Middle East and Africa Button Mushrooms Market Size (2024-2030)

The Middle East and Africa Button Mushrooms Market was valued at USD 1.31 Billion in 2023 and is projected to reach a market size of USD 1.95 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 5.79%.   

Button mushrooms are a highly versatile ingredient that can be enjoyed raw, cooked, grilled, or roasted. They can be incorporated into various dishes, from salads and pizzas to stir-fries and soups. The MEA region's consumers are becoming more conscious of the health advantages of mushrooms. Button mushrooms are a favorite among people who are concerned about their health since they are a wonderful source of vitamins, minerals, and antioxidants. In the MEA region, vegetarian and vegan diets are becoming more and more popular. Because of their umami taste and meaty texture, button mushrooms are a flexible ingredient that may be used in a variety of recipes in place of meat. Convenient and nutritious food options are becoming more and more in demand as a result of the MEA region's rising urbanization. Button mushrooms are seeing increased demand as a result of the growth of the food service sector, which includes cafes, hotels, and restaurants. Advancements in mushroom cultivation technology are leading to increased yields and improved quality of button mushrooms. This is making them more readily available and affordable for consumers in the region.

Key Market Insights:

Fresh button mushrooms account for approximately 75% of the MEA button mushroom market share in 2024.

The processed button mushroom segment (including dried, frozen, canned, and powdered varieties) is expected to register a CAGR of 7.2% between 2024 and 2027, indicating a growing preference for extended shelf-life options.

A 2024 report by the International Institute of Refrigeration estimates that only 60% of the MEA region has access to a well-developed cold chain infrastructure, impacting fresh button mushroom distribution.

By 2025, an estimated 60% of the MEA population is expected to reside in urban areas.

Online grocery sales in the MEA region are expected to reach $50 billion by 2025.

Investments in CEA facilities for button mushroom production are anticipated to grow by 15% in the MEA region by 2025.

The average Cost to Set Up a Button Mushroom Farm (USD) is $250,000 (estimated, for a medium-sized farm).

Post-harvest losses due to inadequate cold chain infrastructure are estimated to be around 30% for perishable items like button mushrooms.

Middle East and Africa Button Mushrooms Market Drivers:

Across the MEA region, a growing segment of the population is prioritizing health and wellness. This translates to a heightened awareness of dietary choices and a focus on incorporating nutritious ingredients into meals.

A calorie and fat-free food source is button mushrooms. Potassium, vitamin D, and B vitamins are just a few of the many important vitamins and minerals they contain. They also have nutritional fiber in them, which supports fullness and digestive health. High in antioxidants, button mushrooms support a stronger immune system and fight free radical damage. Customers looking to enhance their general health and well-being naturally will find resonance in this. The nutritional advantages of button mushrooms can be emphasized by mushroom growers and merchants through educational initiatives, recipe recommendations that highlight the fungus's adaptability in wholesome meals, and detailed packaging. Collaboration between mushroom producers and research institutions can delve deeper into the potential functional properties of button mushrooms, paving the way for innovative product development in the future.

The MEA region is witnessing a steady rise in vegetarian and vegan diets. This dietary shift is driven by concerns about environmental sustainability considerations, and the growing popularity of plant-based alternatives perceived as healthier options.

Button mushrooms can be incorporated into a wide range of vegetarian recipes, from hearty stews and stir-fries to veggie burgers and pizzas. Their ability to absorb flavors makes them a perfect canvas for culinary creativity. While not a complete protein source, button mushrooms offer a good amount of protein compared to other vegetables. This makes them a valuable addition to vegetarian diets, helping individuals meet their daily protein needs. For consumers concerned about animal welfare and environmental impact, button mushrooms offer a sustainable and ethically sourced alternative to meat. Mushroom producers and food service establishments can develop innovative vegetarian and vegan dishes featuring button mushrooms that mimic the texture and flavor of meat, catering to individuals transitioning to plant-based diets. Recipe development focusing on vegetarian and vegan meals using button mushrooms can be a powerful marketing tool, inspiring home cooks to explore the versatility of this ingredient.

Middle East and Africa Button Mushrooms Market Restraints and Challenges:

Inadequate storage and transportation temperatures can lead to spoilage and significant post-harvest losses. Estimates suggest that up to 30% of perishable items like button mushrooms are lost due to this issue. This not only impacts profitability for producers but also limits product availability for consumers. Fluctuations in temperature can affect the texture, flavor, and nutritional value of button mushrooms. Without proper cold chain management, consumers might encounter subpar-quality mushrooms, potentially hindering repeat purchases. Consumers might perceive button mushrooms as a single-use ingredient or lack recipe inspiration for incorporating them into various dishes. This can limit their appeal and consumption. Improper storage can lead to quick spoilage of button mushrooms. Educating consumers about ideal storage practices, such as cool, dark, and well-ventilated environments, can minimize waste and ensure optimal quality.

Middle East and Africa Button Mushrooms Market Opportunities:

Consumers with adventurous palates are seeking out gourmet mushrooms like shiitake, oyster, and portobello mushrooms. Introducing these varieties can cater to high-end restaurants, specialty grocery stores, and home cooks seeking culinary exploration. Research into the potential health benefits of certain mushrooms like lion's mane and maitake opens doors for functional mushroom product development. This can cater to consumers interested in natural health solutions. Collaboration with chefs and food experts can help develop innovative recipes featuring specialty mushrooms, raising consumer awareness and demand. Investments in technologies for processing, drying, and marinating button mushrooms can facilitate the development of value-added products, catering to diverse consumer needs. Collaboration between mushroom producers, research institutions, and food scientists can explore the potential of functional mushrooms and pave the way for innovative product development. E-commerce can bridge the gap between urban centers and remote areas where access to fresh button mushrooms might be limited. This can expand the market reach and connect producers with a wider consumer base.

MIDDLE EAST AND AFRICA BUTTON MUSHROOMS MARKET REPORT COVERAGE:

Middle East and Africa Button Mushrooms Market Segmentation:

Middle East and Africa Button Mushrooms Market Segmentation: By Type:

• Fresh Button Mushrooms
• Processed Button Mushrooms
• Specialty Button Mushrooms

Fresh Button Mushrooms (Over 70% Market Share) reign supreme in the MEA button mushroom market. Consumers value the visual appeal, earthy aroma, and firm texture of freshly harvested button mushrooms. This segment caters to a broad audience, from home cooks seeking versatile ingredients to restaurants requiring high-quality mushrooms for immediate use. Fresh button mushrooms adapt to a wide range of culinary applications, easily incorporated into stir-fries, soups, sauces, pizzas, and numerous other dishes. Consumers perceive fresh button mushrooms as a healthy and nutritious ingredient, adding a low-calorie, fat-free element to meals while boosting vitamin and mineral content.

The processed button mushroom segment is experiencing a surge in popularity, driven by convenience and catering to evolving consumer lifestyles. Pre-marinated button mushrooms offer a time-saving option, allowing consumers to incorporate flavorful mushrooms into dishes without additional preparation. Dried button mushrooms offer a longer shelf life and intense flavor concentration, ideal for adding umami depth to soups, stews, and sauces. Pre-cut and seasoned button mushroom blends cater to busy consumers seeking convenient solutions for stir-fries or quick meals. Processed button mushrooms cater to busy lifestyles, offering convenient options that save preparation time without compromising taste.

Middle East and Africa Button Mushrooms Market Segmentation: By Distribution Channel:

• Supermarkets & Hypermarkets
• Traditional Markets
• Online Grocery Platforms
• Foodservice Distributors

Modern retail, encompassing supermarkets and hypermarkets, reigns supreme in the MEA button mushroom market. These large-scale stores offer several advantages, making them a preferred channel for both consumers and producers. Modern retail outlets provide convenient access to fresh button mushrooms for a broad consumer base, often located in easily accessible urban and suburban areas. Supermarkets and hypermarkets dedicate prominent shelf space to button mushrooms, ensuring high product visibility and facilitating brand awareness for producers.

The online grocery market is experiencing a boom in the MEA region, and button mushrooms are well-positioned to benefit from this trend. Online platforms offer distinct advantages for both producers and consumers. Online grocery shopping allows consumers to order fresh button mushrooms for home delivery, saving time and effort compared to traditional brick-and-mortar stores. Online platforms can bridge the gap between urban centers with established modern retail and remote areas with limited access to fresh button mushrooms.

Middle East and Africa Button Mushrooms Market Segmentation: Regional Analysis:

• United Arab Emirates           
• Saudi Arabia 
• Qatar 
• Israel  
• South Africa
• Nigeria            
• Kenya
• Egypt 
• Rest of MEA 

The Middle East and Africa button mushroom market is dominated by the United Arab Emirates, which holds a strong 18% market share. Several factors contribute to this domination, such as the nation's booming hotel and tourism business, the prevalence of innovative farming technologies, and the increased emphasis on sustainable and healthful food choices. One of the main factors fueling button mushroom demand is the UAE's status as a major international tourism destination. Demand for fresh and premium mushrooms has increased as a result of the wide variety of eateries, lodging options, and culinary adventures that appeal to tourists from overseas.

Egypt has become the nation with the highest rate of growth due to its quickly growing population, rising standard of living, and increased knowledge of the health advantages of eating mushrooms. Egypt has a sizable and fast-expanding middle class, which has increased demand for reasonably priced and healthful food options. Button mushrooms are a popular and affordable addition to a wide range of culinary recipes due to their low-calorie count and high protein content. The Egyptian government has also launched programs to support food security and agricultural development, which has encouraged the expansion of the country's mushroom-growing sector.

COVID-19 Impact Analysis on the Middle East and Africa Button Mushrooms Market:

Lockdowns and border restrictions hampered the movement of goods, disrupting the flow of fresh button mushrooms from producers to retailers. This led to shortages in some regions and price fluctuations. The closure of restaurants and cafes, major consumers of button mushrooms, caused a significant drop in demand, impacting producers who primarily catered to the food service sector. Panic buying and stockpiling initially led to a surge in demand for fresh button mushrooms as consumers prioritized essential food items. However, this was followed by a period of economic uncertainty, leading some consumers to tighten their spending and potentially reduce demand. The pandemic heightened awareness of health and immunity-boosting foods. Button mushrooms, with their source of vitamins, minerals, and antioxidants, potentially benefited from this trend as consumers sought to incorporate healthier ingredients into their diets.

Latest Trends/ Developments:

While button mushrooms reign supreme, a growing interest in the potential health benefits of certain "functional" mushrooms is emerging. These exotic varieties are gaining traction due to research suggesting potential cognitive health benefits and immune system support. Consumers are willing to pay a premium for functional mushroom products, particularly those positioned with specific health claims or formulations. Collaboration with research labs or universities can provide valuable data and credibility for functional mushroom product development. Educating consumers about the potential benefits of functional mushrooms through informative marketing campaigns can attract curious and health-conscious buyers. Shifting away from traditional plastic packaging towards compostable alternatives reduces environmental impact and aligns with consumer values. Vertical farms utilize less water and land compared to conventional methods, making them ideal for arid environments present in parts of the MEA region.

Key Players:

1. Monaghan Mushrooms
2. Bonduelle
3. 3.Ук Агроснаб
4. Monterey Mushrooms
5. Bord Na Mona
6. Ardo Mushrooms 
7. Costa Group
8. Al Dhafra Mushroom Farm