Mycelium Market

Mycelium Market Outlook (2025 to 2035)

The global mycelium market is expected to reach USD 7,670 million by 2035, up from USD 3,260 million in 2024. During the forecast period (2025-2035), the industry is projected to register a CAGR of 8.1%, driven by the growing demand for sustainable, biodegradable materials, as well as the increasing role of mycelium in plant-based foods and green industrial applications.

Notable government support, biotech innovations, and its economic and environmental appeal, being further enhanced by its scalable, low-input cultivation using agro-waste, make it an easier choice for funding.

Mycelium market’s surge as the world embraces biodegradable, earth-friendly materials, a Key Growth Driver

Mycelium, which is an underground fungal network, is being increasingly regarded as an effective substitute for synthetic materials in various sectors, including packaging, textiles, construction, and food. The contractors to mycelium's replacement of petroleum-based foams and plastics are drawn to and align with circular economy goals and zero-waste initiatives.

The growing plant-based movement and the development of veganism have furthered interest in mycelium as a potential meat substitute. It is a nutrient-rich material with applications in several food formats, thus meeting consumers' demand for clean-label and high-protein products. R&D initiatives by several biotech startups, in collaboration with fashion and furniture companies, are developing new applications for mycelium-based leather, insulation, and composites.

Government support for sustainable manufacturing and circular bio-economy policies is a crucial growth driver in this market, particularly in the EU and North America. Mycelium cultivation is extremely scalable, especially when using agricultural waste as substrates, which creates possibilities for low-input production systems and makes good economic sense, as well as environmental legitimacy.

What are the regional trends of mycelium market?

North America occupies the largest portion of the mycelium market, responding clearly to the demand for sustainable materials and plant-based foods. Numerous startup companies utilizing biological filaments in food consumption technologies, innovative packaging, and leather alternatives are establishing their bases in the U.S., thereby enabling policies and investment for innovation in biotechnologies, which also hasten the adoption by consumers and in the industrial field.

Europe is driven by the EU Green Deal and the Circular Economy Directives. Some countries, such as the Netherlands, Germany, and the U.K., have been integrating mycelium into eco-textiles, architecture, and increasingly bioplastics. The regulatory push for low-impact substitutes in packaging and construction is a primary influence. Europe's ethical consumers also further establish demand for vegan and cruelty-free materials, including mycelium leather.

The Asia-Pacific region, led by China and Japan, is getting excited about the rising trend, as this region has traditionally been associated with mushrooms and fungal products. Rapid urbanization and increased awareness are creating new ideas for addressing environmental pollution. Meanwhile, developing areas such as Latin America and Africa offer huge unexplored potential in sustainable agriculture and low-cost housing solutions based on mycelium.

What are the challenges and restraining factors of mycelium market?

The mycelium market, while showing great promise for growth, faces several formidable barriers. One of those barriers is the lack of a large-scale manufacturing infrastructure. Mycelium production requires controlled conditions for growth and time as such, limits scalability and consistency in product quality when applied to industrial requirements like packaging or textiles.

Another restraint is that consumer awareness remains very limited outside niche sustainability or vegan communities. Many consumers are still largely unaware of mycelium-based products, which has contributed to slower market penetration in mainstream food and fashion categories. A lack of consumer awareness consequently reduces demand on the retailer's side and slows retail uptake.

Regulatory approval and standardization of materials are other challenges. Food safety, durability testing, and bio-compatibility regulations differ from country to country, interrupting the commercialization of novel mycelium-derived products. In sectors such as construction and furniture, mycelium still lags behind in performance benchmarks compared to conventional materials like plastics, leather, and wood.

Perhaps high R&D costs and the intricate web of intellectual property rights surrounding strain optimization and cultivation techniques would dissuade newcomers and retard the pace of innovation across sundry applications.

Country-Wise Outlook

Biotech meets sustainability: U.S. pushes mycelium into mainstream markets

The United States dominates the global mycelium market, bolstered by the country's powerful biotech ecosystem and a growing demand for environmentally friendly alternatives in food, packaging, and textiles among consumers. Major drivers of this market include increasing venture capital investments in alt-protein start-ups, innovations in fermentation technologies, and a robust FDA regulatory framework for new food ingredients.

Footprints of infrastructures related to precision fermentation and myco-fiber processing are on the rise. Both the USDA and the NIH endorse research on the role of mycelium in regenerative agriculture and biocomposites. These companies apply AI in the strain integration and scale-up processes. The positive acceptance of consumers towards plant-based and climate-friendly products continues to grow as a trend.

Net-zero goals and eco-innovation propel the Netherlands in mycelium materials

Mycelium is the budding market within Europe in which the Netherlands is positioned at the forefront, owing to the desire for a circular economy alongside the government opening up to sustainable innovations and the agro-food tech ecosystem.

Government programs, such as The Green Deal and the EU Bioeconomy Strategy, which support startups, have so far facilitated the development of panels and insulating products made from mycelium and have begun piloting them in green building projects. The integration of life sciences, materials science, and design thinking within this country has accelerated the development of consumer-ready applications. Digital twin technologies and life cycle assessments (LCAs) guide scaling and compliance with EU regulations.

Alt-protein boom and carbon goals make China a fast-rising mycelium contender

By nurturing aspirations toward food security and carbon neutrality, China is becoming a growing contender in the mycelium sector. Government-sponsored investment in alternative protein and smart agriculture promotes domestic enhancement of mycelium fermentation capabilities for alternative proteins and bioplastics.

Major cities like Shanghai and Shenzhen help nurture mycelium undertakings via innovation hubs created through national policy. Companies that aim to optimize yield while shortening production timelines utilize AI-enabled bioprocessing. The Ministry of Agriculture has also supported pilot projects for mycelium-based meat and sustainable packaging, aligning with the “Healthy China 2030” strategy. Over the last five years, IP filings related to fungal bio-products have experienced a significant surge, indicating a rapidly evolving innovation pipeline.

Category-Wise Analysis

Organic mycelium gains traction as sustainability becomes a core buying driver

In accordance with this emerging trend of demanding clean-label and eco-friendly products, it is now being cultivated organic mycelium that has no synthetic chemicals or genetically engineered inputs. The organic alternative is a more preferred option in agriculture and food production, as it has a lower environmental footprint and is more health-conscious. The growth of this segment continues to be enhanced by regulations favoring organic certification in North America and Europe, as they offer the guarantee of trust and traceability in the supply chain.

Powdered mycelium leads as the preferred format for functional integration

Mycelium powder is gaining popularity due to its significant advantages, including ease of storage, longer shelf life, and adaptability to various processing techniques. It ranges from supplement to bioactive ingredient to feed additive, and becomes powdery because of the space for versatility and dosage precision. It is cost-effective for transportation purposes and can be easily blended into dry formulations, making it ideal for industrial-scale applications in health, food, and agriculture.

Mycelium emerges as a functional feed additive in the animal feed industry

The animal feed sector is increasingly looking to mycelium as a sustainable protein source and a promoter of gut health. Rich in bioactive compounds, mycelium may help support immunity, digestion, and reduce the need for antibiotics in livestock. This is currently witnessing a major global shift toward antibiotic-free animal nutrition. Utilizing agricultural waste as a substrate enhances the appeal of mycelium-based feed supplements in both developed and developing markets, owing to their potential for a circular economy.

Competitive Analysis

The mycelium market is becoming increasingly competitive with each passing day, driven by its applications in packaging, textiles, food, and construction. Innovation, sustainability credentials, and cost-effective production methods dictate competitiveness. Startups and mid-sized companies are investing heavily in proprietary cultivation techniques, often emphasizing their application in upcycling agricultural waste to lower input costs and enhance their environmental claims.

The developers compete with one another through niche applications such as meat analogues, biodegradable leather substitutes, or insulation panels. While there are lower technological entry barriers at the lab level, major challenges for scaling the technology to industrial production have led companies to develop proprietary bio-fabrication processes and specialized reactor systems for volume and consistency.

Another attractive competitive strategy includes partnerships or joint ventures with consumer brands and material science efforts to foster downstream integration and accelerate market entry. Overall market competition lies in the race for innovation, sustainability certifications, and IP-driven differentiators, especially critical since mycelium is crossing the boundaries from experimental material into commercial mainstream.

Key players in the mycelium industry are Ecovative, Gurelan Cooperative, Mycelia BVBA, KingHerbs Limited, Changsha Botaniex Inc., Mogu S.r.l., MycoWorks, Nature’s Fynd, MyForest Foods, and other players.

Recent Development

• In March 2025, MyForest Foods, an Ecovative spinoff, expanded its production facility in Green Island, New York, to 180,000 square feet. This expansion, supported by a US$681,000 grant and a USD 1 million low-interest loan, enables the company to produce approximately 20,000 pounds of oyster mushroom mycelium weekly for its MyBacon product. The company plans to introduce a mushroom-based pulled pork alternative, utilizing mycelium scraps for maximum efficiency.
• In September 2024, Beyond Meat announced the development of a whole-muscle steak filet made from mycelium. This innovation aims to replicate the texture and flavor of traditional beefsteak, providing a clean protein source that is low in saturated fat. The product is designed to meet health guidelines and appeal to consumers seeking nutritious plant-based alternatives.

Fact.MR has provided detailed information about the price points of key manufacturers in the Mycelium Market, positioned across regions, including sales growth, production capacity, and speculative technological expansion, in the recently published report.

Methodology and Industry Tracking Approach

Fact.MR had completed an extensive account of the Mycelium market with a global perspective involving more than 4,200 validated participants across 18 countries by 2025. Respondents represented sectors such as plant-based food manufacturing, sustainable packaging development, biomaterials engineering, and fungal biotechnology research and development.

In June 2024 and May 2025, the study tracked trends in industrial adoption, regulatory advancements related to mycelium-based products, and advances in fermentation scale-up. Observably accelerating was the demand for biodegradable alternatives to foam, meat-like fibrous textures, and low-carbon construction panels. Top innovations included modular mycelium bricks, high-density packaging foams, and mycelium-based edible snacks with gut health-enhancing properties.

Since 2018, the growth of mycelium as an alternative biomaterial has been tracked by Fact.MR to provide a wide view of innovations across sectors that rely on its versatile substrates, lifecycle emissions, and post-consumer rates of decomposition. The ongoing research marks a significant juncture, where stakeholders are emphasizing eco-functional design, waste-to-resource models, and traceable fungal cultivation protocols. It marks the turning of the tide where fungi-based technologies will ensure sustainability at the forefront of performance and next-generation material science.

Segmentation of Mycelium Market

• By Nature :

  • Organic
  • Conventional

• By Form :

  • Powder
  • Pre-formed
  • Capsules

• By Application :

  • Animal feed Industry
  • Food and Beverage industry
  • Others

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa