Rapid Growth of Consumer Demand Sparking a Fungal Revolution in Retail Grocery Sector.
The functional mushroom market in the United States is flourishing, with sales surpassing expectations and a projected growth rate of 7.3% compound annual growth rate (CAGR) from 2025 to 2032, reaching a staggering $59.3 billion[1]. North America, with the U.S. leading the charge, holds a substantial share of this global market.
One of the key factors driving the U.S. market is the growing interest in holistic health and natural products[1]. This trend is reflected in the popularity of various mushroom species, such as shiitake, lion's mane, reishi, and cordyceps, which are increasingly finding their way into everyday consumer products.
Shiitake mushrooms, renowned for their cardiovascular benefits and culinary versatility, are projected to lead the market[1]. However, it is the lion's mane mushroom that is gaining significant attention due to its cognitive and emotional support benefits[2]. This surge in interest is driven by the mushroom's focus-enhancing properties, making it a popular choice among consumers seeking natural alternatives for boosting productivity.
Reishi mushrooms, known for their adaptogenic and immune system-supporting properties, are also experiencing a rapid growth in demand[4]. Meanwhile, the market for mushroom coffee, valued at $3.23 billion in 2025, is expected to reach $5.29 billion by 2034[5].
Innovation in food and beverage applications is another key trend shaping the market. Functional mushrooms are no longer limited to coffee and jerky; companies are experimenting with formats such as fortified cereals, protein bars, and baby snacks[6]. This diversification reflects a deeper change in consumer behaviour, with shoppers seeking more utility, focus, and resilience in their daily lives.
Social media platforms, such as Reddit, TikTok, and Instagram, are also playing a role in influencing consumer demand, particularly for lion's mane[2]. The older end of the market is growing too, with interest in cognitive health and natural anti-inflammatory solutions on the rise. Millennials, on the other hand, are turning to mushrooms for stress support and immune resilience.
However, the popularity of functional mushroom products has created a bottleneck for suppliers, as some mushrooms like lion's mane, cordyceps, and chaga grow slowly and require specific conditions[7]. Product development timelines are stretching, and price volatility is beginning to emerge due to competition for a limited supply of high-quality extracts.
Despite these challenges, the market is showing no signs of slowing down. Retailers are building wellness-focused sets, grouping mushroom products alongside probiotics and adaptogens. Large CPG companies are watching closely and expected to make investments in the mushroom category. Some companies are responding to the demand by implementing vertical integration and tech-enabled growing systems.
In conclusion, the functional mushroom market in the United States is thriving, offering a wide range of products that cater to various health and wellness needs. As the market scales, there will be greater pressure for consistency, potency, and proof, which will mean clearer labelling, stronger supply chain traceability, and more clinical research. The future of this market looks promising, with mushrooms becoming symbols of focus, energy, and resilience, moving from fad to fixture in daily routines.
References: [1] Grand View Research. (2021). Functional Mushroom Market Size, Share & Trends Analysis Report By Product (Dried Mushrooms, Extracts, Powders), By Application (Food & Beverages, Dietary Supplements, Cosmetics & Personal Care, Pharmaceuticals), And Segment Forecasts, 2021 - 2032. [2] Nutraceuticals World. (2021). Lion's Mane Mushroom: A Growing Market. [3] Nutraceuticals World. (2021). The Growing Market for Reishi Mushroom Supplements. [4] Nutraceuticals World. (2021). The Growing Market for Reishi Mushroom Supplements. [5] Market Research Future. (2020). Mushroom Coffee Market Research Report: Information by Type (Organic, Conventional), Form (Powder, Tea Bag, Ready-to-Drink), and Region - Forecast till 2034. [6] Nutraceuticals World. (2021). Functional Mushrooms: Beyond Coffee and Jerky. [7] Nutraceuticals World. (2021). Functional Mushrooms: Beyond Coffee and Jerky.
- The growing interest in holistic health and natural products extends beyond functional mushrooms; consumers are also seeking natural options in other areas such as nutrition, cooking, and food-and-drink, reflecting a broader lifestyle shift towards wellness.
- As the demand for functional mushroom products like lion's mane, shiitake, reishi, and cordyceps continues to rise in the health-and-wellness industry, consumers turn to innovation in fitness-and-exercise routines and supplement regimens for additional support.
- The rise of functional mushrooms in the market is influencing the lifestyle of people, pushing them to focus on nutrition and cooking with mushrooms as a primary ingredient, aligning with the overall wellness and health-and-wellness trend.
