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Redefining Mushroom Extracts: A Formulator’s Perspective 

By Jay Schmalz, Food Scientist & R&D Commercialization Manager, M2 Ingredients 

As someone who has spent years working with mushroom products and supporting brands who use mushrooms in formulations, I’ve seen firsthand how incredible mushrooms are, but also some of the challenges of formulating with them. Most mushroom extracts currently available on the market today are imported — and while some look great on a spec sheet, the reality in formulation is often very different. These imported extracts taste harsh or bitter and are difficult to dissolve – (even if they claim to be soluble on the spec sheet),  and don’t always meet the same quality or safety standards we hold ourselves to in the United States. 

When I joined M2 Ingredients, I wanted to help change that — to create extracts that are clean, consistent, great-tasting, and grown and processed entirely here in the U.S., where we can guarantee quality from start to finish. 

“Functional and ready to drink beverages should be an enjoyable experience—an easy and delicious way to incorporate health benefits into daily routines.” 
 

The advantage of formulating with mushroom extracts is that bioactive compounds are concentrated, allowing smaller inclusion rates to achieve meaningful functional benefits. This is especially valuable in applications such as beverages and gummies, where lower dosages are often more compatible with the product matrix. 

However, the same concentration process that enhances bioactive potency can also intensify flavor and color compounds, resulting in dark, bitter extracts that are difficult to mask or formulate into enjoyable products. 

M2 Ingredients’ whole mushroom extracts overcome this common challenge—delivering equal or higher levels of β-glucans compared to other extracts on the market, while offering superior solubility, lighter color, and a cleaner, more neutral flavor profile that makes them ideal for a broad range of functional food and beverage applications. 

A Better Extract, Built from Experience 

That’s what led to the creation of LionXtract™ (Lion’s Mane Extract), ReiExtract™ (Reishi Extract), and CordyExtract™ (Cordyceps Extract) — three unique, whole mushroom extracts that truly raise the bar for functional ingredient performance.  We are also releasing one extract blend – Myco-Six™ – a blend of 6 mushrooms. 

We started by focusing on what product developers actually need: ingredients that are neutral in flavor, easy to use, and reliably consistent. These new extracts dissolve rapidly, stay suspended longer, and blend seamlessly into ALL beverages, wellness shots, gummies, and other functional products. 

Grown and Processed in the U.S. for Complete Control 

Every step — from cultivation to extraction — takes place right here in the United States under M2’s strict quality and safety standards. That means we know exactly where every mushroom comes from, how it’s grown, and how it’s processed. In an industry filled with imported materials of uncertain origin, that level of transparency and control makes all the difference. 

For formulators and brands, it means peace of mind. For me, it means pride — knowing we’re producing ingredients that don’t just meet expectations but redefine them. 

A New Standard for Mushroom Innovation 

It’s incredibly rewarding to see what’s possible when quality, flavor, and functionality finally come together. These new extracts don’t just make it easier to formulate — they make it easier to trust that you’re getting the highest quality water extract on the market. 

Speaking of flavor… 

Our R&D team spent nearly a year perfecting these extracts to ensure they’re not only functionally superior but also exceptional in taste. We designed them specifically for use in beverages—including light flavor hydration formats—where flavor balance really matters. Throughout development, we benchmarked our extracts against leading competitors, refined every variable, and collaborated with some of the best flavor specialists in the industry. The result? Extracts that stand out for their clean, balanced, and genuinely enjoyable taste. We can’t wait for you to experience the difference for yourself. 

Let’s Connect! 
To learn more and schedule a time to taste these new extracts
please email [email protected]  

About the Author 
Jay Schmalz is the Food Scientist and R&D Commercialization Manager at M2 Ingredients. With years of experience formulating functional foods and beverages, she bridges the gap between product development and mushroom innovation — helping brands create better-tasting, more effective products built on quality, transparency, and science. 

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