Analyst's Take: Consumer segments and purchase decisions fuel growth in functional mushroom market

New Hope Network's Nutrition Business Journal recently released its first-ever report on the functional mushroom markets, including data and commentary on an expanded list of functional mushrooms in food and beverages and supplements.

On behalf of many supplement brands and manufacturers in the dietary supplement industry, NBJ wanted to know more about what fuels consumers' purchase behaviors and decisions behind this trending category. Is it sought after by average consumers, or is it mostly health nuts and biohackers? How widespread is consumer knowledge of functional mushrooms? Where do they get the information that leads them to purchase? With so many different types of mushrooms that provide various benefits, which conditions or health concerns are driving consumer interest?

In an NBJ consumer survey fielded in April 2024, we asked more than 8,000 people if they consume functional mushrooms. What we found was that 37% say they consume food and beverages boosted with mushrooms and 27% consume mushroom supplements. Broken out by generations, Gen Z over indexes by 10 or more percentage points, showing that younger generations are driving the mushroom markets.  

What about those psychedelics? We asked that, too. In a separate survey of more than 1,000 people, about 13% said they currently consume psychedelic mushrooms, a slight increase from the same survey fielded a year earlier. We see a similar theme here, with 19% of Gen Z and 17% of millennials consuming psychedelics. Older generations have lower results: 12% of Gen X and 5% of baby boomers do so.

NBJ estimates the 2023 functional mushroom supplement market to hit $396.3 million in sales, which is up about 11.5% in growth from the year prior. But the progression doesn’t stop there: We’re forecasting double-digit growth through 2027. What conditions are driving most of the market growth and consumer interest? Immunity has long been a main growth driver for this ingredient, but NBJ estimates that other top-growing conditions like brain health, growing at 17.7%, and sports performance, at 31.5%, will both be key drivers into 2025.

Nine mushroom ingredients, two markets, three channels and 10 conditions. There’s a lot in this report and more to come in the mushrooms market.

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