Mushroom Market Report 2024 (Global Edition)

Market Dynamics of the Mushroom

Key Drivers of the Mushroom Market

• Mushrooms are well-known for their high nutritional content

Mushrooms are considered a superfood due to their high nutritional value. Mushrooms include more vitamins B2, B3, B5, zinc, and antioxidants than other popular vegan foods such as potatoes, carrots, onions, and broccoli. They are the ideal diet for folks who are concerned about their health and fitness because they are low in calories and almost fat-free. Rising health consciousness among consumers around the world has contributed to a significant increase in protein-rich diet consumption in recent years. Consumers' increasingly hectic schedules prevent them from consuming a nutritionally full diet regularly, leading them to seek nutrients from packaged food products. To attract customers, packaged food manufacturers include healthful additives such as mushroom powder or extract in their goods.

• To accelerate mushroom production growth, the company intends to enhance its investments in smart automation.

The edible fungus industry is labor-intensive, accounting for roughly one-third of overall production expenses. This has resulted in greater investment in automated processes within processing facilities. Panbo Systems BV established a next-generation production facility in 2020, using high-tech control systems and robotics to shift pickers away from expanding regions, resulting in a 300% increase in productivity. The system incorporates growth monitoring cameras as well as robot vehicles that choose, fill, and empty racks. This system increases yields and lowers expenses by optimizing crop areas and plucking. This investment in smart automation is likely to promote the mushroom market's growth throughout the forecast period by improving efficiency and increasing output. The mushroom industry is anticipated to expand further in the future.

• The culinary industry is experiencing a significant increase in demand

Mushrooms are becoming increasingly popular in both culinary and professional settings due to their unique flavors, textures, and culinary potential. They have become integral to various dishes, from salads to risottos, and have gained popularity across various dietary preferences. The rise of cooking shows, food blogs, and social media platforms has further amplified the appeal of mushrooms, with chefs and food influencers inspiring home cooks to experiment with mushroom-based recipes, further fueling the demand for these fungal delicacies.

Key Restraints of the Mushroom Market

• Seasonal availability and price fluctuations are significant factors that can impact the market

Weather conditions, temperature ranges, and humidity levels all have an impact on mushroom production, resulting in seasonal peaks and troughs that cause supply imbalances. Certain mushroom species may be in short supply during the off-season, generating annoyance and reducing brand loyalty. Price fluctuation, caused by factors such as weather, supply constraints, and transportation costs, can also influence mushroom prices. Prices can rise during periods of high demand and low supply, whereas price decreases can occur when supply exceeds demand, impacting producer profitability and discouraging industry investment.

• High cultivation operational costs are limiting market growth.

Mushroom manufacturing necessitates extensive administrative engagement and expertise, as well as specialized treatment to ensure constant, high-quality outputs. Humidity, temperature, and light all affect these circumstances, and pests such as fungus gnats can be a major issue. Pest management is critical since some insects thrive in similar environments, raising production costs. Short production cycles and high yields constrain output, and allergic reactions during oyster cultivation may limit market expansion. Mushroom production requires a high level of administrative or managerial efficacy and participation. Pests, insects, and animals can cause major issues, especially in distant rural areas. Pest management is critical, resulting in higher production costs and perhaps limiting mushroom market growth throughout the forecast period.

• Mushrooms have a limited shelf life.

Mushrooms have a shelf life of only one to three days due to their high-water content. Thus, appropriate mushroom storage and transportation are critical post-harvest procedures. Even if mushrooms are farmed satisfactorily, insufficient transportation might degrade their quality, lowering the product's final price. Furthermore, most mushrooms, especially paddy straw mushrooms, have a limited shelf life of a few hours. To minimize post-harvest losses, they should be refrigerated, processed, or stored as soon as they are picked. In impoverished countries, particularly in rural places, energy, and refrigerated transportation are not always available. As a result, mushroom cultivation becomes difficult, impeding market growth.

Opportunites in the Mushroom Market

• Emphasis is on raising health and nutritional awareness, as well as encouraging the use of therapeutic drugs.

The mushroom market is seeing an increase in demand as people become more concerned with their health and nutrition. Mushrooms are regarded as a great complement to balanced diets since they are low in calories and high in vitamins, minerals, and dietary fiber. They also provide critical components for immune function and bone health. Mushrooms with possible immune-boosting qualities, such as shiitake and reishi, are being investigated for immunomodulatory effects. The market also regards mushrooms as having possible therapeutic benefits, such as cognitive enhancement and energy boost. Mushroom adaptogenic capabilities are also being investigated for their capacity to assist the body in dealing with stress and increase overall well-being. As the interest in holistic wellness rises, mushrooms are becoming an important part of the wellness and supplement sectors. 
The development of mushroom extracts, supplements, and powders can cater to a wide range of customer preferences and demands, offering accessible access to mushrooms' potential health advantages, even for individuals who do not consume them daily.

• The consumption of mushrooms is on the rise as a potential alternative to meat products.

Many individuals have begun eating vegan foods in recent years since meat contains a lot of fat and cholesterol, both of which are hazardous to one's health. Meat is a substantial source of protein, thus people who move to a vegan diet will most likely pick protein-rich vegan meals to meet their daily protein requirements. Mushrooms, particularly Cremini or Portobello mushrooms, can be substituted for meat since they taste and feel similar and have a rich, earthy flavor. For mushroom producers, this might be a windfall as more people turn to mushrooms as a meat substitute. Many players, such as Scelta, provide various mushrooms that can be used in place of meat, including IQF Cremini, Portobello, and Ecopouch mushrooms.

How did COVID-19 Impact the Mushroom Market?

The COVID-19 epidemic has had a substantial impact on the global mushroom market, with supply chain interruptions, transportation limitations, and labor shortages delaying harvesting, processing, and distribution. The closing of restaurants and food service establishments has caused a drop in demand, resulting in an excess supply of some mushroom varieties. However, the pandemic has raised demand for mushrooms in retail outlets, as people seek healthier products and try new dishes. The epidemic has also generated a renewed focus on health and nutrition, resulting in a greater demand for immune-boosting foods. As internet purchasing grew in popularity during lockdowns, mushroom farmers and retailers were able to reach out to customers directly through e-commerce platforms. The pandemic has also resulted in a shift from traditional to online purchasing habits, with some mushroom producers concentrating on Internet sales channels. However, the pandemic has impacted the market in the near term by disrupting supply chains and closing restaurants, resulting in shortages and higher pricing for some species of mushrooms. 
The global mushroom market has grown significantly since 2020, reaching 15.25 million tonnes in 2021. The coronavirus crisis had a positive impact on India's mushroom production, with a significant increase of 42 thousand tonnes during the pandemic. The Indian Council of Agricultural Research (ICAR) reported that mushroom cultivation in India increased by 2 lakh tonnes to 42 thousand tonnes, indicating a strong trend in mushroom cultivation and business. The Director General of ICAR highlighted the benefits of indoor-controlled mushroom cultivation, highlighting its employment generation potential. The pandemic also highlighted the importance of raising awareness among consumers and farmers to prevent diseases, provide nutrition, and generate self-employment. During the pandemic, Indian farmers provided healthy food, food security, nutrition, and self-employment opportunities through mushroom cultivation.

(Source-https://www.homesciencejournal.com/archives/2022/vol8issue2/PartE/8-2-68-412.pdf)

Recent Developments

• In November 2022, Monaghan Mushrooms Inc. was featured on RTÉ One's series "Home Grown," which highlights Irish horticulture and emphasizes mushrooms as Ireland's largest horticultural export. The program, hosted by Kitty Scully and Colm O'Driscoll, delves into sustainable mushroom production technologies at Monaghan's Tyholland plant, one of the world's largest, highlighting the company's remarkable path since its inception in 1980.

(Source-https://www.monaghan.eu/general/home-grown-mushrooms-are-irelands-most-important-horticulture-export/)

• In November 2023, Monterey Mushrooms will close its mushroom growing facilities in Princeton, Illinois, and Orlando, Florida, by January 2024, as part of a repositioning strategy. The closures will shift production to other farms in the company's network, with a detailed plan to ensure a smooth transition for employees and customers.

(Source-https://www.producebluebook.com/2023/11/10/monterey-mushrooms-to-close-illinois-and-florida-farms/)

• In May 2022, Bonduelle Fresh Europe is in exclusive talks with Fonds de solidarité FTQ and Caisse de depot et placement du Québec to acquire 65% of Bonduelle Americas Long Life (BALL) for a 100% enterprise value of C$ 850 million (approximately € 625 million), representing an 8.2x EBITDA multiple from 2020-2021.

(Source-https://www.bonduelle.com/en/bonduelle-announces-the-sale-of-65-of-bonduelle-americas-long-life/)

• Nammex opened an improved extract factory in February 2021, enabling online ordering due to increased mushroom demand following COVID-19. The plant has a monthly production capacity of 25 tonnes of USDA-certified organic and Kosher mushroom extract powders, including Reishi, Maitake, Chaga, and Shitake.

(Source-https://www.nutraingredients-usa.com/Article/2021/02/02/Nammex-s-new-state-of-the-art-extract-facility-comes-online-as-mushroom-demand-skyrockets)

With the help of the above study about the Mushroom market, it can be concluded that the market for Mushrooms worldwide is expected to develop significantly in the near future. From the report, one can understand and infer the market dynamics, segmentations, status and trends, and key players in the market. It provides data regarding across various topics such as market dimensions, prevailing trends, competitive landscape, and the outlook for prospective expansion. This allows the reader to understand and access reliable data about the market and industry.

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