The wonders of medicinal mushrooms
Imagine a food fighting fatigue, providing relief from stress and aiding memory and focus. Yes, certain varieties of medicinal mushrooms can do this and much more, immensely benefitting your health and wellbeing. As functional medicine and holistic nutrition increasingly go mainstream, this superfood gains focus globally. Known for their ability to support immune function, sustain energy, promote longevity, and even ward off or treat cancer, medicinal mushrooms are going places so much so that the global medicinal mushroom market size is projected to grow to $182.34 billion by 2033 at a CAGR of 11.64%, according to Business Research Insights. Akshay Khurana, Founder & CEO of Noida-based Azoth Biotech Pvt Ltd, takes us through the fascinating world of medicinal mushroom cultivation and research.
Excerpts:
1. Medicinal mushroom production and processing is a specialised field, can you give us an overview of this industry in the Indian context?
The mushroom industry for medicinal and functional purposes is still nascent in India, but it is poised for enormous development. Currently, the industry is in the firm control of China, earning over $58 billion annually, and maintains 85% of functional mushroom production globally. US is close on its heels, with a $30 billion market nearly expanding at 11.2% CAGR.
In contrast, the Indian functional mushroom industry remains nascent, currently estimated at $400 million. Despite its modest size, India boasts unique advantages, including rich biodiversity, cost-effective production, and a burgeoning consumer interest in natural health solutions.
Owing to the growing demand for holistic wellness, natural remedies, and a rapidly expanding health-conscious consumer base, several companies are driving the growth. Azoth Biotech is at the forefront. We are putting India on the map with patented, medically validated and tested, high-efficacy extracts of functional mushrooms like Cordyceps, Lion’s mane and Reishi.
This industry momentum aligns perfectly with India’s growing demand for health supplements, nutraceuticals, and natural remedies. Investing in the functional mushroom sector not only leverages the country’s rich biodiversity but also taps into a rapidly expanding wellness market.
2. What are the most common uses of medicinal mushrooms and which products are most in demand and why?
Medicinal mushrooms are primarily used for immune support, cognitive enhancement, energy and endurance, stress reduction, and gut health. The most in-demand products include:
• Functional mushroom extracts (Cordyceps for stamina, Lion’s Mane for brain health, Reishi for immunity & stress relief)
• Mushroom coffee & beverages (popular as caffeine alternatives with cognitive benefits)
• Dietary supplements & capsules (convenient daily wellness solutions))
• Skincare formulations (Reishi and Cordyceps for anti-ageing and hydration)
The demand is driven by growing consumer awareness of natural remedies, the shift toward holistic wellness, and increasing research supporting their efficacy.
3. Is the industry able to fulfil the demand for medicinal mushrooms given people's growing preferences for using natural ingredients when it comes to their health and wellness?
No, the industry is currently struggling to fully meet the growing demand for medicinal mushrooms. As more people shift toward natural health and wellness solutions, challenges persist in supply chain limitations, high-quality extraction processes, and sustainable large-scale cultivation. This gap presents significant opportunities for growth, investment, and innovation in cultivation, extraction, and product development, especially in emerging markets like India. Companies that can scale efficiently while maintaining quality will be well-positioned to lead this rapidly expanding industry.
4. How does the Indian medicinal mushroom extracts industry manage to procure raw materials in the face of challenges of ethical sourcing and sustainability?
The Indian medicinal mushroom extracts industry faces challenges in ethical sourcing and sustainability, with many players relying on chemical-based cultivation and alcohol-based extraction. However, at Azoth Biotech, we set a different standard—our patented chemical-free cultivation and solvent-free extraction technology ensures purity, safety, and sustainability.
The industry as a whole needs greater focus on R&D and stricter regulations to ensure that raw materials and extraction processes do not compromise human health. Sourcing high-quality, pesticide-free mushrooms and adopting cleaner extraction methods will be critical for the long-term growth and credibility of this sector.
5. Humanity gets a lot from nature in terms of organic foods, what is the industry doing to pay back to Mother Earth?
The medicinal mushroom industry is increasingly focusing on sustainable cultivation, regenerative agriculture, and waste reduction to give back to nature. Companies are adopting eco-friendly farming techniques, reducing chemical use, and exploring biodegradable packaging. At Azoth Biotech, we go further by ensuring zero chemical residue in our extraction process and actively researching mycelium-based sustainable solutions like biodegradable packaging and alternative materials. The goal is to harness nature’s benefits while preserving ecosystems for future generations.
6. What is the scale of your operations and which are key focus areas for your company?
At Azoth Biotech, we are continuously expanding and evolving to meet the growing demand for high-quality medicinal mushroom extracts. Our key focus is clinical validation, quality and ensuring that our extracts are scientifically backed for efficacy and safety. Beyond business, our mission is to drive a health revolution, making functional mushrooms a mainstream solution for well-being and longevity, ultimately benefiting humanity.
7. One of your products is, interestingly, known to have anti-fatigue and anti-ageing properties, what are the other exclusive uses of medicinal mushrooms?
Cordyceps is known for its anti-fatigue and anti-aging properties, enhancing energy and endurance. Lion’s Mane supports cognitive function and nerve regeneration, aiding memory and focus. Reishi promotes immune balance, stress relief, and longevity, making it a powerful adaptogen for overall well-being.
8. How is the Indian medicinal mushroom industry placed in terms of R&D, innovation and creativity? Are our competitors ahead of us on the technology front?
The Indian medicinal mushroom industry is still in its early stages when it comes to R&D, innovation, and technology adoption, especially compared to global leaders like China and the US. While China has heavily invested in large-scale cultivation and advanced extraction techniques, and the US focuses on clinical research and product innovation, India is just beginning to catch up.
9. Azoth Biotech had a first-mover advantage, what is your advice to people foraying into the field?
The medicinal mushroom industry is poised for massive growth, driven by rising consumer awareness and demand for natural health solutions. With rapid innovation and untapped opportunities, success will depend on understanding market trends, leveraging technology, and aligning with evolving consumer preferences. This is just the beginning, and the potential is limitless.
10. Which are the key export destinations for Indian medicinal mushrooms?
The key export destinations for Indian medicinal mushrooms include the United States, Europe, Canada, Australia, and Southeast Asia. These markets have a high demand for functional ingredients, dietary supplements, and natural health products, making them prime regions for Indian mushroom extracts and formulations.
11. What is the product supply situation in the country?
The product supply situation in India is evolving, but there are concerns about poor-quality and potentially toxic mushroom extracts being imported by companies prioritizing cost over safety. Due to price differences, some players bring in low-grade, pesticide-laden, or adulterated products that do not meet quality standards. This not only compromises consumer health but also undermines the credibility of the industry. Stricter regulations, better sourcing practices, and a stronger emphasis on high-purity, clinically validated extracts are essential to ensuring the long-term sustainability of the market.
12. In your estimation where will maximum growth come from – within the country or abroad?
While India’s domestic market is growing rapidly due to increasing consumer awareness of natural health solutions, the maximum growth will come from exports. Global markets, particularly the United States, Europe, and Southeast Asia, have a well-established demand for high-quality medicinal mushroom extracts. These regions prioritize clinically validated, sustainably sourced, and high-potency products, creating significant export opportunities for Indian producers. However, as awareness and regulations improve within India, the domestic market is also set for substantial expansion.
13. What’s one factor that sets you apart from your peers?
Azoth Biotech stands apart due to its patented, chemical-free extraction technology that ensures the highest purity and bioavailability of medicinal mushroom extracts. We focus on clinically validated, high-efficacy formulations that meet global standards.
Our commitment to scientific research, transparency, and sustainable sourcing makes us a leader in setting new benchmarks for quality and innovation in the functional mushroom space.