In the past few years, mushroom powder has ushered in a period of market growth in overseas markets. Whether from the fine development of raw materials, the layout of diversified products on the brand side, or the application of new downstream tracks, mushroom raw materials are becoming the point that more and more companies are paying attention to.
The U.S. data company SPINS recently released the “2023 Mushroom Raw Materials Market Report”, the market data for the past 52 weeks until April 23, 2023, covering the main sales channels in the U.S. market, including natural retail channels and mainstream retail channels. The main trend direction has the following four points.
- The mushroom market is developing rapidly.
- Mushrooms are entering the mainstream market, from dietary supplements to food and beverages.
- Two noteworthy mushroom potential raw materials.
- The fast-growing category of mushroom raw materials downstream.
Global Mushroom Powder Market Size
The “2021 Herbal Supplement Sales Market Report” released by the American Botanical Council shows that in the U.S. natural retail channels in 2021, the overall performance of mushroom raw materials is good, among which mushrooms (others), Cordyceps sinensis and Ganoderma lucidum are the top 30 list raw materials. The Cordyceps sinensis market grew by 15.9%.
At the same time, market data released by SPINS shows that in the category of nutritional food and beverages in the United States in 2022, the sales of products containing mushroom raw materials will increase significantly, reaching 26%.
The following factors mainly drive the rapid growth of the mushroom market.
- Consumers’ interest in mushroom raw materials is increasing.
- Different types of mushrooms have different health directions. It can meet the diversified health needs of consumers and adapt to the original market.
The mushrooms powder formulation in downstream products is often compounded with ashwagandha, ginseng, and holy basil.
Not only in the United States, mushrooms are also ushering in a period of development in other markets around the world.
According to market data released by Future Market Insights, the global mushroom market will reach US$9.698 billion in 2023 and is expected to reach US$22 billion in 2033, with an annual growth rate of 9%.
At present, the popular mushroom raw materials on the market mainly include Ganoderma lucidum, Hericium erinaceus, Chaga, Cordyceps sinensis, Lentinus edodes, Grifola frondosa, Turkey tail extract, and so on.
Mushroom Extract Powder In Foods and Beverages
According to data released by SPINS, the growth of mushrooms in vitamins and dietary supplements has stabilized. In the past year, the sales of related products reached 114 million U.S. dollars, a year-on-year increase of 2.9%. In contrast, the growth in the food and beverage track has risen rapidly, with a year-on-year increase of 19.5%, and the sales of related products reached 642 million U.S. dollars. At the same time, the growth in the body care track has also declined by 10.6%.
The early growth of the U.S. mushroom powder market was mainly in the natural channel, with product types dominated by vitamins and dietary supplements.
With the continuous increase in consumer demand, the development of mushroom raw materials has become increasingly refined, and the product form has also changed from capsules and tablets to powder, liquid, soft candy, and other food forms. At the same time, food and beverages have also become the main direction of downstream applications, especially ready-to-drink beverages and packaged foods.
The beverage category is one of the directions where mushroom raw materials are widely used. Not only beverages but many coffee products also contain mushroom raw materials. The application of mushrooms in coffee can provide energy without making people feel jittery, can be used as a partial caffeine replacement, and is often combined with other adaptogenic ingredients.
- In 2022, Lifeway Food, an American brand of fermented probiotics, will launch three different flavors of adaptogenic mushroom beverages. The main ingredients are 10 active probiotic cultures, oat beta-glucan, and mushroom raw materials (Reishi, Hericium erinaceus, mushrooms).
- The American brand MUDWTR combines mushrooms with little or no caffeine in their alternative coffee blends. Each blend consists of cocoa, herbs, and spices. And it contains one or more of the following mushroom-based ingredients, including Reishi, Cordyceps, Chaga, and Hericium erinaceus.
Two Potential Mushroom Extractions In The Market
SPINS analyzed two mushroom raw materials in its market report, Lion’ Mane and Turkey Tail Mushroom.
Lion’s Mane extract is rich in protein, fat, iron, phosphorus, calcium, carotene, carbohydrates, polysaccharides, etc. Currently, the fastest-growing product category in the U.S. is Kombucha and other functional beverages. Annual sales increased by 158.2% year-on-year, followed by Wellness Bars & Gels and Shelf stable coffee & hot cocoa.
The main active ingredient of Reishi extract is polysaccharides, which are relatively less recognized in the market. In the U.S. market, Kombucha and other functional beverages are the product category with the fastest growth in sales of turkey tail mushroom products, with annual sales increasing by 226.6% year-on-year. The followings are Protein supplements & meal reps, and probiotics & digestive aids.
Fast-Growing Mushroom Application Area – Coffee
According to market data released by SPINS, mushroom-based raw materials can be applied to multiple food and beverage types, including soups, biscuits, snack bars, beverages, infant food, frozen snacks, coffee, tea, etc.
The largest proportion of sales is shelf stable soup, reaching $26.3 million. Followed by shelf stable cookies & snack bars, sales amounted to $25 million.
The top three categories with the highest sales growth are as below.
- Shelf stable tea & coffee RTD (250.6%)
- Baby & toddler food (217.2%)
- Kombucha & other functional bev (71.2%)
According to market data released by Research And Markets, the global mushroom coffee market is expected to reach US$4.12 billion in 2030. The compound annual growth rate predicts 5.5% between 2023 and 2030, a stable development trend.
As consumers become more health conscious, they seek alternative coffee options such as decaf or herbal coffee blends. In this context, with its unique and natural flavor profile, mushroom coffee is an attractive option for consumers looking for something different. Of course, the development of the mushroom coffee market is also related to the continuous improvement of consumers’ awareness of the health value of mushrooms.
The primary raw materials in the mushroom coffee market include Hericium erinaceus, Chaga, Cordyceps, Ganoderma lucidum, etc. The Chaga extract segment accounted for 28.5% of sales in 2022. Primarily, Chaga has an earthy and slightly bitter taste that complements coffee flavors, which may appeal to consumers looking for a different and more complex coffee experience.
Mushrooms have a long history of eating and planting in my country. And domestic is the main supply market of global mushroom extract. However, the development of downstream mushroom products is still in its infancy. The domestic application is mainly based on rough processing and agricultural by-products. High-value-added products have yet to be developed. It is believed that in the future, mushroom raw materials will become an important ingredient for brands to create differentiated products.
The market for mushroom extracts is expected to grow rapidly as mushroom raw materials are widely used in different fields, especially in foods and beverages. Nutri Avenue has also prepared a variety of mushroom extractions for businesses in different industries. Welcome to purchase bulk mushroom powder.