Fungal Protein Market Forecasts to 2030 - Global Analysis By Product Type (Mycelium Protein, Single-Cell Fungal Protein, Fungal Biomass and Other Product Types), Nature, Form, Distribution Channel, Application and By Geography

According to Stratistics MRC, the Global Fungal Protein Market is accounted for $225.9 million in 2024 and is expected to reach $391.6 million by 2030 growing at a CAGR of 9.6% during the forecast period. Fungal protein, also known as mycoprotein, is a sustainable protein source derived from fungi, primarily Fusarium venenatum. It is rich in essential amino acids, low in fat, and high in fiber, making it a nutritious alternative to animal protein. Mycoprotein is used in various meat substitutes due to its meat-like texture and nutritional benefits, contributing to environmentally friendly and health-conscious dietary options.

According to a review article in the NCBI journal, fungal single-cell proteins (SCP) generally contain a protein content of 30-45% with a favorable amino acid composition compared to FAO recommendations.

Market Dynamics:

Driver:

Increasing demand for alternative proteins

As consumers become more health-conscious and environmentally aware, there is a growing shift towards sustainable and plant-based protein sources. Fungal proteins, known for their high nutritional value and eco-friendly production methods, are gaining popularity as meat and dairy substitutes. This trend is further fueled by the rise in vegan and vegetarian diets, as well as the need for innovative protein sources to meet the global protein demand.

Restraint:

Limited consumer awareness

Despite the nutritional and environmental benefits of fungal proteins, many consumers are still unfamiliar with these products. Misconceptions about taste, texture, and safety can hinder their acceptance and adoption. Additionally, the novelty of fungal proteins compared to more established plant-based proteins like soy and pea can pose a challenge. Overcoming these barriers requires targeted marketing, education, and sampling initiatives to build consumer trust and familiarity with fungal protein products.

Opportunity:

Expansion into new markets

As awareness of the benefits of fungal proteins grows, there is potential to tap into emerging markets in regions like Asia-Pacific and Latin America. These regions are experiencing a rise in health-conscious consumers and a growing demand for sustainable food sources. Additionally, the development of new applications for fungal proteins in pharmaceuticals, animal nutrition, and personal care products can further drive market growth and diversification.

Threat:

Competition from other alternative proteins

The fungal protein market faces significant competition from other alternative proteins, such as plant-based, insect, and cultured meat proteins. These alternatives often appeal to consumers seeking sustainable, ethical, and diverse protein sources. Plant-based proteins, in particular, have seen rapid growth due to their accessibility and established market presence. This competition challenges the fungal protein market to differentiate itself through unique nutritional benefits, sustainability credentials, and innovative products to capture consumer interest and market share.

Covid-19 Impact:

The COVID-19 pandemic had a mixed impact on the fungal protein market. Initially, disruptions in supply chains and production processes led to a temporary decline in market growth. However, the pandemic also heightened consumer awareness of health and sustainability, driving demand for alternative proteins, including fungal proteins. As the market adapts to new consumer behaviors and supply chain resilience improves, the fungal protein market is expected to recover and grow.

The powder segment is expected to be the largest during the forecast period

The powder segment is expected to be the largest during the forecast period. Fungal protein in powder form is highly versatile and can be easily incorporated into various food and beverage products, including supplements, baked goods, and meat substitutes. Its long shelf life and ease of transportation make it a preferred choice for manufacturers. The high protein content and functional properties of fungal protein powder, such as solubility and emulsification, further drive its demand in the food industry, contributing significantly to market growth.

The food & beverages segment is expected to have the highest CAGR during the forecast period

The food & beverages segment is expected to have the highest CAGR during the forecast period. The increasing consumer preference for plant-based and sustainable food options drives the demand for fungal proteins in this segment. Fungal proteins are used in a wide range of food products, including meat substitutes, dairy alternatives, and functional foods. The versatility, nutritional benefits, and environmental sustainability of fungal proteins make them an attractive ingredient for food manufacturers, leading to rapid growth in the Food & Beverages segment.

Region with largest share:

The European region is positioned to dominate the fungus protein market. Europe has a well-established market for alternative proteins, driven by strong consumer demand for sustainable and health-conscious food products. The region's regulatory support for plant-based diets and the presence of major fungal protein producers further bolster market growth. Additionally, the rising trend of veganism and the increasing adoption of meat substitutes in countries like Germany, the UK, and France contribute to Europe's leading position in the fungal protein market.

Region with highest CAGR:

The Asia Pacific region anticipates rapid growth in the fungal protein market. The region's growth is driven by increasing health and wellness awareness, rising disposable incomes, and a growing demand for protein-rich diets. Countries like China, India, and Japan are witnessing a surge in the adoption of plant-based and alternative proteins. In addition, government initiatives to promote sustainable food production and the expansion of the food and beverage industry further support growth in the Asia Pacific region.

Key players in the market

Some of the key players in Fungal Protein Market include MycoTechnology, Meati Foods, Quorn Foods, Ecovative Design, Prime Roots, Atlast Food Co., The Better Meat Co., 3F Bio, Superbrewed Food, Sustainable Bioproducts LLC and Nature's Fynd.

Key Developments:

In April 2024, MycoTechnology has scaled production of its sweet protein from honey truffles - from a lab benchmark to 3,000-liter tanks - improving production process efficiency, optimizing costs and validating safety and digestibility.

In January 2024, Nature's Fynd, a food company making delicious meat and dairy alternatives with Fy(TM), a nutritional fungi protein, has created the world's first dairy-free, fungi-based yogurt.

Product Types Covered:

• Mycelium Protein
• Single-Cell Fungal Protein (SCFP)
• Fungal Biomass
• Other Product Types

Natures Covered:

• Organic
• Conventional

Forms Covered:

• Dry
• Liquid

Distribution Channels Covered:

• Direct Sales
• Indirect Sales

Applications Covered:

• Food & Beverages
• Animal Feed
• Pharmaceuticals
• Nutraceuticals
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances