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April 2025
The global mycelium market size was estimated at USD 2.93 billion in 2024 and is expected to rise from USD 3.11 billion in 2025 to nearly reaching USD 5.35 billion by 2034, growing at a CAGR of 6.20% during the forecast period from 2025 to 2034. Increasing demand for the biodegradable and sustainable products significantly driving the market.
Mycelium, the vegetative structure of filamentous fungi, could embody a blend of several important traits essential for creating food items that are nutritious, appealing, scalable, cost-effective, and environmentally sustainable. To fulfill United Nations Sustainable Development Goal 2 of eradicating hunger through a sustainable agricultural system by 2030, transformational innovation in the current food system is essential, resultantly, benefiting for the expansion of the market. Proteins are vital macronutrients necessary for constructing and sustaining the body and its functions. As the global population increases and welfare improves, it is projected that the need for high-quality proteins offering a balanced supply of essential amino acids will double from 2000 to 2050. Mycelium derived from filamentous fungi can create food products featuring appealing flavor and texture traits that are high in protein quality, along with fiber and vital micronutrients, boosting the mycelium market.
Different methods in biotechnology such as industrial fermentation, strain improvement, recombinant DNA technology, gene editing, and silencing utilized for mycelium-based material design and development nowadays. For example, various fungal species from Basidiomycota or Ascomycota successfully utilized to develop mycelium in bulk amount for material applications in accordance with required applications and fermentation methods. AI and automation also aid fungi-based bioprocesses to improve harvest. Machine learning help to identify non-linear interactions during fungi cultivation. These technological developments constantly creating opportunities for the mycelium market expansion.
Mycelium derived products require controlled environments, specialized equipment and high production time, adding to the increased cost production. Development cost of the mycelium-based materials is high as compared to the conventional material and further increase the price of the product. Consumer’s tendency to opt for the cheaper products hampering the mycelium market growth.
North America Dominated the Mycelium Market in 2024.
The widespread acceptance of mycelium has significantly contributed to encouraging the use of vegan and eco-friendly products. The adaptability of mushroom mycelium facilitates its smooth incorporation into different industries, thereby enhancing the market in the area. Moreover, farmers and various stakeholders in North America have utilized mycelium to create a diverse range of products, such as food, animal feed, cosmetics, and packaging materials. Their use of mycelium offers important insights into the market, allowing for informed choices in progressive research and development projects.
Expanding Mycelium Market of the United States
Major factors influencing the mycelium market in the United States are the growing emphasis on sustainability and the quest for substitute materials to replace plastics. The increasing need for sustainable products in packaging, food, and textiles is speeding up the use of mycelium. Improvements in the technology used to produce mycelium-based products have resulted in decreased costs, enabling it to become a feasible choice for mass production. Government initiatives that encourage environmental stewardship are also fostering market expansion. Moreover, the movement towards plant-derived and organic materials has sparked enthusiasm for mycelium as an eco-friendly option. The market is also gaining from consumer inclinations for biodegradable materials instead of synthetic alternatives. The growth of the mycelium-based product range is also important factor contributing to market growth.
Asia Pacific Expects the Significant Growth in the Market During the Forecast Period.
The increase in population, along with growing incomes, has led to worries regarding food shortages and sustainable manufacturing in the area. Consequently, mushroom and mycelium producers are focusing their efforts on enhancing crop production and providing a continuous supply of mushroom mycelium to satisfy the increasing demand. Furthermore, the expansion of the mycelium market in the region is driven by a rising per capita consumption of mushrooms, export and import of mushrooms, coupled with the implementation of advanced mycelium farming methods. The market is also propelled by increasing investments in research and development by firms focused on introducing newer technologies.
The Rise of China’s Mycelium Market
Mycelium market of China held the prominent position in the market. China is placed to increasing number of costumers choosing to adopt a healthy and more sustainable life, including numerous individuals seeking to lower their meat consumption and substitute it with alternative proteins and therefore growing the demand for mycelium-based food. Mushroom farming significantly contributes to China's poverty reduction initiatives, generating profits that are at least tenfold compared to those from rice and corn. The products were shipped to 137 nations and areas, primarily to Japan, South Korea, the USA, ASEAN and the European Union, with Japan being the largest importers for the cultivated mushrooms from China. Additionally, the rise in the edible fungi demand is further expand the market growth.
The Organic Segment Dominated the Mycelium Market with the Largest Share in 2024.
Growing consumer consciousness about the environmental effect of conventional product is fostering the organic mycelium, which biodegradable as well as renewable. Companies are augmenting its benefits to create inventive and sustainable results, displacing synthetic products in various applications. The focus on lowering waste and reducing carbon footprints is navigating industries to opt for organic variants, with companies prioritizing satisfactory production processes to complete their sustainability aims.
The Processed Mycelium Segment is seen to Grow at a Notable Rate During the Predicted Timeframe.
Processed mycelium can be converted into various forms and can be used for the various applications. The growing worldwide population and fast urbanization have driven the increased customer demand for establishments and thus, industries are adopting mycelium as material-driven design. Research and development in fungal biotechnology and material science growing the demand for the processed mycelium.
The Powder Segment Held the Largest Share of the Mycelium Market in 2024.
Potentiality of mushrooms powder as nutritious source making them important constituents in various food industries, including breakfast cereals and bakery such as bread, cakes and biscuits. Bioactive constituents present in mushroom mycelium makes it an alluring component utilized as dietary supplements or nutraceuticals. Powder supplements are generally absorbed by the body more easily than other types of supplements. Powder supplements provide unmatched ease, as they can be effortlessly blended with different liquids or incorporated into your preferred foods. This adaptability enables you to customize your supplement consumption based on your individual tastes and nutritional requirements. Regardless of whether you enjoy a smoothie, yogurt, or just a glass of water, powdered supplements can easily fit into your daily habits.
Capsules Segment is Expected to Grow at the Fastest Rate in the Market During the Forecast Period.
Capsules are easy to swallow and alternative for the material cannot be compressed in the tablet form. Capsules are the popular in pharmaceutical and nutraceutical sector. Mycelium extract encapsulated in the capsule protect it from degradation, increase the shelf life and help to mask the taste and boosting the market of mycelium capsule.
Food and Beverages Segment Held the Dominating Share of the Mycelium Market in 2024.
Mycelium-based foods, with their known nutritional and health advantages could be developed from substantial volume of low-grade food industry residues. Innovation in food chemistry, such as textural modifications and in-process flavor enhancement, rise the demand for novel mycelium-based food item with improved flavor and texture. In plant-focused uses, mycelium serves as a key component for plant-based meats particularly, p deli meats, lant-based burgers, jerky snacks, and plant-based seafood. New brands are innovating with product advancements, utilizing mycelium to produce plant-derived cheese and eggs.
Clothing and Apparel Segment is Observed to Grow at the Fastest Rate During the Forecast Period.
High-end fashion is paving the mew path of sustainable mushroom-based fabrics. Mycelium might be employed to produce hybrid textiles that enhance the lifespan of synthetic materials instead of disposing of them post-damage. By using living fungi to repair clothing, mycelium may offer a low-energy, resource-saving substitute for conventional repair methods or the early discarding of garments. Mycelium has begun to make waves in the fashion industry as an eco-friendly material, especially as an alternative to synthetic and animal-derived leathers.
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