Mushrooms on cutting board with knife.
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Gaining a deeper understanding of the market data and the progression of the functional mushroom industry can give investors valuable insights into opportunities in this emerging market.

Functional mushrooms are experiencing a surge in popularity as their health and wellness benefits become increasingly well-known. Driven by multiple intersecting trends, this popularity is directly reflected in the market performance and outlook for functional mushroom products.

Gaining a deeper understanding of the market data and the progression of the functional mushroom industry can provide investors valuable insights into the opportunities in this emerging market.

Also known as adaptogenic or medicinal mushrooms, functional mushrooms are a subset of fungi valued for their potential health benefits. Whereas ordinary mushrooms provide good nutritional content, functional mushrooms contain a range of bioactive compounds, including beta-glucans, polysaccharides, triterpenoids and antioxidants. Owing to their therapeutic effects, functional mushrooms have a long history in herbal and traditional medicine.

Today, these fungi are used in a wide range of different scenarios.

Maitake mushrooms, for instance, are known to improve immune system strength while also supporting digestive health and acting as potent antioxidants. Cordyceps mushrooms, meanwhile, can potentially improve energy levels and promote better cognitive health through stress reduction. Other mushrooms, such as lion's mane, are excellent anti-inflammatories.

A booming market for mycelium

According to analyst Grand View Research, the global functional mushroom market reached US$31.71 billion in 2023 and is expected to grow at a CAGR of 11.2 percent to US$65.83 billion by 2030.

Prior to 2018, functional mushrooms were relatively unheard of, a niche product that few bothered to consider. That year, however, overall functional mushroom sales exploded, with sales of products containing maitake — the most popular functional mushroom that year — increasing by a staggering 811 percent. At the time, experts recognized their potential but also warned that marketing functional mushrooms would require a shift in how consumers viewed the fungi, something best achieved through creative marketing.

"Adaptogens are not good for everything," explained David Winston, a registered member of the American Herbalist's Guild and founder of manufacturing company Herbalist & Alchemist. "Adaptogens are not wonder drugs. They, like anything else, have benefits and limitations. There is some great research on adaptogens…but much of what is written online and in the popular press either misrepresents the research or is pure fantasy with greatly exaggerated claims."

Although functional mushrooms admittedly are still misrepresented in some circles, they have nevertheless experienced meteoric growth over the past several years — no doubt bolstered by the research Winston mentioned.

There are several other key trends that also contributed to this growth.

Consumers in 2018 were growing increasingly aware of their health and increasingly concerned about the detrimental effects of processed food. This awareness was due, in part, to emerging wellness trends that favored natural remedies. As functional mushrooms continued to grow in popularity, celebrity and influencer endorsements became increasingly commonplace.

This phenomenon inevitably drew new businesses to the functional mushroom space, resulting in significant investment and product innovation, further fueling market growth as functional mushrooms found their way into a variety of consumer goods.

Presently, the market outlook for functional mushrooms is highly positive — as evidenced by Grand View's forecasted CAGR. Already trending upward, consumer interest in health and wellness grew exponentially during the pandemic. Alongside the trends that nurtured the functional mushroom market's initial growth, investors can expect to see an uptick in both retail availability and product diversification as consumer demand continues to grow.

All indications point to substantial growth in the functional mushroom market, providing a lucrative opportunity for both investors and businesses operating within this space.

Companies to watch

Multiple companies have already emerged as leading innovators in the functional mushroom space. We've compiled a few of the most notable ones, including several that have expanded into mushroom cultivation.

Four Sigmatic

Four Sigmatic offers an alternative to bean-based coffee with several flavors designed to integrate functional mushrooms into daily routines. The brand is especially appealing to customers who may be new to mushroom-based supplements, as its core products require only that they swap out their morning coffee for something new. Four Sigmatic also offers a range of creamers and supplements, and several "starter kits" containing multiple product categories.

Fungtional Labs

Fungtional Labs sells organic, naturally-grown functional mushrooms in a wide array of supplements and beverages. The brand also takes things a step further. Billing itself as a "one-stop shop for everything mushroom," Fungtional Labs sells easy-to-use growing supplies, including spray kits, spawn bags, bins and fruiting bodies targeting the increasing number of mushroom cultivators in North America.

Om Mushrooms

Om Mushrooms emphasizes organic, sustainably sourced ingredients held to stringent quality standards. Om's key selling point, however, is that its high-quality mushroom products are also backed by rigorous scientific research. This, alongside the company's commitment to transparency and ESG principles, makes it a compelling investment for anyone interested in sustainability.

Real Mushrooms

Many mushroom companies rely on mushroom root, known as mycelium, to make their products. Real Mushrooms instead uses the mushrooms themselves, known as fruiting bodies. This is part of the company's push to prioritize potency and bioavailability. The brand claims its products contain high levels of beneficial compounds as well as authentic, potent mushroom extracts that offer maximum health benefits.


Made from a multitude of organic ingredients, including lion's mane and chaga, MUD/WTR's organic coffee claims to provide a natural energy boost without the jitters and crashes typically associated with caffeine. Though not strictly a functional mushroom company or product, MUD/WTR still has excellent investment potential. Health-conscious consumers are always on the lookout for coffee alternatives, after all — and given that 73 percent of Americans drink coffee every day, there's immense growth potential there.

Investor takeaway

Functional mushrooms are now more popular than ever, and the market for products that contain them has never looked more promising. With strong performance, a positive market outlook and a large total addressable market, these fantastic fungi represent an excellent addition to any investment portfolio.

This INNSpired article is sponsored by Fungtional Labs. This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Fungtional Labsin order to help investors learn more about the company. Fungtional Labsis a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.

This INNSpired article was written according to INN editorial standards to educate investors.

INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.

The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Fungtional Labs and seek advice from a qualified investment advisor.

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