Mushroom Cultivation Market Size (2024 – 2030)

The Mushroom Cultivation Market was valued at USD 18.4 Billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 24.54 Billion by 2030, growing at a CAGR of 4.2%.

Mushroom cultivation involves the production of mushrooms utilizing animal, plant, and industrial by-products. Essentially, it is a technology that transforms waste into valuable resources. This method has garnered global attention due to the high nutritional value of mushrooms, which are rich in proteins and dietary fibers. As a member of the basidiomycetes class, mushrooms are fungi that offer an abundance of vitamins, proteins, fibers, and minerals. There are over 3,000 known varieties of mushrooms.

Key Market Insights:

Mushroom cultivation stands out as one of the most lucrative agricultural endeavors, requiring minimal investment and land. Increasingly, individuals are adopting mushroom farming as a supplementary source of income. Presently, mushroom growing is recognized as a highly profitable and productive industry. Its popularity continues to rise because it efficiently transforms the efforts of farmers into financial gains. Additionally, the growing health consciousness among consumers and the increasing preference for natural and vegan foods are key factors anticipated to drive the demand for mushroom cultivation and expedite market growth in the forthcoming years.

Mushroom Cultivation Market Drivers:

Increasing demand for button mushrooms drives market growth.

The button mushroom is one of the most widely consumed varieties worldwide and offers numerous potential health benefits. This type of mushroom is commercially cultivated in major mushroom-producing countries, including the United States, China, Japan, the United Kingdom, Poland, and Germany. Enhanced research and development efforts focused on the button mushroom's potential cancer-preventing properties, along with its affordability compared to other specialty mushrooms, are anticipated to boost demand during the forecast period. Accounting for over 40 percent of global mushroom production, the button mushroom significantly influences the market growth rate.

Increasing health consciousness among consumers increases market growth.

The expansion of the global market is anticipated to be driven by rising consumer demand for foods that are low in fat and cholesterol but high in nutrients. The use of mushrooms in dietary supplements has increased due to their content of digestive enzymes and fibers that promote gut and immune health. The demand from restaurants, hotels, and cafeterias is also growing, spurred by the rapid growth of the food service industry. Mushroom cultivation offers health and nutritional benefits, with fungus powders being added to smoothies, sauces, and soups to enhance their nutritional value.

Mushroom Cultivation Market Restraints and Challenges:

Issues related to the mushroom cultivation market hinder market growth.

The limited shelf-life of mushrooms and inconsistencies in proper process management are expected to constrain the growth of the global mushroom cultivation market during the forecast period. Additionally, consumer credit issues represent a significant challenge to market expansion. Furthermore, rising operational expenses may further hinder the growth of the mushroom cultivation market in the coming years.

Mushroom Cultivation Market Opportunities:

Increased efforts by major market players to adopt the latest technologies, such as computerized and automated systems, are expected to boost the commercial production of mushrooms. This adoption is anticipated to create numerous opportunities for market participants in the global mushroom cultivation market during the forecast period. The advancement and refinement of modern technologies—including compost preparation, mushroom production in non-composted substrates, computerized control systems, automated mushroom harvesting, and innovative spawn preparation and substrate sterilization methods—are projected to enhance the productivity of mushroom cultivation in the coming years.

MUSHROOM CULTIVATION MARKET REPORT COVERAGE:

Mushroom Cultivation Market Segmentation: By Type

• Button Mushroom

• Oyster Mushroom

• Shiitake mushroom

• Others

The button mushroom segment led the market, accounting for the largest volume share, and is projected to experience a revenue-based CAGR of 8.9% over the forecast period. These mushrooms are extensively cultivated worldwide due to their significant nutritional benefits and shorter spore incubation times. Additionally, their lower cost compared to other varieties is expected to drive market growth during the forecast period.

The shiitake mushroom segment is globally popular, primarily for its rich savory taste and diverse health benefits. Shiitake mushrooms can be consumed fresh or in processed forms, such as dried; the dried form is particularly favored for its umami flavor. Traditionally used in Japanese, Chinese, and South Korean medicine, shiitake mushrooms are believed to promote health and longevity, as well as improve blood circulation.

The oyster mushroom segment is anticipated to achieve the highest revenue-based CAGR of 11.3% over the forecast period. These mushrooms are widely used in various cuisines and are especially popular in China, Japan, and Korea for their delicate texture and mild-savory flavor. Furthermore, oyster mushrooms contain benzaldehyde, an active compound that reduces bacterial levels in the body, serving as a natural antibacterial agent, which drives demand in pharmaceutical applications.

Mushroom Cultivation Market Segmentation: By Form

• Canned

• Frozen

• Fresh

• Dried

• Others

The fresh mushroom segment is expected to continue its dominance in the global mushroom market. The demand for fresh mushrooms has surged in recent years due to a growing number of consumers prioritizing organic and unprocessed foods to maximize health benefits. While the short shelf life of fresh mushrooms poses challenges for producers and distributors, technological advancements, such as modified atmosphere packaging, have mitigated these obstacles, thereby supporting the growth of this segment.

The processed mushroom segment is also anticipated to expand. Processed varieties include dried, frozen, canned, pickled, and powdered forms. Processing methods like canning, freezing, and drying are essential for extending the shelf life of mushrooms. Manufacturers are increasingly launching packaged products to cater to the processed and convenience food markets. The rising use of mushroom powder and extracts by food and cosmetics manufacturers is expected to further drive industry growth over the forecast period.

Mushroom Cultivation Market Segmentation: By Distribution Channel

• Supermarkets/Hypermarkets

• Convenience/Grocery Stores

• Specialist Retailers

• Online Channels

• Other Distribution Channels

Mushrooms are predominantly distributed through supermarkets and hypermarkets. In developed regions such as Europe and North America, these retail formats are more prevalent than in developing regions. The availability of a wide variety of mushrooms and the convenience of purchasing them in one location contribute to the dominance of supermarkets and hypermarkets as primary distribution channels. However, increasing competition from online grocers offering discounted prices and shifting consumer behavior has been challenging the growth of these traditional retail outlets.

Distribution through online stores is expected to experience the highest revenue growth over the forecast period. Consumers worldwide are increasingly opting for online platforms to purchase fresh produce due to the convenience and cost advantages these channels provide. Although online retailers currently hold a smaller market share compared to supermarkets and hypermarkets, their influence is growing. Grocery stores, which offer a broader range of processed products and better discounts due to high-volume procurement, are also significant players. The limited space in urban areas of many countries favors the establishment of grocery stores over larger supermarkets and hypermarkets. Nonetheless, the expanding reach of online retail is poised to benefit the mushroom market in the coming years.

Mushroom Cultivation Market Segmentation- by region

• North America

• Europe

• Asia-Pacific

• Latin America

• The Middle East & Africa

The Asia-Pacific region leads the mushroom cultivation market in terms of revenue and market share, driven by higher per capita mushroom consumption compared to other regions. Additionally, the rising consumption and increased cultivation efforts further contribute to the market's growth in this area.

Europe is expected to be the fastest-growing region in the mushroom cultivation market during the forecast period from 2023 to 2030. This growth is attributed to the increasing demand for highly nutritious foods in the region.

COVID-19 Pandemic: Impact Analysis

The global mushroom cultivation market has faced several negative impacts, notably due to the COVID-19 outbreak and subsequent lockdown measures imposed to curb its spread. The logistics and transportation industry witnessed a slowdown in the early months of the pandemic, leading to shortages of personnel and uncertainty. This disruption, coupled with the short shelf life of mushrooms, resulted in significant losses for growers and is expected to constrain market growth over the forecast period.

Additionally, the COVID-19 pandemic had a particularly severe impact on the European region. Import disruptions from countries like China, Peru, and Chile affected consumption patterns, exacerbating the challenges faced by the mushroom market. Lockdown measures aimed at containing the spread of the virus significantly reduced local demand from hotels, restaurants, and food chains, further exacerbating the market's challenges.

Latest Trends/ Developments:

In May 2022, Meati, a start-up specializing in whole-cut meat substitutes derived from mushroom roots, introduced its inaugural steak filet product. Utilizing mycelium, the vegetative component of fungus characterized by thread-like strands, Meati's steak filet is now accessible directly to consumers through the brand's official website.

Also in May 2022, Upexi, a division of Grove Inc. and a prominent player in the mushroom market, unveiled a new line of medicinal mushroom products. These products are conveniently available directly to consumers and through Amazon. Operating in the United States, Upexi offers mushroom extracts that are USDA Certified Organic. The brand features a comprehensive range of liquid extracts (tinctures) and gummies, with cultivation taking place in the Pacific Northwest and extraction/formulation conducted in California.

Key Players:

These are the top 10 players in the Mushroom Cultivation Market:-

1. Monaghan Group

2. Mycelia

3. WALSH MUSHROOMS GROUP

4. Rheinische Pilz Zentrale GmbH

5. Mushroom SAS

6. Smithy Mushrooms Ltd.

7. Italspwan

8. Fujishukin Co. Ltd.

9. Monterey Mushrooms

10. Hirano Mushroom LLC