Mushroom Cultivation Market Size, Share, Growth, and Industry Analysis, By Type (Button Mushroom, Oyster Mushroom, Shiitake Mushroom, Others), By Application (Bedding and Cushions, Other), and Regional Insights and Forecast to 2032

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MUSHROOM CULTIVATION MARKET OVERVIEW

The Mushroom Cultivation Market size was valued at approximately USD 20 billion in 2024 and is expected to reach USD 37 billion by 2032, growing at a compound annual growth rate (CAGR) of about 7.90% from 2024 to 2032.

The market for mushroom cultivation has expanded as a result of a growing population, rising consumption of low calories and superior quality plant products. Mushrooms a nutritious food especially in protein, vitamins and low in fats, are used extensively in food, medicine and even in cosmetics. In this market, there is continued expansion, most especially in urban areas where consumers are more conscious of sustainable farming and organic foods. Improvements in controlled environment farming, such as sustainable agriculture and new growing substrates, contribute to higher yields. The growing popularity of the vegan diets and substitution for meat products around the world is another factor that increase demand for the mushroom. Unfortunately, major regions including North America Europe, and asia are currently leading in the production and consumption of mushrooms in forms of button, oyster, and shiitake among others. Further, the utilisation of residues in producing mushroom substrates reduces agricultural waste. Nonetheless, the market is not without deficiencies such as high initial costs of investment and diseases prone crops, however, the opportunities into the market remain vast with expanded adoption of vertical farming techniques and online marketing methods expected to boost the market growth in the future.

COVID-19 IMPACT

"Mushroom Cultivation Market Had a Negative Effect Due to Supply Chain Disruption During COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The outbreak of the COVID-19 pandemic affected the mushroom cultivation market share particularly through the shutting down of channels of distribution, lack of labour forces and decreased demand. Shutdowns and mobility restrictions impacted production, logistics of fresh mushrooms, and export consequently resulting in the firm’s revenues. Cutting down operating restaurants, hotels, and food services – a demand version deepened the market influence. Delays within the supply chain were a problem for farmers leading to quality deterioration and consequently increased amounts of waste was observed. Also, the costs of the input materials for substrates, spawn, and packaging material also forced to increase due to varied supply chain factors. Since small and medium enterprises do not have strong cash buffers, many ceased business operations either temporarily or otherwise. However, change in consumer habits regarding home-made food, healthy meals somewhat eased the declines in sales of processed and packaged mushrooms. However, even after post-pandemic market recovery, the market still experience negative effects of COVID-19 in its ability to recover its pre-COVID growth profile and address inefficiencies in operations.

LATEST TREND

"Vertical Farming Boosts Sustainable Mushroom Cultivation Drive Market Growth"

The vertical farming has started a new paradigm shift in the mushroom cultivation market due to problems related to urbanization and sustainability. This technique adopted mushrooms farming in tiers whereby the growing trays are placed one on top of the other in controlled structures that enhance the economical use of the available resources. Overall it has the least effects on the environment it requires minimum land, it uses a very little water and is powered by renewable energy systems. What makes vertical farming ideal is that it applies in urban areas where the space to build is limited while fresh produce is on display. Appreciation in the use of automation, IoT sensors, as well as the climate controlled systems augments the yield homogeneity and quality. For instance, Plenty and Infarm are two firms that are already involved the use of AI and robotization. In addition, this method withstands different seasons, thereby eliminating the exploitation of seasonal baselines. Therefore, by resonating with the consumers’ demand for locally grown and organic produce free of pesticides, vertical farming holds great promise as sustainable, scalable, and profitable way of addressing the global mushroom demand.

MUSHROOM CULTIVATION MARKET SEGMENTATION

By Type

Based on type, the global market can be categorized into Button Mushroom, Oyster Mushroom, Shiitake Mushroom, Others

• Button Mushroom: Second most consumed type that contains little bitter elements, and more often used in salads, soups, and pizzas. Cultivated worldwide.

• Oyster Mushroom: An annual herb which has mild flavors with a texture compared to other crops; it can be grown in different weather conditions and is usually grown on industrial. Which is complemented by other crops with agricultural wastes.

• Shiitake Mushroom: Well recognized for its meaty and mouthwatering element it is commonly used in Asian dishes, and it is known to provide health benefits such as boosting the immune system.

• Others: Some categories are enoki, maitake to appeal to specific segments with specific tastes and health aspects.

By Application

Based on application, the global market can be categorized Bedding and Cushions, Other

• Bedding and Cushions: Any other material from which nutrients and structures such as straw or sawdust on which mushrooms feed and build on, respectively.

• Other: Some of the features are such that they include other different substrates or some other different techniques that make production not only more effective or efficient.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Health Consciousness Boost the Market"

A factor boosting the mushroom cultivation market growth is the growing consciousness about the nutrients contained in mushrooms. Due to the compendial composition of mushrooms, they are packed with proteins, fiber, vitamins and anti-oxidant, thus can be pointed out as the special choice for health conscious consumers. Due to the increase in incidences of diseases such as obesity and diabetes, the populace is turning to natural and low fat foods. Mushrooms also fit with vegan and plant based diets which also drives consumption across the world even higher. Scientific findings that show how mushrooms are gainful to health help market these foods as part of a healthy diet and incorporate them into regular meals.

"Sustainable Agriculture Expand the Market"

There is a movement now toward sustainability in farming and mushroom farming is right on track with this concept. It involves the use of materials such as straws, saw dust and coffee grounds as substrate hence cutting out waste. Mushrooms do not take much water and space as other crops, therefore are environmental friendly. Their relatively short main growing seasons and high productivity add to their appeal. Farmers around the world that embrace sustainable farming practices supported by governments and NGOs are boosting mushroom production.

Restraining Factor

"High Initial Investments Potentially Impede Market Growth"

To establish the sophisticated mushroom production structures many capital investment is incurred, for example the production structures for the controlled environmental systems, the substrate to be used and labor being other cost factors. Smallholder farmer and business people also challenge to mobilize the finances that would enable such investments. Further, requirement of controlled climates for steady returns involves recurrent costs of operation. Smallholder farmers in the traditional farming areas have constraints of inadequate access to affordable technologies and training to enhance the scale of production. These financial impediments discourage new entrants into the market and slow down expansion in emerging markets thereby straining growth possibilities.

Opportunity

"Rising Demand for Functional Foods Create Opportunity for The Product in The Market"

On the same note, there is heightened demand for functional products specifically functional foods. One of the major factors that form an integral part of the mushroom cultivation market is the increasing consumers ‘demand on the functional foods. Shiitake, reishi and maitake varieties are especially popular because they can help better immunity, reduce inflammation and improve cognitive functions. Consumers as a result of their worries of early sickness have boosted the intakes of mushroom based Nutraceuticals, powders and supplements. A new opportunity that developed through alliances with growers and pharmaceutical firms is the growth of new markets.

Challenge

"Disease Susceptibility in Mushroom Farming Could Be a Potential Challenge for Consumers"

Mushroom crops are very sensitive to pest attacks, molds and diseases such as the green mold or the bacterial blotch poses a great threat to crop production. Disease management requires close vigilance from high standards and technology as well as a significant amount of cash that would be set aside to fund bio-security. It means that small-scale growers do not have adequate resources to put in place measures that would minimize such risks. Improving on the disease-resistant strain affordable by farmers and increasing the level of awareness of farmers on tine best practices is useful for surmounting this challenge.

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MUSHROOM CULTIVATION MARKET REGIONAL INSIGHTS

• North America

North America especially United States mushroom cultivation market is more dominating because of increasing consciousness about organic food and plant nutrition amongst the consumers. Pipelines: The U.S and Canada are developed in farming infrastructure and hence can produce high quality. Also, technologies such as controlled environment agriculture commonly known as CEA have expanded, improved on yield and quality. Private labels, direct stores, and associated with health-orientated brands drive the market. A new emphasis on functional foods and medicinal mushrooms drive demand up even further.

• Europe

Europe is special in terms of sustainability and has the highest consumption rate per capita regarding mushrooms. The main producers are those in countries such as the Netherlands, Poland, and Germany, who have adopted sophisticated growing technologies. This is more in line with Europe that has now waken up to the fact and embrace eco-friendly cuisine that incorporate mushrooms as meat substitutes. Government policies that encourage sustainable agriculture and organic farming hence boosting the market’s stability help the market.

• Asia

Asia especially China holds the biggest market share in mushroom production because of its large farming experience and facilities. Intensive traditional practices, coupled with innovations technologies to produce high yield affordable prices. Further, the ability of mushrooms to become part of the staple diet, and being used as a drug in Japan, Korea and other places creates a solid background of demand. Greater export to North America and Europe add to Asia’s dominance in the market.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Prominent participants in the mushroom cultivation market are Monaghan Mushrooms (Ireland), South Mill Champs (United States), Costa Group (Australia), and Bonduelle Group (France). These companies control the market through volume production and Danks earth/Iron Age advancement improvements in farming strategies. Monaghan Mushrooms provides direction in increasing production and product portfolio whereas South Mill Champs offers strategy in sustainable farming and value added mushroom products. Costa Group is outstanding in having incorporated automation and CEA techniques to ensure quality produce is produced. Bonduelle Group taps on international markets to add more distribution points in fresh and canned mushrooms. New entrants such as Fresh Cap Mushrooms and MycoWorks use micro-positions at novel categories like functional food and mushroom-constructed materials. This has led businesses to engage more in partnerships and in the research development of organoleptic, disease control, and high yield production, medicinal and nutritional uses of mushrooms. Retail chain and online platforms which are also the partners enhance the company’s stability in the global markets.

List Of Top Mushroom Cultivation Companies

• South Mill Mushrooms Sales (U.S.)
• Smithy Mushrooms Ltd. (United Kingdom)
• Rheinische Pilz Zentrale GmbH (Germany)
• Italspwan (Italy)

KEY INDUSTRY DEVELOPMENT

June 2024: Bonduelle Group launched a new organic mushroom line in Europe, focusing on sustainability and eco-friendly packaging.

REPORT COVERAGE

The mushroom cultivation market is evolving rapidly due the increasing concerns of consumers towards healthy food products such as plant based products which are nutritious. Owing to the rising modulus and refined health consciousness amongst the general populace, mushrooms are among the most used products in the modern society today due to vegan diets. It is also helped by factors such as controlled environment production techniques such as farming and vertical farming, a disease free quality produce, and so on. Moreover, new avenues of value addition in functional foods, nutraceuticals and pharmaceuticals offering a large untapped market size. Top producers are in Asia, while the demonstrated consumption rates are high in North America and Europe, primarily due to the preference for organic and environmentally friendly products. Some of them includes; high fixed costs, vulnerability to diseases, and competition. However, such issues are managed by support from the governments entailing for the progression of sustainable agriculture and the change of culture in the farming process. The economic outlook for the market is optimistic with more internet stations, more exports and consumers’ preferences for a diverse number of mushrooms.