Mycelium Market To Expand at 6.9% CAGR by 2034

Overview

New York, NY – July 18, 2025 – The Global Mycelium Market is gaining significant traction, driven by increasing demand for sustainable and eco-friendly materials across various industries. With a projected value of USD 5.7 billion by 2034, up from USD 2.9 billion in 2024, the market is set to grow at a CAGR of 6.9% from 2025 to 2034.

The Indian government has introduced several schemes to bolster the mycelium industry, particularly mushroom cultivation. The Mission for Integrated Development of Horticulture (MIDH) provides subsidies of 35% to 50% for mushroom farming, varying by region and cultivation type. The National Horticulture Board (NHB) complements this by offering up to 40% financial assistance for establishing mushroom production units. These initiatives aim to boost productivity, elevate quality standards, and enhance farmers’ incomes.

A study in Haryana’s Sonipat district highlighted key barriers to mushroom farming. Approximately 70.83% of respondents noted insufficient support from government agencies and NGOs, while 68% faced challenges in securing loans. Additionally, 60% of farmers struggled with the high cost of raw materials, and 54% lacked awareness of available credit facilities, hindering the sector’s growth. The mycelium industry is expanding globally. In 2023, U.S. mycelium production capacity reached about 2 million metric tons, per the U.S.

Energy Information Administration. In Germany, production for food and beverage applications was approximately 180,000 tons in the same year, reflecting growing industrial adoption. Mycelium’s appeal lies in its environmental benefits, versatile properties, and reduced dependence on petrochemicals. Mycelium-based composites, with densities ranging from 199 to 340 kg/m³, rival polystyrene and polyurethane foams, making them ideal for packaging and insulation. Supportive policies, such as the European Industrial Strategy, emphasize bio-based materials to achieve the 2050 climate goals.

The U.S. FDA’s “Generally Recognized as Safe” (GRAS) designation for Aspergillus oryzae has facilitated its use in bio-based manufacturing enzymes. Fungal-derived enzymes dominate the global market, valued at USD 7.42 billion in 2023, accounting for roughly 85% of the sector. The mycelium industry holds potential for high-performance applications, including automotive composites, acoustic insulation, bio-leather, and nutraceuticals. Mycelium-based leather, priced at USD 0.18–0.28 per m², is significantly cheaper than animal hide (USD 5.81–6.24 per m²), offering a cost-effective and sustainable alternative for industries like fashion.

Key Takeaways

• Mycelium Market size is expected to be worth around USD 5.7 billion by 2034, from USD 2.9 billion in 2024, growing at a CAGR of 6.9%.
• Solid Mycelium held a dominant market position, capturing more than a 47.3% share of the global mycelium market.
• Consumer Goods held a dominant market position, capturing more than a 39.2% share of the global mycelium market.
• Online Retail held a dominant market position, capturing more than a 59.1% share of the global mycelium market.
• Europe accounted for a commanding 43.2% share of the global mycelium market, translating to approximately USD 1.2 billion.

How Growth is Impacting the Economy

The Mycelium Market’s growth is reshaping economies by fostering sustainable innovation and job creation. Its expansion supports a circular economy, reducing waste and reliance on non-renewable materials like plastics, which constitute global landfill waste. In North America, robust R&D ecosystems and startups drive economic activity.

In Asia-Pacific, particularly China, the production of global mycelium, agricultural waste utilization boosts rural economies. However, high production costs and scalability challenges may limit short-term economic gains. Long-term, mycelium’s versatility in replacing petroleum-based products enhances economic resilience, reduces environmental cleanup costs, and aligns with global sustainability goals, fostering greener economic frameworks.

➤ Curious about the content? Explore a sample copy of this report – https://market.us/report/mycelium-market/request-sample/

Strategies for Businesses

Businesses can capitalize on the mycelium market by investing in R&D to enhance production efficiency and product versatility. Partnering with startups like Ecovative or MycoWorks can expand market presence. Adopting sustainable branding appeals to eco-conscious consumers, while leveraging government incentives for green initiatives reduces costs. Diversifying applications such as mycelium-based packaging, vegan leather, or alternative proteins can capture new market segments. Streamlining supply chains to utilize local agricultural waste ensures cost-effectiveness. Additionally, consumer education campaigns highlighting mycelium’s environmental benefits can boost demand and market acceptance.

Report Scope

➤ Directly purchase a copy of the report – https://market.us/purchase-report/?report_id=151108

Key Market Segments

By Form

• In 2024, Solid Mycelium held a dominant position in the global mycelium market by form, accounting for over 47.3% of the total share. This lead is primarily attributed to its superior structural integrity and wide applicability across industries such as packaging, construction, insulation, and textiles. Known for its dense, fibrous composition and moldability, solid mycelium has become a favored material in applications seeking biodegradable, high-performance alternatives to conventional synthetics.
• Its ability to replace petroleum-based foams and wood composites has gained significant traction, particularly in Europe and North America, where environmental regulations and sustainability mandates are stringent. Moving into 2025, this form is expected to retain its dominance, driven by capacity expansions and strategic collaborations between biotechnology startups and large packaging manufacturers. As industries shift toward materials offering both ecological benefits and mechanical resilience, solid mycelium continues to stand out for its versatility, cost-effectiveness, and scalability across multiple sectors.

By End-Use

• In 2024, Consumer Goods emerged as the leading end-use segment in the mycelium market, securing more than 39.2% of the global share. The segment’s strength lies in the increasing demand for sustainable materials in daily-use products such as footwear, accessories, packaging, and interior decor. Mycelium’s compostable nature and customizable properties offer an attractive alternative to plastic, leather, and synthetic foams in consumer-facing applications.
• Companies aligned with circular economy models are increasingly adopting mycelium to meet regulatory compliance and consumer expectations for environmentally responsible products. The segment is anticipated to grow further, bolstered by retail and lifestyle brands incorporating mycelium-based components into mainstream product lines. This trend is supported by tightening sustainability regulations and rising market preference for clean-label, plant-based innovations, positioning consumer goods as the most dynamic sector for mycelium deployment.

By Distribution Channel

• In 2024, Online Retail dominated the global mycelium market by distribution channel, accounting for over 59.1% of total sales. The surge in digital commerce for sustainable products has been a key factor behind this growth, as environmentally conscious consumers increasingly turn to e-commerce platforms for purchasing innovative, biodegradable alternatives.
• Digital platforms offer brands the ability to directly communicate environmental benefits to target audiences, which, combined with influencer marketing and sustainability messaging, has further propelled demand. As of 2025, online retail is expected to maintain its lead, driven by broader digital adoption and expanding reach of mycelium producers leveraging e-commerce ecosystems to align with evolving consumer values.

Regional Analysis

In 2024, Europe led the global mycelium market, capturing a 43.2% share valued at approximately USD 1.2 billion. The region’s dominance is underpinned by its regulatory push toward sustainable materials and active support for circular bioeconomy initiatives. European Union policies such as the Circular Economy Action Plan and the EU Plastic Strategy have created a favorable environment for the adoption of mycelium-based alternatives in packaging and construction.

Strong consumer awareness in countries like Germany, France, the UK, Italy, and the Netherlands has further accelerated market expansion, prompting significant investment in local R&D and production infrastructure. Italy, in particular, has become a focal point for innovation in mycelium composites, where agricultural waste is repurposed with fungal biomass to develop insulation and leather-like materials. The region’s momentum is expected to continue, supported by public funding and strong collaboration between biotech startups and established industrial players.

Recent Developments

1. Ecovative Design LLC

• Ecovative continues to lead in mycelium-based materials, expanding its MycoComposite for packaging and Forager for textiles. The company recently partnered with IKEA and Dell to replace plastic packaging with sustainable mycelium alternatives. Their Mushroom Packaging is now commercially available for various industries. Additionally, Ecovative launched MycoFlex, a foam-like material for apparel and footwear.

2. MycoWorks

• MycoWorks made headlines with its Fine Mycelium technology, producing premium mycelium leather. The company secured Series C funding to scale production. A major milestone was its partnership with Hermès for mycelium-based leather bags. MycoWorks also opened in South Carolina to meet growing luxury market demand.

3. Atlast Food Co.

• Atlast is pioneering whole-cut mycelium meat, launching MyBacon in U.S. retail stores. The company plans to expand production and improve texture mimicry. Their MRL (Mycelium Root Layer) technology enhances meat alternatives, attracting partnerships with major food brands. Atlast aims to make mycelium-based meat mainstream.

4. Meati Foods

• Meati Foods focuses on mycelium-based steaks and chicken, now available in Sprouts Farmers Market and Whole Foods. Meati’s Eat Meati line emphasizes clean-label, high-protein products, backed by funding to expand nationally.

5. Bolt Threads Inc.

• Bolt Threads shifted focus to mycelium leather (Mylo), collaborating with Adidas, Stella McCartney, and Lululemon. Despite restructuring, they licensed Mylo to manufacturers, ensuring market presence. Their b-silk protein (derived from mycelium) is also gaining traction in cosmetics.

Conclusion

The Mycelium Market’s rapid growth signals a shift toward sustainable economies, driven by its biodegradable and versatile applications. As industries embrace eco-friendly alternatives, businesses leveraging innovation and strategic partnerships will thrive. Despite challenges like high production costs, the market’s alignment with global sustainability goals ensures long-term economic and environmental benefits. Continued investment in R&D and consumer awareness will solidify mycelium’s role in shaping a greener future.

Discuss Your Needs With Our Analyst

Please share your requirements with more details so our analyst can check if they can solve your problem(s)

Request a Sample Download PDF