Europe Functional Mushroom Market - 2025-2032

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.

The functional mushrooms market in Europe is experiencing steady growth, driven by increasing consumer awareness of natural and plant-based health solutions. The growing demand for clean-label and sustainable products aligns with the preferences of European consumers, propelling the adoption of functional mushrooms in various applications.

For instance, Ingredion's proprietary study, which was named 'Atlas' and conducted in partnership with Clear Seas Research over several years, found that 99% of European manufacturers now see clean label products as essential to their business strategy - with 87% already incorporating the movement into their offerings. In addition, clean label is predicted to account for over 70% of the total portfolio of companies producing clean label goods within the next two years, well up from 52% in 2021.

Growing consumer preference for transparency and simplicity in ingredients supports this rise, with clean label touted as one of the top trends for bakery in 2024. The European markets are witnessing a rise in the use of functional mushrooms in skincare products. Mushrooms like reishi and tremella are being incorporated into cosmetics and topical formulations for their anti-aging, hydrating and anti-inflammatory properties. For instance, Pai Skincare introduced the Tri-Mushroom Super-Soothing Booster.

Dynamics

Driver 1 - Rising demand for natural and plant-based products

The rising demand for natural and plant-based products is a significant driver of the functional mushroom market, as consumers increasingly seek sustainable, clean-label and health-focused alternatives in their daily diets. Functional mushrooms, such as reishi, chaga, lion's mane and cordyceps, are naturally sourced and align with the growing preference for plant-based ingredients due to their perceived safety, environmental benefits and nutritional value.

For instance, brands like shiitake and KAAPA Chaga have leveraged this trend by offering plant-based functional mushroom coffees, teas and powders, marketed as eco-friendly options that enhance immunity, cognitive function and energy.

Additionally, the rise of plant-based products helps to boost the market growth. For instance, sales of plant-based foods across six European countries were worth EUR 5.4 billion in 2023 - up by 5.5% compared with 2022. Over the same period, the volume of plant-based food sold grew by 3.5%. Moreover, the environmental benefits of plant-based products further reinforce this trend.

Mushrooms are considered a sustainable crop due to their low water and land requirements and ability to grow on agricultural byproducts, making them attractive to eco-conscious consumers. This sustainability angle has been effectively used in marketing campaigns to strengthen the appeal of functional mushrooms. Thus, the growing alignment of consumer values with natural and plant-based lifestyles is propelling the adoption of functional mushrooms across diverse applications.

Restraint: Potential side effects and safety concerns

Potential side effects and safety concerns significantly restrain the growth of the functional mushrooms market, especially in Countrys like Europe and the UK, where consumers are increasingly health-conscious and cautious about product safety. Although functional mushrooms, such as reishi, lion's mane and cordyceps, are widely known for their health benefits, including boosting immunity, enhancing cognitive function and reducing stress, they can also cause adverse effects in certain individuals.

For instance, reishi mushrooms, while popular for their immune-boosting properties, may lead to side effects such as dizziness, dry mouth or even liver toxicity if consumed in large quantities or by individuals with pre-existing liver conditions. Similarly, lion's mane has been reported to cause gastrointestinal discomfort, including bloating and diarrhea, when taken in high doses, which can deter consumers from incorporating them into their daily routines.

Additionally, functional mushrooms can interact with certain medications, posing potential risks. For example, cordyceps may interfere with anticoagulants or blood thinners, heightening the risk of bleeding in individuals on such medication.

These concerns are compounded by the lack of standardized dosages for mushroom supplements, as different brands often provide varying concentrations, leading to inconsistency in both efficacy and safety. Such variability makes consumers hesitant, especially in markets like Europe and the UK, where regulatory frameworks require stringent evidence of product safety and efficacy before public consumption.

Segment Analysis

The Europe functional mushroom market is segmented based on type, form, application, distribution channel and country.

A shift toward wellness is helping the foods and beverages

As consumers become more aware of the importance of maintaining overall health and well-being, functional foods that promise specific health benefits are increasingly in demand. Functional mushrooms, particularly varieties like reishi (for stress relief) and chaga (for antioxidant properties), are being incorporated into a wide array of health-focused foods. These include smoothies, protein powders, energy bars and even soups.

For instance, in 2021, a whitepaper released by taste and nutrition company Kerry called Understanding Consumer Drivers in Beverages has examined the key health priorities that will drive the functional beverage market. Around 2,662 beverage consumers across the UK, Germany, Poland and Spain were surveyed as part of the research. When asked about the health concerns that have become more important since the emergence of COVID-19, 59 percent of respondents cited immunity while 50 percent said mental health is now a priority.

The research has also indicated that consumers prefer beverages with natural ingredients, however, there is a high level of acceptance for fortification, with 39 percent of Europeans now placing more importance on fortification when it comes to their health.

Additionally, The shift toward incorporating wellness-focused ingredients into everyday food is also a key driver for the functional mushrooms market. Functional mushrooms are seen as an easy addition to the daily diet for improving health without requiring drastic lifestyle changes. Reishi-infused teas, cordyceps energy drinks and lion's mane protein shakes are all products that cater to busy consumers seeking natural solutions to improve energy, focus and overall health. Thus, above factors boost the segment growth.

Geographical Penetration

UK Plant-Based Shift and Sustainability Drive Functional Mushroom Growth

The plant-based and vegan movement is a major driver of the functional mushrooms market in the UK. With more consumers reducing or eliminating animal products from their diets, functional mushrooms are being incorporated into plant-based protein alternatives and snacks. Functional mushrooms are a natural fit for meat alternatives due to their rich umami flavor and meaty texture. Thus, the rise of vegan diets helps to boost the country's growth.

For instance, the number of vegans in the UK increased by 1.1m between 2023 and 2024, a new study has found. Research conducted by Finder estimates that in the past 12 months, the number of UK vegans increased by 1.1m to a total of 2.5m, representing 4.7% of the adult population. Meanwhile, a further 3.1m people identify as vegetarians and 3m as pescatarians. This amounts to 8.6m people who follow a meat-free diet or 16% of the adult population.

Additionally, The UK government has been supportive of natural health products, which has helped create a favorable environment for functional mushroom growth. The inclusion of functional mushrooms in health and wellness products is becoming more accepted as the government continues to promote natural alternatives to traditional medicine.

Moreover, sustainability is a key factor driving the UK market, as consumers are more inclined to choose products with minimal environmental impact. Functional mushrooms are naturally sustainable, requiring fewer resources to grow compared to traditional crops, making them an attractive option for eco-conscious buyers. Thus, the UK is a key driver of the Europe and UK functional mushrooms.

Competitive Landscape

The major Europe players in the market include Hirano Mushroom LLC, Fresh Mushroom Europe NV, Mycotrition GmbH, KAAPA Mushrooms, MYCOVITAL, Banken Champignons B.V., BioFungi GmbH, Pilzland group, Rheinische Pilz-Zentrale GmbH and Growers of Mushroom.

Sustainability Analysis

The medical mushroom market offers substantial sustainability prospects, especially by utilizing low-value by-products from forestry and agriculture. These by-products are repurposed in mushroom production rather than burnt, so promoting circular agriculture. This approach enhances forest sustainability and mitigates soil deterioration, rendering mushroom farming a lucrative enterprise, particularly in underdeveloped nations. Nonetheless, global awareness of these advantages is limited and trends in worldwide mushroom production are experiencing stagnation.

Mushroom production possesses certain "dark" aspects, including health hazards associated with spores generated in enclosed settings. These spores provide risks to employees, exacerbate facility contamination and diminish natural genetic diversity. Researchers are concentrating on finding genes associated with sporulation to create sporeless mushroom variants.

Additionally, there is an initiative to enhance the biodegradability of materials such as heat-resistant bags and Spunbond-Meltblown-Spunbond (SMS) utilized in manufacturing, hence diminishing environmental impact. Spunbond-Meltblown-Spunbond is anticipated to receive recognition as a sustainable material in the imminent future.

Mushroom manufacturers in Japan indicate that the profit from a single pack of mushrooms is under one cent. This underscores the financial strain resulting from intense price competition, which affects the workplace atmosphere. Confronting both environmental and economic concerns is crucial for maintaining the viability of the therapeutic mushroom business.

Consumer Behaviour Analysis

Health-conscious consumers in the European and UK markets are major drivers behind the growing demand for clean labels in functional mushroom products. These consumers are not only concerned with the nutritional value of their food but also with the quality and safety of the ingredients.

In addition to the focus on health, sustainability plays a key role in the clean label trend within the functional mushroom market. Consumers in Europe and the UK are increasingly concerned with the environmental impact of the products they consume, seeking brands that offer sustainably sourced ingredients.

As consumer expectations continue to evolve, the clean label trend is likely to become even more prominent in the Europe and UK functional mushroom markets. Consumers are no longer satisfied with just organic or natural claims; they want clear, straightforward labels that highlight the authenticity and purity of the product.

Early Stage Innovations

AFS Nordic Mushrooms, developed by Applied Food Sciences (AFS), represents a strategic innovation in the functional food and beverage space, focusing on high-quality, sustainably sourced mushrooms from Finland.

The company emphasizes the importance of traceability and transparency in its supply chain, partnering with KAAPA Biotech, which brings deep mycological expertise and a solid research foundation to ensure the mushrooms' quality. Finland's unique growing conditions, with the cleanest air and water in the world, provide an ideal environment for cultivating mushrooms, enhancing their bioactive properties.

AFS ensures that these functional mushrooms meet rigorous standards, being certified organic, GRAS (Generally Recognized As Safe) and third-party tested for purity and free from contaminants. This commitment to purity and quality assures that the mushrooms are safe and effective for use in a wide range of approved food and beverage applications.

With precise traceability, from spore to shelf, AFS guarantees that every mushroom's origin can be identified, reinforcing consumer confidence in the product's authenticity and safety.

By combining sustainability, high-quality ingredients and cutting-edge research, AFS Nordic Mushrooms sets the stage for growth in the functional food sector, offering consumers a premium, safe and effective option for enhancing their health through food and beverage.

Key Developments

• In September 2022: Innomy, a Spanish business focused on mushroom-based meat substitutes, revealed it has secured EUR 1.3 million (US$ 1.26 million) in a Pre Series A fundraising round to expand, market and sell its products throughout Europe. According to Innomy, mycelium has a high nutritional value, low cholesterol and low saturated fat content, making it one of the most promising protein sources for the future.

Why Purchase the Report?

• To visualize the Europe functional mushroom market segmentation based on type, form, application, distribution channel and country, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the functional mushroom market with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Europe functional mushroom market report would provide approximately 45 tables, 46 figures and 202 pages.

Target Audience 2025

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies