The dried mushrooms market is estimated to reach USD 15.6 billion in 2024. It is anticipated to grow at a CAGR of 3.4% during the assessment period and reach a value of USD 21.8 billion by 2034.
| Attributes | Description |
|---|---|
| Estimated Dried Mushrooms Market Size (2024E) | USD 15.6 billion |
| Projected Dried Mushrooms Market Value (2034F) | USD 21.8 billion |
| Value-based CAGR (2024 to 2034) | 3.4% |
The appeal of dried mushrooms is in the health benefits provided by the product. Combining nutritional value with immune-boosting and stress-managing properties, the health-conscious consumer base is looking at mushrooms for healthy meals at greater measure. The increasing vegan population of the world is another plus point for the market, with mushrooms a reputed delicacy in plant-based foods.
Shiitake mushrooms are the top product type, expected to account for 42% of the market share in 2024. Shiitake mushrooms account for the leading share due to their ease of cultivation in controlled environments and lower production costs compared to wild-harvested or exotic varieties like morels and truffles.
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Mushrooms are traditional ingredients in Asian and European cuisines. A new generation of health-conscious consumers are embracing mushrooms in their diets. As fitness trends rise and gym memberships increase, the demand for mushrooms is sustaining.
Mushrooms have a plethora of health benefits. From being low in calories to being rich in vitamins and minerals, mushrooms are becoming an integral part of healthy diets. Mushrooms like reishi and maitake also contain compounds that enhance immunity. This increasing demand for healthy food is helping demand for dried mushrooms to prosper.
Rise in the vegan and vegetarian population of the world is helping the demand for dried mushrooms to flourish. Mushrooms form part of a variety of plant-based dishes, from creamy vegan stroganoff to vegan coconut curries, that are being savored by consumers.
Mushrooms are also being used as meat substitutes. From burgers to kebabs, mushrooms are replacing chicken, bacon, and beef culinary applications. Mushrooms are hence gaining the vote of confidence from consumers who want to savor treats like burgers and tacos without any of the guilt.
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Market players are benefitting from the increase in mushroom production. From shiitake and wood ear mushrooms in Asia and porcini and truffles in Europe, mushroom production throughout the world is increasing as both consumer and restaurant demand escalates.
The following table demonstrates the production of mushrooms in the top five countries in the world, according to the Food and Agriculture Organization (FAO) for the year 2021:
| Country | China |
|---|---|
| Production (Approximate) | 41.1 million metric tons |
The increased production is complemented by the increase in consumption. In addition to production, China is also the country with the largest consumption of mushrooms. Japan is a distant second, with the United States, Italy, and Netherlands following closely behind. This increased production and consumption of mushrooms is positively affecting the market too.
The health benefits of mushrooms make them prime candidates for inclusion in health supplements. Dried mushrooms are easier to formulate into powders than fresh mushrooms. Hence, supplement makers give preference to the latter.
Supplement makers use a myriad of mushroom types for their products. For instance, BulkSupplements.com sells specialized supplements made from reishi mushrooms, shiitake mushrooms, organic lion’s mane mushrooms, and more.
Alternatively, manufacturers also sell supplements that are a mix of different varieties of mushrooms. For instance, Rooted Active Naturals sells capsules containing a mix of seven mushroom varieties. As fitness trends rise, the application of dried mushrooms in the supplement sector is set to only grow higher.
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The costs associated with mushroom production are high as they require significant manual labor. For varieties that are generally foraged rather than cultivated, such as morels and truffles, the labor costs become even more significant. The storage costs are also significant, especially for varieties like shiitake where humidity, temperature, and light have to be carefully controlled.
While dried mushrooms are less perishable than fresh mushrooms, they also require proper packing, especially in humid regions. Suppliers have to resort to resilient packaging like vacuum-sealed packaging, which further increases overheads and the final price. Hence, manufacturers have to overcome the challenge of rising production and packing costs.
Dried mushrooms come in various types like shiitake mushrooms, button mushrooms, oyster mushrooms, reishi mushrooms, milky mushrooms, winter mushrooms, and paddy straw. Shiitake mushrooms currently reign supreme in the segment.
Shiitake mushrooms are expected to account for 42% of the market share in 2024. Dried shiitake mushrooms are used extensively as they are more easily available compared to fresh versions. These dried mushrooms are noted for their flavor, imparting dishes with distinctive tastes and aromas.
Dried shiitake mushrooms are a staple of Chinese cooking and are also found in many traditional dishes in other Asian cuisines such as Japanese and Korean. Hence, they are used in Chinese dishes like Chinese sticky rice as well as Korean dishes like Beoseot Gangjeong, and Japanese dishes like Kenchin Soup.
Dried mushrooms come packed in cartons, boxes, and polyethylene bags. Polyethylene bags are the most common type of packaging. To preserve the mushrooms, packagers prefer packaging that resists air and moisture. Hence, polyethylene bags are preferred.
Dried mushrooms are distributed through supermarkets, convenience stores, e-commerce websites, and specialized stores. Supermarkets continue to be the foremost place for purchasing dried mushrooms. However, online sales are catching up fast as consumers look for convenience in shopping.
The end users for dried mushrooms include food service, consumers, food manufacturers, cosmetic industry, and nutraceuticals. Consumers remain the prominent end-users of dried mushrooms, estimated to account for 31% of the market share in 2024. As healthy eating and vegan trends grow, consumers are drawn more to dried mushrooms.
The United Kingdom dried mushrooms market is estimated to advance at a CAGR of 6% over the 2024 to 2034 period. In the United Kingdom, vegan and vegetarian trends have seen a substantial number of people turn to plant-based diets.
While the number of vegan people hovers around the 1-2% mark in the country, according to Food and You 2, more people are willing to try meat alternatives. A survey by the Vegan Society in 2021 found that about 25% of the United Kingdom population had reduced meat intake since the pandemic.
Dried mushrooms have emerged as one of the prominent alternatives for meat. For instance, portobello mushrooms are replacing meat in plant-based burgers. Popular retailers like Tesco and Sainsbury’s have also made dried mushrooms more accessible in the country by storing dried mushroom packs and ready-to-cook kits.
The dried mushrooms market in China is expected to register a CAGR of 6.1% from 2024 to 2034. The key factor for the growth of the market in the country is the substantial production of mushrooms in the country. China leads the world when it comes to mushroom production, providing a myriad of opportunities for stakeholders in the market.
The wide variety of mushrooms produced in the country, from enoki to wood ear, are both exported in significant quantities, especially to the United States and Japan. Dried mushrooms also form a part of several Chinese dishes, ranging from mushroom soups to Choy Sum. They are also used for medicinal purposes in China. While challenges like quality control and sustainability drives are present, the overall nature of the market is positive in the country.
The dried mushrooms market in the United States is set to progress at a CAGR of 5.9% from 2024 to 2034. Traditional mushrooms like cremini and portobello remain popular in the United States. However, consumers in the country are being increasingly drawn to exotic foods, which is extending to mushrooms as well. Hence, unconventional mushrooms like maitake and lion’s mane are seeing increasing popularity.
Incentives are provided in the United States for domestic production of mushrooms. For instance, Pennsylvania, the state with the largest production of mushrooms in the country, received a USD 4 million grant in September 2021. The state produces about two-thirds of the nation's Agaricus mushrooms and is set to progress even further production-wise.
The market is dominated by a few market giants to a large extent. Tier 1 players are expected to account for 70% of the revenue share in 2024. By comparison, tier 2 players’ revenue share is estimated to be 20%, while tier 3 players are set to hold a paltry 10%.
The following table highlights some of the dominant players in the market and their areas of focus:
| Company | Area of Focus |
|---|---|
| Monaghan Mushrooms (Ireland) | Dominant in the white button mushrooms segment. |
| Bonduelle (France) | Reputed for their processed and canned mushrooms. |
| The Mushroom Company (United States) | Prominent player in processed mushrooms. |
| Hirano Mushroom LLC (China) | Noted for their dried and medicinal mushrooms |
The dominance of market giants does not mean, however, that there is no scope for players with smaller operations. These middle and small-scale players often have a specialty, like shiitake mushrooms for Asian players and button mushrooms for European ones. These players also dabble in the wild harvesting of truffles and morels.
Mergers and acquisitions are common occurrences in the market. The merger of South Mill Mushrooms and Champ's Mushrooms was a notable event, happening in January 2019. The companies increased their capabilities in North America through the merger. Meanwhile, a significant acquisition was Yuguan China’s takeover of Sylvan. The acquisition enhanced the operational capabilities of both companies.
Research and development is a prominent area of focus for market players. To sustain research and development efforts, players are seeking investment from both private and public sources. The following table highlights the beneficiaries of investment in the market as well as the amount.
| Beneficiaries | Amount |
|---|---|
| MycoTechnology, Inc. | Raised USD 85 million in Series E funding. |
| Penn State Research | Received over USD 7 million from The USA Department of Agriculture's National Institute of Food and Agriculture for new pest management tools for mushroom crops. |
By packaging, the market is segmented into cartons, boxes, and polyethylene bags.
The market is segmented into shiitake mushrooms, button mushrooms, oyster mushrooms, reishi mushrooms, milky mushrooms, winter mushrooms, and paddy straw based on product type.
Based on the distribution channel, the market is segmented into supermarkets, convenience stores, e-commerce, and specialized stores.
In terms of end users, the market is segmented into food service, consumers, food manufacturers, cosmetic industry, and nutraceuticals.
Based on the region, the market is segmented into North America, Latin America, Europe, South Asia, East Asia, Middle East & Africa, and Oceania.
The market’s value for 2023 was estimated to be USD 14.5 billion.
The market is predicted to reach a size of USD 21.8 billion by 2034.
The market is anticipated to be valued at USD 15.6 billion in 2024.
The market is predicted to witness a CAGR of 3.4% during the forecast period.
Canada is set to be a promising country, with a CAGR of 7.3% over the next ten years.
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Dried Mushrooms Market
