“As the leading U.S. growing fo functional mushrooms, it became clear that we had a responsibility to step in. Our customers – many of them longtime partners and some brand new to M2 – told us they needed a reliable domestic extract solution.”
Shaun Richmond, svp sales – m2 ingredients
As tariffs, supply chain instability, and regulatory uncertainty challenge the global mushroom extract industry, M2 Ingredients—the largest organic functional mushroom cultivator in the Western Hemisphere—today announces the launch of its first-ever line of domestically grown and extracted functional mushroom ingredients, providing a critical new solution for brands seeking transparency, traceability, and performance in their supply chains.
The functional mushroom market is experiencing rapid expansion, with the U.S. mushroom extract category projected to surpass a billion dollars. Within this space, mushroom-based coffee has emerged as a breakout category, with retail sales more than tripling over the last two years. As consumer interest accelerates, major retailers continue to expand shelf space and product assortments, fueling sustained growth across both supplements and functional beverages.
Yet despite this explosive demand, access to consistent, clean, and compliant mushroom extracts has become increasingly difficult, due to import tariffs, international port seizures, and rising concerns around labeling, contamination, and carrier use in extracts imported from Asia.
“As the leading U.S. grower of functional mushrooms, it became clear that we had a responsibility to step in,” said Shaun Richmond, SVP of Sales at M2 Ingredients. “Our customers—many of them longtime partners and some brand new to M2—told us they needed a reliable domestic extract solution. They came to us with a simple ask: help secure the future of this industry. That’s exactly what we’ve done.”
100% U.S. Grown and Extracted — Solvent-Free, Carrier-Free, and Performance-Tested
M2’s new line of mushroom extracts includes USDA Organic, Vegan, Kosher, and Non-GMO certified ingredients, cultivated and processed entirely in the United States in a BRCGS-certified facility with full third-party verification.
Each extract is produced using a proprietary concentration technology—a solvent-free process that preserves efficacy while delivering exceptional clarity, solubility, and sensory neutrality. Unlike many imported alternatives, M2’s extracts are free from carriers like maltodextrin or gums.
A Natural Evolution, Not a Departure
While this marks M2’s first foray into extract manufacturing, the company emphasizes that it remains deeply committed to its original mission: delivering full-spectrum, whole-mushroom ingredients that include both fruiting body and mycelium, supported by clinical validation and robust chemistry.
“Our entry into the extract space is a strategic complement—not a shift away from whole mushrooms,” said Dr. Sandra Carter, Founder of M2 Ingredients. “In fact, we’re doubling down on innovation with upcoming technologies that make whole mushroom powders behave like extracts in formulation—giving product developers even more flexibility without sacrificing the integrity of the mushroom.”
As the functional mushroom category enters a new chapter of mainstream expansion M2 Ingredients remains committed to ensuring the industry’s long-term success—through quality, innovation, and U.S.-based leadership.
