The Mushroom Market is estimated to be valued at US$ 66.58 billion in 2024, exhibiting a CAGR of 9.8% over the forecast period (2024-2031). The market is witnessing increased demand for mushrooms owing to rising health consciousness among consumers globally. Mushrooms are low in calories and fat but high in protein and vitamin content. Furthermore, the market is witnessing growth in organic mushroom farming practices.
The mushroom market is expected to grow at a rapid pace during the forecast period. The two major drivers of this market include increasing health consciousness and emergence of organic mushroom farming. Consumers are becoming more aware of the various health benefits of mushrooms. Mushrooms are considered a superfood due to their high vitamin, mineral, and protein content but low-calorie level. They also contain antioxidants and compounds that may help in preventing chronic diseases. Moreover, the growth of organic mushroom farming is also fueling market expansion. Several small farmers are actively engaging in producing organic mushrooms to cater to the rising demand from health-conscious consumers. However, high production costs and price volatility of mushrooms remain challenges in the market.
Increasing health awareness is driving the demand for mushrooms
As people become increasingly health conscious, the demand for healthy and nutritious foods like mushrooms has been growing steadily. Mushrooms are low in calories and fat, but high in protein and various vitamins and minerals. They are excellent sources of riboflavin, niacin, pantothenic acid, and selenium. Mushrooms also contain compounds like ergothioneine and glutathione, which are powerful antioxidants. Some studies have even found mushrooms to have anti-cancer properties. This growing awareness about the nutritional benefits of mushrooms is a key driver boosting its demand in the market. Mushrooms are now seen as a healthy addition to salads, sandwiches, pasta dishes, and other meals, and this is encouraging more people to incorporate them into their diets.
Rise in disposable incomes is expanding the mushroom market’s reach
As disposable incomes rise worldwide, more people are able to afford foods perceived as premium or exotic. Mushrooms fit well into this category since they were not a very common ingredient until recently in many regions and cultures. The increasing spending power of consumers in developing nations is allowing the mushroom market to expand its reach beyond traditional regions and demographic segments. Affluent consumers, especially in urban areas, are willing to pay more for differentiated, high-quality mushroom products. This widespread economic growth supports market growth by bringing in newer customer segments. Producers are launching more varied mushroom products, packs, and price-points to capitalize on the spending ability of a larger consumer base across different income tiers.
High production costs pose challenges for mushroom farmers
One of the key restraints facing the mushroom market is the high production costs involved compared to many other agricultural crops. Mushroom farming requires specialized infrastructure like controlled environment production facilities, humidification, and cooling systems. It also demands consistent temperature and humidity control throughout cultivation cycles. Ensuring proper hygiene and preventing contamination further increases costs. Labor also represents a major expense due to the intensive hand-picking involved in harvesting mushrooms. Addressing these cost issues remains a challenge, especially for smaller players. High costs of production put pressure on pricing, limiting the scope for margin expansion. This can deter new entrants as well as restrain the ability to venture into overseas markets.
Threat of pests and diseases hampers steady supply
Diseases caused by bacteria, fungi, or viruses pose a constant threat to mushroom crops. Even minor outbreaks can wipe out entire production batches. Pests like mites, fruit flies, and mold also create supply issues. Maintaining strict hygiene protocols and the use of disinfectants helps control pests and diseases to an extent. However, complete prevention remains difficult given the enclosed production conditions required. Any disruption in steady supply due to disease or pest infestation impacts the overall market growth negatively. Producers have to devote significant resources to the research and development of prevention methods in order to ensure a consistent supply of safe, pest-free mushrooms to consumers. This adds to already high production costs as well.
Growth of veganism and flexitarian trends
More people are adopting vegan or vegetarian diets in recent times due to health, ethical, or environmental concerns. Mushrooms provide an excellent non-meat protein source for this growing segment. Even among non-vegetarians, the flexitarian trend of reducing meat intake is on the rise. Mushrooms can help meet demand as a versatile meat substitute. Producers are launching innovative mock meat products using mushrooms to cater to this flexitarian trend. As these lifestyle choices gather more followers worldwide, the mushroom market stands to gain from its positioning as a key component in plant-based diets. New product development will be essential to drive increased adoption among vegans, flexitarians, and health-conscious omnivores alike.
Rising Asian affluence expanding import opportunities
Asia Pacific currently dominates the global mushroom production led by China, South Korea, and India. Rapid affluence in the region however is driving higher demand that domestic supply cannot fully meet. This opens up import opportunities for export-focused mushroom farmers worldwide. Regions with ideal climatic conditions like North America, Europe, and Latin America can tap this potential. Asian consumers are becoming increasingly willing to pay for imported specialty mushrooms not widely available locally. Developing direct supply chain links to major Asian supermarkets and e-commerce platforms can help leverage this opportunity. Providing traceability, food safety guarantees, and native language packaging will drive greater acceptance of imports in discerning Asian markets.
Link - https://www.coherentmarketinsights.com/market-insight/mushroom-market-3599
Key Developments
- In 2023, Sempera Organics expanded its product range with the introduction of six new mushroom ingredients. This innovative initiative underscores the rising trend of incorporating functional mushrooms into diverse culinary applications, appealing to both health-conscious consumers and food enthusiasts.
- In 2022, Ethical Naturals Inc. and Nammex, two prominent players in the mushroom industry, joined forces to launch a new line of Mushroom-Plus ingredients. This innovative product line synergizes the benefits of functional mushrooms with other natural ingredients, providing a unique and powerful solution for manufacturers seeking to enhance their products.
- In 2021, Big Mountain Foods, a Vancouver-based food manufacturer, announced its partnership with Sprouts Farmers Market, a leader in gut-healthy foods, to introduce the first Lion’s Mane mushroom product line across North America. This collaboration aims to bring the health benefits of Lion’s Mane mushrooms to a wider audience, promoting gut health and innovative culinary options.
- In 2021, Beatnic, a renowned vegan restaurant in North America, announced its partnership with Fable Food Co., a European brand, to introduce its first mushroom-based meat alternative in the U.S. This innovative product, made from real and natural shiitake mushrooms, will be available at all Beatnic locations, providing customers with a delicious and sustainable meat substitute.
Key Players
Holyland Group, The Mushroom Company, Bonduelle Group, Kiril Mischeff Group, Costa Group, Okechamp SA., Monterey Mushrooms Inc., Greenyard, Prochamp, Monaghan Mushrooms, Muniraj Mushroom Farm, Dhruv Agro, Shanghai Finc Food Co. Ltd., B&G Foods Inc., Prochamp B.V, Shanghai Finc Foods Co. Ltd, Dev Bhoomi Frozen Food Products, Hariom Mushroom Farms, and Fruitin Agro Pvt Ltd
