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Palmer Holland In the News

Different Types of Functional Mushrooms and Their Benefits

November 06, 2025
Functional mushrooms are rapidly transitioning from niche supplements to mainstream products in food, beverage, and wellness formulations. As consumers grow more aware of holistic health and natural performance aids, brands are turning to these powerful fungi to deliver targeted benefits — from sharper focus to stronger immunity.

There are five mushrooms dominating the health and nutrition industry, each with its own unique benefits and features: Lion’s Mane, Reishi, Cordyceps, Turkey Tail, and Chaga. We’re here to help determine which will perfect your product.

Lion’s Mane: The Brain-Boosting Mushroom

Scientific name: Hericium erinaceus

Lion’s Mane is easily recognized by its soft, cascading white spines that resemble a shaggy lion’s mane or pom-pom. It grows in globe-like clusters on hardwood trees and has a spongy flesh when fresh.

When consumed, Lion’s Mane is best known for its potential to support cognitive function and nerve health. Rich in compounds like hericenones and erinacines, this mushroom may stimulate the production of nerve growth factor (NGF), which supports brain cell growth and repair.

Research suggests Lion’s Mane may aid memory, focus, and overall mental clarity, making it a popular choice for nootropic and brain-health formulations. In powdered form, its mild, earthy flavor makes it very versatile and an easy inclusion in ready-to-drink beverages.

Reishi: The Mushroom of Immortality

Scientific name: Ganoderma lucidum

Reishi features a striking, glossy red-brown cap with a lacquered finish and a woody, cork-like texture. Its fan-like shape and distinct shine make it one of the most visually recognizable mushrooms.

Revered in traditional Eastern medicine for centuries, Reishi acts as a powerful adaptogen, a natural compound that helps the body manage stress and maintain balance. It contains triterpenoids and polysaccharides that may support immune function, calm the nervous system, and promote better sleep.

Reishi is also valued for its anti-inflammatory and antioxidant properties, which can contribute to overall longevity and vitality. Its bitter flavor profile is distinct and works well in tinctures, teas, or capsules.

Cordyceps: The Natural Energy Enhancer

Scientific name: Cordyceps militaris

Cordyceps grows as bright orange, finger-like clusters that rise from their substrate. They have a thin, elongated shape and a soft, slightly fibrous texture.

This fungi has earned attention in the athletic and energy markets for its ability to boost endurance, stamina, and oxygen utilization. Bioactive compounds like cordycepin and adenosine mimic energy-carrying molecules in the body, supporting efficient ATP production and natural energy and athletic performance.

Beyond fitness, it’s also linked to respiratory and cardiovascular health, making it a popular ingredient for functional beverages, performance supplements, and wellness formulations.

Turkey Tail: The Immune System Ally

Scientific name: Trametes versicolor

True to its name, Turkey Tail forms thin, fan-shaped layers with colorful concentric rings of brown, gray, tan, and blue — resembling the fanned tail feathers of a turkey. Its texture is leathery and slightly velvety.

Turkey Tail is one of the most well-studied immune-supportive mushrooms, packed with beta-glucans and powerful compounds like PSK (polysaccharide K) and PSP (polysaccharide peptide) that help regulate immune system function.

Research also highlights its value in supporting gut health thanks to the polysaccharides serving as prebiotics to nourish beneficial bacteria. These benefits make this fungus ideal for wellness products and formulations targeting immunity.

Chaga: The Antioxidant Booster

Scientific name: Inonotus obliquus

Chaga is a dark, irregularly shaped mushroom that grows primarily on birch trees in cold climates. Its cracked, black exterior hides a rich orange-brown interior packed with antioxidants and bioactive compounds, giving it a potent profile for wellness applications.

Traditionally used in Eastern European and Russian medicine, Chaga is valued for its ability to support immune health and help the body combat oxidative stress. Compounds such as polysaccharides, polyphenols, and melanin may help reduce inflammation and support cellular health.

Chaga’s flavor is earthy, slightly bitter, and subtly sweet, making it a versatile ingredient for teas, tinctures, functional beverages, and powdered formulations. Its strong antioxidant properties and long history in traditional medicine make it a preferrable choice for wellness products that support overall health and longevity.

More Mushrooms with Powerful Benefits

Beyond the well-known functional mushrooms, several other species offer unique health benefits:

  • Shiitake (Lentinula edodes): Rich in beta-glucans and compounds like lentinans, Shiitake mushrooms are celebrated for their immune-boosting properties and potential to support heart health.
  • Maitake (Grifola frondosa): Maitake mushrooms offer immune support and potential benefits for maintaining balanced blood sugar.
  • King Trumpet (Pleurotus eryngii): This mushroom is noted for its rich flavor and potential benefits in supporting cardiovascular health and immune function.
  • Sun Mushroom (Agaricus blazei): Sun Mushrooms are valued for their potential to support immune health and may have anti-inflammatory properties.
  • Antrodia (Antrodia camphorata): Traditionally used in Taiwanese medicine, Antrodia is believed to support liver health and may have antioxidant and anti-inflammatory effects.

Sustainably sourced and quality-assured, these mushrooms offer potent bioactive compounds that can elevate the efficacy of health and nutrition formulations.

Connecting Brands and Growers

As ingredient distributors, our role is to connect formulators with the most trusted and innovative mushroom suppliers in the industry. Our recent partnership with M2 Ingredients gives you access to North America’s largest grower of functional mushrooms.

Consumer demands are constantly evolving, but our team of experts is here to help you stay ahead. Whether you’re developing an energy-boosting beverage, an immune-focused supplement, or a cognitive support blend, functional mushrooms offer versatile and science-backed solutions.

Reach out today to get started with Functional Mushrooms.

Want to Test your Function Mushroom Knowledge? Take our quiz and share your results!

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