Medicinal Mushroom Market– Trends and Forecast till 2023

Published On: March 2018

Medicinal Mushroom Market 

Many mushroom species have had numerous complexes that have been extracted that initially have been proved to have healing properties. Some medicinal mushrooms have been used in traditional Chinese medicine for at least 2,000 years. Popular medicinal mushroom-like Reishi has the ability to boost the body’s immune system to protect it against pathogens such as viruses, bacteria, and parasites. It also helps to exponentially increase overall health and wellness to the point where one can witness the effects of aging is reversed both physically and cognitively.

Most of the medicinal mushroom is majorly found in China, Japan, and South Korea. High production of medicinal mushroom in China makes it a key ingredient for preparing many ancient medicines and Chinese cuisine. With the added benefits of nutrients in this mushroom people are now consuming it as a good source of vitamins as well as other nutritional sources. 

Fate of Medicinal in the Global Market

Medicinal mushroom business is highly competitive and huge. Major key players have their prominent presence especially in the U.S., Japan, and China which makes the market of these regions dominated by key players. The initial investments in the medicinal mushroom market are high (as compared to other specialty mushrooms) including the raw material costs; also, the revenues are also high considering to high demand for exotic mushrooms from various regions. Production costs for medicinal mushroom are high because of high investment in cultivation techniques, skilled labor inputs, maintenance cost and safety testing & certification.

China plays a major role in the medicinal mushroom market, in terms of volume, and the country holds a significant share in the global market. Globally, antioxidant and immune enhancer function of medicinal mushroom collectively holds more than 64% of market share in the year 2017. In Europe, Italy, Spain, and the Netherlands have emerged as top medicinal producing countries and accounts more than 59.6% of market share in the year 2017. Improving the commercial value of products whether in fresh or dried form could increase the concentration of demand and encourage market growth in Europe and Asia Pacific region.

Market Share of Medicinal Mushrooms, by Type, 2017

Source: MRFR Analysis

Shiitake holds major market share followed by Reishi. Reishi is most popular medicinal mushroom after shiitake because of its antioxidants characteristics. Reishi mushroom is largely produced in Asia, Europe, North and South America, and Australia. The Maitake has been part of traditional medicine for centuries in Japan and China. It grows in northeastern Japan and parts of the U.S., usually in clusters around oak trees. Cordyceps is relatively rare in the wild as compared to another medicinal mushroom type, being found in the shrublands above 10,000 feet on the Tibetan Plateau. Turkey Tails mushroom which is known for its immune booster properties is found across most of North America, which grows on downed logs or stumps of hardwood trees.

Significant contribution from Asia Pacific region

Medicinal mushrooms majorly produced in Asia Pacific region also has a maximum market share in the world which captures more than 81% of the market. Medicinal mushroom such as Reishi and Chaga have a strong presence in the Europe region and is expected to grow at an exponential rate during 2017 to 2023. Most of the key players of medicinal mushroom are located in North America and Asia Pacific region due to increasing consumption of medicinal mushrooms in the particular region.Exports of specialty mushrooms including medicinal mushroom in China experienced a decline in the market share of 3.5% during the period, 2010-2016. The growth rate experienced by the country was estimated to be 3.68%. The Netherlands experienced the highest share increase of 1.7% during the given period and was evaluated to be increasing with a growth rate of 8.19%. The strong performance of the trading business in the country has supported the increased export market share.

Medicinal Mushroom Market Analyst View

Growing demand for shiitake mushroom for the medicinal and cooking purpose is changing the market dynamics of the medicinal mushroom market globally. The innovation in extraction techniques will boost the supply of medicinal mushroom for pharmaceutical application.  With improved export channels for medicinal mushroom from Europe region, the export quantity of medicinal mushroom from China is identified to have decreased during 2010 to 2016 but it will witness the slow growth in upcoming years due to increasing demand from European countries. Key players are trying to penetrate the Middle East and Africa region as they have huge potential for market growth. Increasing investments by key players in the Middle East will boost the market and it will grow at a significant rate. The dried form of medicinal mushroom will grow at a high rate in upcoming years due to its rise in demand from cosmetics and pharmaceutical industry. However, the growth of medicinal mushroom market can be influenced by some hidden factors such as climate conditions and innovations in the pharmaceutical industry.