Tapping Exotic Mushrooms for Medicinal Value

You have likely noticed mushrooms are trending lately if you have spent any time digging the wellness rabbit hole. Not psychoactive mushrooms, though those are also interesting; instead, we are discussing medicinal mushrooms. Traditional medicine has been embracing these earthy, tiny mushrooms for generations. What ancient healers always knew—that mushrooms are real healing powerhouses—is now supported by science. Not every mushroom is made equally. Although button mushrooms may be used to top a pizza, medicinal types are valued for their therapeutic properties, which include adaptogens, beta-glucans, and antioxidants that support cellular balance in your body.

“Medicinal mushrooms sit at the intersection of tradition and biotechnology. With the right vision, India can not only meet its domestic needs but also emerge as a trusted global supplier. The mushroom revolution is here—and it’s time we take the lead’’, opined Jashid Hameed, Founder, Nuvedo.

Medicinal mushrooms are not merely a fad; they are resurgent ancient medicines. These fungi could be the missing piece of your routine, whether you’re trying to improve your mental clarity, combat fatigue, or just up your wellness game. “The global medicinal mushroom market is witnessing robust expansion, valued at $5.81 billion in 2024 and expected to reach $13.67 billion by 2034, with a compound annual growth rate (CAGR) of 8.9 per cent. The Asia-Pacific region is projected to dominate this growth. In India, the market is also showing strong momentum, forecasted to reach $487.0 million by 2033 at a CAGR of 6.5 per cent from 2025 to 2033’’, stated Dr B N S Murthy, Ex-Horticulture Commissioner, Government of India and Ex-Director, ICAR-IIHR Bangalore.

From Forest to Pharma

The expanding vegan population is driving the medicinal mushroom market’s compound annual growth rate. Additionally, the industry is expanding as a result of the increased use of mushrooms as therapeutic ingredients in the nutraceutical and pharmaceutical industries. “We formulate functional food and nutraceuticals from extracts of medicinal mushrooms using their API’’, mentioned Dr Hiresha Verma, the Mushroom Queen of the Himalayas.“ For example, Ganoderma is very good at addressing the issues related to sleeplessness, anxiety, and depression. Shiitake is very good for enhancing immunity. All these have anti-cancer, anti-viral, anti-inflammatory and antioxidant properties. These are rich sources of Vitamin D2’’, opined Dr Hiresha.

To meet the demands of a health-conscious consumer base, food manufacturers are improving their packaged goods by adding nutritious components, such as functional mushroom extracts or powders. “Functional mushrooms offer a systems-level intervention. Unlike synthetic supplements that treat isolated symptoms, mushrooms work holistically—regulating immune responses, restoring gut integrity, reducing oxidative damage, and enhancing resilience. Mushrooms like Lion’s Mane support neurogenesis, Reishi modulates stress and inflammation, Cordyceps boosts energy metabolism, and Turkey Tail nourishes the microbiome. These benefits are increasingly backed by science: over 9,000 published papers and more than 200 clinical trials support their therapeutic potential’’, added Hameed.

“Medicinal mushrooms are rich in a variety of bioactive compounds—including polysaccharides, triterpenoids, low molecular weight proteins, glycoproteins, and immunomodulatory agents—that have been shown to boost immune response, improve overall health, and potentially reduce the risk of a range of conditions such as cancer, leukemia, leucopenia, hepatitis, nephritis, gastritis, insomnia, asthma, and bronchitis. They are also known to inhibit tumour growth, regulate blood sugar levels, combat pathogens (viruses, bacteria, fungi), reduce inflammation, and support the body’s natural detoxification processes’’, mentioned Dr Murthy.

“Medicinal mushrooms are also emerging as a valuable horticultural crop, offering multiple advantages. Beyond their health benefits, they provide a sustainable and cost-effective avenue for crop diversification, efficient waste utilisation, and improved nutritional security. Moreover, mushroom farming supports rural livelihoods, particularly benefiting marginalised farmers and women. Growing public awareness of mushrooms, nutritional benefits has fuelled their popularity as a food item, with India’s mushroom production exceeding one million tonnes in recent years’’, he added.

Speaking of her journey towards pioneering the harvest of independence and turning medicinal mushrooms into micro enterprises for women as the Founder and Chairperson of Han Agrocare, Dr Hiresha, further added, “Simultaneously with our value-addition activities during COVID in 2019, I was considering medicinal mushroom production and marketing also because our country is importing medicinal mushrooms from China and Indonesia. So, I thought, why can’t we cultivate it in our own country? That is how our pilot batch of medicinal mushrooms, such as Shiitake, Ganoderma, Lion’s mane, and Turkey tail, started in 2019 with the cultivation of Shiitake, Ganoderma, followed by Lion’s mane and Turkey tail. Since this is giving five times more price, I started making substrate of these mushrooms at our production unit and supplying it to the women.’’

From Mycelium to Medicine

“By 2030, the global functional mushroom industry is projected to reach $65.83 billion. In North America alone, the market was valued at $612 million in 2024, with an expected climb to $1.41 billion by 2030. Globally, there are estimated to be between 53,000 and 110,000 macrofungi species, many with bioactive compounds of interest. While mushrooms like Agarikon were documented by Dioscorides 2,000 years ago in Greece, even in India—historically not seen as mushroom-loving, there are at least 100 species used for medicinal purposes. Despite this rich potential, India remains underrepresented in the global market, mentioned Hameed. Connecting the dots to the Trump Tariff, he expressed his hopes towards spanning borders with fungal trade innovation. “As of 2025, new U.S. tariffs on imported mushrooms and related products have reshaped the trade landscape. Chinese products now face a whopping 104 per cent tariff, while India’s is just 26 per cent—creating a powerful incentive for global buyers to shift to Indian suppliers,’’ opined Hameed.

Future of Natural Health

Customers’ growing interest in herbal fitness solutions and health is one of the main factors propelling the growth of the medicinal mushroom market. The demand for items made from medicinal mushrooms has increased as people become more aware of the fitness benefits these fungi may provide, including immunological support, cognitive improvement, and stress reduction. The market for dietary supplements, extracts, and useful meals made from medicinal mushrooms is growing as a result of consumers’ active search for complementary and alternative therapies to conventionally prescribed medications.

“Indians are no longer working hard just to earn more—they are also thinking about how to lead better and healthier lives. Over the past decade, as per Trading Economics, India’s per capita income has grown from $ 1,580 in 2015 to $ 2,310 in 2024, but what’s more significant is how people are choosing to spend their earnings. Interestingly, consumers today are driving the change. They are well-informed and don’t just pick what looks best on the shelves. They read labels, research ingredients, and look for science-backed claims’’, stated Sanjaya Mariwala, Executive Chairman and Managing Director of OmniActive HealthTechnologies Ltd and President of IMC Chamber of Commerce and Industry.

Hence, we can rightly say, one of the main factors driving the medicinal mushroom market is the growing influence of influencers on the Gen-Z consumer base and rising expenditure on nutritious and useful foods that support a stronger immune system. To efficiently manage the acquisition, processing, and distribution of medicinal mushrooms, businesses are increasingly integrating artificial intelligence into their operations in addition to other digitalisation techniques. The best-performing tactics are found to be organic, vegan, bio-based, ready-to-eat, clean label, and sustainable. Customer interaction and distribution channels are changing as a result of the growing use of internet platforms for medicinal mushroom purchasing. The market for medicinal mushrooms is therefore anticipated to expand at a robust compound annual growth rate (CAGR) due to the remarkable demand from emerging regions and millennials.

However, supply chain interruptions, adhering to strict food safety and labelling standards, increasing competition, maintaining inflation in important countries, and shifting raw material prices are some of the factors that are limiting the medicinal mushroom market as a whole. Diverse regulatory frameworks cause uncertainty and irregularities in advertising and product clearance. “Despite this rich potential, India remains underrepresented in the global market. On Amazon India, a search for “mushroom extract” returns just 448 results compared to over 2,000 in the U.S. Much of our domestic market is flooded with low-quality Chinese imports, many of which lack traceability and safety standards’’, mentioned Hameed. “The Food Safety and Standards Authority of India (FSSAI) still does not recognise Lion’s Mane, Reishi,Turkey Tail and a few other popular medicinal mushrooms as approved ingredients for functional foods or supplements. There is poor coordination between research institutions like the Directorate of Mushroom Research (DMR) where they train farmers to cultivate these mushrooms, and regulatory bodies like FSSAI, incorporate these very mushrooms. To top things off, low-quality mushroom genetics, limited infrastructure, and a lack of consumer awareness make things challenging for enterprising folks who are looking to enter this segment’’, he opined.

Suchetana Choudhury

suchetana.choudhuri@agrospectrumindia.com