Europe Functional Mushroom Market to Reach US$28.67 Billion by 2032, Growing at 11.09% CAGR | Powder Form Leads with Convenient Application Across Food & Supplements | DataM Intelligence

Leander, Texas and Tokyo, Japan - Dec 03, 2025
According to DataM Intelligence, the Europe functional mushroom market reached US$12.36 billion in 2024 and is expected to reach US$28.67 billion by 2032, growing with a CAGR of 11.09% during the forecast period 2025-2032. This robust growth is propelled by rising consumer awareness of adaptogenic health benefits, increasing demand for natural and plant-based wellness products, scientific validation of medicinal mushroom properties, growing incorporation into functional foods and beverages, and expanding retail availability across digital and physical channels.

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Report Details:
• No. of Pages: 180
• Forecast Period: 2025-2032
• Market Size (2024): $12.36 Billion
• Market Size (2032): $28.67 Billion
• Compound Annual Growth Rate: 11.09%
• Regions Covered: Europe

Europe Recent Developments:
✅ November 2025: The European Food Safety Authority (EFSA) issued its first-ever approved health claim for a functional mushroom, authorizing a Reishi extract for "contributing to the reduction of fatigue and exhaustion" under the Novel Food Regulation, creating a major regulatory breakthrough for the industry.
✅ November 2025: IKEA announced a partnership with a Swedish mycotechnology startup to launch a range of home-growing kits for Shiitake and Reishi mushrooms, tapping into the grow-your-own wellness trend and strengthening B2C engagement.
✅ October 2025: Nestlé Health Science launched a new line of Lion's Mane and Cordyceps infused ready-to-drink coffee and cocoa beverages across major European supermarkets, massively expanding the Food & Beverages application beyond niche health stores.
✅ October 2025: A major pan-European clinical trial (MUSH-EU) published in The Lancet Regional Health - Europe demonstrated that daily supplementation with a Lion's Mane Powder significantly improved cognitive function in older adults with mild cognitive impairment, driving demand in the Dietary Supplements category.
✅ September 2025: L'Oréal incorporated Chaga and Turkey Tail mushroom extracts into a new premium skincare line "Mycologie," citing scientific studies on their antioxidant and skin-barrier strengthening properties, significantly growing the Cosmetics & Personal Care segment.

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Competitive Landscape
The market is dynamic, featuring a mix of established wellness brands, specialized mushroom companies, and large CPG entrants.

1. Hifas da Terra (Spain) and Mushroom Science (UK) maintained strong positions as established, science-backed European suppliers of high-quality extracts and Capsules/Tablets.
2. Four Sigmatic (Finland) continued to lead in consumer-branded Food & Beverages (e.g., mushroom coffee, elixirs) with widespread retail and B2C online presence.
3. Real Mushrooms (Canada, with strong EU distribution) and Om Mushrooms (US, with EU expansion) were key players in the pure Powder and supplement segments.
4. Lallemand Health Solutions (a division of the global yeast giant) leveraged its fermentation expertise to produce standardized, sustainable mushroom ingredients for the B2B market, supplying food and supplement manufacturers.
5. Oriveda (Netherlands) held a niche in the premium, third-party tested supplement market, emphasizing bioavailability and clinical-grade extracts.

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Segmentation Analysis
By Type
• Lion's Mane is the fastest-growing type, driven by intense consumer interest in cognitive health, focus, and nerve support, translating into products across Dietary Supplements, nootropic blends, and functional beverages.
• Reishi and Cordyceps remain core staples for immune support and energy/adaptogenic benefits, respectively, with broad applications.

By Form
• Powder is the dominant Form, favored for its versatility in blending into smoothies, coffees, soups, and baked goods (Food & Beverages), as well as for encapsulation in supplements. Its ease of use and cost-effectiveness drive its leading share.
• Capsules/Tablets represent the traditional and high-growth supplement format for precise dosing.
• Liquid extracts (tinctures) are popular for rapid absorption and ease of use.

By Application
• Dietary Supplements is the largest Application segment, as mushrooms are primarily consumed for targeted health benefits.
• Food & Beverages is the fastest-growing application, with mushrooms being infused into everyday products like coffee, tea, chocolate, broths, and snack bars, driving mainstream adoption.

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Regional & Channel Analysis:
Western Europe (UK, Germany, France, Benelux, Nordic countries) is the core market, characterized by high health consciousness, disposable income, and a strong natural products retail sector. Eastern Europe is emerging as a high-growth region due to increasing wellness trends and local production.
Distribution Channel: The B2B channel (ingredient suppliers to manufacturers) is foundational for market scaling. The B2C channel, encompassing online DTC brands, pharmacies, health food stores, and increasingly mainstream supermarkets, is experiencing explosive growth as consumer awareness skyrockets.

Market Trends & Drivers
The Europe Functional Mushroom Market is transitioning from niche supplement to mainstream wellness ingredient. Key trends include the "precision fermentation" of mushroom compounds (like ergothioneine) for pharmaceutical-grade, scalable production; the rise of mushroom blends targeting specific outcomes (e.g., sleep, stress, athletic performance); increased investment in clinical research to substantiate traditional claims; the development of more palatable, soluble mushroom extracts to improve consumer acceptance in foods; and the convergence with other wellness trends like nootropics and adaptogens. The health and wellness megatrend, scientific validation, and innovative product formats are the primary market drivers.

Related Reports:
1. Adaptogens Market - https://www.datamintelligence.com/research-report/adaptogens-market?jd
2. Europe Functional Food Ingredients Market - https://www.datamintelligence.com/research-report/europe-functional-food-ingredients-market?jd
3. Europe Functional Bars Market - https://www.datamintelligence.com/research-report/europe-functional-bars-market?jd

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Sai Kiran
DataM Intelligence 4market Research LLP
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Email: Sai.k@datamintelligence.com

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This release was published on openPR.