor driving the growth of the market. Moreover, the untapped market in various developing countries is creating new opportunities for the growth of the market. However, environment constraints associated with mushrooms hamper market growth.

Medicinal mushrooms have been traditionally used for their healing benefits, especially in places like China, Russia, Japan, and Tibet. For instance, Chaga mushrooms have been used to treat diabetes, intestinal issues, and types of cancers. There are even records of Cordyceps being used as an aphrodisiac back in the 15th century. Each medicinal mushroom holds significant health benefitting properties. Most of the medicinal mushrooms are rich in antioxidants for which makes them very useful for the immune system. Cordyceps have become famous for their supposed ability to improve athletic performance. Shiitake mushroom is popular for high nutritional and medicinal value. It offers benefits such as cardiovascular health, bone-building, improved digestion, and heals chromosome damage caused by anti-cancer treatments. Shiitake contains an essential fatty acid named linoleic acid, which helps lose weight, build bones, and digestion. Reishi mushrooms can reduce stress and anxiety and helps balance the hormones. Lion’s mane can repair and regenerate neurons, resulting in improved cognitive function, and the mushroom has been known to mitigate and even reverse the effects of neurological diseases, such as Parkinson’s, Alzheimer’s, and dementia. Thus, several health benefits associated with each type of medicinal mushrooms is mainly driving the growth of medicinal mushroom extract market.

The medicinal mushroom extract is already popular among countries like China, Japan, and Russia, owing to their traditional medicinal properties. However, with increasing consumer awareness about the health benefits associated with medicinal mushrooms, there is a high potential for market growth in untapped markets. The demand for various dietary supplements has witnessed high growth in developing countries like India and Brazil in recent years. Increased incidences of malnutrition, nutrient deficiencies have resulted in an increased focus of consumers on nutrient intake based on Recommended Daily Allowance (RDA). These untapped markets have created an opportunity for medicinal mushroom extract manufacturers. Moreover, the increasing health consciousness among consumers in these countries has also set the trend for the consumption of high protein intake, which has further contributed to the growing demand for medicinal mushroom extract. Thus, the players are focusing on product launches to expand their product portfolio and cater to the untapped markets. For instance, in January 2018, BioCeuticals Ltd, a subsidiary of an Australian health supplement company, Blackmores Limited, launched an immunity-boosting medicinal supplement. Moreover, the company claims that the mushrooms sourced have been certified 100% organic by the USDA. Moreover, in countries such as the US and European countries, the demand for plant-sourced and organic supplements is high, which creates a lucrative growth opportunity for the medicinal mushroom extract manufacturers.

Many environmental factors can hamper the production of medicinal mushrooms. The log on which the mushrooms grow requires natural day and night cycle where it gets benefits of both light and darkness. It is required to maintain enough internal moisture levels of 35-60% for the growth of mycelia in the production cycle. Lack of internal moisture in the log would result in it using the fruiting water to digest cellulose and grow mycelia without the formation of mushrooms. Thus, these controlled environmental requirements impact the product quality and quantity of medicinal mushrooms. Also, the issue of odor generation during the production process of mushroom places pressure on mushroom growers. Moreover, pest infestation is a common problem associated with the medicinal mushroom. Medicinal mushrooms contain a large amount of water, which makes it difficult for storage. As soon as the mushroom is cut-off at harvest, they enter the perishable phase, which makes the storage process very essential for maintaining the quality of the end product. The consumption of contaminated mushrooms can lead to adverse effects such as paralysis of facial muscles, trouble in swallowing and talking, and skin allergy. Thus, these factors associated with the medicinal mushroom have a significant impact on the supply chain, hampering the medicinal mushroom extract market growth.

Manufacturers invest in research and development (R&D) for new product development (NPD) and investigative activities to improve existing products and procedures to launch new products. Owing to the increasing demand for medicinal mushroom extract followed by complications associated with the production process of medicinal mushrooms, manufacturers are inclined to come up with the innovative and improvised cultivation and extraction techniques to retain their competitive market share. For medicinal mushroom extract, huge working capital is required to carry out the operational activities. Along with capital investment to set up the business, manufacturers need to obtain certifications from the government and other regulatory bodies, which is again a time-consuming process. Market players cannot launch their products in the market without the certifications of the respective regulatory body, which can pose a major challenge in the global medicinal mushroom extract market.