Functional mushrooms take center stage: consumer trends and future opportunities

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According to the most recent SPINS data shared with Nutritional Outlook, mushrooms placed in the top ten functional ingredients in the cognitive health category of the mainstream multi-outlet channel. Within that category, sales increased 133.3% over the past 52 weeks ending October 6, 2024, to reach $6,715,830. In the same timeframe, mushrooms also placed in the top 25 functional ingredients in the natural channel with $24,417,923 in sales, a 19.1% increase from the previous year. Finally, mushrooms were at the top of the list of functional ingredients in the cognitive health category of the natural channel with $12,668,401 in sales, a 28.6% increase from last year. Mushrooms also placed in the top 10 of the immune health category in the same channel with $7,313,490 in sales, a 0.5% increase in sales.

Scott Dicker, market insights director at SPINS LLC, explains that the presence and growth of mushrooms is in tandem with the growth of the cognitive health category. “People are very interested in cognitive health, whether it’s focus or memory support,” says Dicker. “Cognitive health really expanded; it used to be for more of an aging population, targeting ‘senior moments,’ for example. It’s expanded into mental performance, so to speak, which includes focus and being sharp. As the health focus category gains interest, we see what known ingredients could fit right in. That’s why last year we predicted lion’s mane was the mushroom to watch. It was, and that is the one that’s driving a lot of the cognitive health [growth], as well as mushroom combination formulas. There’s a lot of interest in mushrooms, both functional and other, so it makes it ripe for being trendy.”

Cognition recognition and lion’s mane

Sara Slowik, chief commercial officer at Om, expanded on consumer behavior trends for these categories and what is motivating their choice of mushroom. “Overall, I’d say consumers select mushrooms driven by its benefits over its species. Thinking about the supplement category, and general consumer behavior, they are almost always driven by outcome (versus ingredient),” says Slowik. “As the mushroom category matures and becomes mainstream, I do think this will shift over to type of mushrooms because the consumer will be more knowledgeable about them. However, as mentioned, we are still a bit away from that and it’s our job as a brand to help bring the consumer along.”

One species of mushroom, lion’s mane, seems to be driving the category forward. As Dicker notes, “that seems to be the one that’s most connected to cognitive health. It’s really continuing to do well, and I expect to continue to do well in 2025 as well.”

Expanding on the mushroom’s nootropic benefits, Slowik added: “Lion’s mane is a species that has been most researched and consequently, well known by consumers for its cognitive health benefits.” For example, she noted a study¹ demonstrating the potential positive impacts lion’s mane supplementation may have on cognitive function.

“I think we are still in the infancy of functional mushroom knowledge and awareness by consumers,” Slowik predicts. “Lion’s mane leads the mushroom pack in awareness, however there is still more education to be done by brands to let the consumer understand what functional mushrooms are, what they do, and which they should take.”

Other mushrooms and their benefits

In addition tocognitive benefits, mushrooms have other functions as well. “One of the more exciting findings is digestive/gut health benefit tied to mushrooms,” says Slowik. “This is a health benefit that continues to grow in both interest and engagement, as many consumers are tying whole body health to gut health.”

Other species are also gaining recognition. As evidenced in the SPINS’ data, reishi mushrooms made the list in the cognitive health category of the natural channel, with sales increasing 23.0% to reach $1,533,906. Chaga mushrooms also made the list in the immune category in the same channel, with sales increasing 6.1% to reach $1,633,326.

Lesser-known cordyceps are anticipated to become more popular as well, Slowik added. “We have learned that cordyceps help support endurance and recovery. Specifically, it is known for optimizing oxygen delivery to muscles and supporting mitochondrial health,” she explains. “These benefits bode well for those who are fitness enthusiasts, particularly endurance athletes (e.g. runners, cyclists) looking to drive their athletic performance. It’s a prime mushroom to propel into the sports nutrition category.”

As Skye Chilton, CEO of Nammex, Organic Mushroom Extracts explained during an interview with Nutritional Outlook at SupplySide West 2024, turkey tail mushrooms have been seeing growth over the past few years. “In the last five years, we started cultivating turkey tail on a mass scale,” he stated. “Typically, it’s been wild crafted, but that leads to an inconsistent quality. Cultivation is obviously more sustainable, too. So, we’ll cultivate sustainably and then start to scale that up to slowly phase out wild craft demand. We’ve been scaling that up 100 plus percent every year, trying to double the capacity, and ultimately want to get to about 250 tons a year of dry, which is very big.”

Apart from mushrooms for human consumption, there are the beginnings of growth in the market for pets as well. “My hunch is that as consumers learn and adopt functional mushrooms, they are open to consider [mushrooms] for their pets,” says Slowik. “It’s no secret that humans view pets like a family member—and with any family member, what you do for yourself you’ll also want for your them. As functional mushrooms grow in awareness and adoption, I anticipate more options available in the pet market. Additionally, we’ve seen several functional mushroom brands for humans opening the door by creating a pet line as the science holds true for both, and there is constant R&D for applications accordingly.”

Alternative dosage formats

Another factor in the growth of mushrooms is the growing availability of different dosage formats, which is helping to drive growth of the ingredient as more manufacturers are able to utilize it in palatable formats such as gummies. “You see this through the growth stages of an ingredient. It grows in a couple different ways. [Either] it finds a new health focus, or a new format,” says Dicker. “For a while there were a lot of the mushroom powders, and then pills. A lot of people really like gummies for supplements, and a lot of manufacturers really like to make gummies as well. All those things play a role in the growth, because it brings new people into the category who either hate swallowing pills or don’t like the thought of making another mix powder, like a ready-to-drink. It’s additive to the category, and it also usually makes people purchase more of them, because they go through those gummies faster.”

Slowik confirmed this observation. “Our biggest mantra is to meet the consumer where he/she is at,” she states. “Functional mushrooms are still new for many consumers, and so as a brand we try to make it approachable and appealing as possible. We offer functional mushrooms in a variety of formats – capsule, powders, and gummies. This will let the consumer choose what he/she wants – a quick-and-easy intake via capsules, incorporating into an established routine of a smoothie/coffee via powders, or a delicious, tasty experience via gummies.”

Conclusion

The rapid growth of mushrooms across cognitive, immune, and digestive health categories reflects rising consumer interest in functional benefits, with anticipated growth as consumers become more familiar and informed on the various functions of mushrooms. Expansion of formats is also expected to drive consumer interest and access and point to mushrooms’ transformative potential across multiple wellness markets.

Reference

1. Saitsu, Y.; Nishide, A.; Kikushima, K.; Shimizu, K.; Ohnuki, K. Improvement of cognitive functions by oral intake of Hericium erinaceus. Biomed Res. 2019. DOI: 10.2220/biomedres.40.125