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Mushroom Market Share, Size, Trends, Industry Analysis Report, By Product (Button, Shiitake, Oyster, Matsutake, Truffles); By Application; By Form; By Distribution Channel; By Region; Segment Forecast, 2021 - 2028

  • Published Date: Sep 2021
  • Pages: 132
  • Format: PDF
  • Report ID: PM1953
  • Base Year: 2020
  • Historical Data: 2016 - 2019

Report Summary

The global mushroom market was valued at USD 46.19 billion in 2020 and is expected to grow at a CAGR of 9.4% during the forecast period. The growing vegan population's need for a protein-rich diet is considered a significant driving force in the market. The surging food and beverage industry, increasing health awareness among customers, growing adoption of mushrooms by pharmaceutical companies, and advancement in packaging technologies are key factors driving the market growth.

The growing market for processed food products has spurred the demand in emerging economies to new heights. Favorable government funding for product farming is pushing business growth even further. Furthermore, the companies are constantly improving overall business processes to satisfy consumer demand efficiently.

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There is an increase in preference for mushrooms among people worldwide due to the increasing vegan population and are people avoiding consumption of animal-based food products, owing to the latter's ill effects on the human body. The product is an excellent substitute for meat due to its high protein content.

The product contains over 3 grams of protein per 100 grams and is also rich in minerals and vitamins such as zinc, selenium, vitamin B1, B2, B5, B6, and B12. It is also the only vegetable source containing vitamin D. It is used as a functional food and as nutraceuticals due to its anti-tumor, antioxidant, and antimicrobial properties.

COVID-19 is expected to slow down the market's growth during the forecast period due to the supply chain disruptions due to the lockdown imposed in many parts of the world. The shelf life of the product is generally 3 to 5 days. Hence, any delay in transportation leads to a loss for farmers, which is expected to negatively impact the production volume during pandemic times.

Industry Dynamics

Growth Drivers
The global market growth is expected to be driven by factors such as increasing demand for the product owing to the increase in vegan people across the globe and the high nutritional value of the product. Several governments across the globe are also supporting this product farming which is expected to accelerate the growth of the global market further.

The emergence of many next-generation agricultural solutions will significantly benefit the product market. Artificial intelligence, automation technologies, and precision agriculture technologies are being adopted in mushroom farming. For instance, a robotic mushroom harvester was developed in Canada.

This harvester has an imaging system decision support system (DSS) and a gripper that acts as a robotic arm. This will track various parameters of the product such as size, and if a mushroom meets all the parameters, the system will automatically harvest the product.

According to a research study by Penn State in April 2021, it is found that consumption of 18g of the product will lower cancer risk by 45% as mushroom varieties such as shiitake, oyster, king oyster, and maitake mushrooms are rich in antioxidants and ergothioneine.

Business model analysis was done on the industry in Indonesia during the Covid-19 pandemic, and the research shows that companies are employing various strategies to sustain during the pandemic. According to the report, companies are diversifying their products and are looking at online marketing as a potential tool for value creation. The companies are conducting opening cooking classes to popularize mushroom-based food items and sustain the business.

Plastics are non-degradable and pose various environmental hazards. Researchers from Utrecht University have discovered 50 fungal species that can degrade different types of plastic. The team is now working to optimize temperature and other environmental parameters where each strain will show maximum plastic degrading ability.

Mushroom Market Research Scope

The market is primarily segmented on the basis of product, form, distribution channel, application, and region.

By Product

By Form

By Application

By Distribution Channel

By Region

  • Button
  • Shiitake
  • Oyster
  • Matsutake
  • Truffles
  • Others
  • Fresh
  • Processed
  • Food
  • Pharmaceuticals
  • Cosmetics
  • Direct to Customer
  • Grocery Stores
  • Supermarkets & Hypermarkets
  • Convenience Stores
  • Online Stores
  • North America (U.S., Canada)
  • Europe (France, Germany, Italy, Spain, UK, Russia, Poland, Netherlands)
  • Asia Pacific (China, India, Japan, Indonesia, South Korea, Malaysia)
  • Latin America (Argentina, Brazil, Mexico)
  • Middle East & Africa (Israel, Saudi Arabia, South Africa, UAE)

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Insight by Product

Button product type dominated the market and generated the highest revenue in 2020. The segment is expected to grow at a consistent growth rate over the forecast period. They are commonly cultivated around the globe due to their nutritional advantages and the shorter time it takes for their spores to incubate. Moreover, their reduced price compared to their competitors is anticipated to push the segment over the study period.

Shiitake product type is most popular owing to its delicious, savory flavor and numerous health benefits. These types are eaten fresh or in refined forms. These mushrooms are historically used as traditional medicines in Asian countries such as China, Japan, and South Korea. They improve health and quality of life while also improving blood circulation.

In terms of sales, the oyster segment is projected to grow at the fastest rate during the projected timeframe. The delicate texture and mild-savory taste make the oyster products very common in Japanese, Chinese, and Korean cuisine. Furthermore, oyster mushrooms contain an active compound, benzaldehyde, which lowers bacterial concentration in the body and acts as a natural anti-bacterial, thus increasing its demand in the pharmaceutical market.

Insight by Form

The fresh form segment dominated the market and generated the highest revenue in 2020, owing to the surged demand for unprocessed and organic foods. Fresh product distribution is difficult for producers or distributors due to its short shelf life. Even so, technological advances like modified atmosphere packaging have reduced the problems related to mushrooms' short shelf life, thereby benefiting the segment growth.

The processed form is projected to grow at the fastest rate during the forecast period in terms of sales. Frozen, dried, pickled, canned, and powdered varieties are examples of processed styles. Additional processing, such as freezing, canning, or drying, is needed to prolong the product's life span.

Manufacturers are gradually launching packaged goods in order to tap into the demand for convenient and processed food products. The increased use of powder forms and extracts by cosmetics and food manufacturers is projected to help market growth over the forecast period.

Insight by Distribution Channel

The supermarkets & hypermarkets segment dominated the market and generated the highest revenue in 2020, as most mushrooms are primarily marketed via these distribution networks. The penetration is higher in developed economies such as North America and Europe than in emerging regions.

The availability of a wide range of goods in one location has led to the dominance of this segment as a distribution network. In contrast, the growth of supermarkets and hypermarkets has been hampered by increased competition from online grocers that sell goods at reduced prices and shifting consumer behavior.

Grocery stores sell a wider variety of packaged goods than convenience stores, with greater discounts due to higher volume sourcing than the latter. Many cities' limited space encourages the establishment of grocery stores rather than supermarkets and hypermarkets. However, the mushroom market is expected to benefit from the increasing penetration of internet shopping in the years ahead.

Over the estimated period, the online stores segment is projected to grow at the fastest rate in terms of revenue. Due to the convenience and price advantages provided by these outlets, consumers worldwide are increasingly choosing the online mode for purchasing fresh produce.

The increasing popularity of mushrooms has led to several new mushroom products being introduced in the market. Companies are into acquisitions since the mushroom businesses are shown to be profitable in recent years. Canada-based Highline mushrooms acquired Prairie Mushrooms in March 2018. The same company also invested USD 20 million to establish a second cross-field mushroom in August 2019.

Also, in December 2020, Costa Group has merged three labels into one by introducing a new moniker, Mush-Boom. Costa Group is the biggest horticulture company based in Australia and a key product supplier to the country's food retailers. In November 2020, South Mill Champs increased its global footprint by launching a new distribution center in Lakeland, Florida. The facility is more than 30,000 square feet in size, and Florida is a natural extension of the company's distribution network.

Geographic Overview

Asia Pacific is projected to be the highest revenue generator for the global market during the forecast period, owing to the growing production of mushroom farming in the region. Japan, India, China, Malaysia, and Australia are few traditional producers and using the product for centuries. In India was estimated to be around 6,00,000 tons per annum in 2020. Consumer demand in the concerned region is anticipated to be driven by its low-calorie content, enhanced nutritional values, and immunity-boosting properties.

The North American mushroom market is also expected to significantly contribute to the growth of the global market during the forecast period owing to the availability of premium products and increasing awareness among people for a healthy diet. Both the U.S. and Canada produce a high volume of mushrooms. Europe is one of the largest buyers, relying heavily on imports. Higher per capita production in the region's mature economies is anticipated to open new markets for exotic mushrooms such as gourmet products.

Competitive Insight

The companies involved in the production are launching a new type of mushroom products based on new varieties such as Portobello and Ecopouch mushrooms as they are emerging as great substitutes for meat. Major players are involved in new acquisitions and increased investment to increase their foothold in the market.

Some of the major players operating in the industry include Costa Group, Bonduelle Group, CMP Mushrooms, Greenyard, Drinkwater Mushrooms, Monaghan Group, OKECHAMP S.A., The Mushroom Company, Shanghai Fengke Biological Technology Co., Ltd., and Monterey Mushrooms, Inc.

Report Scope

Report Attributes

Details

Market size value in 2020

USD 46.19 billion

Revenue forecast in 2028

USD 91.63 billion

CAGR

9.4% from 2021 - 2028

Base year

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Segments covered

By Product, By Form, By Application, By Distribution Channel, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

Key Companies

Costa Group, Bonduelle Group, CMP Mushrooms, Greenyard, Drinkwater Mushrooms, Monaghan Group, OKECHAMP S.A., The Mushroom Company, Shanghai Fengke Biological Technology Co., Ltd., and Monterey Mushrooms, Inc.

Key Take-Away
Polaris Market Research
Mushroom Market Size, Share & Trends | Global Industry Report, 2028