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Mushroom Tea Extracts Market

The market for Mushroom Tea Extracts was estimated at $469 million in 2024; it is anticipated to increase to $719 million by 2030, with projections indicating growth to around $1.03 billion by 2035.

Report ID:DS1805044
Author:Debadatta Patel - Senior Consultant
Published Date:
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Life Science
Nutraceuticals
Mushroom Tea Extracts
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Report Price: $4,200
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Market Data
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Table of Contents

Global Mushroom Tea Extracts Market Outlook

Revenue, 2024

$469M

Forecast, 2034

$956M

CAGR, 2025 - 2034

7.4%

The Mushroom Tea Extracts industry revenue is expected to be around $503.2 million in 2025 and expected to showcase growth with 7.4% CAGR between 2025 and 2034. The rise in market value is mainly due to the health advantages linked to Mushroom Tea Extract consumption that are attracting health conscious individuals globally with growing popularity in recent times. Accompanied by changes in eating habits and a surge in demand for products and an increasing awareness of preventive medicine have further emphasized the importance of these extracts. A key driver, behind this trend is the strong growth of the herbal tea sector where Mushroom Tea Extract stands out as a unique offering.

Mushroom Tea Extract is well known for its health benefits and various medicinal qualities derived from of fungi known for their antioxidant and anti inflammatory properties as well as their ability to boost the immune system. These extracts play a role in products like dietary supplements and functional foods while gaining popularity due to the increasing interest, in veganism and plant based diets.

Mushroom Tea Extracts market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034
Mushroom Tea Extracts Market Outlook

Market Key Insights

  • The Mushroom Tea Extracts market is projected to grow from $468.5 million in 2024 to $957 million in 2034. This represents a CAGR of 7.4%, reflecting rising demand across Nutritional Supplements, Beverage Industry, and Holistic Medicine.

  • Mycelium Labs, Green Valley Organics, and Mushroom Wisdom are among the leading players in this market, shaping its competitive landscape.

  • U.S. and UK are the top markets within the Mushroom Tea Extracts market and are expected to observe the growth CAGR of 4.8% to 7.1% between 2024 and 2030.

  • Emerging markets including Brazil, Indonesia and South Africa are expected to observe highest growth with CAGR ranging between 8.5% to 10.2%.

  • Transition like Harnessing Natural Wellness is expected to add $60 million to the Mushroom Tea Extracts market growth by 2030

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  • The Mushroom Tea Extracts market is set to add $488 million between 2024 and 2034, with manufacturer targeting Pharmaceutical & Food & Beverages Application projected to gain a larger market share.

  • With Increasing demand for nutraceuticals, and advances in Extraction Technologies, Mushroom Tea Extracts market to expand 104% between 2024 and 2034.

mushroom tea extracts market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Mushroom Tea Extracts - Country Share Analysis

Opportunities in the Mushroom Tea Extracts

In the wellness drink sector lies an untapped market for Mushroom Tea Extract products where consumers seek out wholesome and natural substitutes for their usual beverages. Taking the step to include Mushroom Tea Extract in wellness drinks can also fulfill this rising consumer interest. Offer various health advantages linked to mushroom extracts – a move that could lead to an increase, in market expansion.

Growth Opportunities in North America and Asia-Pacific

In the North American region, mushroom tea extracts are being buoyed by increasing health consciousness among consumers. The demand is specifically high within the US market, where trends like organic food consumption, healthy lifestyles, and an active focus on preventative health care act as key drivers. This region also witnesses intense competition due to the presence of well-established companies. These entities focus on continuous product innovation, with a particular emphasis on incorporating medicinal properties into their extracts, thus leveraging the consumer interest in natural and holistic wellness solutions.
Asia-Pacific is yet another prominent market for mushroom tea extracts, primarily driven by deep-rooted traditional usage and a growing market penetration of natural and organic products. Countries like China and Japan have utilized the medicinal properties of mushrooms since ancient times, and these cultural influences play a sizable part in demand generation. However, this region also presents significant competition due to the presence of numerous local producers and suppliers. Rising disposable income, urbanisation and increased health awareness are other dominant factors fuelling Mushroom Tea Extracts market growth in this region. Leveraging these trends, companies are coming up with innovative mushroom tea extract products, further enhancing their market penetration.

Market Dynamics and Supply Chain

01

Driver: Rising Consumer Health Awareness Coupled with Growing Demand for Functional Beverages

Mushroom tea extracts are also benefiting from a dual trend in the wellness sector. First, rising consumer health awareness is also driving demand for natural, immunity-boosting products. Health-conscious individuals are also increasingly seeking supplements and beverages that support immunity, cognitive function, and stress reduction. Mushrooms such as reishi, lion’s mane, and chaga are also valued for bioactive compounds like beta-glucans and polysaccharides, which enhance immunity and cognitive health. Second, the growing popularity of functional beverages provides an avenue for mushroom extracts to reach consumers in convenient formats. Tea blends, ready-to-drink infusions, and powdered mixes allow consumers to incorporate health benefits seamlessly into daily routines. also advances in extraction techniques, including hot water and dual extraction methods, have also improved the bioavailability of active compounds, ensuring consistent potency. Together, these trends are also expanding the market for mushroom tea extracts, particularly in premium wellness-focused beverage segments.

Innovations in extraction technologies, including dual and ultrasonic extraction, have also significantly improved the yield and potency of mushroom bioactive. These methods ensure that beta-glucans, polysaccharides, and triterpenoids are also preserved at higher concentrations, offering superior health benefits. Enhanced extraction also allows manufacturers to develop consistent, high-quality products, attracting niche consumers seeking scientifically validated functional beverages.

02

Restraint: Regulatory Issues

The growth of the mushroom tea extract market faces obstacles due to stringent regulations imposed by authorities like the U. S Food and Drug Administration and the European Food Safety Authority concerning production standards and product labeling requirements. These rules transparency in operations thorough safety testing measures and evidence based health claims presentation thereby impacting the introduction of new products and innovations, in this industry segment. The examination of legal aspects results, in expenses that may reduce companies profits and impact market trends and behavior.

03

Opportunity: Strategic Collaborations and Technological Innovations

The Mushroom Tea Extract industry holds promise for expansion by forming partnerships between well known food and beverage companies and suppliers of mushroom extracts. These partnerships may help in reaching customers in the market and broadening the distribution channels for Mushroom Tea Extract products. This could result in a variety of Mushroom Tea Extract products available and ultimately lead to higher market shares, within the industry.

The use of extraction techniques for Mushroom Tea Extract could enhance the nutritional content of the product significantly. This advancement in technology allows for extracting a spectrum of beneficial substances from mushrooms resulting in a more powerful and efficient product. This leads to an expansion in the market for Mushroom Tea Extract as it meets the rising consumer preference, for premium natural products.

04

Challenge: Lack of Consumer Awareness

Despite the growing popularity of health-focused beverages, There is a considerable lack of consumer awareness regarding mushroom tea extracts. Many potential consumers have limited knowledge about the variouss of mushroom tea extracts available in the market, their numerous health benefits, and how they could be incorporated into their daily lifestyles.

Supply Chain Landscape

1

Cultivation & Sourcing

Fungi PerfectiAloha Medicinals
2

Extraction & Processing

Host DefenseMushroom Harvest
3

Packaging & Distribution

NammexNew Chapter
4

End-User Industry

Health & WellnessBeveragePharmaceutical
Mushroom Tea Extracts - Supply Chain

Use Cases of Mushroom Tea Extracts in Nutritional Supplements & Holistic Medicine

Nutritional Supplements : Mushroom tea extracts like Reishi, Chaga, and Turkey Tail are heavily utilized in nutritional supplements. These extracts offer a high concentration of antioxidant and anti-inflammatory properties boosting dietary intake. Top players such as New Chapter, Host Defense, and Life Cykel capitalize on the markets growing interest in mushroom-based wellness products by providing theses of supplements.
Beverage Industry : Mushroom Tea Extracts, particularly Chaga and Lions Mane, are becoming increasingly popular in the beverage sector. Known for their calming and cognitive-enhancement capabilities, these extracts are often incorporated into coffees, teas, and energy drinks. Powerhouses in this arena include Four Sigmatic and Mushroom Wisdom, both known for their wide-ranging array of mushroom-infused beverages.
Holistic Medicine : Medicinal mushroom tea extracts, such as Cordyceps and Reishi, have been central to holistic medicine for centuries. They are reputed for their immune-boosting and healing properties. Companies like Gaia Herbs and Traditional Medicinals lead the pack, producing products that sustain and promote holistic health practices.

Recent Developments

The Mushroom Tea Extracts market has witnessed substantial advancement recently, driven predominantly by increasing recognition of its health benefits among consumers. As these extracts efficiently deliver the nutritional potency of mushrooms in a consumable form, their demand continues to rise across numerous wellness-focused industry applications. A prominent trend shaping the Mushroom Tea Extracts market is the surge in innovative extraction techniques.

October 2024 : Mycologics Inc, a leading biotech company in the Mushroom Tea Extracts market, announced a significant breakthrough - a patent approval for their proprietary extraction process that significantly boosts the bioavailability of active ingredients in mushroom extract teas.
August 2024 : Natures Script, a dominant player in the organic products industry, launched a line of functional beverages featuring Mushroom Tea Extracts and other superfood ingredients to meet the demand for health-optimized beverages.
July 2024 : The BioTek Solutions company, known for their innovative natural products, acquired Butterfly Medicinals, a rising star in Mushroom Tea Extracts production. The acquisition will improve BioTeks portfolio of whole-food based nutrition products.

Impact of Industry Transitions on the Mushroom Tea Extracts Market

As a core segment of the Nutraceuticals industry, the Mushroom Tea Extracts market develops in line with broader industry shifts. Over recent years, transitions such as Harnessing Natural Wellness and Functional Foods Revolution have redefined priorities across the Nutraceuticals sector, influencing how the Mushroom Tea Extracts market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Harnessing Natural Wellness

Mushroom tea extracts have become increasingly popular over the last decade due to the growing interest in natural and holistic wellness. These extracts, derived from various species of medicinal mushrooms such as Reishi and Lions Mane, claim to hold several health benefits, including immune support, improved cognitive function, and stress relief. The impact of this trend is farreaching, influencing consumer preferences across multiple industries. For example, in the beverage industry, tea infused with mushroom extracts has emerged as a popular alternative to traditional hot drinks. On the other hand, the dietary supplement sector now offers a variety of mushroom Tea extracts capsules appealing to healthconscious consumers. In both applications, the emphasis on natural wellness is apparent, reinforcing the position of mushroom tea extracts in the market. This industry transition is expected to add $60 million in the industry revenue between 2024 and 2030.
02

Functional Foods Revolution

The shift towards functional foods and beverages, defined as products offering added health benefits beyond basic nutrition, represents another significant transition. Mushroom tea extracts are at the forefront of this revolution, prized for their functional properties ranging from adaptogenic effects that help the body manage stress to potential anticancer, neuroprotective, and immune-boosting benefits. Rising consumer interest in holistic wellness, combined with innovations in extraction and formulation techniques, is further driving the integration of mushroom extracts into teas, ready-to-drink beverages, and powdered supplements.

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