South America Mushroom Market, By Product Type (Button, Shiitake, Oyster, Matsutake, Truffles, Others), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Store, Online, Others), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

South America Mushroom Market was valued at USD 854.26 Million in 2024 and is expected to reach USD 1344.15 Million by 2030 with a CAGR of 7.85% during the forecast period. ​ The South America mushroom market is witnessing steady growth, driven by rising consumer awareness of health and wellness, increasing demand for plant-based protein, and the popularity of functional foods. Countries like Brazil, Argentina, and Chile are leading producers, supported by favorable climatic conditions and expanding cultivation practices. Urbanization and shifting dietary habits are fueling higher consumption of fresh, processed, and specialty mushrooms in retail and foodservice channels. Additionally, the pharmaceutical and nutraceutical industries are boosting demand due to mushrooms’ medicinal properties.

Market Drivers

Rising Health and Wellness Awareness

One of the most significant drivers of the South America mushroom market is the growing awareness of health and wellness among consumers. The Ministry of Health launched the "Brasil Saudável" program, established by Decree No. 11,908 in  2024. Additionally, the federal government introduced over 220 initiatives to combat hunger and promote healthier food options. With increasing incidences of lifestyle-related diseases such as obesity, diabetes, and cardiovascular ailments, people are becoming more conscious of adopting healthier dietary habits. Mushrooms, being naturally low in fat and calories yet rich in essential nutrients like B vitamins, selenium, potassium, and dietary fiber, are increasingly seen as a superfood. Their high protein content also makes them a preferred option for vegetarians and flexitarians seeking plant-based protein alternatives. In addition, mushrooms are known to contain bioactive compounds with antioxidant, anti-inflammatory, and immune-boosting properties, which further enhance their appeal among health-conscious consumers. Governments and health organizations across South America are actively promoting the benefits of balanced diets, which includes higher consumption of vegetables, fruits, and functional foods like mushrooms. For example, urban middle-class populations in Brazil, Argentina, and Chile are particularly adopting mushrooms in daily meals as part of a shift toward preventive healthcare and immunity enhancement. The COVID-19 pandemic also accelerated this trend by reinforcing the importance of nutrient-rich foods for overall well-being. As a result, mushrooms are no longer considered just a niche food item but a mainstream healthy choice in South American households, significantly boosting market demand.

Expansion of Plant-Based and Functional Foods Market

The rising popularity of plant-based and functional foods is another crucial driver of the mushroom market in South America. Brazil is becoming a frontrunner in Latin America’s plant-based food sector, with annual sales expanding at a rate exceeding 30%. Growing concerns over environmental sustainability, animal welfare, and the health risks associated with excessive meat consumption are pushing consumers toward plant-based diets. Mushrooms, with their meaty texture and umami flavor, are increasingly being used as a substitute for meat in various dishes, making them highly attractive to vegetarians, vegans, and flexitarians. The trend is particularly evident in urban centers where restaurants, cafes, and foodservice chains are innovating mushroom-based dishes, from burgers and pizzas to gourmet meals. Moreover, mushrooms are gaining recognition as functional foods due to their unique bioactive compounds like beta-glucans, polysaccharides, and ergothioneine, which are associated with improved immunity, gut health, and reduced risk of chronic diseases. This functional value has spurred demand not only in the food industry but also in nutraceuticals and dietary supplements. The pharmaceutical sector is increasingly using mushrooms such as Reishi, Shiitake, and Maitake for their medicinal properties, driving the growth of specialty mushroom production in South America. As consumers prioritize natural remedies over synthetic supplements, the demand for mushroom-derived functional products is poised to rise. This expanding integration of mushrooms into plant-based diets and wellness-focused food categories creates strong momentum for market growth across the region.

Favorable Agricultural Conditions and Technological Advancements in Cultivation

South America benefits from favorable agricultural conditions that support the cultivation of mushrooms, which serves as a strong growth driver. Countries like Brazil, Argentina, Colombia, and Chile have diverse climates and fertile soils that allow for the production of various mushroom varieties, both common and exotic. Moreover, mushroom farming in the region is being enhanced by technological advancements and the adoption of modern cultivation practices. Controlled environment agriculture (CEA), hydroponics, and organic farming techniques are increasingly being employed to improve yields, quality, and year-round availability. Local governments and private investors are supporting mushroom farming through training programs, infrastructure development, and financial incentives, encouraging farmers to diversify into high-value crops like mushrooms. The relatively low space requirement and the possibility of cultivating mushrooms using agricultural waste, such as straw and sawdust, make mushroom farming an economically attractive option for small and medium-scale farmers. In addition, improvements in cold chain logistics and supply chain management are reducing post-harvest losses and ensuring wider distribution across domestic and export markets. Research and innovation in spore selection, disease management, and organic certification are also enabling producers to meet rising consumer demand for safe, high-quality, and sustainably produced mushrooms. These favorable production dynamics are crucial for strengthening South America’s position in the global mushroom industry and catering to both local and international markets.

Growing Foodservice Industry and Retail Distribution Networks

The expansion of the foodservice industry and retail distribution networks across South America is another powerful driver of mushroom market growth. Rapid urbanization, rising disposable incomes, and changing lifestyles are fueling the demand for ready-to-eat, gourmet, and health-oriented foods, where mushrooms play a prominent role. Restaurants, hotels, and quick-service chains are incorporating mushrooms into diverse cuisines, not only because of their nutritional benefits but also due to their versatility in enhancing flavor and texture. The increasing influence of global culinary trends, including Asian and Mediterranean cuisines, is also boosting the consumption of specialty mushrooms like Shiitake, Oyster, and Enoki. On the retail side, supermarkets, hypermarkets, and online grocery platforms are expanding their fresh produce offerings to meet consumer demand for convenience and variety. E-commerce platforms, in particular, have emerged as a key distribution channel post-pandemic, making mushrooms more accessible to urban and semi-urban households. Additionally, food processors are introducing a wide range of mushroom-based products, including canned mushrooms, mushroom powders, snacks, and sauces, catering to consumers seeking convenience and longer shelf life. The growth of organized retail and the integration of cold storage facilities are ensuring that fresh mushrooms maintain quality during distribution, thereby boosting consumer confidence in the product. This robust expansion of retail and foodservice channels is instrumental in driving higher mushroom consumption across the region.

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Key Market Challenges

High Perishability and Supply Chain Limitations

One of the biggest challenges facing the South America mushroom market is the high perishability of mushrooms, which significantly affects storage, transportation, and distribution. Fresh mushrooms have a short shelf life of only a few days due to their high moisture content and susceptibility to microbial contamination, making efficient cold chain infrastructure critical. However, in many South American countries, especially outside major urban centers, the cold storage and logistics networks remain underdeveloped. This often leads to post-harvest losses, reduced quality, and increased costs for producers and distributors. The lack of standardized packaging, limited processing facilities, and insufficient investment in advanced storage technologies further compound the issue, restricting the ability to expand mushroom availability beyond local markets.

Limited Consumer Awareness and Cultural Preferences

Despite growing health and wellness trends, mushrooms are still not fully integrated into the daily diet of many South American households, particularly in rural areas. Traditional food cultures in the region often emphasize meat and staple crops, limiting mushroom consumption mainly to urban, health-conscious, or higher-income populations. Many consumers are unfamiliar with specialty varieties such as Shiitake, Oyster, or Reishi, restricting demand primarily to common white button mushrooms. In addition, myths and misconceptions about mushrooms, including safety concerns and limited cooking knowledge, hinder wider adoption. Without extensive consumer education campaigns and culinary integration, expanding demand across diverse demographics remains a challenge for the market.

Production Costs and Limited Investment in R&D

Mushroom cultivation in South America often faces challenges related to production costs and insufficient investment in research and development. Establishing controlled environment facilities, acquiring quality spores, and maintaining hygienic cultivation conditions require significant capital, which many small-scale farmers cannot afford. Moreover, limited technical expertise, inadequate training, and lack of government subsidies compared to traditional crops discourage farmers from entering the mushroom sector. Research on improving yields, developing disease-resistant strains, and exploring value-added mushroom products is still in its nascent stage in many countries, slowing innovation. These high costs and limited R&D investment pose barriers to scaling production and meeting the growing demand for diverse mushroom varieties.

Key Market Trends

Rising Popularity of Specialty and Exotic Mushrooms

A key trend driving the South America mushroom market is the growing interest in specialty and exotic mushroom varieties such as Shiitake, Oyster, Enoki, and Reishi. Additionally, a comprehensive study identified 409 species of wild edible mushrooms in Brazil, with 350 confirmed as safe for consumption. While white button mushrooms remain the dominant variety consumed in the region, consumer preferences are shifting toward mushrooms that offer unique flavors, textures, and additional health benefits. Urban middle-class populations, particularly in Brazil, Argentina, and Chile, are increasingly exploring gourmet cuisines, often influenced by international culinary trends, which has boosted demand for these specialty mushrooms. Reishi and Maitake, known for their medicinal properties, are also gaining traction in the nutraceutical and pharmaceutical sectors. Restaurants and high-end foodservice outlets are popularizing these varieties through innovative recipes, which in turn encourages retail demand. The expansion of organic and sustainable farming practices is further boosting interest in exotic mushrooms, as consumers perceive them as premium, healthy, and environmentally friendly. This shift toward specialty mushrooms is creating opportunities for local farmers to diversify production and capture higher profit margins compared to common varieties.

Integration of Mushrooms into Processed and Value-Added Products

Another significant trend in the South American mushroom market is the integration of mushrooms into processed and value-added food products. Beyond fresh mushrooms, manufacturers are introducing a wide range of offerings such as canned mushrooms, mushroom powders, sauces, snacks, and ready-to-eat meals. This trend is being driven by the growing demand for convenience foods, especially among urban consumers with busy lifestyles. Mushroom powders are being incorporated into soups, bakery items, and nutritional supplements due to their rich umami flavor and functional properties. Additionally, mushrooms are increasingly being used as an ingredient in plant-based meat alternatives, as their texture and flavor make them a suitable replacement for animal protein. Food processors are also experimenting with fortified mushroom products enriched with vitamin D or beta-glucans to cater to health-conscious consumers. This expansion of mushroom applications not only adds value to production but also helps reduce post-harvest losses by extending shelf life. The rise of value-added mushroom products is significantly broadening the market’s reach across retail and foodservice sectors in South America.

Growing Focus on Sustainable and Organic Mushroom Cultivation

Sustainability and organic production are emerging as major trends in the South America mushroom industry. Consumers are increasingly concerned about the environmental impact of their food choices, leading to a rising preference for organically grown mushrooms. Mushrooms are naturally sustainable crops since they can be cultivated using agricultural by-products like straw, sawdust, and corn husks, thereby reducing waste and promoting circular agriculture. Many producers in South America are adopting eco-friendly farming practices, minimizing the use of synthetic chemicals, and gaining organic certifications to appeal to environmentally conscious consumers. This trend is further supported by government initiatives promoting sustainable agriculture and consumer movements advocating for ethical food production. Export markets, particularly in North America and Europe, are also creating demand for organic and sustainably produced mushrooms from South America. By aligning with sustainability goals, producers not only meet consumer preferences but also enhance their competitiveness in international markets. This focus on organic and eco-friendly practices is expected to shape the future production strategies of mushroom farmers across the region.

Expansion of Online Retail and Direct-to-Consumer Channels

The rapid expansion of e-commerce and online grocery platforms is transforming mushroom distribution in South America, marking another key trend in the market. In 2023, Brazilian e-commerce reached USD 36.19 billion, growing 4% from 2022. The COVID-19 pandemic accelerated the shift toward online shopping, and fresh produce, including mushrooms, became increasingly available through digital platforms. Consumers are now more comfortable purchasing perishable items online, driven by convenience, home delivery options, and improved cold chain logistics. In addition, direct-to-consumer (D2C) sales models are gaining traction, with small and medium-scale mushroom farmers using social media and specialized apps to sell fresh mushrooms directly to households. Subscription-based models for weekly or monthly mushroom deliveries are also becoming popular among urban consumers seeking fresh, high-quality produce at their doorstep. This digital transformation is improving market accessibility, especially in metropolitan areas, while allowing producers to capture higher margins by bypassing traditional intermediaries. The continued growth of online retail and D2C channels is expected to enhance mushroom consumption across South America, particularly among younger, tech-savvy consumers.

Segmental Insights

Product Type Insights

The Button mushroom segment dominated the South America mushroom market, primarily due to its widespread consumer acceptance, affordability, and ease of cultivation. Known for its mild flavor and versatility, button mushrooms are widely incorporated into home-cooked meals, quick-service restaurants, and gourmet cuisines, making them a staple across the region. Their consistent availability through supermarkets, hypermarkets, and traditional markets has further strengthened their market share. In contrast, specialty varieties like Shiitake, Oyster, Matsutake, and Truffles cater to niche or premium consumers and remain limited in scale. Lower production costs, year-round availability, and strong integration into mainstream dietary habits ensure button mushrooms maintain their leadership position as the most consumed variety in South America’s mushroom industry.

Distribution Channel Insights

The online retail segment is the fastest-growing distribution channel, driven by the rapid adoption of e-commerce, changing consumer lifestyles, and demand for convenience. Post-pandemic, urban consumers increasingly prefer purchasing fresh mushrooms and specialty varieties through online platforms due to reliable home delivery, wider product selection, and easy comparison of brands. Direct-to-consumer models, subscription services, and social media-based sales are gaining traction, particularly among health-conscious and younger demographics. Improved cold chain logistics and packaging innovations ensure product freshness during transit, boosting consumer confidence. This digital transformation is accelerating market penetration and expanding access beyond traditional retail outlets.

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Country Insights

Brazil dominates the South America mushroom market, accounting for the largest share due to its strong production capacity, expanding consumer base, and growing preference for healthy and plant-based foods. Favorable climatic conditions and increasing adoption of modern cultivation practices have supported large-scale mushroom farming in the country. Brazil’s urban population, particularly in cities like São Paulo and Rio de Janeiro, is driving demand for fresh and specialty mushrooms through supermarkets, hypermarkets, restaurants, and online platforms. Additionally, rising health awareness and interest in functional foods are boosting consumption across middle- and high-income groups. With robust retail infrastructure, improving cold chain logistics, and active domestic production, Brazil continues to lead both in consumption and supply within the regional mushroom market

Key Market Players

• Costa Group
• Bonduelle
• Mushroom Cups
• Ryze
• NeuRoast
• Om Mushroom Superfood
• Rheal
• Okechamp S.A
• Monterey Mushrooms Inc
• Monaghan Mushrooms

Report Scope:

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

·          South America Mushroom Market, By Product Type:

o   Button

o   Shiitake

o   Oyster

o   Matsutake

o   Truffles

o   Others

·         South America Mushroom Market, By Distribution Channel:

o   Supermarkets/Hypermarkets

o   Convenience Store

o   Online

o   Others

·         South America Mushroom Market, By Country:

o   Brazil

o   Argentina

o   Colombia

o   Rest of South America

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the South America Mushroom Market.

Available Customizations:

The South America Mushroom Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

·         Detailed analysis and profiling of additional market players (up to five).

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