India Functional Mushroom Market Overview, 2029

In a groundbreaking shift, India's functional mushroom industry is emerging as a tour de force on the global stage. Driven by a potent fusion of ancient Ayurvedic wisdom and modern scientific advancements, this burgeoning sector is redefining the boundaries of preventive healthcare and sustainable living.. One of the notable aspects of India's functional mushroom industry is its rich heritage of traditional mushroom cultivation practices. Various regions across the country have a long history of cultivating indigenous mushroom varieties such as oyster mushrooms, button mushrooms, and shiitake mushrooms. This traditional knowledge forms the foundation upon which modern cultivation techniques are built, contributing to the diversity and sustainability of the industry. In recent years, there has been a growing interest in functional mushrooms in India, driven by changing lifestyles, increased health consciousness, and a rising preference for natural and organic products. Functional mushrooms are valued for their potential health benefits, including immune support, improved cognitive function, and overall well-being. As a result, demand for functional mushroom products such as dietary supplements, teas, extracts, and powders is on the rise. The Indian government has also taken steps to support the growth of the functional mushroom industry through various initiatives and policies. These include financial incentives, research and development grants, and infrastructure support aimed at promoting mushroom cultivation, processing, and marketing. Additionally, collaborations between government agencies, research institutions, and industry stakeholders are fostering innovation and knowledge exchange within the sector. India's diverse climate and geographical conditions offer favorable conditions for mushroom cultivation, with different regions suited to the cultivation of various mushroom species. This geographical diversity contributes to the resilience and adaptability of the industry, allowing for year-round production and supply of functional mushrooms. India's growing urban population and expanding middle class present a significant market opportunity for functional mushroom products. With rising disposable incomes and changing consumer preferences, there is a growing demand for health and wellness products, including functional mushrooms, in urban centers across the country.


According to the research report "India Functional Mushroom Market Overview, 2029," published by Bonafide Research, the India Functional Mushroom market is anticipated to grow at more than 11.0% CAGR from 2024 to 2029. This burgeoning industry is witnessing a surge in growth, fueled by ongoing trends, government initiatives, and significant events that are shaping its trajectory. One of the key trends propelling the market's expansion is the rising consumer awareness regarding the health benefits of functional mushrooms. As more Indians embrace preventive healthcare and holistic well-being, the demand for these nutrient-rich superfoods has skyrocketed. Additionally, the resurgence of traditional Indian medicine systems like Ayurveda, which have long recognized the therapeutic properties of certain mushroom varieties, has further bolstered the market's growth. The Indian government has played a pivotal role in fostering this industry's development through various schemes and policies. The 'National Ayush Mission' aims to promote traditional medicine systems, including the utilization of functional mushrooms for their medicinal properties. Furthermore, the 'Pradhan Mantri Krishi Sinchayee Yojana' (PMKSY) provides financial assistance for the establishment of mushroom cultivation units, empowering farmers and entrepreneurs. Significant events have also contributed to the industry's momentum. The 'National Symposium on Mushrooms: The Emerging Functional Food,' organized by the Indian Council of Agricultural Research (ICAR) in 2021, brought together experts, researchers, and industry stakeholders to explore the potential of functional mushrooms in addressing health challenges. Additionally, the 'International Mushroom Congress,' held annually, serves as a platform for knowledge sharing, networking, and collaborations within the global functional mushroom community.

In the Indian market, functional mushrooms are witnessing a notable surge in demand, primarily due to the increasing recognition of their health benefits and traditional medicinal uses. Among the various types available, Reishi emerges as a leading product, revered for its extensive health-promoting properties deeply rooted in centuries-old traditional Chinese medicine. Its adaptogenic qualities and potential immune-boosting effects have captured significant attention from consumers seeking natural remedies for a range of health concerns. Lion's Mane follows closely behind Reishi, gaining momentum in the Indian market owing to its reputed cognitive health benefits. Believed to support brain function and memory, Lion's Mane appeals particularly to students, professionals, and individuals seeking cognitive enhancement. As research delves deeper into its neuroprotective properties, Lion's Mane is expected to sustain its upward trajectory in terms of demand and market presence. While Reishi and Lion's Mane dominate, other varieties such as Cordyceps, Turkey Tail, Shiitake, and Chaga also hold substantial promise in India. Cordyceps, renowned for its energy-boosting and performance-enhancing qualities, resonates with fitness enthusiasts and athletes pursuing natural supplements for their active lifestyles. Turkey Tail, with its potential immune-modulating effects, garners recognition for its contribution to overall health and wellness. Shiitake, a culinary delight in many Asian cuisines, is cherished not only for its rich flavor but also for its potential health benefits, including immune support and cardiovascular health. Chaga, often dubbed the "King of Medicinal Mushrooms," gains traction for its antioxidant properties and potential anti-inflammatory effects, appealing to those seeking natural methods to promote longevity and vitality. Beyond these renowned varieties, the Indian market for medicinal mushrooms encompasses "Other Types," including lesser-known species like Maitake, Tremella, and Poria, each offering unique health benefits and application.


In India, functional mushrooms find applications across various sectors, with a notable uptick observed notably within the pharmaceutical industry. While the consumption of these mushrooms in food and beverage products remains substantial, the pharmaceutical sector stands out with its significant surge in demand, surpassing other sectors. This increased interest in utilizing medicinal mushrooms within pharmaceuticals stems from their perceived therapeutic benefits and growing acknowledgment within the medical community. Companies in the pharmaceutical realm are integrating mushrooms into formulations tailored for addressing a spectrum of health conditions as ongoing research delves deeper into their medicinal properties. This trend reflects a consumer preference for natural remedies and a quest for alternative treatments, often perceived to carry fewer side effects compared to conventional medications. Furthermore, the prevalence of chronic diseases and a heightened emphasis on preventive healthcare contribute to the escalating demand for pharmaceutical products derived from mushrooms in India. The country's profound heritage in herbal medicine and Ayurveda further bolsters the acceptance and integration of medicinal mushrooms into pharmaceutical formulations. While food and beverage applications maintain their prominence, particularly in culinary and functional food items, the pharmaceutical sector emerges as a frontrunner in leveraging the therapeutic potential of medicinal mushrooms. This paradigm shift underscores the evolving dynamics of healthcare and wellness in India, where traditional healing practices intersect with modern pharmaceutical advancements to cater to the burgeoning healthcare needs of the populace. As the pharmaceutical industry continues to channel investments into research and development, the trajectory for mushroom-based pharmaceuticals appears poised for sustained expansion, presenting enticing prospects for both producers and consumers alike.




In India, the cultivation techniques for medicinal mushrooms are experiencing a remarkable transformation, driven by surging market demands and the imperative for sustainable production methods. With the growing recognition of the health advantages associated with medicinal mushrooms, there's a heightened focus on innovating efficient cultivation approaches to cater to escalating consumer needs. One standout method gaining momentum across India is controlled environment cultivation, revolutionizing mushroom farming by creating meticulously regulated indoor environments. This technique allows meticulous control over crucial factors such as temperature and humidity, thereby optimizing the growth and quality of mushrooms. Moreover, it facilitates year-round production, ensuring a consistent mushroom supply regardless of seasonal fluctuations. Another notable technique is substrate-based cultivation, wherein mushrooms thrive on diverse substrates like agricultural residues, wood logs, or synthetic materials. Agricultural residues such as paddy straw, sugarcane bagasse, and wheat straw are extensively utilized due to their abundance and cost-effectiveness. Additionally, hardwood species like oak and beech serve as preferred choices for cultivating specific mushroom varieties like Shiitake, adding diversity to the cultivation landscape. These cultivation methods represent a harmonious blend of tradition and innovation, with each approach tailored to suit the unique requirements of different mushroom varieties.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Functional Mushroom market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By product type
• Reishi
• Cordyceps
• Lion’s Mane
• Turkey Tail
• Shiitake
• Chaga
• Other Types

By Application
• Food & beverage
• Personal care
• Pharmaceutical
• Dietary Supplements
• Other


The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the functional mushroom industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.