Mycelium Market

Market Overview

The global Mycelium Market was valued USD 2.85 billion in 2022 and is predicted to reach USD 5.61 billion by 2030, increasing at a CAGR of 7.80% from 2022 to 2030.

A mycelium is a hyphae-like network of fungal filaments. Mycelia can be found growing underground, but it can also be found growing on rotting tree trunks. A mycelium can grow from a single spore. A mycelium can grow the fruiting bodies of fungus, such as mushrooms. Mycelium is what allows fungi to spread out across such a huge area. The Blue Mountains in Oregon, USA, are home to a fungus with mycelium that covers ten square kilometres. This makes it the world's largest organism. Mycelium can be utilized to manufacture fire-resistant, stronger, and lighter building materials. In the fashion industry, it can be used to imitate the look, texture, and functionality of leather. It is also used as a bonding material for building materials like brick in some situations. The mycelium industry is still in its infancy.

Increased research and development efforts are ongoing to develop mycelium-based goods, which are predicted to grow in popularity as consumers adjust their preferences toward plant-based meat and veganism. One of the greatest opportunities in the global mycelium market is to increase mycelium R&D investments. Furthermore, the features of mycelium allow it to be tailored for numerous uses, resulting in the adoption of mycelium-based goods in the medical, constructions, electrical, and skincare products industries by consumers.

Market Dynamics

Global Mycelium Market Drivers

• Market Growth Credit Goes to The Numerous Benefits Provided by Mycelium

The vegetative component of fungi is known as mycelium, and it is composed of branch mass & hyphae, which have a structure similar to that of threads. Fungal mycelium colonies can be found in the soil as well as in a wide variety of different substrates. In the food business, there is a growing need for natural and organic ingredients and flavors, which is anticipated to lead to an increase in the desire for mycelium, which would, in turn, enhance the total market. Instead of fermenting using the conventional, time-consuming, and labor-intensive ways, massive investments are being made in appealing technological solutions for the rapid creation of flavored mycelium. These technologies allow for the production of mycelium without the need for fermentation.

Mycelium are organisms that are similar to fungus and contribute numerous benefits to the ecosystem as a whole. Mycelium is often found both in single-celled creatures like yeast and in multi-celled organisms like mushrooms. Yeast is an example of a multi-celled organism. The degradation process would not be possible without the contribution of this mycelium. Mycelium is a major food source for a variety of herbivorous mammals, and it makes up a significant portion of the diets of these animals. Leather, a material that is utilized in the production of a wide variety of goods, can be produced using mycelium and its byproducts.

• Expanding Mycelium Market Due to The Rising Desire for Natural Flavors

Demand for natural tastes such as mycelium is increasing as a result of expanding urbanization and rising health and wellness consciousness among consumers. This, in turn, is driving a growth in the overall volume demand in the global market for mycelium. The global demand for mycelium could be stimulated by the addition of additional flavors to foods in order to make them more appetizing.

The primary factors that are propelling the growth of the mycelium market on a global scale are the rising importance placed on the distinctive flavor of processed foods and beverages. In addition, the growing trend toward the usage of organic and natural components as well as flavors in food products is projected to invigorate the global mycelium Market in the near future. One further characteristic of mycelium that plays a role in the expansion of the worldwide market for mycelium is the growing desire for longer shelf - life for foods.

Global Mycelium Market Restraints

• The Only Disadvantage of Using Mycelium as A Construction Material Hinder Market Growth

Mycelium has only one major drawback when it comes to being used as a construction material, and that is the fact that it cannot support very much weight. Insulation material, inside walls, and facade cladding are just examples of the many architectural components that do not need to support a significant amount of weight. In addition, as time passes, the mycelium-based materials lose some of their resilience to water, and as a result, they become more susceptible to the effects of mold and humidity. Because of their fragility and inability to withstand high pressure, they are not suitable for use as bricks in traditional building. In addition, materials for mycelium are not readily available in large quantities, which can have an effect on the production process if the raw materials are not readily available. The prohibitively expensive packaging of mushrooms hurts their chances of being sold in international markets. In addition, Mycelium materials lose their strength after prolonged contact with moisture; as a result, they are not considered to be appropriate for use as packaging during the monsoon season.

Regional Analysis

The Global Mycelium Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Europe is the dominating region among all other. Because of the region's advanced research and development (R&D) capabilities as well as its supportive government legislation, Europe brought in the most income in the year 2020, totaling 1.08 billion euros. Because there is such a wide variety of market segments available in Europe, this region is a desirable location for the mycelium industry. The transition to environmentally friendly and sustainable products presents considerable prospects for sales and finance at a time when there is a heightened emphasis on reaching net-zero emissions. The transition is most noticeable in the food and beverage business in Europe, trailed by North America and Asia Pacific in that order. Mycelium is an excellent alternative to the traditional dietary products that are derived from animals. In addition, the industry of plastic & styrofoam packaging in the countries of Europe is somewhat to significantly impacted by the introduction of mycelium-based packaging. Organizations like IKEA have already begun employing packaging materials based on mycelium for their products. Because of its durability and ability to prevent leaks, mycelium-based packaging is becoming increasingly popular in the cosmetics industry. Because of the adaptability of its features, mycelium has emerged as a leading candidate for use in several industrial applications in Europe.

In terms of the mycelium market, North America is the region that has the position of second most dominant. The rising demand for items derived from natural sources, as well as the expansion of the food and beverage industry, are important factors contributing to the rising consumption of mycelium in North America. In addition to this, consumers who are concerned about their health are also driving up the demand for mycelium. The North American Market, in particular, is devoting a lot of attention to clean labelling and the advantages they offer, which helps the creation of naturally produced food flavors like mycelium.

Segmental Analysis

The segmentation for the Global Mycelium Market is done on the basis of product type, nature, application and geographical region.

By Product Type, the Global Mycelium Market is segmented into four types which are Pre-Formed Product, Powder, Capsules, Tablet and others. At this time, the pre-formed product segment occupies the largest proportion of the mycelium market globally. This is because of the growing popularity of products that are derived from the pre-formed product, such as food and beverage, clothing and accessories, and packaging, among other things. The powdered version is ranked second due to the component mix's increased shelf life and long-lasting quality. This places it in the number two spot.

By Nature, the segments for the Global Mycelium Market are divided as raw mycelium and processed mycelium. Within the mycelium market on a global scale, the processed mycelium subsegment is currently in a position that is rather dominant. This is because there is a huge selection of different things that may be produced, which has resulted in an increased adoption and utilization of the technology by end users all over the world.

By application, the Global Mycelium Market is segmented into four major industries where it is most used which are Food and Beverage Industry, Packaging Industry, Clothing and Apparel Industry, Animal Feed Industry, Construction Industry, Automotive, and Others. It is projected that the application segment of the global mycelium market will be led by the food and beverage industry. This is due to the fact that mycelium is a very nutritious product and has the capacity to be altered and processed in a number of various ways in order to make a large variety of different items.

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.