Mushrooming Markets: What's The Fuss?

Mushrooms are widely cultivated and consumed around the world. They are rich in nutritional content and are considered a good source of protein for vegans and vegetarians. The global mushroom market was valued at USD 17.25 million tonnes in 2023 and is projected to grow to USD 32.04 million tonnes in 2032. The market is dominated by the Asia Pacific region, with China being the largest manufacturer of edible mushrooms. In the U.S., the market is expected to grow due to increasing investment in advanced cultivation technologies and mergers and acquisitions by international players. The demand for exotic mushrooms, such as oyster and shiitake, is also increasing in the country. The COVID-19 pandemic impacted the mushroom market due to the closure of restaurants and logistics challenges, but the industry is gradually recovering. Mushrooms are typically sold through supermarkets, convenience stores, and farmers' markets, with consumers prioritizing quality and locally sourced products. The rise of e-commerce and food startups experimenting with meat alternatives also contribute to the growth of the mushroom market.

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The global mushroom market was valued at $50.3 billion in 2021 and is projected to reach $115.8 billion by 2030

The global mushroom market is a thriving industry, with a significant valuation of $50.3 billion in 2021, and projections indicate that it will experience substantial growth in the coming years, reaching a remarkable worth of $115.8 billion by 2030. This impressive expansion is anticipated to occur at a compound annual growth rate (CAGR) of 9.7% from 2022 to 2030. Several factors are expected to drive this growth and shape the future of the mushroom market.

One of the key factors contributing to the growth of the mushroom market is the increasing demand from consumers adopting vegan diets. Mushrooms are considered a superfood and are prized for their high nutritional content, including their protein content, which is especially attractive to those seeking plant-based sources of protein. This shift towards veganism is driven by growing consumer concerns for animal welfare and the environment, as well as the desire for natural ingredient-based food and cosmetic products. The rising popularity of meat substitutes, such as the Laetiporus mushroom, also known as "chicken of the woods," further boosts the demand for mushrooms.

Geographically, the Asia Pacific region has dominated the mushroom market, accounting for over 78.6% of global revenue in 2021. China stands out as the largest producer and consumer in the region, with an annual per capita consumption of up to 10 kg. The prevalence of traditional medicine systems like Ayurveda and Traditional Chinese Medicine, which utilize mushrooms for their medicinal properties, further contributes to the high demand in this region. Europe, North America, and India are also significant markets, with Europe relying heavily on imports, and North America witnessing a growing preference for functional mushrooms.

The mushroom market is expected to face some challenges due to the limited shelf life of mushrooms, which was exacerbated by the COVID-19 pandemic's impact on logistics and transportation. However, the demand for fresh mushrooms is strong, and manufacturers are exploring additional processing methods, such as canning, freezing, or drying, to extend shelf life and meet consumer preferences for organic and unprocessed foods. The demand for processed mushrooms is also projected to grow, with canned mushrooms anticipated to reach a market size of USD 10.2 billion by 2025.

Button mushrooms have been the most popular product type, accounting for a significant volume share of 61.8% in 2021, followed by oyster mushrooms, which are increasingly used in Asian cookery. The distribution channels are led by supermarkets and hypermarkets, which accounted for 38.3% of revenue share in 2021, although online sales through e-commerce platforms are also expected to contribute to market growth. Overall, the mushroom market is poised for significant expansion, driven by consumer preferences for natural, nutritious, and plant-based food options.

The U.S. market accounted for a 4.9% share of the global mushroom market in 2023

The global mushroom market is projected to witness significant growth, with an expected revenue increase from USD 50.3 billion in 2021 to USD 115.8 billion by 2030, representing a CAGR of 9.7%. Within this context, the U.S. mushroom market holds a notable position, accounting for a 4.9% share of the global market in 2023. Valued at USD 2.97 billion in 2023, the U.S. mushroom market is anticipated to expand at a CAGR of 9.4% from 2024 to 2030, reaching USD 5.58 billion.

Several factors contribute to the growth of the U.S. mushroom market. Firstly, there is an increasing demand for exotic food products with natural and organic ingredients. This trend is particularly evident in the rising popularity of plant-based diets, where mushrooms are favoured for their meaty texture and umami flavour. The large number of pizza and burger outlets in the country also contributes to the higher consumption of mushrooms. Additionally, the U.S. has witnessed a growing preference for functional foods, such as cordyceps, reishi, and lion's mane mushrooms, which are sought after for their health benefits.

The U.S. mushroom market is moderately fragmented, with a mix of large and medium-sized players. Key participants in the industry emphasise sustainable production practices to appeal to environmentally conscious consumers. The market is expected to consolidate in the coming years, with larger agribusinesses potentially acquiring smaller mushroom businesses.

Button mushrooms, known for their low cost and wide availability, dominated the U.S. mushroom market with a share of around 36% in 2023. However, the demand for exotic mushrooms like oyster and shiitake is projected to increase, particularly in Asian cookery and gourmet cooking. Processed mushrooms, including powdered, frozen, canned, pickled, and dried varieties, are also gaining traction, with a projected CAGR of 9.8% from 2024 to 2030.

The U.S. mushroom market faces some challenges, including the limited shelf life of mushrooms, which resulted in significant losses for growers during the COVID-19 pandemic due to transportation disruptions. Additionally, the continuous increase in import duties by the U.S. government has contributed to higher mushroom prices, impacting the market's growth.

The demand for processed mushrooms is expected to grow at a CAGR of 9.8% from 2024 to 2030

The global mushroom market was valued at USD 50.3 billion in 2021 and is projected to reach USD 115.8 billion by 2030, growing at a CAGR of 9.7% from 2022 to 2030. The market for processed mushrooms is expected to grow at an even faster rate of 9.8% from 2024 to 2030. This growth is attributed to the increasing demand for processed food products with a longer shelf life and the rising preference for natural and organic ingredients.

Processed mushrooms include powdered, frozen, canned, pickled, and dried variants. Additional processing such as canning, freezing, or drying is necessary to extend the shelf life of mushrooms, which is otherwise limited to only a few days due to their high water content. The COVID-19 pandemic further highlighted the importance of shelf life, as logistical challenges and transportation slowdowns led to significant losses for growers of fresh mushrooms.

The demand for processed mushrooms is also driven by the increasing popularity of exotic food products and the growing desire for meat substitutes. The use of mushrooms in food applications, including both fresh and processed versions, accounted for a substantial revenue share in 2023. Mushrooms are valued for their nutritional content, low gluten and salt content, and health benefits, making them attractive to health-conscious consumers.

The distribution channel also plays a role in the growth of the processed mushroom market. Supermarkets and hypermarkets accounted for a significant revenue share in 2023, and the increasing demand for organic and natural products sold in these stores is expected to boost sales of mushrooms through this channel. Additionally, the growing penetration of online retail is expected to benefit the mushroom market, with consumers increasingly preferring the online mode for their fresh produce purchases due to convenience and price benefits.

Overall, the expected CAGR of 9.8% for the demand for processed mushrooms from 2024 to 2030 is driven by various factors, including the increasing demand for natural and organic ingredients, the need for extended shelf life, the growing popularity of exotic food products, and the rising preference for meat substitutes.

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Wild mushroom sales require passing an exam to demonstrate proper identification and the use of traceability in labelling

The global mushroom market was valued at USD 50.3 billion in 2021 and is projected to reach USD 115.8 billion by 2030. The market is growing due to the increasing demand for vegan and organic food products. However, the limited shelf life of mushrooms and the impact of COVID-19 lockdowns on transportation have resulted in significant losses for growers.

In the United States, the mushroom market is expected to grow at a compound annual growth rate (CAGR) of 9.4% from 2024 to 2030. The demand for exotic mushrooms like oyster and shiitake is projected to increase, and processed mushrooms are also gaining popularity. To sell mushrooms in the US, it is important to understand the regulations and market channels.

Selling wild mushrooms specifically comes with additional requirements due to the potential risk of toxicity. In the state of Georgia, for example, wild mushroom sales require an exam to be passed by the seller, demonstrating their ability to properly identify mushrooms and trace their products through labelling practices. This is to ensure that toxic mushroom species are not inadvertently sold in place of safe ones. The labels on wild-harvested mushrooms must include the approved mushroom identifier's name, contact information, Latin binomial name, harvest date, location, weight, and forager's name. These records must be kept on file for at least 90 days after the last date of sale.

Mushroom foraging permits are also available in some states, such as Georgia and South Carolina, which allow for the sale of wild, foraged mushrooms. These permits are typically obtained through courses that teach participants how to identify and safely forage for mushrooms. The courses cover topics such as mushroom species identification, harvesting techniques, and food safety regulations. The instructors of these courses are qualified mushroom identifiers themselves, and the courses are designed to meet the objectives outlined by the relevant agricultural departments. While the specific rules vary from state to state, these courses aim to provide the knowledge and certification necessary for the safe and legal sale of wild mushrooms.

The most popular variety, button mushrooms, can be eaten raw, cooked, or dried

The most popular variety of mushroom on the market, button mushrooms, can be enjoyed in a variety of ways. They are a versatile ingredient that can be eaten raw, cooked, or dried.

Button mushrooms are widely cultivated and sold due to their nutritional benefits, shorter incubation time, and lower cost compared to other varieties. They are a staple in global cuisine and can be found in most supermarkets and hypermarkets, which accounted for 38.3% of mushroom sales in 2021.

Their mild flavour and versatility make them a popular choice for cooks and chefs. They can be sliced and added to salads or sandwiches, sautéed with other vegetables, or used as a base for sauces and soups. Their texture remains pleasant even when cooked, making them a good meat substitute for vegetarian and vegan diets.

Dried button mushrooms are also a useful ingredient. They can be rehydrated and prepared in the same way as fresh mushrooms, or they can be ground into a powder and used to thicken sauces, soups, and stews. Drying is one of the ways to extend the shelf life of mushrooms, which is otherwise limited to a few days.

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