M2 Ingredients Launches USA-Grown Mushroom Extracts as China Tariffs Hit 145%

M2 Ingredients, which grows functional mushrooms in California, launched USA-made mushroom extracts as tariffs on Chinese extracts reached 145%, NutraIngredients-USA reported on May 9, 2025.

The launch

• China is the world’s largest supplier of mushroom extracts. The story said buyers also faced port seizures and labeling and contamination worries with imports.
• M2 grows, harvests and packages in a 155,000-square-foot facility in Vista, California, with five mycologists including co-founder Steve Farrar.
• The company said its process uses no solvents, carriers or gums.
• The only part of the finished product not made in the USA is an organic growing substrate from Canada.

“Our customers … told us they needed a reliable domestic extract solution.”

Shaun Richmond, M2 Ingredients senior vice president of sales

Why it matters for Made in USA

Supplement brands that want a USA claim need USA ingredients, and extracts have mostly come from China. M2 says its extracts are nearly all USA-made. Under the FTC standard, an imported input like the substrate is the kind of detail a company must weigh before making an unqualified claim.

FAQ

What did M2 launch?

Mushroom extracts made from mushrooms it grows in Vista, California.

Why now?

Tariffs on Chinese mushroom extracts reached 145%, and buyers wanted a domestic source.

Is anything imported?

The company said only its organic growing substrate, which comes from Canada.