with $18 Billion of the market share from nutraceuticals
with $18 Billion of the market share from nutraceuticals
Mushrooms are composed of two primary components, Fruiting Bodies and Mycelium, both of which can be used to make extracts for a variety of Supplements and Nutraceutical Products.
What it is: the spore-producing organ of a fungus, often seen as a mushroom or toadstool.
Why OptimiTM cares: Most research on beneficial compounds from mushrooms (i.e., Polysaccharides such as Alpha and Beta glucans) come from the fruiting body.
What we do: Not all benefits are readily available if the fruiting body is consumed. To be absorbed, they must first be carefully extracted depending on the nature of the desired compound.
What it is: the vegetative part of a fungus, consisting of a network of fine white filaments (hyphae).
Why OptimiTM cares: When farmed, mycelium is typically grown on some form of grain that cannot be removed from the final product. Many mycelium products are simply ground up (not extracted), leaving beneficial compounds unabsorbable by the body.
What we do: Our final extracted products could therefore include up to 70% of compounds recent research suggests may contain functional health benefits. Our full spectrum products include both the mycelium and fruiting body for better perfomance.
Unlike Mother Nature, Optimi takes no chances. Instead of trees and dead wood, Optimi controls the environment, manages the growth cycle, and imporves the quality by using best practice processes and substrate alternatives for commercial cultivation.
Substrate (Grains): Depending on the nature of the intended mushroom, different substrates are selected and high quality spores are introduced to create superior fruiting bodies under controlled conditions. Specialty substrates are composed of select grains, liquids or a custom mixture of wood fibres.
Spawning: Mycelium feed off the substrate, are curated daily, and periodically agitated to ensure uniform coverage of the substrate by the mycelium, creating what is known as “grain spawn” or ”myceliated grain.” Duration varies subject to desired outcomes.
Pinning and Fruiting (e.g.: Lion’s Mane): Once the substrate is fully myceliated, under specific environmental conditions “pins” form, which leads to the development of fruiting bodies for harvest. Depending on the strain, multiple harvests can be achieved from a single myceliated substrate over a period of weeks or months.
The Functional Mushroom Market is Growing
The global functional mushroom market is growing at 6% annually, netting to $34B globally by 2025, with $18B of the market share from nutraceuticals (not including alternative uses for mycelium). Interest in functional mushrooms continues to grow globally for all forms (fresh, extracts, mycelium, and fruiting bodies). Customers are highly interested in mushroom-focused nutraceutical products, with over 50% of the overall functional mushroom market attributed to nutraceuticals.
Functional Mushrooms that Drive the Market
Chaga, Reishi, Lion’s Mane and Cordyceps extracts are the most popular functional mushrooms. Advanced expertise and ongoing research help Optimi streamline high quality production. While Chaga has yet to find its way into commercial indoor farm operations, Optimi sources from proven reputable outdoor operators. Supplements using Optimi-farmed or target sourced products will encompass a spectrum of highly valued ingredients focused on consumer trends which drive market demand.
Mushroom and Nutraceutical blends are simply more appealing. Blends have a higher average
cost per serving compared to pure mushroom products. Growing a variety of mushrooms can be beneficial in developing locally grown custom blended mushroom formulations. Customers appreciate and pay more for blends as they provide a wider variety of benefits. Offering blends positions Optimi to realize higher retail price per serving.
Differentiated Products: Fruiting Bodies offer higher purity and net 35% higher average revenue per serving. While more costly, farming fruiting bodies positions Optimi to offer a differentiated product. While not the leading factor, customers pay more for fruiting body based products. Research heavily favors fruiting body based products given their increased potency.
Limited Competition to Grow Fruiting Bodies: Almost no competitors currently growing and selling fruiting bodies in Canada. Optimi aims to position itself as the pre-emptive grower of fruiting body mushrooms in North America. Optimi brand positioning as “Grown in Canada” targets consumer facing differentiation in the high growth nutraceutical market.
Better Extraction Processes: Throughout the industry alcohol and hot water extraction processes are most common. Because Optimi invests in fundamental research, advanced extraction processes and related production techniques are being introduced. Since customers do not differentiate based on extraction processes, consideration for cost-effective solutions delivering the highest returns are achieved when aimed at reducing the $ per serving to the consumer.
Wellness Brands Net Higher: The average cost per serving of wellness focused brands are positioned with higher average price per serving compared to mushroom or supplement focused brands. Optimi aims to benefit from vertical integration through Optimi brand name recognition for Human Optimization. Positioned as a wellness brand vs. a mushroom / supplement-only brand allows Optimi to target a broader customer base willing to invest more in personal optimization.
Broad Health Benefits: Functional mushroom benefits range from improved physical to mental wellness. From a select base of key mushroom strains Optimi Farm aims to deliver products with a broad range of benefits. Ongoing scientific and market research combined with positive customer reviews support product efficacy and messaging designed to instill consumer confidence, brand awareness, and repeat purchasing interest.
Popularity for Ready-to-Consume Formats: Examples include mushroom-enriched coffees / teas / protein powders which all net a higher average revenue per serving compared to simple mushroom extract products (e.g. capsules, powders). Products sold by Optimi will achieve significant margins when processed into ready-to-consume formats. Value added, easy consumption methods that are complimentary to everyday products drive consumer consideration when formulating products.
OUR FUTURE: Pharmaceutical Grade Psilocybin Products:
Through the research partnership, Optimi has immediate access to a large, and legal, patient base to run clinical trials.
Current production of legal GMP quality psilocybin is not readily available and will not able to meet the quality standards set by Health Canada for clinical trials.
(high growth segment)
(mental health is very commonly overlooked)
(smoking, alcohol, opiods)
(creativity, production in the workplace)
(Low risk for addiction)
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