Global Mycelium Market Grows Steadily at a CAGR of 7.8%

Introduction

The biodegradable and environmentally friendly characteristics of mycelium make it suitable for producing plant-based meats that reduce greenhouse gas emissions, such as bacon, fish fillets, and steak. The Business Insider article states that it costs about USD 50 to produce one square foot of mycelia. It is perfect for replacing non-biodegradable materials like plastics, which take 500 years to decompose. Mycelia are finger-like structures that spread outward like roots in search of nutrients and water to meet the needs of the fungus. Shiro, or mycelial masses, are fungi colonies in the soil or its surface. Mycelia can quickly move through soil or other surfaces because of their sturdy wall structure. Due to its firm, fibrous makeup, mycelium can be used to produce goods like clothing, food, buildings, and packaging.

It can be used to produce materials like leather, plant-based meat, and as an alternative to plastic. Moreover, this rapidly growing mycelium can serve as an excellent substitute for styrofoam, which is being phased out in most governments due to its adverse environmental consequences. Because mycelium is biodegradable, renewable, and sustainable, its production is economical and widely utilized in the future

Market Dynamics

Permanent Growth of Sustainable Practices and Styrofoam and Polystyrene Prohibition Drives the Global Market

Most businesses now prioritize sustainable growth and the circular economy, rendering many outdated conventional business methods. Company models have changed as new initiatives are planned within an ESG (Environment, Social, and Corporate Governance) framework. Products made from mycelium, particularly mycelium materials, offer an alternative to conventional toxic and non-renewable materials like polystyrene. Future advances in material science may use it as a crucial sustainable and environmentally friendly option. Unlike steel and bricks, mycelium-based materials are made using byproducts (typically food or agricultural waste) at low temperatures and pressures. Products made from biodegradable mycelium are ideal for a circular economy if they are produced with natural, suitable, and clean resources. According to data on Styrofoam, it decomposes slowly, emits toxins, and is present in 30% of landfills worldwide. Regarding improperly disposed of plastic waste, India and China are at the top of the global rankings.

Even though the United States and the United Kingdom are lower on the list, plastics and styrofoam significantly impact them, and they have started using eco-friendly alternatives. Food and beverages become contaminated when styrene from Styrofoam cartons leaches into them. The same vessel emits air pollutants when exposed to sunlight, which contaminates landfills and erodes the ozone layer. Styrofoam manufacturing generates large volumes of gases, causing respiratory and environmental hazards. Billions of styrofoam cups from convenience stores, restaurants, and cafes pollute landfills. Everything from a computer to a candle can be packaged using material from mycelium and agricultural waste.

Increasing Investments in Mycelium Research and Development Creates Tremendous Opportunities

Mycelium is a feasible and sustainable resource for various industries, including food and beverage, medicines, clothing and apparel, biofuel, chemicals, automotive and construction, and electronics. According to R&D Investment Scoreboard, plant-based food and beverage companies get roughly 25% of their income. Increasing investments in plant-based food and beverage should drive the worldwide mycelium market. Capital ventures and organizations across different countries invest in R&D, production, and cultivation of high-quality mushrooms that can serve as an effective and safe raw material for mycelium-based products and generate extra revenue by exporting mushrooms to facilitate the global mycelium market. Increasing investments in diverse industries and sectors will boost the global mycelium market.

Regional Analysis

Europe's mycelium market is the most dominant and is expected to grow at a CAGR of 7.3% during the forecast period. The system's mycelium strains are cultivated in biotechnology facilities across Europe.

Government support and technological advancements will open new paths for market expansion. Allergies to mycelium and mushroom poisoning are common in Europe. National governments provide guidance or enact legislation to ensure the safe trade of wild mushrooms. Rules for eating mushrooms are listed for each nation. 46 European countries have laws governing mycelium-based products' use, sale, and manufacture. The mycelium market is increasing in China as the economy has changed because of processing and consumer demand. China enhances mycelium market competition due to health and affordability. In recent years, China produced 75% of global mycelium. Mushroom and mycelium processors boost crop yield and year-round supply to meet demand.

Key Highlights

• The global mycelium market was valued at USD 2.75 billion in 2021. It is expected to reach USD 5.21 billion by 2030, growing at a CAGR of 7.7% during the forecast period (2022–2030).
• Based on application, the global sugar mycelium market is divided into the food and beverage industry, packaging industry, clothing and apparel industry, and animal feed industry. The food and beverage industry is the most dominant and is growing at a CAGR of 7.8% during the forecast period.
• Based on product, the global sugar mycelium market is segmented into nature and form. Processed mycelium product is anticipated to grow at a CAGR of 8.3% during the forecast period.
• Europe's mycelium market is the most dominant and is expected to grow at a CAGR of 7.3% during the forecast period.

Competitive Players

1. Ecovative Design LLC
2. MycoWorks
3. Atlast Food Co.
4. Meati Foods
5. Bolt Threads Inc.
6. Mogu
7. Mycelia
8. bio
9. MycoComp
10. Biomyc
11. Kingdom Supercultures
12. Nature’s Fynd
13. Prime Roots
14. Four Sigmatic
15. Radical Mycology

Recent Developments

Recent Developments

• January 2022 - Ecovative, a company that specialises in the production of mycelium materials, launched its Forager division in January 2022. This division's primary focus is the design, marketing, and production of vegan, plastic-free leather-like materials and fungi-based foams for use in the fashion and automotive industries.
• November 2021 - The Magical Mushroom Company established its new manufacturing locations in Bulgaria and Italy in November 2021, with the goal of increasing the company's annual production capacity to approximately 6 million units.
• April 2021 - Atlast made the announcement in April 2021 that it would construct the largest ethereal mycelium farm in the United States in order to improve both its production and its supply of meat substitutes.
• March 2021 - MycoWorks entered into a partnership with the premium brand Hermes in March 2021 to produce a new iteration of the Victoria bag. The mycelium-based leather, known as Sylvania, will be utilised for the very first time in the production of this product, making it a market pioneer.

Segmentation

1. By Form
   1. Solid Mycelium
   2. Liquid Mycelium
   3. Pre-Formed Product
2. By Distribution Channel
   1. Online Retail
   2. Offline Retail
3. By End-Use
   1. Consumer Goods
   2. Food and Beverage
   3. Construction
   4. Healthcare and Pharmaceuticals
   5. Agriculture
   6. Others