The functional mushroom market is booming thanks to social media, research, and centuries of traditional use, and consumers are increasingly seeking mushroom-based nutraceuticals for a host of health benefits.
However, industry standards have not kept pace with market growth, creating gaps in product consistency and efficacy, warns Eric Puro, CEO of the Finnish biotech firm KÄÄPÄ Biotech, in a white paper titled ‘Beyond Beta Glucans’.
While most quality assessments rely on beta-glucan content, this alone does not reflect the full spectrum of health benefits. Formulators and brands must select mushroom extracts rich in bioactive compounds to deliver health benefits, he told NutraIngredients.
Market flooded with NPD
According to data from SPINS and Grand View Research presented in the paper, the global functional mushroom market reached USD 31.71 billion in 2023 and is projected to grow at a 11.2% CAGR through 2030. This growth is sustained by consumers’ access to functional mushrooms via foods, beverages, supplements, capsules, powders, tinctures, and infused products like teas and coffee.
“The rapid growth of the mushroom supplement category has been an exciting opportunity and a call to action. It’s certainly attracted a flood of products, ranging widely in quality,” Puro told NI.
He added, “While this creates some market noise, it also shines a spotlight on the importance of differentiation through quality and science.”
While fruiting bodies contain the most bioactive compounds, mycelium can contain very few or none. Furthermore, myceliated grain test high in polysaccharides that come from the grain substrate, and not the mushroom itself, therefore often give a falsely elevated beta-glucan number, he explained.
“This can create a disconnect between what consumers expect and what the product actually delivers,” Puro said.
Yet, while there’s some dilution in the market, he explained those who commit to better standards in transparency, traceability, and real efficacy will be the ones that come out on top.
“The future belongs to brands that hold themselves to higher standards,” he said.
Why have beta-glucans become the go-to reference point?
In the early days of the functional mushroom space, beta-glucans provided a simple, measurable compound that companies could use to communicate functionality to consumers, Puro explained.
“It was an easy win, something to point to on a label,” he said.
However, as the category expanded, consumers developed an understanding of differing health benefits associated with various mushroom species. Beta-glucans support immune health, but cannot capture the species-specific bioactive compounds that drive each mushroom’s distinct effects.
“As the main use for different mushroom species moves away from immunity as the primary action towards more complex and specific indications, so does the compound standardization,” he said.
Therefore, as the category continues to mature, Puro said the brands that invest in real science and measurable bioactivity will be the ones that consumers gravitate toward.
“The demand for trustworthy, evidence-backed products is only going to increase, and I strongly believe that the companies meeting that demand today are the ones that will lead the market tomorrow,” he said.
Bioactives equal efficacy
Health benefits arise from distinct bioactive compounds, not general markers, Puro said.
By focusing on bioactive assessments, formulators could target specific health benefits of key mushroom species: In Lion’s Mane, hericenones and hericenes stimulate nerve growth factor (NGF), supporting cognitive function and mood; For Chaga, betulinic acid and inotodiol provide antioxidant protection, immune support, and cellular health; Cordyceps contains cordycepin and adenosine which enhance ATP production, energy, endurance, and reduce fatigue; And Reishi contains triterpenoids, including ganoderic and lucidenic acids, which support stress relief, immune function, and sleep.
Furthermore, the correct dose of bioactive is imperative for efficacy, Puro explained, noting that effective daily doses depend on the bioactive levels in each mushroom extract. KÄÄPÄ Biotech’s science team recently reviewed the main bioactive compounds across different mushroom species, identifying key doses for specific mushroom species.
Potential market impact
While it is a necessary move, implementing bioactive-specific quality markers across the industry won’t be without its difficulties.
Firstly, many suppliers lack the infrastructure or expertise to implement such testing, Puro explained, as measuring and standardizing species-specific bioactive compounds requires advanced laboratory methods.
Secondly, supply chain transparency will be key, as consistently delivering high bioactive compound yields requires control over cultivation conditions and extraction processes.
Finally, education and awareness still need improvement to help both formulators and consumers understand why beta-glucan content alone isn’t enough, and why species-specific compounds matter for targeted health benefits.
“Adopting bioactive compound-based quality markers is a major leap forward for the industry, and most importantly, for the end consumer,” Puro said. “It creates a foundation of trust, allowing people to choose functional mushroom products based on measurable efficacy, not marketing claims.”
“This shift isn’t about making things more difficult, it’s about making them more effective and more trustworthy,” he added, noting that when it came to communicating to consumers, the key would be ‘outcome-focused communication.
“Consumers aren’t looking for a lesson in chemistry,” he said. “They want to understand what a product does for their health and feel confident that the claims are credible.”
Puro advised using clear language that connects species-specific bioactive compounds to their functional benefits, using relevant studies to support claims.
