Beyond Beta-Glucans: KÄÄPÄ Biotech Calls for a Scientific Reset in the Functional Mushroom Industry

Article in partnership with Finnish company KÄÄPÄ Biotech, a leading European producer of functional mushroom ingredients, as part of a content series dissecting this industry.

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Functional Mushrooms Are Booming - But Are We Measuring What Matters?

The functional mushroom market is no longer a niche wellness trend - it’s a rapidly expanding sector with a projected global valuation of $65 billion by 2030, driven by demand for natural health solutions rooted in both tradition and science [1].

In the United States, mushrooms are going mainstream. According to the American Botanical Council’s 2024 HerbalGram report, sales of “mushrooms (other)” in the U.S. mainstream supplements channel achieved a 75.8% increase over 2023. This makes it the largest percentage gain of any top 40 ingredient in the mainstream retail channel that year. The SPINS-tracked category includes functional mushrooms like Lion’s Mane, Chaga, Cordyceps, and Reishi, signaling rapidly growing consumer demand for mushroom-based wellness solutions across multiple formats [2].

Credits: Kääpä biotech

Mushrooms like Reishi, Lion’s Mane, Chaga, and Cordyceps are being formulated into everything from nootropic supplements to gut-friendly coffees. But as mushroom-based products pack the shelves, a fundamental question looms: How do we define quality in this space?

For over a decade, the industry has leaned heavily on one compound group as a proxy for product quality: beta-glucans. But as clinical science advances and consumers become more educated, that single-marker standard is showing its limits.

Leading this shift is Finnish biotech innovator KÄÄPÄ Biotech, whose September 2025 White Paper, Beyond Beta-Glucans, builds on years of scientific development to propose a compelling, evidence-based rethink: that true product quality lies in the measurement of species-specific bioactive compounds - the real drivers of functional efficacy.

“It’s time the industry moves beyond beta-glucan content as the default quality metric” says Eric Puro, CEO of KÄÄPÄ Biotech.

“If we are serious about product quality and efficacy, we need to start standardizing the levels of the bioactive compounds that matter most for each mushroom species — and that’s exactly what we’re doing at KÄÄPÄ Biotech: aligning species-specific bioactives with targeted health benefits to create products that deliver measurable outcomes for our customers.”

A Call to Evolve: From Beta-Glucans to Bioactives

Beta-glucans, complex polysaccharides found in fungal cell walls, are widely known for their role in immune modulation. They are important, but they are not the only, or even the most clinically relevant, functional bioactive compounds in mushrooms.

KÄÄPÄ Biotech’s white paper outlines the need to focus on bioactive compounds that are species-specific and pharmacologically active. Here’s what that means in practice:

• Lion’s Mane (Hericium erinaceus): Contains Hericenones and Hericenes, two groups of compounds shown to stimulate Nerve Growth Factor (NGF) synthesis. These compounds are associated with cognitive function, memory support, and nerve regeneration [3,4,5].

  
  

• Cordyceps (Cordyceps sinensis & Cordyceps militaris): Both species are known for aiding anti-inflammatory, energy-boosting, and performance-enhancing properties. Adenosine is found in both species and acknowledged as the compound to help with the sought after effects, while Cordycepin is found in Cordyceps Militaris and shown to assist with energy-boosting effects [6,7].

  
  

• Reishi (Ganoderma lucidum): Rich in Triterpenes, Lucidenic Acid, and Ganoderic Acids, Reishi is linked to adaptogenic effects, improved stress resilience, immune modulation, and better sleep quality [8,9].

  
  

• Chaga (Inonotus obliquus): Standardized for Inotodiol and Betulinic Acid, Chaga’s antioxidant properties are now being explored for their role in healthy aging and longevity support. These compounds may help reduce oxidative stress and support long-term vitality [10,11,12].

Credits: Kääpä Biotech

Despite the evidence, most mushroom products on the market are still evaluated and sold based solely on their beta-glucan content with little or no quantification of any other bioactive compounds. This not only misleads consumers but also hinders product development, formulation accuracy, clinical validation, and the comparability of product quality and efficacy.

KÄÄPÄ Biotech proposes a new industry-wide framework that integrates bioactive testing for end products supported by Certificate of Analysis (CoA) data for every product batch.

KÄÄPÄ Biotech: Pioneering Change Through Science and Standards

Founded in Finland, KÄÄPÄ Biotech has become a leading European producer of functional mushroom ingredients, serving over180 companies across 20+ countries. The company’s approach is rooted in vertical integration, scientific validation and transparency.

With the release of Beyond Beta-Glucans, KÄÄPÄ is publicly aligning its R&D, production methods, and regulatory work toward a new era of functional mushroom product standardization.

Credits: Kääpä Biotech

This leadership is backed by a series of key milestones:

EFSA Approval of NordRelease® 

In April 2025, the European Food Safety Authority (EFSA) officially approved NordRelease®, KÄÄPÄ’s proprietary extraction method. This decision confirmed KÄÄPÄ’s mushroom extract powders as non-novel under EU food law—making it the only approved extraction method alongside traditional water extraction.“This landmark EFSA decision opened the path for effective, high-quality EU-produced mushroom extracts,” said Eric Puro in an interview with NutraIngredients [13].

€900,000 Strategic Investment 

The company secured a €900,000 investment from PeakBridge, an agri-food innovation fund under Edmond de Rothschild Private Equity. According to Yoni Glickman, Managing Partner, FoodSparks at PeakBridge: “KÄÄPÄ Biotech stood out due to its extraction science, bioactive focus, and traceable cultivation model” [14]. The capital is fueling further scale-up, product innovation, and R&D.

New Production Facility in Paimio 

KÄÄPÄ also launched a state-of-the-art cultivation facility in Paimio, Finland, increasing its production capacity for fruiting body-based extracts. This facility uses high-tech automated climate control and energy recovery technology to produce the highest quality mushrooms while minimizing its carbon footprint.

Putting the White Paper into Practice: From Science to Shelf

While many mushroom brands continue to source generic powders with little biochemical profiling, KÄÄPÄ Biotech’s supply chain is data-driven and batch-specific.

The company provides:

• Bioactive-quantified extracts

• EU organic certification

• Transparent CoAs for each batch

• Extracts from fruiting bodies grown in controlled environments or, in Chaga’s case, outdoors on Finnish birch trees

This positions KÄÄPÄ Biotech not just as an ingredient supplier — but as a science partner for product formulators, research teams, and wellness brands across the globe.

The Bigger Picture: Why This White Paper Matters Now

As the functional mushroom category continues to professionalize, regulatory scrutiny, consumer education, and scientific accountability will only increase.

As highlighted at the beginning of this article, according to the American Botanical Council’s 2024 HerbalGram report, sales of “mushrooms (other)” in the U.S. mainstream supplements channel achieved a 75.8% increase over 2023. The mushroom boom is real and happening right now. [2]

“This is about creating a future where functional mushrooms are treated with the same rigor as other evidence-based wellness ingredients” says Eric Puro.

With Beyond Beta-Glucans, KÄÄPÄ Biotech has thrown down the gauntlet, inviting the industry to rethink what quality means, and how to deliver it in every product.

Read the Full White Paper

Explore the science, case studies, and proposed standards in KÄÄPÄ Biotech’s white paper: Beyond Beta-Glucans - nordicmushrooms.com/white-paper 

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About KÄÄPÄ Biotech

Headquartered in Finland, KÄÄPÄ Biotech is a vertically integrated biotechnology company specializing in functional mushroom cultivation, extraction, and innovation. Through its divisions KÄÄPÄ Forest, KÄÄPÄ Mushrooms, and Nordic Mushrooms, the company manages the world’s largest cultivated Chaga network, produces EU-organic certified extracts, and leads the market with bioactive-focused ingredient manufacturing.

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References

1. Grand View Research. Functional mushroom market (2024–2030) size, share & trends analysis report. 2024. Available from: https://www.grandviewresearch.com/industry-analysis/functional-mushroom-market-report

2. American Botanical Council. 2024 Herb Market Report. HerbalGram. 2025;(139). Available from: https://www.herbalgram.org/resources/herbalgram/

3. Kawagishi H, Ando M, Sakamoto H, Yoshida S, Ojima F, et al. Hericenones C, D and E, stimulators of nerve growth factor (NGF)-synthesis, from the mushroom Hericium erinaceum. Tetrahedron. 1991;47(33):8529–34. Available from: https://www.sciencedirect.com/science/article/abs/pii/0040403991800399

4. Mori K, Inatomi S, Ouchi K, Azumi Y, Tuchida T. Nerve growth factor-inducing activity of Hericium erinaceus in 1321N1 human astrocytoma cells. Biol Pharm Bull. 2008;31(9):1727–32. Available from: https://pubmed.ncbi.nlm.nih.gov/18758067/

5. Martínez-Mármol R, Llobet A, Serrano-Candelas E, Proenza V, Alberch J, et al. Hericerin derivatives from Hericium erinaceus exert BDNF-like neurotrophic activity in central hippocampal neurons and enhance memory. bioRxiv [Preprint]. 2020. Available from: https://www.biorxiv.org/content/10.1101/2020.08.28.271676v1.full

6. Hawley SA, Ross FA, Gowans GJ, Tibarewal P, Leslie NR, Hardie DG. Mechanism of activation of AMPK by cordycepin. Cell Chem Biol. 2020;27(2):214–22.e5. Available from: https://pmc.ncbi.nlm.nih.gov/articles/PMC7031697/

7. Chen S, Li Z, Krochmal R, Abrazado M, Kim W, et al. Effect of Cs-4® (Cordyceps sinensis) on exercise performance in healthy older subjects: a double-blind, placebo-controlled trial. J Altern Complement Med. 2010;16(5):585–90. Available from: https://pmc.ncbi.nlm.nih.gov/articles/PMC3110835/

8. Wang S, Li X, He M, Song F, Guo Y, et al. Research progress on the biological activity of ganoderic acids in Ganoderma lucidum over the last five years. Int J Mol Sci. 2024;25(3):11509451. Available from: https://pmc.ncbi.nlm.nih.gov/articles/PMC11509451/

9. Galappaththi MCA, Rathnayaka RMUSK, Ranaweera KKDS, Lee J, Song JW, et al. A review of Ganoderma triterpenoids and their bioactivities. Biomolecules. 2023;13(1):24. Available from: https://www.mdpi.com/2218-273X/13/1/24

10. Ban S, Kim A, Kim Y, Lee H, Kim H, et al. INO10, a Chaga mushroom extract, alleviates Alzheimer’s disease-related pathology and cognitive deficits in 3xTg-AD mice. Int J Mol Sci. 2025;26(10):4729. Available from: https://www.mdpi.com/1422-0067/26/10/4729

11. Maza PAMA, Martínez C, Rincón C, Agudelo J, Gutierrez S, et al. Inotodiol from Inonotus obliquus Chaga mushroom induces atypical maturation in dendritic cells. Front Immunol. 2021;12:799426. Available from: https://pmc.ncbi.nlm.nih.gov/articles/PMC7994266/

12. Lee SH, Lee JH, Choi YJ, Shin TJ, Choi YS, et al. Antiaging effect of inotodiol on oxidative stress in human dermal fibroblasts. Phytother Res. 2022;36(9):3409–20. Available from: https://pubmed.ncbi.nlm.nih.gov/35759867/

13. EFSA approves alternative mushroom extract process. NutraIngredients. 2025 May 7. Available from: https://www.nutraingredients.com/Article/2025/05/07/efsa-approves-alternative-mushroom-extract-process/

14. Functional mushroom biotech KÄÄPÄ bags €900k investment to scale operations. Nutraceutical Business Rev. 2025. Available from: https://nutraceuticalbusinessreview.com/kaapa-biotech-functional-mushroom-900k-scaling-investment