Mushroom Cultivation Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Button Mushroom, Oyster Mushroom, Shiitake Mushroom, and Others), By Phase (Composting, Spawning, Casing, Pinning, Harvesting), By Form (Canned, Frozen, Fresh, Dried, Others), By Technique (Bedding and Cushion), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 19.11 Billion
CAGR (2026-2031)	6.02%
Fastest Growing Segment	Pinning
Largest Market	Asia Pacific
Market Size (2031)	USD 27.14 Billion

Market Overview

The Global Mushroom Cultivation Market will grow from USD 19.11 Billion in 2025 to USD 27.14 Billion by 2031 at a 6.02% CAGR. Mushroom cultivation is the controlled agricultural production of fungi using sterilized substrates like compost to ensure optimal yield. The market is driven by escalating demand for plant-based proteins and rising consumer awareness of the functional health benefits of mushrooms. Furthermore, the culinary versatility of mushrooms allows them to be incorporated into diverse dietary plans, sustaining their popularity among health-conscious demographics.

The industry faces a significant impediment regarding high operational costs associated with labor and energy for climate control. These financial burdens can limit profit margins and restrict facility scalability. According to 'The Mushroom Council', in '2025', 'crimini mushrooms represented 52.2% of total organic fresh mushroom dollar sales'. This figure illustrates the strong consumer preference for specific high-value varieties within the marketplace.

Key Market Drivers

Rising Global Adoption of Plant-Based and Vegan Diets is significantly propelling the expansion of the mushroom cultivation industry, as consumers increasingly seek sustainable and texture-rich alternatives to animal proteins. Fungi, particularly darker varieties, are favored for their dense, meaty consistency and umami flavor profile, making them essential ingredients in meat-substitute formulations and plant-forward culinary applications. This shift in dietary preferences has directly stimulated production volumes for specific mushroom types that align with meat replacement trends. According to the USDA National Agricultural Statistics Service, August 2025, in the 'Mushrooms' report, the sales volume of brown mushrooms, including Portobello and Crimini varieties, increased by 8% to 196 million pounds during the 2024-2025 season.

Increasing Consumer Awareness of Nutritional and Medicinal Benefits is acting as a parallel catalyst, driving demand for products that offer functional health advantages and clean-label credentials. Shoppers are gravitating towards mushrooms for their immune-boosting properties and rich nutrient content, a trend that has notably bolstered the organic segment of the market. According to the Organic Produce Network, July 2025, in the 'State of Organic Produce 2024' report, sales of organic mushrooms in the US rose by 6.7% to reach $249 million in 2024. This niche growth contributes to the industry's overall financial robustness; according to the USDA National Agricultural Statistics Service, in 2025, the total value of sales for the United States mushroom crop amounted to $1.10 billion.

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Key Market Challenges

The high operational costs associated with labor and energy for climate control constitute a substantial barrier to the expansion of the Global Mushroom Cultivation Market. These financial burdens directly compress profit margins, making it difficult for producers to invest in facility modernization or capacity expansion. Since mushroom growing is heavily labor-intensive, particularly during harvesting, and requires precise, energy-dependent environmental regulation to maintain crop viability, these fixed costs remain stubbornly high regardless of market price fluctuations. Consequently, producers often face reduced capital liquidity, hampering their ability to scale operations to meet rising global demand.

This economic pressure is quantified by recent industry findings which highlight the severity of these overheads. According to 'American Mushroom Institute', in '2024', 'labor costs account for upwards of 60% to 66% of total production costs'. Such a disproportionate expense structure leaves growers vulnerable to even minor increases in wage rates or energy prices. When a majority of revenue is consumed immediately by basic operational necessities, the financial viability of increasing production cycles is compromised, effectively stalling market growth despite the favorable demand trends.

Key Market Trends

Integration of Robotic Systems for Automated Harvesting is revolutionizing the cultivation sector by addressing critical labor shortages and ensuring consistent crop quality. Producers are increasingly deploying autonomous platforms capable of identifying, picking, and packing mushrooms with high precision, thereby mitigating the financial risks associated with manual workforce dependency. This technological shift is attracting significant capital to scale operations and optimize harvest cycles, allowing growers to maintain continuous production schedules without the constraints of human labor availability. According to The Robot Report, July 2025, in the '4AG Robotics picks up $29M for mushroom harvesting robots' article, 4AG Robotics closed a Series B funding round of CAD 40 million to meet the global demand for its autonomous harvesting platform.

Development of Mushroom-Infused Nutraceutical and CPG Formulations is driving cultivators to diversify crop portfolios toward high-value medicinal strains for the wellness market. Manufacturers are capitalizing on the nootropic properties of specific fungi, such as Lion’s Mane, by incorporating concentrated extracts into convenient formats like beverages and supplements, distinct from the traditional fresh culinary segment. This evolution incentivizes growers to adopt specialized substrates and processing capabilities to meet the precise specifications of health-focused product lines. According to Nutritional Outlook, March 2025, in the 'Functional Mushrooms Take Center Stage' report, sales of mushrooms within the cognitive health category of the natural channel reached $12.6 million, marking a 28.6 percent increase from the previous year.

Segmental Insights

Market analysis identifies the Pinning segment as the fastest-growing phase within the Global Mushroom Cultivation Market. This rapid expansion is primarily driven by the critical nature of this physiological stage, where the transition from vegetative mycelium to fruiting bodies dictates the final yield and quality. The segment's growth is fueled by the increasing adoption of advanced climate control technologies and automated monitoring systems, which are essential for maintaining the precise temperature, humidity, and carbon dioxide levels required during this sensitive phase. By investing in these solutions, cultivators significantly reduce the risk of crop failure, thereby propelling the development of the pinning sector.

Regional Insights

Asia Pacific leads the global mushroom cultivation market due to extensive production capabilities and high consumer demand, particularly in China. The region benefits from favourable agro-climatic conditions and the widespread availability of agricultural by-products used as cost-effective substrates. According to the Food and Agriculture Organization, Asian nations consistently maintain the highest output volumes globally, supported by traditional inclusion of fungi in local diets. Furthermore, the rising preference for plant-based protein sources across developing economies continues to drive market expansion, cementing the region as the primary hub for both cultivation and export.

Recent Developments

• In January 2025, Sylvan Inc. expanded its commercial portfolio by launching the Bavarian Brown mushroom strain into European markets. This product introduction was designed to cater to the increasing consumer preference for diverse and flavorful brown mushroom varieties across the region. The launch aligned with the company's broader strategy to provide innovative mycological solutions and superior spawn products to the global cultivation industry. By introducing this strain, the company sought to strengthen its market presence in Europe and support growers in diversifying their crop offerings with high-quality genetics.
• In October 2024, Highline Mushrooms announced a strategic partnership with Christiaens Group to construct a fully organic mushroom farm in Leamington, Ontario. The collaboration focused on implementing advanced automated technology, specifically the Christiaens Drawer System, to maximize growing and harvesting efficiency. This facility represented the largest farm investment in the company’s history and was intended to transition its operations into a data-driven agri-tech platform. The project aimed to service partners across North America, reinforcing the company’s leadership in the controlled environment agriculture sector and future-proofing its production capabilities.
• In September 2024, Eden Grow Systems launched a new subsidiary, MyCo, to commercialize a breakthrough hydroponic mushroom cultivation technology licensed from Purdue University. This proprietary system, known as Mycoponics, was introduced to create a controlled environment that enables precision nutrient delivery and the use of customizable substrates. The technology was developed to improve yields and reduce maturation times while lowering production costs compared to traditional methods. The company aimed to apply this innovation to both edible mushroom production and the development of sustainable mycelium-based materials for packaging and other industrial applications.
• In February 2024, South Mill Champs entered into a cross-border partnership with Grupo APAL to establish a joint venture named Royal Champs. This collaboration aimed to construct and operate integrated mushroom composting and growing facilities across multiple sites in Mexico. The initiative was designed to enhance the company's supply chain capabilities for the United States and Canada by significantly increasing the production of fresh mushrooms. The joint venture planned to utilize advanced Dutch-style production technologies on a large site near Queretaro to ensure high-quality output and meet rising market demand for cultivated fungi.

Key Market Players

• Smithy Mushrooms Ltd.
• Rheinische Pilz Zentrale GmbH
• Monaghan Mushrooms Ltd
• Walsh Mushrooms Group
• South Mill Mushrooms Sales Inc.
• Hirano Mushroom LLC
• Gourmet Mushrooms, Inc.
• Fresh Mushroom Europe NV
• L F Lambert Spawn Co
• Polar Shiitake Oy

By Type	By Phase	By Form	By Technique	By Region
Button Mushroom Oyster Mushroom Shiitake Mushroom Others	Composting Spawning Casing Pinning Harvesting	Canned Frozen Fresh Dried Others	Bedding and Cushion	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Mushroom Cultivation Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Mushroom Cultivation Market, By Type:

• Button Mushroom
• Oyster Mushroom
• Shiitake Mushroom
• Others

• Mushroom Cultivation Market, By Phase:

• Composting
• Spawning
• Casing
• Pinning
• Harvesting

• Mushroom Cultivation Market, By Form:

• Canned
• Frozen
• Fresh
• Dried
• Others

• Mushroom Cultivation Market, By Technique:

• Bedding and Cushion

• Mushroom Cultivation Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE