Medicinal Mushroom Extract Market Analysis

Medicinal Mushroom Extract (Global, 2024)

Introduction

The mushroom extract market is experiencing a strong growth, which is largely due to the growing knowledge of the health benefits of various species of mushrooms. In recent years, the mushroom extracts such as reishi, chaga and lion's mane have been gaining more and more popularity in the natural health industry. These extracts are used for various applications, such as improving immunity, enhancing memory, reducing stress, etc. There is a growing demand for dietary supplements, functional foods and beverages containing mushroom extracts, and consumers are looking for more and more natural products. The study of the bioactive compounds in fungi continues to show new possibilities, and the mushroom extracts will play an important role in the future of natural medicine and health products.

PESTLE Analysis

Political

In 2024, the regulatory framework for medicinal mushrooms is influenced by the promotion of natural health products. For example, the Food and Drug Administration of the United States has established a registration system for the manufacture of dietary supplements, and more than 1,200 manufacturing facilities have been registered under the Dietary Supplement Health and Education Act. In Europe, the Novel Food Regulation requires that any new food product, including medicinal mushrooms, must undergo a safety assessment before it can be marketed. The annual number of new products is about 300.

Economic

The medicinal mushroom extract market is influenced by the economy and the growth of the health and well-being sector. In 2024, the global health and well-being market is expected to reach $45 billion, with a noticeable increase in demand for natural supplements, such as mushroom extracts. Moreover, the average spending per person in the United States on dietary supplements is $170 per year, indicating the potential market for medicinal mushroom products.

Social

Social trends in 2024 show a marked preference for natural and organic products, and sixty-five per cent of consumers actively seek out plant-based food supplements. A growing awareness of the benefits of medicinal mushrooms, such as the support they give to the immune system and the reduction of stress, has prompted this trend. Surveys show that fifty-five per cent of millennials are more likely to buy sustainably sourced products, which shows the importance of ethical sourcing in swaying consumers’ buying decisions.

Technological

Extracting technology is also improving the quality and efficacy of medicinal mushroom products. In the future, it is expected that more than 40 percent of the manufacturers will use supercritical fluid extraction. [4] In addition, new biotechnological developments are contributing to the development of new mushroom varieties with enhanced medicinal properties and a more diverse range of products on the market.

Legal

The laws relating to medicinal mushrooms are changing, with some countries introducing more severe regulations. In 2024, new labelling requirements for natural health products come into force in Canada, and all medicinal mushroom extracts must now display the active ingredients and the recommended dosage. This regulation affects about 1,500 products already on the market, bringing greater transparency for consumers and a greater degree of compliancy for manufacturers.

Environmental

It is becoming increasingly important to consider the environment in the production of medicinal mushroom extracts. In 2024 it is estimated that 30 per cent of mushroom growers will have adopted sustainable practices such as organic farming and waste-recycling. The growing trend towards a reduction of carbon emissions has also led to a 20 per cent increase in the use of renewable energy sources in mushroom production.

Porter's Five Forces

Threat of New Entrants

The market for medicinal mushroom extracts has a moderate degree of market penetration. The barriers to entry are mainly regulatory requirements and the need for specialized knowledge in cultivation and extraction. New players may be attracted by the growing interest in natural products. However, the distribution networks and brand loyalty of the established companies will make it difficult for new entrants to compete.

Bargaining Power of Suppliers

The raw materials for medicinal mushrooms are in relatively abundant supply, and there are a number of suppliers. This gives the manufacturers a degree of bargaining power. They can easily change suppliers or source from several different places. However, there is still the problem of quality control and consistency of supply.

Bargaining Power of Buyers

The buyers of medicinal mushroom extracts have high bargaining power, owing to the increasing number of products and brands available on the market. This has led to an increase in consumer knowledge and a demand for quality and efficacy. The manufacturers are therefore forced to compete in terms of price, quality and reputation.

Threat of Substitutes

The threat of substitutes is medium. There are alternatives to medicinal mushroom extracts, such as herbal supplements and synthetic drugs. But the unique health benefits associated with certain species of mushrooms make the threat of substitutes low. However, the growing trend toward natural and alternative medicine may limit the impact of substitutes on this market.

Competitive Rivalry

The competition in the market for medicinal mushroom extracts is high, with many players vying for market share. Companies are investing in marketing, product development, and research to differentiate their products. The presence of established brands and new entrants is intensifying the competition, which is leading to a high degree of price sensitivity.

SWOT Analysis

Strengths

• Growing consumer awareness of health benefits associated with medicinal mushrooms.
• Diverse range of applications in health supplements, food, and cosmetics.
• Strong market growth driven by increasing demand for natural and organic products.

Weaknesses

• Limited scientific research backing some health claims of medicinal mushrooms.
• High production costs associated with cultivation and extraction processes.
• Potential regulatory challenges in different regions affecting market entry.

Opportunities

• Expansion into emerging markets with rising health consciousness.
• Innovation in product formulations and delivery methods to attract new consumers.
• Partnerships with health and wellness brands to enhance market reach.

Threats

• Intense competition from synthetic alternatives and other natural supplements.
• Risk of overharvesting and sustainability concerns impacting supply.
• Changing regulations and consumer preferences that may affect market dynamics.

Summary

The Medicinal Mushrooms Extracts Market is expected to show a significant growth by 2024, mainly driven by the increasing demand for natural health products. However, challenges such as high production costs and regulatory barriers may hinder this growth. Opportunities for new markets and new products will be created. Competition and the question of sustainable development will be important issues to be faced.