The ongoing debate between the use of mushrooms versus mycelium-fermented grain highlights a critical need for transparency and more rigorous research within the functional mushroom industry. By understanding how these products are made and labeled, consumers can better advocate for honest standards and ensure they are receiving the medicinal compounds they expect.
Key Takeaways
- The Transparency Gap: The core issue isn’t that mycelium-fermented grain is “bad,” but that it is often hidden. True industry transparency means clearly labeling the exact amounts of mycelium to grain to mushroom so consumers can make informed choices about the fungal part and potency they are paying for.
- The Power of Synergy: Functional mushrooms and psychedelics can work in tandem; for example, the “Stamets Stack” uses Lion’s Mane and psilocybin together to potentially catalyze neuroplasticity and nerve growth more effectively than either could alone.
- A Growing Industry Standard: Look for honest, science-driven companies that list percentages of known active compounds, like beta-glucans which are in all mushrooms, or the triterpenoids in reishi.
In the rapidly expanding world of functional mushrooms, the gap between what is on the label and what is in the bottle is wider than most consumers realize. While the average shopper assumes a product on a grocery shelf is honest, the reality of the mushroom industry is closer to the “fake honey” scandals than we’d like to admit.
As we peel back the layers of this monumental debate, the story shifts from a simple question of “which is better?” to a far more critical realization. The answer isn’t always found in a lab test, but in the ethics of the marketplace. As we dive deeper, the real issue comes into sharp focus: a desperate need for transparency in the mushroom industry.
In the first part of our two-part series with Louis Giller of North Spore, we looked at what functional mushrooms are, how we can use them, and the benefits various species may offer. If we piqued your interest in functional mushrooms, you may be wondering what products are out there and how to choose what’s right for you.
Today, you’ll be hitching a ride with us, like any mycorrhizal fungus would, to learn about accountability and transparency in the rapidly growing functional mushroom industry in the US, why not every product is the same, and how to ensure you know what you’re getting.
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Mushroom vs. Myceliated Grain: A Transparency Crisis
Between a short shelf life and limited local access, fresh mushrooms can be hard to rely on—making shelf-stable products the most practical way for us to get our daily dose of functional mushrooms.
Because of these factors, the most popular mushroom products don’t look like mushrooms at all, but can be tinctures, extract powders, gummies, infused-honey, coffee and more.
Because functional mushrooms are utilized best in these forms, you have to be careful about the product you’re buying, where it’s sourced, and the content of beneficial, bioactive compounds.
To understand the debate, one must understand how a mushroom grows. As a recap from the first half of our conversation with Louis, a mushroom is really the fruiting body (the cap and stem) of a fungus.
“Fruiting body” is a mycological term and one of many that are used to describe a mushroom. Some people may think that “mushroom” stands for all stages of the fungal organism, but that’s not true. To call all stages of fungi as a “mushroom” is wrong and to call the mushroom a “fruiting body” is just confusing to the layman.
Mushroom or fungi companies have employed it as a means to confuse people, but slowly, companies who care about transparency have been working towards using the proper terms for their products.
You wouldn’t go to the grocery store asking where the fruiting bodies are, would you? This is the same transparency we’re trying to accomplish in the functional mushroom world, where the difference between mushroom and myceliated grain really matters.
The difference is so stark that Nammex, a wholesale mushroom extract supplier and research company, founded by Jeff Chilton in 1989, petitioned in 2023 for the FDA to take certain actions to protect consumers from potential harm that may arise by failing to make the distinction between “mushroom” and other fungal ingredients.
“Three different reishi mushroom cultivars have very consistent levels of beta-glucans and less than 1% starch. All commercial mycelium on grain samples had approximately 10% or less of beta-glucans and in some cases only 1%” (Redefining Medicinal Mushrooms: A new way to gauge quality in medicinal mushrooms).
As we can see on the chart above from Nammex’s research, the percentages of starch in mycelium-fermented products is striking, as starch holds none of the beneficial nutritional value to be expected from mushrooms, while beta-glucans are one of the most desirable constituents.
Why Mushrooms and Mycelium-Fermented Grain are Different
The mycelium is the vegetative body of the fungus and is embedded in its food source (substrate). Therefore, mycelium is rarely visible, growing beneath the surface and acting as the “roots” of the easily seen mushroom.
When mycelium is inoculated into a media, like grain, it’s considered a fermentation process, so when we’re talking about myceliated grain, we really mean mycelium-fermented grain, meaning the grain becomes fermented as mycelium embeds itself into the growing media (grain).
One might think that mushroom farms start the cultivation process by collecting spores, as one might collect seeds for a plant. Actually, they use a well-tested strain of mycelium that was originally bred with spores or mushroom tissue to create a high-yielding cultivar.
See, you can actually clone a mushroom similarly to how you can clone a cannabis plant, or a variety of other plants via propagation.
The mushroom cloning process starts with a small piece of clean tissue placed into a sterile, nutrient-rich media in a petri dish. This small tissue will generate the growth of mycelia. This clean mycelia is now used as an inoculum to create mushroom spawn.
A common media for spawn is well-hydrated grain. For example, North Spore uses organic grain and wheat for their grain bags.
Once the grain is inoculated with or “introduced to” the mycelium, it will take approximately 14 days for the grain to be fully colonized. At this point it is now considered grain spawn and is ready to plant into a substrate like sawdust or wooden dowels.
Keep in mind that the grain is simply a carrier material for the mycelia, which is the actual “seed” for mushroom cultivation.
This process of creating spawn using grain as the carrier was developed in 1932 by Dr. James W. Sinden of Penn State, and revolutionized the button mushroom industry by shortening the time from adding spawn to the substrate and harvesting the mushrooms.
From here, mushrooms would grow out of the growing medium and, ideally, be what companies use to make their products.
However, many companies, especially larger ones, are producing grain spawn, and instead of using it for seed to grow mushrooms, they dry it, grind it into a powder, and sell it as a “mushroom” supplement.
This process is much cheaper and faster than growing mushrooms. In some cases these products are labelled as “myceliated grain,” “mycelium biomass,” or “mushroom mycelium,” yet the labels and informational material insinuate that it is the actual mushroom, when it’s not.
As Americans, and as humans, really, we tend to believe that if a product is packaged and on the shelf at the grocery store, that it’s going to be honest and accurate, but that’s not true. Take the fake mushroom products in smoke shops, for example.
“It is vastly cheaper, and you can produce a lot more if you are making this mycelium fermented grain, which is what’s happening out there. North Spore and a lot of companies take a pretty strong stance against that and only provide fruiting bodies, which is the mushroom itself.” — Louis Giller
Louis notes that pure mycelium does have benefits, however, the grain component of mycelium-fermented grain is problematic due to the high level of residual starch. Then, mislabeling creates a problem in what people think they are getting in their product and how much they’re paying.
First, you aren’t getting a pure mushroom product; the grain starch is not being accounted for in mycelium-fermented grain; genuine mushrooms have no starch.
So many questions arise when mycelium-fermented grain comes into play:
- How much grain is in the product?
- What constituents from the grain am I getting that I wouldn’t get in a whole mushroom product?
- How are these constituents affecting me?
- Is the grain organic?
- How much mycelium is in the product?
- How potent is the mycelium I’m getting?
- What percentage of beta-glucans am I getting from this product?
You shouldn’t be paying the same price for mycelium-fermented grain as whole mushroom products. As we learned, mycelium-fermented grain is cheaper, faster to produce, and less potent than mushroom products (Plumb et al.).
We saw this in 2024 when the brand, Meati, settled a false advertisement lawsuit over claims that their products were labeled as “mushroom root” as a way to fool consumers, when instead their products were made from a strain of filamentous fungus called Neurospora Crassa, a type of mold.
This wasn’t the first time a company had been sued for misleading consumers in the same way. In 2016, Quorn Foods was accused of tricking consumers into thinking its meat alternatives, made from fungus called Fusarium Venenatum, were “substantially similar to a mushroom.”
Using terms like “mushroom root,” both companies sought to piggyback off of the known medicinal properties of mushrooms for their novel products.
This made-up term is a way to avoid putting “fungus” on their product labels, which has a negative connotation associated with it, similar to how “fruiting body,” “mycelial biomass,” and “myceliated grain” are all used on labels to lead consumers to believe they are all parts of a “mushroom,” which is false.
As we said earlier, a “mushroom” is a part of fungi that has unique characteristics from mycelium, and especially from mycelium-fermented grain, and should be labeled as such.
Unfortunately, it’s up to the consumer to do their own due diligence, however, there are plenty of companies out there that care about the integrity of their products and their customers well-being.
So how can we tackle the problem of adulterated mushroom products and the debate over which is better?
The easy answer is to do exactly what many companies have started doing: make products with both mycelium-fermented grain and whole mushrooms.
A new problem then arises: Consumers still don’t know what percentage of mushroom they’re getting versus mycelium-fermented grain. The result? A more confusing landscape than before.
A bag of mycelium fermented grain that is neither mushroom nor pure mycelium.
An Honest Conversation About Functional Mushroom Products
Some companies are taking it upon themselves to try to put an end to this debate, but when for-profit companies get into research, there’s plenty to be wary of. Companies may frame research in a certain way to sell mycelium-fermented grain products.
For example, Fungi Perfecti, owner of the functional mushroom brand Host Defense, used blood from three healthy human donors in their in vitro study that examined the effects of the mycelium and fermented substrate of Turkey tail (Trametes versicolor) on immune function.
The studies results showed that “the immune-activating bioactivity of a mycelial-based medicinal mushroom preparation is a combination of the mycelium itself (including insoluble beta-glucans, and also water-soluble components), and the highly bioactive, metabolically fermented substrate, not present in the initial substrate” (Benson et al., 2019).
The folks at Fungi Perfecti then went on to perpetuate the idea that this was a peer reviewed study and was upheld to the highest standards, but an outside analysis of the study raised questions (Plumb et al.).
If an effect is observed in three participants it may warrant further investigation, but by no means does it solidify those findings as fact.
Large companies have the money to do what benefits them, and by understanding that bias, we can look at companies through a more critical lens.
Small studies based on friendly metrics are often designed to support a thesis that may not be credible with more rigor. The best we can do is hold companies accountable and choose to support companies that adhere to our own values.
North Spore comes from a cultivation and education background, meaning they build their products around research rather than profit.
While research and historical use point to mushrooms being more potent than mycelium, there’s still research needed to determine if mycelium-fermented grain has benefits and how far-reaching they may be.
You may have heard of the drama that unfolded when it was discovered that Paul Stamets uses mycelium-fermented grain in his products.
We aren’t here to shame Paul; he is a role model for many mycologists and still does good work, it’s just a more nuanced situation than Americans may be ready for.
The fight for proper labeling between mushrooms and mycelium-fermented grain is what Louis describes as the “North American chapter” of the debate, which is a culmination of economic pressures and science.
North Spore sells functional mushroom products, and the analysis of important compounds like beta-glucans is a North Spore guarantee that benefits are obtainable.
While some companies can argue that the fermented grain in mycelium-fermented grain products also has medicinal benefits, that’s not what they’re marketing their product as. This is where the discrepancy lies.
It should be noted that in a research paper published by Paul Stamets in 2003, he tested two of his mycelium-fermented rice products at a 2-3% beta-glucan level, whereas the reishi mushroom samples tested 40% beta-glucan (Stamets, 2003).
Given that myceliated grain is dominated by the grain starch, which is not present in pure mycelium or a mushroom, these products are easily considered overpriced.
Where Do We Go From Here?
The fungal industry in the US may never end this debate due to the significant amount of money that is at stake, which isn’t a healthy situation for consumers who are seeking benefits from actual mushrooms that have been used for centuries in Asia.
In an effort to quell the negative information about their products, mycelium-fermented grain companies have come together to create an organization called the Functional Mushroom Council, an organization that has planned to create best practices and “better” testing protocols meant to affirm their own product claims.
Whether the Functional Mushroom Council can produce clear, validated testing results for novel products that are neither mushroom nor mycelium will certainly be a challenge.
“You can have something that is a great benefit to society, but if you cannot get it out to society on a large scale then the utility of it is pretty diminished.” — Jimmy Nguyen
As we’ve seen with psychedelics, it’s not just about access to a quality substance; it’s about accessibility to resources, community, and support as well.
For example, in the mushroom world, there’s an understanding that you need to convey the beta-glucan content on the packaging, indicating you’re receiving the beneficial fibers that help with immunomodulation.
An analysis and characterization of well known active compounds in functional mushrooms is one way to identify genuine products and ensure benefits.
So how can we ensure we’re getting a good product? Do what Americans have historically done best: fight for your rights! Dump that tea in the harbor! As consumers, we have the right and responsibility to demand proper labels and transparency.
Honestly, we aren’t here to lay blame. Folks can only work with the information they’re given, and transparency must be demanded from for-profit companies across the board.
We saw this when psychedelic first came back into the spotlight in the 21st century. Our founder, Jimmy Nguyen, recalls Psychedelic Science 2023, where people were so excited at the prospect of legalizing psychedelic therapy that they were hesitant to talk about the risks for fear that psychedelics would be thrust into a dark age again.
We’re asking people to take their health and healing into their own hands, but they can only do so to the extent of the transparency these companies provide. It would be heartbreaking to imagine that someone feels like a failure because their tincture is weak, but they don’t realize it.
It’s even reminiscent of psychedelics before potency tests became widely available. Since two different samples of the same strain can yield wildly different potencies, it can be difficult to know exactly how much psilocybin you’re getting.
We now have potency tests that can give us an idea of how potent our mushrooms are, ultimately giving us more freedom over our own healing journeys.
When it comes to functional mushroom products, it’s not just about access to a quality substance; it’s also about accessibility to resources, community, and support.
In Conclusion
As the North American market for functional mushrooms continues to grow on an exponential scale, we must remain critical of the industry’s labeling practices, however, we can still find value in the spirit of innovation that mycologists like Paul Stamets brought to the field.
Stamets may come with a blazing trail of controversy, but he did create one of the most well-known microdosing protocols: the Stamets Stack, which uses Lion’s mane and niacin in combination with psilocybin, based on pure critical thinking and the realization of the benefits that may arise from this combination.
In embodying the scientific curiosity that brought Stamets to this realization, one may think about all the synergistic possibilities of combining psychedelics with functional mushrooms, a way to create a more personalized protocol with targeted benefits.
Why couldn’t Reishi mushrooms be a part of a stack for someone looking to support their gut-brain axis for possible depression relief?
While we ponder these nuances to our healing journeys, we must remember that not all companies are the same.
If someone is seeking specific benefits from a specific product, they should be able to easily purchase that product without fear of being tricked into buying an inferior product, but that’s the world we live in. Don’t let that keep you from utilizing these amazing fungi to your benefit.
As we look toward the future, the goal isn’t just to grow more mushrooms; it’s to grow our collective understanding of them. By demanding transparency today, we ensure that the ‘mushroom boom’ of the 21st century is built on a foundation of medicine, not filler.
Stay tuned for my and Jimmy’s adventure growing Lion’s Mane and Blue Oyster Mushrooms with North Spore’s Boomr Bin Monotub!
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Expanding the Mycelium
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Frequently Asked Questions
1. Is mycelium-fermented grain inherently “bad” for my health?
Not necessarily. As Louis Giller notes, mycelium itself possesses medicinal properties and is used worldwide. Mycelium-fermented grain is a different story, yielding extremely high levels of “starch” filler. It’s more about getting your money’s worth and knowing what’s in your product.
The issue arises when consumers pay “mushroom prices” for a product that is largely composed of the grain substrate (like rice or oats) used to grow the mycelium, rather than the concentrated compounds found in the actual mushroom.
2. Why does the industry use grain at all if the mushroom is more potent?
It comes down to economics and efficiency. Growing a full mushroom (the mushroom) takes significantly more time, specific environmental controls, and labor.
Grinding up the “spawn” (mycelium-fermented grain) is a much faster, cheaper way to produce high-volume “mushroom” powder. Large-scale producers often favor this method to keep costs down and shelves stocked.
3. Can I tell the difference between a pure product and a filler-heavy one just by looking at it?
It can be difficult with powders, but your best tool is the label. Look for terms like “fungal biomass,” “mycelium on grain,” or “myceliated brown rice.” A transparent company will also list beta-glucan percentages.
If a product only lists “polysaccharides,” be wary—grain starch is a polysaccharide, and a high number might just mean there’s a lot of leftover grain in your bottle.
4. How does “radical transparency” in mushrooms help the psychedelic movement?
The two worlds are deeply linked by the need for reliable dosing. Just as a weak mushroom tincture can lead to a failed wellness routine, an unpredictable psilocybin dose can lead to an overwhelming or underwhelming therapeutic experience.
By demanding transparency and potency testing in functional mushrooms now, we are setting the stage for safer, more regulated, and more effective psychedelic therapy in the future.
5. What is the benefit of “stacking” functional mushrooms with psychedelics?
It’s about creating a “1+1=3” effect. While a psychedelic might provide the spark for neuroplasticity, functional mushrooms like Lion’s Mane provide the raw “building blocks” (like nerve growth factors) to support that new growth.
Stacking allows you to target specific goals—like using Reishi for grounding and gut-health alongside a protocol for depression relief.
Benson, K. F., Stamets, P., Davis, R., Nally, R., Taylor, A., Slater, S., & Jensen, G. S. (2019). The mycelium of the Trametes versicolor (Turkey tail) mushroom and its fermented substrate each show potent and complementary immune activating properties in vitro. BMC Complementary and Alternative Medicine, 19(1). https://doi.org/10.1186/s12906-019-2681-7
Plumb, T., Carver, J., McInnis, M., Bereka, M., & Broussard, W. (n.d.). Mycelium vs. Fruiting Body: Which Medicinal Mushroom Supplements are Best?. North Spore. Retrieved March 10, 2026, from https://northspore.com/blogs/the-black-trumpet/mushroom-extracts-the-mycelium-vs-fruiting-body-dispute?_pos=1&_sid=25eec6ce8&_ss=r
Redefining Medicinal Mushrooms: A new way to gauge quality in medicinal mushrooms. (n.d.). Nammex. https://www.nammex.com/redefining-medicinal-mushrooms
Spore, N. (2019, January 25). Medicinal Mushroom Tinctures: How To Benefit From Using Them. North Spore. https://northspore.com/blogs/the-black-trumpet/your-top-5-questions-about-tinctures
Stamets, P. E. (2003). Potentiation of Cell-Mediated Host Defense Using Fruitbodies and Mycelia of Medicinal Mushrooms. International Journal of Medicinal Mushrooms, 5(2), 14. https://doi.org/10.1615/interjmedicmush.v5.i2.70
