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Mushroom Powder Market is Projected to Grow at a 6.3% CAGR, Reaching US$ 9.42 Billion by 2034 | Fact.MR Report
The global mushroom powder market is anticipated to reach a valuation of US$ 5.11 billion in 2024, with expectations to grow steadily at a CAGR of 6.3%, climbing to US$ 9.42 billion by 2034.The growing popularity of mushroom powder is largely driven by its rich umami flavor, which enhances the taste profile of a wide range of culinary applications including soups, sauces, and savory snacks. This unique, earthy flavor is drawing attention from health-conscious consumers who prefer natural and clean-label ingredients. As a result, mushroom powder is becoming a favored alternative to artificial additives and flavor enhancers, especially among those seeking healthier and more natural food options.
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Key Growth Drivers
1. Plant-based diets & food innovation: The demand for natural protein sources and flavor enhancers is bringing mushroom powder into mainstream use in soups, snacks, meat alternatives, and more.
2. Functional wellness boom: Supplements featuring reishi, lion's mane, and chaga are booming as consumers seek natural ways to support cognitive function, immunity, and general health.
3. Medicinal mushroom trend: Sales for specialty powders like reishi and chaga reflect consumers' growing awareness of immune‐boosting properties, leading to rising popularity in teas, coffees, and supplements.
4. Clean‐label & natural taste: Mushroom powder offers umami without additives, appealing to health‐conscious and clean‐label seekers.
Challenges & Restraints
High cultivation & processing costs for medicinal mushroom varieties elevate market prices, limiting affordability.
1. Allergen and quality concerns: Some consumers are sensitive to fungi; maintaining consistent quality and purity is essential.
2. Competitive landscape: Mushrooms face rivalry from other natural flavor enhancers, supplements, and protein alternatives.
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Country-wise Insights
North America is expected to capture 23.9% of the global mushroom powder market share in 2024. The region's growth is largely fueled by the rising interest in functional foods and dietary supplements, particularly in the United States. Consumers are increasingly turning to mushroom powder for its natural health benefits and nutritional value, making it a popular addition to wellness routines and meal plans.
East Asia is projected to experience strong growth in the coming years, with a forecasted CAGR of 6.6%. This trend is rooted in the region's long-standing use of mushrooms in traditional medicine. There is growing demand for medicinal mushrooms like shiitake, reishi, and cordyceps, which is boosting sales of mushroom powder across East Asian countries.
In the United States, the surge in plant-based eating and functional nutrition is a major driver of mushroom powder demand. Health-focused consumers are incorporating it into their diets as a nutrient-rich, natural ingredient to enhance the flavor and benefits of everyday meals.
South Korea stands out in East Asia, expected to account for 22.2% of the regional market in 2024. Mushroom powder is gaining popularity for both its savory umami profile and nutritional content, making it a favored ingredient in both traditional dishes and modern recipes.
Competitive Landscape
The mushroom powder market is becoming increasingly competitive as key players invest in product innovation and diversification to meet growing consumer demand. Companies are expanding their production capabilities to include various mushroom types and tailored blends, catering to both functional and culinary needs. This includes the incorporation of medicinal mushrooms such as reishi, lion's mane, chaga, and cordyceps into unique formulations designed for health-conscious consumers.
To enhance visibility and profitability, many manufacturers are placing strong emphasis on branding, packaging, and marketing strategies. These efforts are aimed at educating consumers about the health benefits of mushroom powder, positioning it as a clean-label, nutrient-rich alternative to synthetic ingredients and supplements.
In a notable development, Sunrider International launched the Sunrider ERB Functional Whole Foods collection in August 2024, adding a premium cordyceps mushroom powder to its range of wellness-focused products. This collection also includes turmeric powder, beetroot powder, black seeds, and flax seeds, emphasizing the brand's commitment to natural health.
Similarly, in March 2024, the American candy brand Macalat introduced a new line of dark chocolate that integrates mushroom powder to enrich both flavor and nutrition. This reflects a growing trend of incorporating mushrooms into unconventional product categories like snacks and confectionery to expand market appeal.
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Segmentation of Mushroom Powder Market Research
By Nature :
Organic
Conventional
By Ingredient Type :
Lentinula Edodes (Shiitake)
Ganoderma Lucidum (Reishi)
Inonotus Obliquus (Chaga)
Hericium Erinaceus (Lion's Mane)
Ophiocordyceps Sinensis (Cordyceps)
By Application :
Food & Beverages
Cosmetics & Personal Care
Foodservice
Nutraceuticals
Retail/Household
By Distribution Channel :
Business to Business
Business to Consumer
Hypermarkets/Supermarkets
Specialty Stores
Online Retail
By Region :
North America
Western Europe
Eastern Europe
Latin America
East Asia
South Asia & Pacific
Middle East & Africa
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