Global Mushroom Cultivation Market - 2022-2029

Market Overview

Mushroom is referred to as a low-calorie food that provides several health benefits including numerous vitamins and minerals which further drives the requirement for cultivation of mushrooms. Mushrooms help in mitigating grave health conditions including cancer, heart diseases and others. The increasing per capita consumption of mushrooms and increased consumer awareness of the numerous health benefits of eating mushrooms are the two main factors driving the growth of the global mushroom cultivation market. Additionally, increased market participants' efforts to adopt the most recent technologies will increase the commercial production of mushrooms, which is anticipated to increase the number of opportunities for market participants to grow their businesses in the global mushroom cultivation market throughout the forecast period.

The global mushroom cultivation market was growing at a CAGR of 4.12% during the forecast period (2022-2029)

Market Dynamics: Rising health consciousness among the people drives the market expansion

Global market expansion is anticipated to be fueled by rising consumer demand for foods that are high in nutrients and low in fat and cholesterol. Its use in dietary supplements has increased because it contains fiber and digestive enzymes that support gut and immune health. The demand for hotels, restaurants, and cafeterias is rising due to the explosive growth of the food service industry. Fungi can offer nutritional and health benefits by adding fungus powders to sauces, smoothies, and soups.

On the other hand, the market is anticipated to grow over the coming years due to rising vegan populations and the increasing adoption of it as a meat substitute. Fungi is the ideal meat substitute and a powerful way to cut calories and fat while increasing nutrition thanks to its rich, umami flavor. Export opportunities for major Asian producers are being created by the growing demand for processed variants, particularly in western countries. During the forecast period, market growth is anticipated to be aided by the high medicinal value of edible fungus and rising consumer awareness.

However, a high degree of managerial involvement and expertise is required for mushroom production. It takes a certain kind of treatment to get reliable, high-quality yields. They are significantly influenced by humidity, temperature, and light. For producers, particularly those working outdoors, insects and animal pests could present serious problems. The need for pest control arises because some insects, like fungus gnats, thrive in similar conditions and raise production costs. Its quick production cycles and high yields also narrow the window of opportunity for harvest, which restricts the amount of output. The production of oyster versions is also expected to cause allergic reactions, restricting the market growth.

Market Segmentation: Fresh mushrooms segment accounted for the highest share in global mushroom cultivation market

Due to an increase in consumers focusing on eating organic and unprocessed foods to maximize the product's health benefits, fresh mushrooms have seen a significant increase in demand over the past few years. Due to their short shelf life, fresh-form distribution challenges manufacturers or distributors. But as technology has advanced, mushrooms' short shelf life problems have decreased, which has aided segment growth. One example is the use of modified atmosphere packaging.

On the other hand, dried, frozen, canned, pickled, and powdered foods are among the processed varieties. Extending the shelf life of mushrooms requires additional processing, such as canning, freezing, or drying. Manufacturing companies are introducing packaged products more frequently to capture the markets for processed and convenience foods. Manufacturers of food and cosmetics are anticipated to use extracts and powder form more frequently during the forecasted period, fostering industry growth.

Geographical Penetration: Asia Pacific region is the dominating region during the forecast period

Some of the biggest markets in the area include China, Japan, Malaysia, India, and Australia. China has become the region's largest producer, with annual per capita consumption reaching 10 kg. Because consumer eating habits are changing and because developing nations in this region, like India and China, are spending more money on processed food. During the forecast period, rising food hotels and restaurants in this region are also anticipated to boost the global mushroom cultivation market.

Due to higher market penetration in the region's developed economies, including the United States and Canada, North America holds a sizable portion of the market. Consumers are willing to pay higher prices for premium goods specifically made with natural and organic ingredients. Additionally, throughout the forecast period, the demand for meat substitutes like mushrooms from the food and dietary supplement industries is anticipated to increase due to a rising preference for a vegan diet.

Europe held the second-largest market share in terms of global mushroom cultivation. Due to the region's growing consumption of mushrooms. Additionally, rising consumer concerns about their health and fitness and a shift in consumer preference toward low-fat and healthy foods are predicted to fuel the growth of the global mushroom market during the forecast period.

Competitive Landscape:

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major key players include Smithy Mushrooms Ltd., Rheinische Pilz Zentrale GmbH, Polar Shiitake Oy, L F Lambert Spawn Co, Monaghan Mushrooms Ltd, Walsh Mushrooms Group, Fresh Mushroom Europe NV, Gourmet Mushrooms, Inc., South Mill Mushrooms Sales Inc. and Hirano Mushroom LLC. Key players with operations in developed regions place an increasing emphasis on sustainable production to draw in an eco-aware clientele and strengthen brand positioning. For instance, On March 8th, 2018, The Prairie Mushrooms group of companies, one of Western Canada's largest integrated mushroom growers and marketers, was acquired by Highline Mushrooms ("Highline"). As Canada's only coast-to-coast mushroom grower, this acquisition strengthens Highline's dominant Western Canadian operations and solidifies its position as the country's largest organic mushroom producer. Five farms in British Columbia and Alberta are part of Highline's Western Canadian operations, which it uses to the greatest advantage of its customers in that region and the United States. Additionally, during the forecast period, the market players' adoption of the most recent technology for mushroom cultivation is anticipated to generate many growth opportunities.

COVID-19 Impact: Negative impact on the global mushroom cultivation market

Lockdowns have been imposed due to the COVID-19 outbreak to stop the disease's spread. The logistics or goods transportation industry experienced a slowdown in the early months of the pandemic due to the shortage of personnel and the uncertainty the pandemic caused. The short shelf life of mushrooms caused growers to suffer significant losses. Therefore, mushrooms' short shelf life is anticipated to constrain the market growth over the forecast period. Furthermore, The COVID-19 pandemic, which primarily affected imports from nations like China, Peru, and Chile and consequently affected consumption, hit the European region particularly hard. The lockdowns implemented to stop the spread of COVID-19 significantly impacted local demand from hotels, restaurants, and food chains.

The global mushroom cultivation market report would provide an access to approximately 61 market data tables, 57 figures and 170 pages.