Cordyceps sinensis: Why Is This Rare Caterpillar Fungus So Expensive?

What is Cordyceps sinensis?

Cordyceps sinensis, now scientifically known as Ophiocordyceps sinensis, is a parasitic fungus that naturally grows on insect larvae. It is also commonly known as the caterpillar fungus or Chinese caterpillar fungus.

In Tibet, the fungus is known as Yartsa Gunbu, while in China it is called Dong Chong Xia Cao, which roughly translates to "winter worm, summer grass".

This name describes its unusual life cycle. For much of its development, the fungus lives inside an underground caterpillar. In spring, a slender, grass-like fruiting body emerges from the soil.

Cordyceps sinensis has been used for centuries in traditional Chinese and Tibetan preparations. Historically, the fungus has been associated with vitality, physical endurance and respiratory health. This traditional use helps explain its cultural significance.

A parasite that turns a caterpillar into a fungus

The life cycle of Cordyceps sinensis sounds almost like something straight out of a science fiction movie.

It begins underground, where the larvae of certain moth species live. These larvae mainly belong to the genus Thitarodes and can become infected by the fungus.

Once infected, fungal tissue begins developing inside the caterpillar's body. Eventually, the larva dies and its body becomes mummified.

But the most remarkable part happens just before that.

The fungus can influence the caterpillar's behaviour, causing it to move towards the soil surface. Research published in 2024 identified changes in brain chemicals that may be involved in this process. Exactly how the parasite controls this behaviour is still being investigated.

When conditions are suitable in spring, a dark brown fruiting body grows upwards from the head of the dead caterpillar.

This thin stalk emerges above the grass and, once sufficiently mature, can release spores. This allows the life cycle to begin again.

What collectors eventually harvest therefore consists of two connected parts: the mummified caterpillar and the fruiting body of the fungus.

Where does wild Cordyceps sinensis grow?

Wild Cordyceps sinensis grows in cold, high-altitude grasslands on and around the Tibetan Plateau.

Its main habitats are found in the Chinese regions of Tibet, Qinghai, Sichuan, Gansu and Yunnan. The fungus also occurs in certain mountainous areas of Nepal, Bhutan and India.

The species is generally found at elevations starting around 3,000 metres, often considerably higher.

These environments must provide very specific conditions: suitable soil, low temperatures, sufficient moisture and the presence of the right insect larvae.

This makes its natural habitat extremely limited.

So you can't simply find Cordyceps sinensis in any forest. Even within its natural range, it doesn't grow everywhere.

The Cordyceps harvest: Two months on hands and knees

When the snow begins to melt in late April or early May, the search for Cordyceps starts across different parts of the Tibetan Plateau.

The harvesting season usually runs from May to June, depending on altitude, snow cover and local weather conditions. In some areas, it continues into July.

For many families, this is one of the most important periods of the year. They travel into the mountains, sometimes from considerable distances, to search the grasslands every day.

Finding Cordyceps is harder than you think

A mature Cordyceps sinensis doesn't stand out above the grass like a large mushroom.

What you usually see is just a thin, dark brown fruiting body. Sometimes it catches your eye immediately, but more often it's almost impossible to distinguish from the surrounding blades of grass.

That's why collectors move slowly across the ground, carefully inspecting every patch of grass.

Once someone spots a specimen, the most delicate part of the work begins.

Using a small tool, the collector carefully loosens the soil around the fungus. The entire caterpillar, together with its fruiting body, is then removed from the ground.

This must be done with great care. An intact specimen is generally worth more than a damaged caterpillar fungus.

One wrong move can literally cost money.

The documentary report that inspired this article also describes a lovely tradition: at the end of the season, the person with the largest harvest is said to treat the others to a meal.

It shows that collecting Cordyceps isn't just hard work. It's also a social activity.

Why is Cordyceps sinensis so expensive?

The exceptionally high price of Cordyceps sinensis comes down to three factors: a limited natural supply, labour-intensive harvesting and historically strong demand.

Why is wild Cordyceps becoming increasingly rare?

The demand for Cordyceps sinensis hasn't come without consequences.

A 2018 study published in the scientific journal Proceedings of the National Academy of Sciences (PNAS) concluded that wild production is under pressure from overharvesting and climate change.

The researchers combined knowledge from local collectors with ecological data and climate models.

Two major problems emerged from their findings.

What does Cordyceps scarcity mean for local families?

There's another side to those high prices.

For many families in the Himalayas, collecting Cordyceps sinensis is an important source of income. In some communities, the harvest accounts for a significant portion of annual household earnings.

That's why protecting wild Cordyceps is more complicated than simply banning collection.

Harvesting less could reduce pressure on the fungus, but it could also mean less income for people who depend on this trade.

Sustainable management must therefore consider both nature and local communities.

This makes Cordyceps sinensis more than just a rare fungus. It's also an important part of the regional economy.

Why isn't Cordyceps sinensis simply cultivated?

This is perhaps the most obvious question.

If wild Cordyceps sinensis is so expensive, why don't producers simply cultivate large quantities of it?

Once again, the answer lies in its complicated life cycle.

In nature, the fungus develops inside a living insect larva. Successfully recreating this interaction, including the formation of a fruiting body, is technically extremely challenging.

Scientists have now developed methods for producing fruiting bodies under controlled conditions. However, the process remains far more complicated than cultivating mushrooms such as oyster mushrooms.

A more accessible alternative is cultivating mycelium, the network of fungal threads. A well-known example is Cordyceps CS-4, a cultivated fungal strain previously known as Paecilomyces hepiali (now Samsoniella hepiali).

CS-4 may be referred to under the general name "Cordyceps". However, it is not the same fungal species as wild Ophiocordyceps sinensis.

What about Cordyceps militaris?

Besides Cordyceps sinensis, there's also Cordyceps militaris, a species you might recognise by its bright orange fruiting bodies.

Cordyceps militaris is much easier to cultivate commercially and has often shown higher concentrations of cordycepin in various studies.

However, the two species are not interchangeable. They differ in appearance, life cycle, composition and legal status.

In the European Union, Cordyceps militaris is currently not permitted as a food supplement because it is considered an unauthorised novel food.

We explore these differences in detail in our separate article about Cordyceps sinensis vs. Cordyceps militaris.

What should you look for when buying Cordyceps?

The rarity of wild Cordyceps sinensis makes one thing clear: a product labelled "Cordyceps" doesn't automatically contain the traditional wild caterpillar fungus.

When comparing supplements, it's therefore worth checking the exact species or cultivated strain, the raw material used and the available product documentation.

Check whether the product contains fruiting bodies, cultivated mycelium or an extract. The way the fungus is processed can also influence its final composition.

A high price or impressive packaging doesn't guarantee quality.

At Novus Fumus, we believe it's important that you understand exactly what you're buying. In our Cordyceps collection, you'll find different product forms that you can compare based on their composition and processing methods.

Final thoughts

Cordyceps sinensis is extraordinary because almost every stage of its existence depends on a delicate balance between fungus, insect and climate.

Its limited natural habitat, short harvesting season and challenging cultivation process explain why wild specimens are so rare and valuable.

But there's a much bigger story behind that high price.

What consumers see as an exclusive natural ingredient represents an important source of income for local families and, from a scientific perspective, a vulnerable part of the Himalayan ecosystem.

Perhaps that's the most fascinating thing about Cordyceps sinensis: not what traditional beliefs suggest the fungus might do, but everything that has to happen before a single specimen emerges from the ground.

Sources and further reading

• Hopping et al. (2018) – The demise of caterpillar fungus in the Himalayan region due to climate change and overharvesting
• Li et al. (2011) – A survey of the geographic distribution of Ophiocordyceps sinensis
• Neurotransmitter acetylcholine mediates the mummification of Ophiocordyceps sinensis-infected larvae (2024)
• NVWA – Cordyceps militaris inspection results (2025)