US retail sales of functional mushroom supplements reached approximately $149.2 million over the latest 52-week period, growing 7.7% year over year, according to recent SPINS data shared with NutraIngredients. While growth remains positive, it has moderated from the category’s pandemic-era surge, signaling a shift from rapid expansion to a more competitive, increasingly structured market.
Within that market landscape, Real Mushrooms’ acquisition of Mushroom Science reflects broader consolidation trends as brands look to differentiate on sourcing, extraction standards and labeling transparency.
NI spoke to Skye Chilton, CEO of Real Mushrooms, who explained that rapid growth over the past five years “has brought many new brands into the market which has increased competition.”
As growth normalizes, he said, consolidation is a natural outcome.
“It’s inevitable that some brands will do better than others and past success does not indicate future success,” Chilton added. “I think we will see further consolidation as the category continues to mature.”
“Real Mushrooms shares that same commitment to organic, mushroom-only extracts, proper hot water extraction, and science-backed education, and we are proud to endorse them as the trusted source we recommend to our customers going forward,” said Kyle Ruxton, President of Mushroom Science. (Real Mushrooms)Alignment on extraction and disclosure
Both Real Mushrooms and Mushroom Science have built their reputations around fruiting-body formulations, hot water extraction and clear disclosure of fungal ingredients.
“Both companies have long advocated for truth in labeling, whether that’s mushroom, pure mycelium, or mycelium fermented grain,” Chilton said.
He pointed to Mushroom Science’s early use of cordyceps mycelium as part of that track record.
“Mushroom Science has sold Cordyceps Cs-4, a pure mycelium ingredient, long before many of these mycelium fermented grain companies were around,” Chilton said. “This comes back to leading with science, quality, and education.”
The brand’s success also served as an early reference point for Chilton when Real Mushrooms launched in 2015. “When I started Real Mushrooms ten years ago with my Dad, Mushroom Science was definitely a role model for what we wanted to accomplish,” he said. “They were doing it right, leading with education and selling a high-quality product.”
Labeling debates remain unresolved
Mushroom Science was among the first brands to publicly distinguish between fruiting body extracts and mycelium-on-grain products, a distinction Chilton said remains central to industry credibility.
“Mushroom Science, Real Mushrooms, and Nammex, along with other companies, have been urging accuracy and transparency in fungi product labeling and marketing for many years,” Chilton said.
While some brands have shifted their messaging, he said, confusion persists.
“While some mycelium fermented grain brands are being more honest with consumers, there’s been a recent marketing push disseminating confusing and sometimes misleading information,” Chilton said. “Our point is very simple, don’t try to pass off very different fungal parts as being the same. Consumers understand our message and like it.”
China sourcing and supply chain expectations
Both companies maintain long-standing sourcing relationships in China, which accounts for the majority of global mushroom production. “Consumers continue to want ingredient transparency no matter what country an ingredient is from,” Chilton said.
He emphasized the role of Chinese growers and processors in the category.
“China is the birthplace of mushroom cultivation and supplies over 94% of the world’s mushroom, so their quality and expertise is second to none,” he said. “This provides an excellent opportunity to describe where all the wonderful ingredients in our category come from.”
For Chilton, confidence in sourcing comes down to oversight rather than geography.
“Consumers want to know that ingredients are safe and that they are effective,” he said. “This comes from auditing your suppliers and manufacturers, building relationships with them, and following established quality control protocols and regulations – no matter where that work is taking place.”
Continuity for Mushroom Science customers
Real Mushrooms said the acquisition is intended to maintain continuity for Mushroom Science customers across retail, practitioner and direct-to-consumer channels.
“Our customers have always been at the heart of Mushroom Science,” Kyle Ruxton, president of Mushroom Science, said in Real Mushroom’s press release, adding that shared values were critical in selecting an acquirer.
Chilton said the acquisition will provide Mushroom Science customers with continuity and additional educational support. “They will now also have access to Real Mushrooms’ expansive library of information and practitioner resources.”