Mushroom Cosmetics Market (2024 - 2030)

Mushroom Cosmetics Market Summary

Growing consumer awareness of the advantages of natural and organic skincare products is also contributing to market growth. The presence of specific compounds such as beta-glucans, triterpenes, polysaccharides, and polyphenols in mushrooms is driving their inclusion in skin care products to help with various skin conditions, including sensitivity, rosacea, acne scarring, and compromised skin barriers. According to dermatologists, some types of mushrooms, known as adaptogens,such as reishi, shiitake, and tremella, can help the skin recover from environmental stressors and have antioxidant and anti-inflammatory properties. The topical application of mushrooms is beneficial and safe for all skin types.

The growing innovation in terms of extraction methods and adaptation of fungi-based ingredients in beauty formulations and cosmetics is driving the market growth. In January 2023, Jesse Adler, a mycological alchemist, developed a method of extracting pigments from fungi, including mushrooms, for use in makeup products. Such developments will reduce the reliability of cosmetics on non-renewable colorants. Her collaboration with a cosmetic formulation chemist has resulted in the creation of prototype versions of lipsticks, eyeshadows, and tinted skin creams that could potentially become commercialized products in the future. This shift towards using renewable and natural colorants derived from mushrooms is a significant step towards sustainability in the cosmetics industry, presenting growth opportunities for the mushroom cosmetics industry.

Product Insights

Based on product, the skin care segment accounted for a revenue share of 65.47% in 2023. The rising prevalence of skin issues such as acne, eczema, and aging-related concerns is driving the demand for skin care products with natural and effective ingredients, such as mushrooms. A new study published in Clinical & Experimental Allergy in February 2023, gathered information from 14 countries and analyzed data from thousands of children and adolescents. The researchers found that approximately 6% of children and adolescents are currently experiencing symptoms of eczema. They also concluded that the prevalence of eczema has risen in these age groups over the last ten years. Therefore, the growing prevalence of eczema is likely to drive the demand for mushroom cosmetics with functional mushrooms such as tremella, chaga, and reishi, which are often used as antioxidant and moisturizing additives in skincare and cosmetics products.

The demand for hair care segment is projected to witness a CAGR of 4.3% during the forecast period. Growing hair-related concerns such as hair loss and aging hair have led to the demand for hair health-promoting products. Reishi mushrooms are known to offer advantages for hair health. They contain compounds that can reduce symptoms of alopecia areata and strengthen hair follicles. In addition, they help stimulate blood circulation to the scalp, promoting healthy hair growth and reducing the risk of conditions like dandruff. As a result, there is a growing demand for mushroom-based hair care products that harness the benefits of mushrooms such as reishi for improving hair health and addressing issues like hair loss and scalp conditions.

Price Range Insights

Based on price range, the medium-priced ($21 to $70) segment accounted for a revenue share of 58.06% in 2023. Consumers are increasingly concerned about the ingredients rather than the price of cosmetic products. Overall, the industry is characterized by the premiumization trend. The growing consumer willingness to spend on skincare and hair care products with natural and clean-label ingredients is driving the growth of medium-priced mushroom cosmetics. Some of the key players catering to this category include Origins, Herbivore Botanicals, Neon Hippie, Groh Beauty Corp, and Farmbodyskincare.com.

Mushroom cosmetics under the low-price range (< $20) are projected to witness a CAGR of 5.9% during the forecast period.The rising trend of grooming among middle-income consumers in developing regions is contributing to the growing demand for mass cosmetics and personal care products. As more consumers in these regions embrace grooming routines, the demand for affordable and accessible skin care and hair care products continues to rise. Furthermore, manufacturers such as The Switch Fix have launched mushroom cosmetics with prices ranging between $5 to $7 which are affordable for consumers of all middle-income, upper-middle-income, and affluent groups, supporting the growth of the mass market.

Distribution Channel Insights

Based on distribution channel, the sales from specialty stores segment dominated the market, with a revenue share of 40.64% in 2023.Consumers often prefer to buy beauty and personal care products through offline channels because they can physically see, touch, and test products, especially when it comes to cosmetics such as skin care products, allowing them to assess texture, scent, and suitability for their skin or preferences. In addition, mushroom cosmetics is a growing and emerging market wherein most products are available through specialty stores rather than mass market retailers.

Some consumers still have concerns about the authenticity of products and the accuracy of online product descriptions, making them more inclined to make purchases in physical stores where they can verify the quality and authenticity of the items. According to a June 2021 consumer survey by NCSolutions, a significant portion of American consumers (38%) expressed their intention to increase their purchases of beauty products in physical stores, rather than online, highlighting the preference for purchasing beauty and personal care products from specialty stores. This is driving the growth of mushroom cosmetic sales through specialty stores.

Online sales are projected to grow at a CAGR of 6.0% during the forecast period. Company websites often introduce and feature the latest skincare, haircare, and makeup innovations, attracting consumers looking for cutting-edge products and a diverse range of options. For instance, according to an August 2023 article by Ellie Conley, Sephora, a retailer also offering mushroom cosmetics has recently introduced dedicated sections on its website for new product launches to cater to customers seeking beauty, skin, hair, and makeup products. Such websites provide easy access to a diverse range of options, making it convenient for consumers to explore and purchase the latest skincare, haircare, and makeup innovations, all from the comfort of their homes. In addition, the organized categorization of products on websites enhances the shopping experience, attracting customers seeking novelty and up-to-date offerings. This is projected to drive product sales through online channels.

Regional Insights

North America dominated the market with a revenue share of 39.06% in 2023. The mushroom cosmetics market in North America is experiencing significant growth due to the increasing consumer demand for natural and organic cosmetic products. Mushrooms are rich in antioxidants, making them a popular ingredient in skincare and hair care products. The market growth is also driven by the rising awareness of the benefits of mushrooms for skin health, including their anti-inflammatory and anti-aging properties. In addition, the growing popularity of clean beauty and sustainable products has further driven the demand for mushroom-based cosmetics in North America.

Product demand in Asia Pacific is projected to grow at a CAGR of 6.4% during the forecast period. Mushroom consumption is high in Asian countries because of culinary preferences. The growing popularity and acceptance of mushrooms in cosmetics for topical applications have presented significant growth opportunities in the Asian market. The growing awareness regarding the benefits of mushrooms in skin care products is driving the market growth in Asia Pacific.

Key Companies & Market Share Insights

The industry is characterized by the presence of global players and domestic players. Origins Natural Resources, Inc. is one of the key players in the market under the Estée Lauder Companies. The American cosmetics brand offers mushroom skin care cosmetics under its collection Mega-Mushroom. Some of the mushroom cosmetics offered by the company are body lotions, skin concentrates, moisturizers & face creams, face serum, and face mist.

Key market participants are innovating their product portfolios through the launch of new skincare and hair care products with the inclusion of mushrooms. These companies are also expanding their presence in the developing regions.

Recent Developments

• In April 2023 , Pacifica launched a new body care line called Wake Up Beautiful, featuring retinoid and mushroom body products to renew skin. The collection includes a body serum and lotion, both formulated with sustainable and eco-friendly ingredients. The product contains mushrooms to promote skin hydration.

• In February 2023, Neon Hippie, a mushroom-based skin care brand, launched in the U.S. with its 7 Shroom Complex featuring chaga, reishi, shiitake, tremella, trametes versicolor, cordyceps, and coprinus. The product line includes seven items and is available at select Neiman Marcus stores and online.

• In January 2023, Shroom Skincare launched its first product, Mycelium Glow Brightening Serum, which combines mushroom extracts and vitamin C to rejuvenate and moisturize the skin. The serum offers a range of benefits, including protection from environmental damage, reduction of inflammation, and improvement in the appearance of aging and uneven skin tone. The product contains maitake, reishi, chaga, and cordyceps mushroom extracts, each providing different skin benefits.

• In December 2021 , The Switch Fix partnered with Shroomery to launch Magic Shrooms, a range of hair care products featuring mushrooms. The products are aimed at addressing scalp health, combating environmental stresses, and promoting sustainability. The collaboration aims to introduce mushrooms as a beneficial ingredient for scalp and hair health. The range includes a shampoo bar, conditioner bar, scalp serum, and hair mask bar, all crafted using mushrooms for their anti-hyaluronidase properties.

Mushroom Cosmetics Market