The Shroom Boom Market Guide: Ten Terms You Need to Know, Part 1
The consumer appetite for mushrooms of all kinds, magic and otherwise, is booming and shows no signs of slowing down. The mini-economies generated by these different mushroom sectors are nothing short of staggering:
• Psychedelic mushrooms, a.k.a. magic mushrooms: While exact estimates are (understandably) hard to come by, the American psychedelic mushroom market was valued at roughly $1.8 billion in 2022 and is predicted to grow by 11.3 percent annually. Researchers note that over a billion dollars of that spending was spurred by people with mental health concerns: depression, addiction, anxiety and other conditions.
• Functional or medicinal mushrooms: Functional mushrooms are mushrooms consumed specifically for their medicinal or health properties (i.e., reishi or cordyceps, which are famed for their immunomodulating compounds, not their delicious taste). These are the mushrooms sold as tinctures, soft gels and powders in the supplements aisle. The global functional mushroom market size was valued at $8.8 billion in 2021 and is projected to reach $14.49 billion by 2030.
• Edible or gourmet mushrooms: The market for garden-variety mushrooms that you can find in your produce section (portobello, shiitake, oyster) is supercharged as well. The edible mushroom market in North America was worth nearly $12 billion in 2023 and experts project it will reach $20.91 billion by the end of 2028. We’ve caught on to what many other cultures have always known: mushrooms are delicious, affordable, rich in nutrients, a great source of vegan protein, easy to grow and environmentally friendly to cultivate.
There are key terms you need to know in order to understand these expanding markets. Not all of them apply across all sectors, but you’d be surprised how much a psychedelic mushroom has in common with its white button cousin.
1. “Fairy Dusting”
I first heard the expression “fairy dusting” from an interview with one of North America’s leading mushroom cultivators, Skye Chilton, but it’s a phenomenon I’ve observed for years as a supplements producer. When an ingredient gets hyped (hemp, acai berries, cordyceps mushrooms, you name it) supplement companies rush out new products that trumpet “RICH IN CORDYCEPS” on the label. The unknowing consumer purchases it unaware that their pricey new supplement only contains a trace amount of the trendy ingredient. You’d be shocked at how many leading brands engage in this practice.
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Anyone who makes, purchases or markets supplements needs to know this term. A product that’s just “fairy-dusted” with a tiny trace amount of lion’s mane or reishi isn’t going to offer therapeutic benefits. Read your labels carefully!
2. Fruiting Body
Picture a mushroom and you’re almost certainly picturing what’s known as the fruiting body (a.k.a. the cap and stem). Mushroom fruiting bodies provide the vast majority of the polysaccharides, beta-glucans, minerals and all the other beneficial compounds that are neuroprotective, support the immune system and make fungi so good for us.
Some mushroom products are made with fruiting bodies, others with underground parts of the organism like the mycelium or substrate (the material that the mushroom is in), which obviously makes the product cheaper to manufacture but gives the end consumer fewer health benefits. (I wrote about this controversy previously in What Makes a Mushroom a Mushroom?) I’m a fruiting body purist, so I only make and take mushroom products that are made from fruiting bodies.
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3. Functional Mushrooms
Mushrooms were (and still are) a pillar of the traditional Chinese medicine pharmacopeia, which dates back nearly 3,000 years. While the term is used primarily in industry circles, it’s a helpful way to distinguish mushrooms that are consumed predominantly for health benefits. (While reishi and chaga mushrooms are extremely good for you, you only have to try them once to realize why they’re usually consumed in powder form.)
4. Neuroplasticity and Neurogenesis
Science shows that mushrooms of all types impact brain health, which is one of the biggest drivers of the explosion in mushroom popularity across all sectors. Psychology Today defines neuroplasticity as “the brain’s capacity to continue growing and evolving….the ability for the brain to adapt or change over time, by creating new neurons and building new networks.”
While researchers are still trying to fully understand the impact of psychedelic mushrooms on the brain, they theorize that psychedelics open “a window of neuroplasticity as well as enduring neuroplastic changes,” adding that “Neuroplasticity is essential for learning, memory, and recovery from neurological insults.” This window of neuroplasticity may be why people with mental health problems have found relief in numerous clinical trials of psychedelic mushrooms.
But magic mushrooms aren’t the only fungi with measurable impact on the brain. Lion’s mane in particular literally spurs the growth of new brain cells (a.k.a. neurogenesis). A recent study published in the Journal of Neurochemistry found lion’s mane promotes neurogenesis and enhances memory, and could have clinical applications in treating and even preventing neurodegenerative disorders such as Alzheimer’s and Huntington’s disease.
Even the mushrooms you put on your pizza may support brain health. A survey of more than 24,000 American adults over 11 years found that people who ate mushrooms of any kind had lower incidence of depression, which researchers surmised may be fungi’s ability to reduce inflammation in the brain.
Understanding how mushrooms impact the human brain is key to understanding their appeal to consumers, researchers and biotech investors. Who doesn’t want a better brain?
5. Nootropics
Psychology Today defines nootropics as “compounds or supplements that enhance cognitive performance.” Nootropics are thought to address brain fog, increase mental clarity or elevate mood. Caffeine is a nootropic, as is L-theanine, but functional and edible mushrooms are some of the best nootropics available. In addition to the aforementioned lion’s mane, cordyceps has been shown to improve learning and memory. Between reducing inflammation, increasing circulation and protecting against oxidative damage, many mushrooms actually help the physical organ of your brain to operate better.
These are just the first five key terms needed to understand our current mushroom markets and mania, but stay tuned for the final five in our next installment!