Asia-Pacific Functional Mushroom Market Analysis by Mordor Intelligence
The Asia-Pacific functional mushroom market size reached USD 6.18 billion in 2025 and is projected to reach USD 9.18 billion by 2030, advancing at an 8.24% CAGR. Demand accelerates as the region blends deep historical use of medicinal fungi with modern nutraceutical science. China’s 75% share of global mushroom output anchors raw-material security, while Japan and Malaysia speed commercialization through clear functional-food rules and biotech tax incentives. Brands extend beyond conventional powders into ready-to-drink lattes, gummies, and skincare serums that solve taste, dosage, and convenience barriers for first-time buyers. Supply-side investments in automated fermentation and CRISPR strain improvement are narrowing the cost gaps for vitamins, positioning fungi as a versatile, plant-based protein and adaptogen source for sports, beauty, and healthy-aging segments.
Key Report Takeaways
- By type, Reishi led the Asia-Pacific functional mushroom market with a 35.15% share in 2024; Cordyceps is forecast to grow at an 8.95% CAGR through 2030.
- By nature, conventional products accounted for 70.73% of the Asia-Pacific functional mushroom market size in 2024, while organic variants are expected to expand at a 10.88% CAGR through 2030.
- By form, powders captured 61.26% of the Asia-Pacific functional mushroom market size in 2024; however, liquid extracts are projected to rise at a 9.77% CAGR through 2030.
- By application, dietary supplements held a 37.51% share of the Asia-Pacific functional mushroom market in 2024; meanwhile, the personal care and cosmetics segment is projected to advance at a 10.02% CAGR through 2030.
- By geography, China generated 39.84% of the 2024 revenue and is expected to grow at an 8.84% CAGR through 2030.
Asia-Pacific Functional Mushroom Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Demand for immune-boosting mushroom supplements | +1.8% | Global, with concentration in China, Japan, South Korea | Medium term (2-4 years) |
| Rising adoption of adaptogenic ingredients in RTD beverages and coffees | +1.5% | Urban centers across China, Japan, Australia, Singapore | Short term (≤ 2 years) |
| Adoption of mushrooms in plant-based diets | +1.2% | Australia, India, urban China, South Korea | Medium term (2-4 years) |
| Rise of mushrooms in sports performance nutrition | +0.9% | Japan, South Korea, Australia, urban Southeast Asia | Medium term (2-4 years) |
| Popularity of convenient mushroom-infused beverages | +1.1% | China, Japan, Malaysia, Thailand, Singapore | Short term (≤ 2 years) |
| Government research grants for mycelium biotechnology | +0.7% | China, Japan, Singapore, Malaysia | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Demand for Immune-Boosting Mushroom Supplements
Peer-reviewed trials confirm that Reishi and Turkey Tail polysaccharides stimulate natural killer cells and elevate interferon-gamma, strengthening the case for these fungi as evidence-based immune aids. Japanese and Korean consumers insist on labels showing ≥20% beta-glucan, prompting brands to adopt dual extraction methods using both hot water and ethanol. China’s regulator cleared 127 new immune-health SKUs in 2024, signaling policy comfort after decades of post-market surveillance. Pandemic-era habits persist in Indonesia and Thailand, where pharmacy sales increased by 35-40% year-over-year. Yet, differing test protocols, Japan uses AOAC 995.16 while China follows GB/T 5009.124, still create cross-border label confusion that undercuts trust.
Rising Adoption of Adaptogenic Ingredients in RTD Beverages and Coffees
Cordyceps and Lion’s mane are migrating from capsules to ready-to-drink coffees that sit next to energy drinks in convenience stores. DXN’s Lion’s Mane Coconut Latte sells at roughly USD 0.96 per sachet, undercutting imports while delivering 300 mg of dual-extracted mycelium per serving[1]Source: DXN Holdings Berhad, “Annual Report 2024,” DXN2U.COM. Four Sigmatic localizes flavors, matcha in Japan, turmeric in India, and now serves eight Asia-Pacific markets. Beverage formats mask earthy notes, boosting trial rates among younger shoppers. Japan’s IFIA/HFE 2024 expo showcased 12 new mushroom drinks, confirming that liquid innovation is outpacing capsule development.
Adoption of Mushrooms in Plant-Based Diets
Shiitake and Oyster mushrooms add umami and fiber to vegan burgers that previously relied on soy and pea isolates. Australia’s plant-based food sector, valued at USD 124 million in 2024, now features mycelium in patties that retain moisture during grilling, according to Food Standards Australia New Zealand (FSANZ). India’s vegan urbanites choose Cordyceps powders that align with Ayurvedic sattvic principles. South Korea has earmarked USD 11.3 million to scale organic substrates, hoping that local production will reduce soy imports. Cost parity remains a hurdle: mycelium protein costs USD 12-18 per kg, compared to USD 3-4 for soy isolate.
Rise of Mushrooms in Sports Performance Nutrition
Clinical trials have shown that Cordyceps militaris supplementation can increase VO2 max by up to 11% in trained athletes, according to the Taylor and Francis Group. Japanese brands added Cordyceps to 18 new SKUs in 2024, touting natural ergogenic support accepted by anti-doping agencies. Australia classifies Cordyceps as a complementary medicine, requiring batch-to-batch consistency of cordycepin, which favors cultivated militaris over the variable wild sinensis. South Korean e-sports players use Lion’s mane for sustained focus during marathon gaming sessions. Sports channels command 15-25% price premiums over general nutrition, covering added quality-testing costs.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Fragmented Asia-Pacific regulations on novel foods and health claims | -1.3% | Indonesia, Thailand, Vietnam, Philippines, India | Medium term (2-4 years) |
| High price premium versus conventional supplements | -1.0% | Price-sensitive markets: India, Indonesia, Philippines, Vietnam | Short term (≤ 2 years) |
| Raw material supply volatility | -0.8% | China (substrate sourcing), wild-harvested species across APAC | Medium term (2-4 years) |
| Storage and shelf-life limitations of mushroom products | -0.6% | Tropical climates: Southeast Asia, India | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Fragmented Asia-Pacific Regulations on Novel Foods and Health Claims
Each country sets its own dossier, safety test, and labeling demands, adding USD 50,000–150,000 and 12-18 months per entry. Indonesia requires separate filings for every species in a blended SKU according to the Indonesian Food and Drug Monitoring Agency[2]Source: BPOM Indonesia, “Novel Food Registration Requirements,” POM.GO.ID. Thailand blocks health claims until three years of surveillance have passed, while Vietnam’s tiered system treats Cordyceps as a top novel, despite centuries of use. Australia insists on full safety data even for Reishi. This patchwork forces brands to run parallel formulations and hire multiple regulatory consultants, eroding scale economies.
High Price Premium Versus Conventional Supplements
Organic Reishi bottles sell for USD 35-50, compared to USD 12-18 for multivitamins, which limits their reach in India and Indonesia, where per-capita incomes are low, according to the Reserve Bank of India[3]Source: Reserve Bank of India, “Per Capita Income Statistics 2024,” RBI.ORG.IN. Slow, climate-controlled fermentation plus dual extraction drive costs. Certified organic substrates are scarce in Asia, so many firms import at 40–60% uplifts. Until yields improve and equipment amortization occurs, fungi will remain a premium wellness choice rather than a mass vitamin replacement.
Segment Analysis
By Type: Reishi Leads While Cordyceps Accelerates
Reishi retained a 35.15% share of the Asia-Pacific functional mushroom market in 2024, thanks to its 2,000-year history of medicinal use and extensive clinical support. Cordyceps is growing at 8.95% CAGR because endurance athletes prize its ATP-boosting cordycepin. The Asia-Pacific functional mushroom market size for Lion’s Mane cognitive formulas is increasing in aging Japan and South Korea, while Shiitake maintains steady demand for food and broth. Turkey Tail’s PSK enjoys formal cancer-therapy reimbursement in Japan, significantly increasing its value far above the price of supplements. Lesser-known species, such as Tremella and Chaga, collectively hold a nearly 20% share in the beauty and antioxidant niches, according to the Pharmaceuticals and Medical Devices Agency (PMDA), Japan [4]Source: Pharmaceuticals and Medical Devices Agency Japan, “PSK Approval for Cancer Therapy,” PMDA.GO.JP.
Continued multi-species blending signals commoditization of single strains. Regulatory clarity is uneven; cultivated Cordyceps militaris bypasses CITES limits on wild sinensis, supporting a steady supply. Higher-potency extracts and cross-functional positioning in beauty, sports, and immunity help maintain resilient average selling prices, even as volumes grow.
Note: Segment shares of all individual segments available upon report purchase
By Nature: Conventional Scale Meets Organic Momentum
Conventional products accounted for 70.73% of the Asia-Pacific functional mushroom market share in 2024, driven by mega-farms in Fujian and Zhejiang that utilize automated substrate inoculation and fruiting processes. Organic SKUs are scaling at a 10.88% CAGR, driven by concerns over heavy metals and trust marks such as JAS and NASAA. The Asia-Pacific functional mushroom market size for certified organic lines remains constrained by limited clean substrate supply and higher inspection costs.
Governments help: South Korea subsidized 240 organic farms in 2024, and India’s Himalayan regions enjoy natural low-pollution advantages. Brands add blockchain QR codes that link field data to test reports, providing retailers with assurance. As testing costs decline, more mid-tier brands are expected to migrate to organic, although price premiums of 25–35% are likely to persist.
By Form: Powder Dominates, Liquid Innovates
Powders captured 61.26% of the 2024 Asia-Pacific functional mushroom market share because they are inexpensive to fill capsules and blend well into shakes. Liquids are the fastest growing category at 9.77% CAGR, as RTD lattes solve taste barriers. Dual-extracted tinctures demonstrate 30-40% higher beta-glucan absorption than powders, which helps brands justify price points of USD 3-5 per serving, according to American Chemical Society Publications.
Capsules remain popular in Japan and South Korea, where pharmacy shoppers value dosage precision. Gummies appeal to Gen Z snackers and support impulse purchases in convenience stores. Alcohol limits for halal certification in Malaysia and Indonesia cap liquid formats, so spray-dried micro-powders may bridge the gap by matching bioavailability while avoiding ethanol.
Note: Segment shares of all individual segments available upon report purchase
By Application: Supplements Lead, Cosmetics Accelerate
Supplements held a 37.51% share in 2024, thanks to mature MLM and pharmacy networks in China, Malaysia, and Japan. The Asia-Pacific functional mushroom market size for skincare is growing at the fastest rate, with a 10.02% CAGR, as Tremella mimics hyaluronic acid and Shiitake contains kojic acid, which brightens the skin. Food and beverage usage spans instant coffees and protein bars priced for grab-and-go consumers.
Prescription channels continue in Japan, where Turkey Tail PSK is eligible for insurance coverage. Animal feed and crop biostimulants are nascent but promise volume growth by valorizing extraction by-products. Cosmetics enjoy gross margins of 65-75%, underscoring why beauty players are investing in R&D for topical and ingestible forms.
Geography Analysis
China produced 8.9 million tons of mushrooms in 2024 and held 39.84% of regional revenue while expanding at an 8.84% CAGR. Subsidies under the five-year biotech plan fund CRISPR strain work and fermentation lines that are expected to cut Cordyceps costs by 30%, according to the Ministry of Science and Technology (MOST), China[5]Source: Ministry of Science and Technology China, “14th Five-Year Plan for Biotechnology,” MOST.GOV.CN. Domestic e-commerce sales reached 180 million supplement units in 2024, indicating that internal demand now surpasses export volumes. Provincial approval silos remain a hurdle, requiring brands to navigate up to 31 local processes.
Japan commands premium prices through its Foods with Function Claims framework, allowing companies to self-certify clinical data and reach the market quickly. Aging demographics drive Lion’s Mane memory formulations. Hokkaido Reishi supplies 64 export countries, leveraging 60% beta-glucan potency validated by national laboratories, as per the Ministry of Agriculture, Forestry and Fisheries (MAFF), Japan.
India, Australia, South Korea, and Southeast Asia collectively account for roughly 35% of regional value and are posting mixed growth. India’s market grows double-digit as Ayurveda overlaps with fungi science and government training uplifts small farmers. Australia enforces strict complementary-medicine testing, pushing quality over volume. South Korea’s K-beauty wave drives ingestible beauty demand. Southeast Asia faces regulatory fragmentation but rising middle-class incomes push combined sales toward USD 800 million by 2030.
Competitive Landscape
The Asia-Pacific functional mushroom market remains moderately concentrated, with the top five players controlling a 40-45% share. DXN’s 17.1 million members drove USD 383 million in revenue in FY 2024, proving the scale of MLM distribution. Yukiguni Maitake and Hokkaido Reishi specialize in high-potency extracts that meet Japan’s stringent test standards. Naturalin and Lianfeng leverage China’s low-cost cultivation to supply global brands.
Strategic focus spans three themes: deeper penetration of lower-income ASEAN markets, new delivery forms such as gummies and RTD coffees, and organic certification. Disruptors like Four Sigmatic utilize direct-to-consumer channels while showcasing independent test certificates, capturing the attention of health-conscious millennials. Technology adoption divides incumbents and laggards; leaders deploy CRISPR to increase cordycepin output and utilize blockchain QR codes for traceability.
Patent activity surged with 180 mycelium-related filings in 2024; however, enforcement remains uneven outside Japan and China. Switching costs stay high because MLM networks and long-term pharmacy contracts lock in distributors. Premium organic brands now command 15–20% of incremental growth, showing room for challenger brands that marry transparency with niche positioning.
Asia-Pacific Functional Mushroom Industry Leaders
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DXN Holdings Berhad
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Yukiguni Maitake Co., Ltd.
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Hokkaido Reishi Co., Ltd.
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Naturalin Bio-Resources Co., Ltd.
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Mitoku Company Ltd.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- January 2025: DXN Holdings Berhad has completed the construction of a new Ganoderma cultivation and extraction facility in Telangana, India, with an initial annual capacity of 1,200 metric tons, targeting both domestic consumption and exports to the Middle East. The USD 22 million investment includes automated substrate inoculation systems and spray-drying equipment to produce standardized 30% polysaccharide extracts.
- November 2024: Hokkaido Reishi has expanded its global distribution network to 64 countries, securing OEM partnerships with 18 international supplement brands that require pharmaceutical-grade Reishi extracts with beta-glucan content exceeding 60%. The company invested approximately USD 5.3 million (JPY 800 million) in third-party testing infrastructure to meet the FSSC 22000 certification requirements.
- September 2024: DXN Holdings Berhad launched Lion's Mane Coconut Latte and Black Coffee variants in Malaysia's 7-Eleven and FamilyMart networks, achieving sales of 2.4 million sachets in the first quarter at RM 4.50 (USD 0.96) per serving. The RTD format targets urban millennials seeking nootropic alternatives to synthetic caffeine boosters.
- August 2024: Four Sigmatic expanded its distribution into eight Asia-Pacific markets: China, Hong Kong, India, Japan, Malaysia, Singapore, Thailand, and New Zealand, partnering with regional e-commerce platforms and specialty health food retailers. The company reported 200 million cumulative cups sold globally, with Asia-Pacific accounting for 15% of revenue.
Asia-Pacific Functional Mushroom Market Report Scope
Functional mushrooms are widely acknowledged to have numerous bioactive compounds with functional benefits and tremendous health benefits for the human body, resulting in widespread availability. The Asia-Pacific functional mushroom market (henceforth, referred to as the market studied) is segmented based on product type, application, and geography. The product type is further segmented into Reishi, Cordyceps, Lion's Mane, Turkey Tail, Shiitake, Chaga, and other product types. By application, the market is segmented into food and beverage, dietary supplements, personal care, and pharmaceutical products. Based on country, the market has been segmented into India, China, Japan, Australia, and the Rest of Asia-Pacific. For each segment, the market sizing and forecasts have been done based on value (in USD million).
| Reishi |
| Cordyceps |
| Lion’s Mane |
| Shiitake |
| Turkey Tail |
| Chaga |
| Other Types (Maitake, Tremella, Enoki, etc.) |
| Conventional |
| Organic |
| Powder |
| Liquid |
| Others |
| Dietary Supplements |
| Food and Beverage |
| Personal Care and Cosmetics |
| Pharmaceutical/Clinical |
| Other Applications |
| China |
| Japan |
| India |
| Australia |
| South Korea |
| Philippines |
| Indonesia |
| Thailand |
| Malaysia |
| Rest of Asia-Pacific |
| By Type | Reishi |
| Cordyceps | |
| Lion’s Mane | |
| Shiitake | |
| Turkey Tail | |
| Chaga | |
| Other Types (Maitake, Tremella, Enoki, etc.) | |
| By Nature | Conventional |
| Organic | |
| By Form | Powder |
| Liquid | |
| Others | |
| By Application | Dietary Supplements |
| Food and Beverage | |
| Personal Care and Cosmetics | |
| Pharmaceutical/Clinical | |
| Other Applications | |
| By Country | China |
| Japan | |
| India | |
| Australia | |
| South Korea | |
| Philippines | |
| Indonesia | |
| Thailand | |
| Malaysia | |
| Rest of Asia-Pacific |
Key Questions Answered in the Report
How big is the Asia-Pacific functional mushroom market today?
The Asia-Pacific functional mushroom market size reached USD 6.18 billion in 2025.
Which mushroom type dominates present sales?
Reishi leads with 35.15% share thanks to long-standing traditional use and triterpene research support.
Which form is growing fastest?
Liquid extracts, especially RTD coffees and lattes, are advancing at a 9.77% CAGR through 2030.
Why are prices higher than common vitamins?
Slow fermentation, dual extraction, and limited organic substrates push production costs 2–3 times above conventional supplements.
Which country offers the strongest growth outlook?
China pairs the largest production base with rising domestic demand and is forecast at an 8.84% CAGR through 2030.
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