Mushroom Cultivation Market

Global Mushroom Cultivation Market Size (2024 to 2032)

The global mushroom cultivation market size was valued at USD 17.99 billion in 2023 and the market size is expected to reach USD 18.71 billion in 2024 growing at a CAGR of 4.0% from 2024 to 2029. anticipated to reach USD 25.61 billion by 2032.

CURRENT SCENARIO OF THE GLOBAL MUSHROOM CULTIVATION MARKET

Mushroom cultivation is a specialized procedure. In the vegetable classification, the mushroom is positioned with the heterotrophic life forms. As opposed to green plants, the mushroom isn't equipped for the photosynthesis procedure. In mushroom cultivation, waste items, which incorporate horse compost, poultry excrement, straw, gypsum, and wastewater, are utilized to develop top-notch mushrooms. Ammonia is expelled with the assistance of an alkali washer from the procedure air. Ammonia from the air is additionally utilized as a wellspring of nitrogen in treating the soil. The organism, for example, mycelium, utilizes manure as a wellspring of vitality for its burning, where vitality is discharged and utilized for mushroom cultivation.

The nation was the biggest edible mushroom producer worldwide and arrived at an expected yearly yield of 38.42 million tons in 2017. This represented about 75% of the all-out worldwide yield. Moreover, the CFA Edible Mushroom Branch (2018) expressed that the fare of palatable mushrooms was esteemed at USD 3.8 billion around the same time.

The higher per capita mushroom cultivation and reception of current mushroom cultivation strategies in the Asia Pacific area are anticipated to drive the development of the mushroom cultivation market, As indicated by the China Business Research Institute. As per an examination paper, mushroom cultivation is the fifth-biggest agrarian division in the nation, esteemed at USD 24.0 billion. The Asia Pacific is the main locale in the worldwide mushroom cultivation market. The per capita utilization in China, the biggest maker of mushrooms in the world, is higher than in some other nations. The utilization of mushrooms in Asian nations, such as Japan, India, and others, is expanding at a critical rate, as certified by expanding cultivation. Expanding the veggie-lover populace and moving patterns toward nourishment-rich food has prompted the market development of mushrooms in Asian nations.

In addition, the pattern of mushroom expansion in different multi-cooking dishes helps market development. Also, mushroom cultivation can decrease the danger of maladies, such as prostate malignant growth and breast cancer. This expansion in utilization attributable to the medical advantages has prompted the expansion underway and cultivation of mushrooms. Moreover, the monetary viability of mushroom cultivation and trade by developing countries creates lucrative business opportunities.

The absence of improvised mushroom farm management practices is considered a serious threat to this market.

MARKET DRIVERS

Y-o-Y growth in the consumer demand for organic food is one of the major factors promoting the mushroom cultivation market growth.

Consumer preference for organic food is growing significantly. Organic mushrooms have gained recognition as a healthier and more environmentally friendly option compared to conventionally grown varieties. Mushrooms are a significant component of organic food, and an increasing amount of mushroom cultivation is being done to address the growing demand for organic food. As per the data of the Organic Trade Association, the sales of organic food products in the U.S. grew by 12.4% between 2019 and 2020. The rising preference for organic food is also motivating mushroom cultivators to adopt organic farming practices to make sure that their products are of high quality and meet the standards. As the demand for organic food continues to grow, the demand for mushrooms and the mushroom cultivation market are likely to experience prominent growth.

The growing awareness among people regarding the health benefits of mushrooms is further boosting the mushroom cultivation market growth.

Mushrooms are popular for their nutritional profile and play a vital role in boosting the immune system, providing essential nutrients, and offering medicinal properties. Mushrooms also contain bioactive compounds that can help fight inflammation, lower cholesterol, and even reduce the risk of cancer. The growth in awareness also results in increased consumption and demand for more cultivation. In a study conducted by the International Journal of Medicinal Mushrooms, certain mushrooms contain anti-cancer properties. The awareness among consumers regarding the health advantages of mushrooms continues growing, and consumers are increasingly considering incorporating mushrooms into their diets. As this awareness grows further, the global mushroom cultivation market is likely to benefit from it.

In addition, Y-o-Y growth in the vegetarian and vegan populations worldwide, increasing culinary applications of mushrooms, rapid adoption of technological advancements in cultivation methods, rising support and subsidies from the governments of various countries for mushroom cultivation, and growing demand for high-protein foods are favoring the growth of the global market. Furthermore, factors such as the growing popularity of functional foods, rising demand for medicinal mushrooms, the availability of diverse mushroom varieties, and increasing investments in mushroom research are aiding the growth of the global market.

Mushrooms are becoming the most common food in most households across the world due to their health benefits.

Mushrooms have an antioxidant profile and are the best source of vitamin D. They also have the ability to reduce the risk of various chronic diseases like high cholesterol, heart-related diseases, cancer, diabetes, and others. Due to its various health benefits, the consumption of mushrooms will eventually grow around the world, which will amplify the growth rate of the mushroom cultivation market.

The production of mushrooms has increased in the past few years due to the rising number of people inclined to a plant-based diet. In today’s world, people are prominently shifting to completely rely on eating only plant-based food products that are rich in many vitamins and proteins that help boost their overall immune system, which can predominantly level up the mushroom cultivation market’s growth rate. In addition, the launch of various technological developments in making convenience foods with the most valued raw ingredients is anticipated to drive the growth rate of the market. People are now more aware of choosing convenience food, whether that is making the manufacturers go for premium ingredients that have rich sources of nutritional value, which is why the demand for mushrooms is growing at a random rate. Also, the growing prominence of online food applications through smartphones is leveraging the mushroom cultivation market’s growth. The easy availability of various food products like mushrooms and others in online stores, where the delivery of the ordered products has become more popular these modern days, is amplifying the growth rate of the mushroom cultivation market.

In addition, rising prominence for the convenient food products where the launch of various processed foods is substantially to accelerate the growth rate of the market.

MARKET RESTRAINTS

High initial investments required to establish the setup for mushroom cultivation are hampering the global market.

In addition, factors such as limited access to quality substrates, susceptibility to pests and diseases, lack of technical expertise and training are impeding the mushroom cultivation market growth. Furthermore, inadequate infrastructure and facilities in some countries, regulatory and certification challenges, high labor costs and availability issues and the competition from other protein sources are negatively impact the global market growth.

Lack of proper infrastructure to cultivate the mushroom due to cost factors slowly restricting the high growth rate of the mushroom cultivation market. Mushrooms should be cultivated with the utmost care, where a lack of proper infrastructure and environment can cause a decline in productivity, which surges the cost of the final products. Government investments to improve the infrastructure in the agriculture sector can improve the production rate of mushrooms in the coming years.

The disruptions in the supply chain due to stringent rules and regulations in export and import between foreign countries can impede the growth rate of the market to some extent. It is highly important to store the mushrooms to avoid spoilage in specific environments where a lack of storage facilities in most of the countries can also limit the mushroom cultivation market growth rate.

MARKET DYNAMICS

According to the Food Association Organization, the worldwide region collected for Mushrooms and Truffles expanded from 39 thousand hectares in 2016 to 48 thousand hectares in 2017 and further to 67 thousand in 2018.

The mushroom cultivation market has seen noteworthy development inferable from variables such as numerous medical advantages of mushrooms and expanding per capita mushroom utilization. Financially savvy creation and rising interest in vegetarian and regular food in the eating regimen factors help support the development of the mushroom cultivation market. Expanding well-being cognizant populace over the globe further impels the interest in mushroom cultivation comprehensively.

MARKET CHALLENGES

Unfavorable climatic conditions across the globe increase the productivity of the mushroom and hinder the growth rate of the market. Farmers step back to cultivate mushrooms as it is a long procedure and needs effective climatic conditions. Lack of feasibility in the cultivation process mushroom is certainly a major challenging factor for the key players to grow in this marketplace. Some people believe the perception of mushrooms as a non-vegetarian food product that vegan people do not pick in their regular diet, which also impedes the growth rate of the market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Mushroom Cultivation Market By Type

Of these, the button mushroom segment represented the biggest piece of the overall industry in 2019. The button mushroom is a broadly devoured mushroom type all over the world and can possibly offer numerous medical advantages. This type is industrially developed in practically all the significant mushroom-delivering nations, for example, China, Japan, the US, the UK, Germany, and Poland. Expanded R&D on the white mushroom to locate the possibility of forestalling disease, alongside its accessibility at moderate costs when contrasted with unique mushroom assortments, is anticipated to raise interest for button mushrooms during the conjecture time frame. It contributes over 40% of worldwide production.

REGIONAL ANALYSIS

The Asia-Pacific region had 35.9% of the worldwide market share in 2023 and emerged as the most dominating regional segment in the global market. The domination of the Asia-Pacific region is estimated to continue during the forecast period owing to the traditional dietary habits of the population of Asia-Pacific countries, increasing urbanization, and the growing adoption of technological advancements in cultivation practices. The growing awareness of the high nutritional value of mushrooms and their use in traditional medicine across the Asia-Pacific region is further promoting regional market growth. China had the largest share of the Asia-Pacific market in 2023, and China's lead in the Asia-Pacific market will continue throughout the forecast period. As per the data of the Food and Agriculture Organization, China is the largest producer of mushrooms worldwide and roughly holds 70% of the world's production of mushrooms. India and Japan are progressing at a healthy CAGR in this region and are likely to account for a considerable share of the regional market during the forecast period.

Europe is a prominent regional market for mushroom cultivation worldwide and held a substantial share of the worldwide market in 2023. During the forecast period, the European market is expected to register a notable CAGR due to factors such as high demand for diverse mushroom varieties, increasing investments in research and development around mushrooms, growing trends towards vegetarian and vegan diets, and strong distribution networks across the European region. According to Eurostat, Poland and the Netherlands are the largest producers of mushrooms in Europe.

During the forecast period, North America is anticipated to witness a promising CAGR and account for a considerable share of the global market. Factors such as the growing awareness among consumers of North America about the health benefits of mushrooms, rising demand for organic food products, and rapid adoption of advancements in cultivation technology are primarily contributing to the mushroom cultivation market in North America. The growth of the health and wellness industry and the popularity of gourmet and functional mushrooms in the countries of North America are further boosting the regional market expansion. According to the Organic Trade Association, the sales of organic mushrooms have been experiencing a 10% year-on-year growth in the North American region.

KEY PLAYERS IN THE GLOBAL MUSHROOM CULTIVATION MARKET

Monaghan Mushrooms (Ireland), Walsh Mushrooms Group (Ireland), Mycelia (Belgium), South Mill Mushrooms Sales (US), Smithy Mushrooms Ltd. (UK), Rheinische Pilz Zentrale GmbH (Germany), Italian Mushroom SAS (Italy), Hirano Mushroom LLC (Kosovo), Fujishin Co. Ltd. (Japan).

These significant players in this market are concentrating on expanding their essence through mergers and acquisitions, new item launches, and understandings. These organizations have a solid nearness in the Asia Pacific, Europe, and North America. They additionally have substrate producing offices and solid distribution organizes over these locales.

RECENT HAPPENINGS IN THE GLOBAL MUSHROOM CULTIVATION MARKET

• In August 2019, Walsh Mushrooms Group extended its mushrooms gracefully to ALDI, a grocery store organization. Another five-year bargain started in 2019 to develop mushrooms for ALDI by the cultivators of Evesham (England-based focus).
• In October 2018, Walsh Mushrooms Group introduced a nutrient D-enhanced mushroom following a USD 279,492 interest in a two-year venture, which was allowed Novel Food Status.
• In September 2018, South Mill Mushrooms Sales gained Champ's Fresh Farm Inc., one of the main premium-quality mushroom makers in Western North America. This helped the organization to get perhaps the biggest mushroom cultivators in North America.

DETAILED SEGMENTATION OF THE GLOBAL MUSHROOM CULTIVATION INCLUDED IN THIS REPORT

This research report on the global mushroom cultivation market is segmented and sub-segmented based on type and region.

By Type

• Button mushroom
• Oyster mushroom
• Shiitake mushroom

By Region

• Asia Pacific
• North America
• Europe
• Latin America
• Middle East and Africa