Mushrooms have had a makeover in the minds of consumers. SPINS data from 2023 shows “super mushrooms” gaining popularity, jumping from the supplement aisles to food and beverage products, which saw $642 million in sales, a 19.5% year-over-year growth. Seven of the best-known super mushrooms, per SPINS:

• Lion’s Mane: Supports memory and mood.
• Turkey Tail: Supports the immune system and digestive health.
• Maitake: Supports immunity.
• Shiitake: Supports immunity, heart health, energy, and skin health.
• Cordyceps: Supports the immune system and energy.
• Reishi: Supports immune health.
• Chaga: Helps maintain cell integrity.

“Mushrooms are not some weird thing you have to find in the back of the corner of the natural food store anymore,” says Scott Frohman, CEO and Founder of Odyssey Elixir. “Mushroom-based products are becoming more mainstream as shoppers are increasingly interested in the specific benefits they offer, like cognitive function, immune support, and energy boosts.”

Mushroom supplements heated up in 2023 and the trend will continue into the foreseeable future, adds Nirmal Nair, CEO/Founder, Sempera Organics. “A key part of the trend is the increase in consumer desire to incorporate functional mushroom benefits into their daily life: for immunity, brain health, gut microbiome, and performance as evidenced by social media conversations and online search trends.”

Consumers are also keen on tasty offerings, with mushrooms showing up in virtually all segments of the food and beverage space like cereals, meal replacement bars, drinks, chips and chocolate bars, Frohman adds. “What was once thought of as a fringy mythical supplement or muddy coffee that has a ghastly taste is now something they enjoy in other creative products. Odyssey is a prime example of how we broke through that stigma with refreshing, clean energy beverages and we’re seeing more traction in mainstream retail outlets such as convenient stores and supermarkets and mass market retailers. We even have major corporations calling us to stock it in their cafeterias for their employees and in vending machines.” 

GenZ and Millennials are driving growth, especially in beverages, Frohman reports. “They are tired of their parents’ energy drinks from a decade ago. They don’t want the crash, artificial sweeteners and other harmful ingredients. They are more educated and read labels. They love new, exciting flavors with clean ingredients.”

Consumers also appreciate the eco-friendly attribute: “From alt meat to functional supplements, mushrooms are seemingly everywhere and that’s great news given the fact they are one of the most sustainably produced foods,” says Katie Nahoum, VP of Marketing, KOS, who adds a caution: “Quality and form vary greatly. At KOS, we have strict practices that ensure any consumer claim is substantiated by research, and we’ve formulated with enough of the ingredient to meet the dosing requirement for the claimed benefit. For example, we just launched our Organic Superfood Greens, which includes amongst its 17 superfoods a blend of Maitake, Oyster & Reishi mushrooms, which are proven for their digestive benefits and prebiotics.” 

Of course, mushrooms deliver benefits consumers love. Betty Lu, CEO, Confetti Snacks, Inc., outlines some basics: “Mushrooms are a reliable source of B vitamins, which help to provide energy from foods, and form red blood cells; vitamin D, which helps maintain and build strong bones; antioxidants, which help protect cells from damage and inflammation that might lead to chronic diseases; potassium, which helps maintain healthy blood pressure;  fiber, which helps feed the friendly bacteria in the digestive system; and magnesium and copper, a mineral that helps form red blood cells and keep bones and nerves healthy. Mushrooms also are a good source of calcium for strong bones.”

Key to continued growth

“The greatest opportunity in fungi space is research that goes beyond the surface,” says Wilson Lau, CEO, Nuherbs. “From what I see, many of the product specifications revolve around beta-glucans, which are soluble fibers from the cell walls of fungi. I want to see the nuance studies in either relating to the whole herb and the gamut of constituents that exist in the fruiting body, or particular chemical constituents that are unique to certain fungi.”

Offering another perspective, Nair says, “An industry trend to observe is the announcement of more clinical trials and research to provide a science-backed assessment of fungi for human wellness. As functional mushrooms are better understood, we should expect to see formulations suitable for food and beverages that taste great and provide the benefits that customers seek."

Nair added that sustainability and traceability are primary concerns in the mushroom space. "Sempera Organics resolves both issues through cultivating our mushrooms in a controlled, state-of-the-art laboratory environment.”

Debate in the space

As WholeFoods reported in 2023, Nammex is putting a spotlight on mushroom labeling. “As a  leading mushroom ingredient supplier, Nammex has long advocated for complete product labeling transparency,” says Skye Chilton, CEO, Nammex. “We think companies should identify products according to the part of the fungal organism (mushroom, mycelium, spore) from which they are derived, consistent with FDA’s labeling requirement for listing the plant part of botanicals. There are many products on the market labeled as mushrooms that in reality contain other fungal parts, most often mycelium. Mycelium is primarily grown on a grain substrate and this grain ends up with the finished mycelium ingredient. The finished mycelium products do not always disclose this grain on the label, a potential allergen hazard. In 2023, Nammex filed a Citizen Petition with FDA requesting the agency address the mislabeling of dietary supplements and functional foods as 'mushroom' or containing 'mushrooms.' FDA has been quite clear about this labeling requirement for foods, and we hope they extend that to dietary supplements. Nammex believes that using the word mushroom on a product that does not contain mushrooms (fruiting bodies) is misleading. To confirm that assumption, in 2023 we commissioned a survey of 10,000 people in the U.S. on mushroom terminology and what they thought a 'mushroom' was. This survey clearly confirmed that people believe that the mushroom is the fruiting body, which is accurate with mycological terminology. The respondents had little idea what mycelium was, and did not call it a mushroom."

Lau’s take: “My biggest concern about the fungi space is the question about fruiting body versus mycelium. At Nuherbs, we are rooted in Traditional Chinese Medicine and thus are ardent proponents of whole herb herbalism, so we believe that fruiting body is the way to go. For those who say there is no difference between the two, if you are using the mycelium to make a standardized extract, why not just skip the mycelium and go straight to fermentation to get the extract you are targeting? Is that too far removed if you are looking at standardized constituents versus whole herb herbalism, where you believe in the power of the whole herb or fungi? If so, will customers accept this fermented ingredient (let’s assume we are talking about mass fermentation to get there versus GMO precision fermentation?). And while the controversy continues within the industry, are consumers getting a true representation of the products they are buying, with the fungi equivalent of the plant part being identified on the label? Not always.”

Nair stressed: “Consumer education remains a pressing issue for market growth. Important issues that need to be better articulated include topics such as bio-active standardization, country of origin, and use of extracts versus non-extracted ingredients, to name a few." 

Now Trending in the Mushroom Space

We asked the experts to shine a light on their most popular offerings.

From ingredient suppliers: 

Nammex: "Traditional use of mushrooms has been focused upon immune support, with Reishi to promote relaxation and Cordyceps to help with fatigue," says Chilton. "A growing body of research, though, supports use of mushrooms like Lion’s mane and Turkey tail as well... Turkey tail is [a] high growth mushroom, but historically supplies have been limited. Nammex pioneered a successful cultivation program, which is being scaled up to increase supplies exponentially. Nammex will be able to meet growing demand, which inherently helps combat adulteration."

Nuherbs: “Our most popular offerings are still reishi, shiitake, maitake, and other fungi fruiting body in whole form or powder,” says Lau. “As this market continues to expand, we are seeing increased calls for our whole mushroom extracts in the functional food space. Due to popular demand from the functional food space, Nuherbs developed a proprietary, standardized reishi extract that is less bitter than an equivalent standardized extract to help address the taste and solubility issue required in the functional beverage space.”

Sempera Organics: “Our ingredient of note is the clinically validated lion’s mane blend: DSX1,” says Nair. “DSX1 has been tested in young adults and proven to be effective for reducing stress and increasing cognition in both immediate and 30-day trials. The study was published in Nutrients. We are excited to get DSX1 delivered to consumers for its wellness impact through a significant development: by fixing the flavor and texture for functional food applications.”

From brands: 

Confetti Snacks: “We have Green Curry Mushroom Chips and Black Truffle Mushroom Chips in our gourmet plant based collection,” says Lu. “We upcycle from imperfect mushrooms and crop surpluses to fight food waste and hunger.” 

KOS: “Consumers love our Organic Superfood Greens because of the benefits of detox, digestion and immunity,” says Nahoum. “These greens include 14 superfoods including mushrooms. Our blend of Maitake, Oyster & Reishi mushrooms are proven to support gut health by enabling the production of the short-chain fatty acid butyrate. Butyrate is produced when ‘good’ bacteria in your gut help your body break down dietary fiber in your large intestine.”

Odyssey Elixir: “Our most popular offerings in this space are the new 222 line that contains 222mg of natural green tea caffeine with a whopping dose of high potency mushroom extracts: 1250 mg of cordyceps and 1500mg of Lion’s Mane,” shares Frohman. “Our two biggest sellers in the core line that contains just 85mg of natural green tea extract and has the same quantity of mushroom extracts as our 222 line, is our Passion Orange Guava and our Dragon Fruit Lemonade. We also offer a caffeine-free hydration line, which again has the same powerful dose of mushroom extracts and the most popular one in that line would be the Prickly Pear.” WF