Mycelium Market was estimated to be at $2.48 billion in 2020, which is expected to grow with a CAGR of 7.7% and reach $3.84 billion by 2026. The growth in the global mycelium market is expected to be driven by increasing demand for sustainable materials and their contribution to the circular economy.
Market Lifecycle Stage
The mycelium market is still in the nascent phase. Increased research and development activities are underway to develop mycelium-based products, which are expected to increase due to the shift in consumer preference to plant-based meat and veganism.
Increasing investments in R&D of mycelium is one of the major opportunities in the global mycelium market. Moreover, mycelium properties are such that it can be customized based on various applications leading to consumers adopting mycelium-based products in pharmaceutical, construction, electronics, and skin care industries.
- Segmentation 1: by Application
o Food and Beverage Industry
o Packaging Industry
o Clothing and Apparel Industry
o Animal Feed Industry
The global mycelium market in the application segment is expected to be dominated by the food and beverage industry. This is due to mycelium being a highly nutritious product and its property to be customized and processed to derive a variety of products.
- Segmentation 2: by Product
o by Nature
The global mycelium market is slightly more dominated by the processed mycelium segment. This is due to the wide variety of products that can be manufactured, resulting in its higher adoption and usage by the end users worldwide.
o by Form
o Pre-Formed Product
o Tablet and Capsule
The pre-formed product segment dominates the global mycelium market due to the higher adoption of products such as food and beverage, clothing, and packaging from the pre-formed product. The powder form captures the second position due to the composition mix's prolonged shelf life and durability.
- Segmentation 3: by Region
o North America - U.S., Canada, and Mexico
o Europe - Italy, Netherlands, Poland, Spain, France, and Rest-of-Europe
o Asia-Pacific and Japan - Japan, India, South Korea, Australia and New Zealand, Indonesia, and Rest-of-Asia-Pacific and Japan
Europe generated the highest revenue of $1.08 billion in 2020, which is attributed to the R&D advancements and supporting government regulations in the Europe region. Europe is an attractive region for the mycelium market because of the availability of the different market fragments.
Recent Developments in Global Mycelium Market
- In November 2021, Magical Mushroom Company set up its new manufacturing sites in Bulgaria and Italy to provide a production capacity of nearly 6 million units per year.
- In June 2021, Ecovative LLC launched its new packaging product named MycoComposite.
- In May 2021, Meati Inc. leased a nearly 76,500 square feet area to set up a production facility with the aim of producing millions of pounds of alternative meat by the end of 2022 by utilizing less than 1% water as that required by animal meat industries.
- In April 2021, Atlast announced to build the largest ethereal mycelium farm in the U.S. to increase its production and supply of meat alternatives
- In July 2020, Quorn invested an amount of $39.52 million in ramping up its production processes. Furthermore, the company had set up new equipment in its production units to fasten and increase production processes in February 2020.
Demand – Drivers and Limitations
Following are the demand drivers for the mycelium market:
- Ongoing Trend of Sustainable Practices and Circular Economy
- Styrofoam and Polystyrene Ban in Various Nations
- Shift in Consumer Behavior and Preference
- Wide Range of Applications
- Low Investment, High-Return Business
The market is expected to face some limitations too due to the following challenges:
- Low Commercialization of Mycelium Products
- Availability of Various Alternatives
- Labor Intensive Business
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- With an increased worldwide focus on achieving net-zero emissions, the shift to eco-friendly, sustainable products brings significant sales and financing opportunities. The shift is more prominent in food and beverages industry in regions such as North America and Europe. The U.S. plant-based meat retail sales grew by 45% to $1.4 billion sales in 2020. This infers that mycelium can be a great alternative to conventional animal-based food products.
- Furthermore, mycelium-based packaging has a moderate to high impact on the plastic and styrofoam packaging industry. Companies such as Dell and IKEA have already started using mycelium-based packaging materials for their products. Cosmetic companies are using mycelium-based packaging material due to its strength and leakproof properties. Therefore, the customizable properties of mycelium present it as a go-to option for industries globally.
Impact of COVID-19
Since the mycelium products are not much commercialized, the COVID-19 pandemic impact on the global mycelium market has been negligible. Moreover, the rise in the trend of veganism is expected to positively affect the growth of the market in the next 10 years, as mycelium contains low calories and medicinal properties, acting as immunity boosters. Therefore, the consumption and use of other mycelium-based products are expected to increase during and post-COVID-19 pandemic.
How Can This Report Add Value
Product/Innovation Strategy: The product segment helps the reader understand the different types of mycelium products available for deployment in the food and beverages, clothing, packaging, and other industries, and their potential globally. Moreover, the study provides the reader a detailed understanding of the different mycelium-based products by application (food and beverage, packaging, clothing and apparel, animal feed, and others), by nature (raw and processed), and by form (pre-formed product, powder, and tablet and capsule). Mycelium-based finished products generate higher revenues when compared to the operational and raw material costs. Therefore, mycelium business is a low-investment and high-revenue generating agricultural model.
Growth/Marketing Strategy: The global mycelium market has seen major development by key players operating in the market, such as business expansion, partnership, collaboration, and joint venture. The favored strategy for the companies has been product launches to strengthen their position in the mycelium market. For instance, in January 2022, M&S Food collaborated with Monaghan Group to supply mycelium protein-based vegetable balls and vegetable mince to expand its plant kitchen range.
Competitive Strategy: Key players in the global mycelium market analyzed and profiled in the study involve mycelium-based product manufacturers that provide raw or processed products. Moreover, a detailed competitive benchmarking of the players operating in the global mycelium market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
According to Rakhi Tanwar, Principal Analyst, BIS Research, "The mycelium market is expected to be a great replacement of animal-based and non-biodegradable products. Through a better adoption of these eco-friendly mycelium-based products and materials, the consumers' demand for veganism can be met, thereby contributing to the circular economy."
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