Mushroom Market - Forecasts from 2023 to 2028

The global mushroom market was valued at US$41.63 billion in 2021 and is expected to grow at a CAGR of 6.04% during the forecast period

Mushrooms are low in cholesterol and fat, and they also have very little salt and gluten. In addition, mushrooms are a rich source of essential elements including selenium, proteins, vitamins and minerals. As a result, it is becoming quite popular with consumers who are health-aware and fitness fans. Customers are choosing to buy healthier drinks and food items that have nutrients that have been taken from pure or natural sources. Food and beverage firms are introducing products with mushrooms as the main ingredient to cash in on this trend. For instance, in February 2021 functional drinks laced with mushrooms were released by FreshCap Mushrooms Ltd. in the United States.

Growth drivers in the mushroom market

Throughout the forecast period, one of the major drivers of the mushroom market is anticipated to be the growing vegan population's need for a diet high in protein. A superfood, mushrooms are regarded as such because of their nutritional value. Four essential nutrients - selenium, vitamin D, glutathione, and ergothioneine - are abundant in mushrooms. These nutrients aid in reducing oxidative stress and lowering the chance of developing chronic illnesses including cancer, heart disease, and dementia. Additionally, it has a potent natural umami flavour that enables customers to lower the salt content of mushroom meals by 30-40%, which is good for their health and therefore is fueling the mushroom market growth.

Rise in consumers' preference for label-conscious products

Customers are paying more attention to labels and prefer items with natural components. Cosmetics with "clean labels" that are created from plant extracts rather than synthetic components are becoming increasingly popular. Thus, the use of botanical components in cosmetic formulations by personal care and beauty product makers is rising, which is anticipated to have a favourable effect on the mushroom market size. For cultivation to be effective, post-harvest storage and transportation are essential.

Button mushrooms are gaining popularity

Mushrooms have multiple nutritional advantages and shorter spore incubation times, and hence they are widely farmed across the world. Furthermore, the mushroom market is anticipated to be driven by their reduced cost when compared to their competitors. Shiitake products are well-liked all over the world, largely because of their savoury flavour and wide range of health advantages. These mushrooms can be eaten fresh or processed in the form of dried mushrooms; however, due to their umami flavour, dried shiitake mushrooms are more often consumed.

The fresh form is anticipated to dominate the market

Fresh mushrooms have seen significant growth in demand over the past several years due to an increase in customers focused on eating organic and unprocessed foods to maximise the product's health advantages. Fresh-form distribution presents a challenge for producers or distributors, due to their short shelf lives, but as technology has advanced, problems related to mushrooms' short shelf life have decreased, which has aided mushroom market growth. Over the anticipated period, rising powder form and extract utilisation by food and cosmetics businesses is anticipated to promote mushroom market growth.

Rising prevalence of online retailers

Consumers all over the world are choosing to buy their fresh fruit online more frequently due to the convenience and cost advantages these channels provide, Comparing online merchants to supermarkets and hypermarkets, their mushroom market share is now lower. Grocery stores provide a wider variety of processed goods with greater pricing because of their higher volume of purchasing than convenience stores. Grocery shops have mostly replaced supermarkets and hypermarkets. However, the mushroom business is probably going to gain from the expanding popularity of online purchasing in the next years.

Europe is anticipated to dominate the mushroom market

Europe's mushroom production and consumption are expanding quickly as a result of the region's increased need for nutrient-dense foods. Its therapeutic applications are expanding moderately in countries like the Netherlands, Germany, the United Kingdom, Spain, and others, and the trend is anticipated to persist in the future years: It is anticipated that manufacturers and distributors in Europe will use sophisticated processing methods to increase sales of processed goods in the area. Consumer consumption habits are changing as a result of increased interest in alternatives to animal protein and preferences for vegan cuisine. The dried variety opens up new commercial potential as health-conscious customers look for food with practical utility fueling the mushroom market.

North America is predicted to be a key market shareholder

The sector in North America, and particularly the U.S., is showing development potential as a result of the product's rapidly expanding demand, which is linked to its numerous health advantages. To improve their production capacity and maintain their leadership in the local market, prominent market players in North America are implementing cutting-edge cultivation techniques as well as a variety of merger and acquisition tactics. Additionally, the government's assistance in accelerating harvesting speeds contributes to growth. For instance, the National Institute of Food and Agriculture of the US Department of Agriculture gave the College of Agricultural Sciences at Pennsylvania State about USD 4 million in September 2021 to support a group of researchers as they look into technologies to address labour shortages on farms that cultivate edible fungi.

Key manufacturers are focusing on product innovation

To appeal to a client base that is environmentally concerned and strengthen brand positioning, major firms operating in developed nations place an increasing emphasis on sustainable manufacturing. For instance, Monaghan Mushrooms wants to transition to recyclable and reusable packaging by 2025 to make its operations more sustainable. As a result, sustainability is projected to become increasingly important in corporate operations, from compost preparation and growing to packaging, in the years to come. The growing participation of key players to focus on product innovation is fueling the mushroom market.

Market Key Developments

• In February 2022, Meati, a start-up created steak fillets using whole-cut meat substitutes made from mushroom roots. Customers may purchase Meati's steak fillet straight from the company website. It is manufactured from mycelium, the vegetative portion of the fungus that is composed of thread-like strands.

Segmentation:

By Type

• Button Mushroom
• Oyster Mushroom
• Shiitake Mushroom
• Others

By Phase

• Composting
• Spawning
• Casing
• Pinning
• Harvesting

By Form

• Canned
• Frozen
• Fresh
• Dried
• Others

By Application

• Canned
• Frozen

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others