MEDICINAL MUSHROOMS MARKET SET TO BOOM BY 2025 SAYS NEW REPORT FROM TECHNAVIO
The medicinal mushrooms market is set to boom by $4.55 billion (€4.47bn) by 2025, according to new data from analyst Technavio, as the food industry and consumers become increasingly aware of the health benefits and medicinal properties that fungi offers.
Technavio says that the health-promoting benefits of medicinal mushrooms – that include chaga and reishi mushrooms – increasing frequency of new product launches, and growth potential offered by numerous untapped markets will offer immense growth opportunities.
However, the report also suggests that adverse effects of natural calamities on crop yield, distribution challenges, stringent regulations, and guidelines could challenge the growth of market participants.
To make the most of the opportunities in the medicinal mushrooms category, market vendors should focus more on the growth prospects in the fast-growing segments, Technavio said, while maintaining their positions in the slow-growing segments.
Although mushrooms have been used in Chinese medicine for centuries, they are increasingly being considered as “food as medicine” in the west. A study published by John Hopkins University in 2020 into the therapeutic effects of Psilocybin has also prompted interest in mushrooms and what they can do.
According to Technavio, Banken Champignons B.V., Chaga Mountain Inc., Far West Fungi, Four Sigmatic Foods Inc., Hokkaido Reishi Co. Ltd., Nikkei (Canada) Marketing Ltd., Nyishar, Sayan Health Inc., SSD BioSciences, and Swadeshi Mushroom are some of the key players in the medicinal mushroom market.
The medicinal mushrooms market is expected to grow at a CAGR of 9.15% during the forecast period but it is fragmented, and the degree of fragmentation will accelerate during the forecast period, Technavio said.
Meanwhile, the global mushroom market more generally, has been has been valued at $50.3 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.7% from 2022 to 2030, according to Grand View Research.
According to the report, the increasing vegan population demanding a protein-rich diet around the globe is expected to be a key driver for the market over the forecast period. Mushrooms are considered a superfood owing to their nutritional contents.
According to the report, the US was the second-largest producer accounting for approximately 375 million kg in the year 2019. The production in the country is declining since 2017 and has declined by 11% from 2017 to 2019.
Whereas the demand from end-users is growing, which has resulted in an increase in the prices by 6% in 2017-18 and by 3% in 2018-19. The US government is continuously increasing import duties, which is also contributing to the higher prices of mushrooms.
Mushrooms are one of the protein-rich vegan sources as the offer nearly 3.3 g of protein per 100 g of serving. Meat has been a key source of protein in the western diet; thus, the population adopting a vegan diet is anticipated to prefer protein-rich vegan products to fulfil their daily protein requirements.
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