Functional mushrooms are going mainstream. As they move beyond niche wellness stores and into everyday retail, food and beverage products featuring these fascinating fungi are seeing unprecedented consumer interest. The Plant Base explores in this exclusive feature.
The ‘food as medicine’ trend has sparked renewed interest in the benefits of functional mushrooms such as lion’s mane, reishi and cordyceps. Transcending capsule supplements, these ingredients are now appearing across a wide range of food and beverage formats – from energy drinks and alcohol-free spirits to snack bars and even meat alternatives.
Sandra Carter, founder of US-based functional mushroom specialist M2 Ingredients, told The Plant Base: “Humans have used functional mushrooms for thousands of years across Asia, Europe and Indigenous cultures, because they experienced real, tangible benefits”.
She continued: “What’s different now is that modern science is finally catching up: we can measure how beta-glucans, terpenes, prebiotic fibres and secondary metabolites modulate immune pathways, support neurotrophic activity, influence the microbiome and interact with the gut–brain axis”.
Growing health consciousness and the rise of plant-based diets have fuelled interest in this burgeoning segment of the wellness industry, with the functional mushrooms market projected to reach $65 billion by 2030.
“Mushrooms like lion’s mane and reishi have moved from niche to mainstream as more people explore and enjoy them for their natural qualities,” said Elliot Webb, founder of British mushroom grower Urban Farm-Produce (previously known as Urban Farm-It).“Education and accessibility have been key; more people now see mushrooms as both culinary and functional powerhouses.”
Gemma Ogston, founder of supplement brand Mama Shrooms, discovered functional mushrooms around ten years ago while working as a retreat chef in Ibiza, and has enjoyed seeing their rise ever since.
“Back then, hardly anyone really understood what functional mushrooms were. When I shared recipes or talked about them on Instagram, I’d often get messages asking, ‘what are these?’ or even, ‘are they legal?’,” she reflected, noting that the Covid-19 pandemic was a huge driver. “During 2020-2021, people became far more conscious about immunity, resilience and overall wellbeing. What excites me most now is that people are asking better questions about sourcing, extraction and real benefits – not just buying into a buzzword.”
No longer just attracting the world’s ‘wellness warriors,’ these mushrooms have become a part of many consumers’ daily routines. Last year, Urban Farm-Produce – which grows its lion’s mane on an organic farm dedicated to the species – became the first company to bring fresh punnets of this mood-boosting mushroom to a mainstream UK supermarket, securing a listing at Sainsbury’s.
Mushrooms as medicine
Lion’s mane – the striking, shaggy white mushroom reminiscent of a lion’s majestic mane – is among the top trending functional varieties, celebrated for its cognitive benefits. Its growing fan base reflects rising awareness of mental health over the past decade, particularly among Millennial and Gen Z consumers.
The mushroom contains hericenones and erinacines, bioactive compounds that help support
neuron growth, and has been linked to enhanced memory, focus, mental clarity and emotional wellbeing. Its beta-glucans also promote beneficial gut bacteria, while antioxidant compounds help combat oxidative stress and reduce inflammation. Expanding far beyond capsules and gummies, lion’s mane is now appearing in a growing range of functional F&B product applications.
Last year, UK retailer M&S launched an own-label beverage range, Yay! Mushrooms, including a cacao and oat drink infused with lion’s mane and maca. Also in 2025, Happiee – a brand known for its plant-based seafood alternatives – introduced pre-prepared lion’s mane mushroom pieces in Original and Teriyaki flavours to Sainsbury’s stores, designed as an easy-to-cook meat substitute.
Urban Farm-Produce’s Webb revealed that the company’s latest launch, Prepared Mane, follows a similar approach, offering a range of ready-to-use lion’s mane products designed to “help reshape the culinary landscape”.
“These products are entirely free from ultra-processed ingredients, healthy and organically grown, making high-quality meat alternatives more accessible than ever,” he enthused.
Reishi mushrooms are also associated with relaxation and improved mood, supporting stress reduction, sleep quality and nervous system health through cortisol-regulating triterpenes.
Meanwhile, chaga and turkey tail are rich in antioxidants and polysaccharides that support gut health, immunity and longevity, with early-stage research suggesting potential benefits for lowering cholesterol and blood sugar levels. Cordyceps is linked to immune support, energy and performance, thanks to its stimulation of adenosine triphosphate (ATP) production, as well as metabolic health. And tremella is popular in ‘beauty-from-within’ products, prized for skin hydration and anti-ageing properties.
Mama Shrooms blends chaga, tremella, lion’s mane and reishi in its recently launched hot chocolate, specifically formulated for teenagers. “One of the biggest gaps I saw was that there was nothing truly designed with teenagers in mind,” founder Ogston explained. “Teenagers are already deeply engaged with wellness – skincare alone proves that – and I also see firsthand the mental health challenges they face through my work as an ambassador for Young Minds UK.”
The vegan-friendly drink combines the mushroom blend with organic cacao, coconut milk, coconut sugar and essential vitamins, all carefully chosen to support teen development, hormonal health, energy and mood.
Industrial breakthroughs
Technological advances are improving not only how functional mushroom products are developed, but also how they are validated – strengthening consumer confidence at a time when transparency and authenticity are paramount across the F&B sector.
Finnish functional mushroom extract producer Kääpä Biotech, which offers powders and liquids for a wide range of F&B and nutraceutical applications, places particular emphasis on testing its ingredients for species-specific bioactive compounds.
“At Kääpä Biotech, we’ve called for a scientific reset, encouraging the industry to focus on bioactive-based quality markers rather than relying solely on beta-glucan content,” said Eric Puro, the company’s CEO.
He added: “Due to our proprietary NordRelease extraction process, we’re able to deliver highly potent and effective functional mushroom extracts at the best cost per effective dose, giving formulators standardised, science-based ingredients they can trust”.
Kääpä Biotech’s NordRelease technology utlises Ultrasonic-Assisted Extraction, in which
high-frequency acoustic cavitation disrupts the chitinous cell walls of mushroom fruiting bodies, releasing the species-specific bioactive compounds.
“This method yields extracts with substantially higher concentrations of the bioactives such as terpenoids, hericines, hericenones, antioxidants, inotodiol and cordycepin,” Puro continued. “It’s superior to conventional hot-water extraction, which is limited by lower cell wall permeability and reduced efficiency for these compounds.”
In a first for the region, the European Food Safety Authority (EFSA) recognised Kääpä’s NordRelease extracts as non-novel in April 2025, making it the only non-water-based process approved alongside traditional water extraction.
Modern technologies are also helping overcome formulation challenges. Common hurdles, Carter of M2 Ingredients explains, include earthy or bitter off-notes in end products, which require careful balancing with flavour systems or selecting mushroom species that integrate cleanly into delicate beverages or lightly flavoured foods.
Solubility, dispersion, grit and process tolerance are also key considerations. “Whole mushroom powders are nutrient-dense but not inherently instantised,” Carter pointed out. “Without the right format, they can settle or create texture in liquids. High heat, low pH or heavy shear can also affect sensory qualities or certain metabolites, depending on the species and format.”
While coffee applications are trending, Carter told The Plant Base that many conventional mushroom powders become trapped in filter paper, meaning ‘mushroom coffee’ may deliver little to no functional benefit.
M2’s food scientists addressed this with the development of Myco-Solv, a technology designed specifically for brewed coffee that enables whole mushroom powders to pass through traditional filters without clogging or losing functionality.
“This opens the door to true brewed coffee products – including drip, pour-over, French press, espresso and pods – that finally deliver the full functional benefits consumers expect,” Carter enthused.
The company has also recently launched a new line of high-potency, stable extracts for applications where clarity and solubility are essential, such as clear beverages, energy drinks and products requiring small serving sizes or clean dispersion.
“They are formulated to maximise key actives, such as beta-glucans or cordycepin, enabling targeted immune, energy or adaptogenic support,” Carter added.
Cultivating competitive advantage
As the market becomes increasingly saturated, mushroom ingredient manufacturers and
functional F&B brands can stand out by paying attention to what matters most: integrity. Rigorous, routine testing and well-designed clinical trials will be essential to building consumer trust – a critical foundation for long-term success in this category.
M2 Ingredients said it invests more than 5% of its budget into clinical research, running multiple clinical and preclinical studies annually using the exact full-spectrum ingredients supplied to its partners. Elsewhere, Mama Shrooms emphasised its commitment to responsibly sourced mushrooms that are third-party tested through independent laboratories, with each batch verified for purity, potency and safety.
As mushrooms are inherently low-impact foods to cultivate from an environmental perspective, innovators in this space are primed to meet the expectations of today’s plant-based consumers, who increasingly prioritise ethical sourcing and strong sustainability credentials.
