India Mushroom Market to Grow with a CAGR of 12.84% through 2030F

The India Mushroom Market is driven by factors such as rising health awareness, increasing demand for plant-based protein, government support for cultivation, and expanding export opportunities.

According to TechSci Research report, “India Mushroom Market – By Region, Competition, Forecast & Opportunities, 2020-2030F”, the India Mushroom Market was valued at USD 1.25 Billion in 2024 and is expected to reach USD 2.58 Billion by 2030 with a CAGR of 12.84% during the forecast period. The India mushroom market has been experiencing steady growth in recent years, driven by increasing health consciousness, demand for plant-based protein, and rising urbanization. Mushrooms, once considered a niche product limited to gourmet kitchens and a few urban households, have now entered the mainstream due to their high nutritional value, low-fat content, and versatile culinary applications. The country produces a variety of mushrooms, including white button, oyster, and the increasingly popular shiitake and milky mushrooms. Traditionally, mushroom cultivation has been concentrated in regions like Himachal Pradesh, Punjab, and Haryana, but recent years have seen South India, particularly Tamil Nadu and Karnataka, emerge as dominant regions due to favorable climatic conditions. The market is also witnessing a surge in start-ups and agri-tech firms exploring commercial mushroom farming and digital distribution, making mushrooms more accessible to consumers across tier 1 and tier 2 cities.

Several major factors are fueling the growth of the mushroom market in India. First, the increasing health awareness among the Indian population has led to a rise in the consumption of low-calorie, high-protein, and immunity-boosting foods—making mushrooms an ideal choice. As vegetarian and vegan lifestyles gain traction, mushrooms are increasingly being adopted as a rich source of plant-based protein. Second, government support through training programs, subsidies, and horticulture development schemes has encouraged many small and marginal farmers to explore mushroom cultivation as a sustainable income-generating option. Third, urbanization and the growing middle class have changed dietary habits, leading to higher demand for exotic and specialty foods.

The future of the mushroom market in India appears promising, with strong growth potential fueled by innovation, consumer demand, and supportive government policies. Increased investment in cold chain logistics, farmer training, and digital supply chains will help address existing challenges and unlock further growth. The expansion of specialty mushrooms and health-focused products, such as mushroom-based supplements and functional foods, is expected to create new market segments. Furthermore, as sustainability and organic food trends continue to rise, India is likely to see an increase in organic mushroom farms supported by eco-conscious consumers and global buyers.

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The India Mushroom Market is segmented into product type, distribution channel and region.

Based on distribution channel, Supermarkets/hypermarkets represent the dominating distribution segment in the India mushroom market due to their wide reach, efficient cold storage facilities, and ability to offer a variety of fresh and processed mushroom products under one roof. These retail formats provide consumers with easy access to different mushroom varieties, including white button, oyster, and increasingly, specialty types like shiitake and milky mushrooms. Their organized display, quality assurance, and promotional offers attract health-conscious and convenience-seeking urban shoppers. Moreover, supermarkets often maintain better hygiene standards and source directly from trusted suppliers or farmer groups, ensuring product freshness and reliability. As urbanization and disposable incomes rise, supermarkets and hypermarkets continue to be the primary go-to option for mushroom purchases across major Indian cities.

Based on region, West India is currently the fastest-growing region in the Indian mushroom market compared to South India. This growth is driven by factors such as increasing urbanization, rising health awareness, and expanding cold chain infrastructure in states like Maharashtra and Gujarat. The presence of large urban centers such as Mumbai and Pune has fueled consumer demand for fresh, exotic, and processed mushrooms. Additionally, agri-tech startups and commercial farms are gaining momentum in this region, supported by improved supply chain logistics and retail networks.

Major companies operating in India Mushroom Market are:

• Fresh Lawn Mushroom Pvt. Ltd.
• Krishidev Fertilizers And Seeds Limited
• Chenab Impex Pvt. Ltd.
• Shobha International
• Shrim Industries Private Limited
• Pisum Food Services Private Limited
• Surabi
• Agrosophia
• Aroh Foundation
• Annavarshni Foods LLP

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“The India mushroom market is driven by rising health awareness, increasing demand for plant-based protein, government support for cultivation, and expanding export opportunities. Key trends include a shift toward organic and sustainable farming, growing popularity of specialty mushrooms like shiitake, growth in processed and ready-to-cook products, and rapid expansion of online sales channels reaching urban and semi-urban consumers.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“India Mushroom Market By Product Type (Button, Shiitake, Oyster, Others), By Distribution Channel (Supermarkets/Hypermarkets, Grocery Stores, Online, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of India Mushroom Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Mushroom Market.

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