Mycelium Market Size, Share, and Industry Analysis By Type (Pre-formed, Powder, Tablet and Capsule, and Others), By End-Use Industry (Food and Beverage, Packaging, Clothing and Apparel, Pharmaceuticals, Construction, and Others), and Regional Forecast till 2032

The global mycelium market is expected to grow radically. It is caused by the rising insistence on natural flavors in the food industry and preference of green solutions. Mycelium is the vegetative material that is commonly found in the underground section of a fungus. It consists of a threat-like structured network, known as hyphae. This material plays a fundamental responsibility in bionetwork nutrient cycling and rotten organic matter.

• According to the U.S. Energy Information Administration (EIA), production capacity of mycelium was about 2 million tons in the U.S. in 2023.

This organism serves as the crucial mode of nutrient absorption and distribution for the fungus. It allows extraction of essential nutrients and water from its surrounding environment. This product is gaining recognition for its potential in various applications. Agriculture, bioremediation, and the production of sustainable materials such as mycelium-based packaging are extensively using them.

• According to the Federal Statistical Office (Destatis), mycelium produced for food & beverages was around 180, 000 tons in Germany in 2023.

Mycelium Market Driver

Rising Demand for Sustainable Resources and Shift towards Plant-based Goods Heighten Market Growth

The growing aspect for market growth is the growing requirement for sustainable materials among consumers. Mycelium is a biodegradable organism and contains renewable properties that are attracting a number of customers. It offers an alternative solution to traditional materials such as animal-based products and plastics resources. Therefore, the demand of this substance is increasing and consequently fueling market growth.

• According to the Ministry of Ecological Transition and Territorial Cohesion, approximately 25 million units of biodegradable packaging used mycelium by France in 2023.

Furthermore, rising fondness for plant-based items by end-users is impelling market growth. It is seen that there is a rising preference for cruelty-free goods and plant-based diets, which is encouraging demand for the substance. Consumption of such mushrooms as a substitute of meat and fur are bolstering market augmentation. In addition, the versatile nature of the material is drawing the attention of numerous sectors. They are employed for diverse applications from foodstuffs to leather alternatives, supporting market growth.

• According to the Ministry of Statistics and Programme Implementation (MoSPI), mycelium-based products used in agriculture were approximately 200,000 units in India in 2023.

Mycelium Market Restraint

High Production Costs and Regulatory and Lack of Awareness Obstruct Market Growth

The off-putting factor for market growth is the requirement of high investment for production. Production of the mushroom-based materials is a costly process. It needs extra work and management with respect to conventional counterparts. Hence, it deters consumers who have a restricted budget from adopting them. In addition, improving production of goods is escalating complexity, hampering market growth. It is a necessity for consistent maintenance and enhancing quality at huge volume is affecting on demand for the material by the end-users.

Furthermore, compliance with imposed regulatory standards by the manufacturers is hindering market growth. The policies regarding products related to the substance are steadily evolving which is posing barriers for producers to follow one standard rule. In addition, lacks of knowledge about the advantages of these substances among the population are impacting on demand for the product.

Mycelium Market Opportunity

Product Development and Emerging Markets Intensification Create Opportunity for Market Growth

One of the significant opportunities for market growth is working towards product development and innovation. Growing acceptance of advanced techniques as a biotechnology is providing novel mushroom-based products. They offer enhanced properties which are drawing the attention of new customers and help in expanding market growth.

• According to Natural Resources Canada, Canada produced mycelium for approximately 100,000 units for packaging in 2023.

Furthermore, the expansion of emerging markets in developing regions is offering great avenues for market growth. Some untapped markets in emerging countries are encouraging existing as well as new entrants to expand their market by supplying rising demand for the customers who are environmentally conscious. In addition, many participants are utilizing alliance strategies to expand their market presence. They team up with various mycelium producers and other companies for instance fashion, food, and packaging for entering into the market and amplifying product improvement.

• According to the National Bureau of Statistics of China, production capacity of fungal bodies was approximately 1.5 million tons in China in 2023.

Segmentation

Key Insights

The report covers the following key insights:

• Mounting Demand for Imperishable Materials by Key Countries
• Novelty in Product Development by Key Companies
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by Key Players
• Consolidated SWOT Analysis of Key Players
• Key Industry Developments (Mergers, Acquisitions, Partnerships)

Analysis by Type

Based on type, the mycelium market is divided into pre-formed, powder, tablet and capsule, and others.

The pre-formed segment is dominating in the market, driven by its suitability for various applications and suitability. It offers ready-to-use solutions for sustainable alternatives.

The tablet and capsule segment is estimated to grow in the market rapidly attributable to its extensive use in health and wellness, for instance, food packaging and supplements. It assists in extending shelf life of enclosed foods by absorbing oxygen and produces carbon dioxide.

Analysis by End-Use Industry

Based on end-use industry, the mycelium market is divided into food and beverage, packaging, clothing and apparel, pharmaceuticals, construction, and others.

The food and beverage segment is leading in the market, caused by its capability to be altered and processed in various ways. It is a nutritious product and offers a variety of different items.

The clothing and apparel segment is anticipated to expand in the market owing to rising high-end fashion among people. Adoption of sustainable mushroom-based fabrics is impelling growth of this sector.

Regional Analysis

Based on geography, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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The North America region dominates in the market. It is driven by rising knowledge of benefits of the substance among consumers. Escalating adoption of products that are based on plants is impelling demand for the mushrooms. Existence of major players and rising investment from the government for introducing sustainable technologies are fueling market growth.

Europe is witnessing substantial growth in the market, caused by imposition of stringent regulatory standards on environmental conditions. Rising government support and encouragement for sustainable initiatives are pushing high demand for the product. In addition, extensive working towards a robust R&D ecosystem is fueling market expansion.

The Asia Pacific region is expected to be the fastest-growing in the market owing to industrialization in the region at an exponential rate. It is bolstering demand for the substance. Rising apprehension regarding the environment amongst people is boosting demand for the product. Shifting towards eco-friendly goods is fostering market growth. Escalating demand for livable materials, particularly in China and India, are propelling market growth.

Key Players Covered

The report includes the profiles of the following key players:

• Bolt Threads Inc. (U.S.)
• Radical Mycology (U.S.)
• Evocative Design LLC (U.S.)
• Hosing (China)
• Mycelia NV (Belgium)
• Mycotech Lab (Indonesia)
• Kingdom Supercultures (U.S.)
• Meati Inc. (U.S.)
• MycoWorks (U.S.)
• Nature's Fynd (U.S.)

Key Industry Developments

• In March 2025, MyForest Foods, an Ecovative spinoff, announced its expansion of production facility to 180,000 square feet with the support of grants and loans of over USD 1.6 million to escalate its capacity to produce mycelium-based meat replacements such as MyBacon.
• In February 2025, MycoWorks unveiled an e-commerce platform for their mycelium-leather product, Reishi. The purpose of this platform opening is facilitating accessibility to designers and consumers looking for sustainable leather alternatives.
• In September 2024, Ecovative secured USD 28 million to expand its mycelium-based products, including MyBacon and imperishable leather materials along with an objective to scale production and penetrate in new markets.