Mycelium Market to Surpass US$ 7,670 Million, Expanding at 8.1% CAGR by 2035: Fact.MR Analysis

Mycelium Market grows as demand surges for sustainable, biodegradable solutions in food, packaging, textiles, and construction industries.

ROCKVILLE, MD, UNITED STATES, July 9, 2025 /EINPresswire.com/ -- The global mycelium market is projected to grow significantly, reaching USD 7,670 million by 2035 from USD 3,260 million in 2024. This expansion, marked by a CAGR of 8.1% during the 2025–2035 period, is fueled by rising demand for biodegradable and eco-friendly materials. Mycelium’s increasing use in plant-based foods, sustainable packaging, leather alternatives, and other green industrial applications is reinforcing its commercial relevance.

Government incentives, advances in biotechnology, and heightened environmental awareness are further driving adoption. Its economic viability is strengthened by scalable, low-cost production methods—particularly its ability to grow on agricultural waste—making mycelium a preferred solution for industries seeking sustainable innovation.

For More Insights into the Market, Request a Sample of this Report:
https://www.factmr.com/connectus/sample?flag=S&rep_id=3678

Market Overview

Mycelium grows by binding fungal filaments around low-value substrates—often agricultural waste—creating solid, moldable materials. Production techniques include pulping, extrusion, and compression molding, offering sustainable, scalable solutions across industries.

Key product forms include:

Powder: for supplements and functional foods
Pre-formed solids: used in packaging, insulation, and leather substitutes
Capsules: for nutraceuticals

Industry segmentation covers organic vs. conventional, food vs. industrial uses, and regional markets.

Drivers of Growth

1. Biodegradability & Environmental Pressure: With rising plastic bans, mycelium offers compostable substitutes—a compelling feature for packaging, construction, and textiles.
2. Shift Toward Plant-Based & Vegan Products: As an alternative meat, leather, and dairy component, mycelium supports clean-label initiatives and rising consumer demand for ethical products.
3. Government & Investment Support: Funding for circular bioeconomies, especially in North America and the EU, accelerates R&D and commercialization.
4. Low-Input, Scalable Cultivation: Mycelium thrives on agro-waste, making it economically and environmentally efficient.

Regional Trends in the Mycelium Market

North America dominates the mycelium market, led by the U.S., where startups are rapidly adopting it for meat alternatives, packaging, and leather. Supportive policies, biotech funding, and climate awareness are accelerating growth across sectors.

In Europe, the market is driven by the EU Green Deal and demand for sustainable materials. Countries like the Netherlands, Germany, and the U.K. are using mycelium in eco-architecture, fashion, and bioplastics, supported by strict regulations and ethically driven consumer demand.

Challenges and Restraining Factors in the Mycelium Market

Despite its promising potential, the mycelium market faces several key challenges that hinder its widespread adoption. One of the primary barriers is the limited availability of large-scale manufacturing infrastructure. Producing mycelium requires carefully controlled environmental conditions and longer cultivation periods, which can restrict scalability and lead to inconsistencies in product quality—especially for applications in packaging, construction, and textiles where uniformity is critical.

Additionally, consumer awareness remains relatively low beyond environmentally conscious or vegan-focused communities. Many consumers are still unfamiliar with the benefits and applications of mycelium-based products, limiting mainstream acceptance. This lack of awareness slows demand growth and, in turn, discourages broader retail adoption. Without stronger market visibility and educational outreach, mycelium products may struggle to gain traction in conventional food, fashion, and materials sectors. Overcoming these challenges will require investment in production technology, public education, and clear regulatory frameworks to support broader commercialization.

Competitive Landscape

The mycelium market is becoming increasingly competitive, driven by demand for sustainable solutions in food, packaging, textiles, and construction. Startups and mid-sized players are innovating around bio-fabrication techniques, focusing on cost-effective, eco-friendly production by upcycling agricultural waste.

Companies are carving out niches with products like mycelium-based meat alternatives, biodegradable leather, and insulation materials. While lab-level barriers are low, scaling up requires proprietary cultivation systems and reactor technologies. Strategic partnerships with consumer brands and material innovators are helping companies accelerate market entry.

Key players include Ecovative, MyForest Foods, MycoWorks, Mogu S.r.l., Mycelia BVBA, Nature’s Fynd, and KingHerbs Limited.

Recent Developments:

March 2025: MyForest Foods expanded its New York facility to produce 20,000 lbs of mycelium weekly for its MyBacon product, supported by grants and loans. A pulled pork alternative is also in development.
September 2024: Beyond Meat unveiled a mycelium-based whole-muscle steak filet, aimed at replicating beef texture while offering a low-fat, nutritious plant-based option.

Get Customization on this Report for Specific Research Solutions:
https://www.factmr.com/connectus/sample?flag=S&rep_id=3678

Segmentation of Mycelium Market

By Nature :
Organic
Conventional

By Form :
Powder
Pre-formed
Capsules

By Application :
Animal feed Industry
Food and Beverage industry
Others

By Region :
North America
Latin America
Western Europe
Eastern Europe
East Asia
South Asia & Pacific
Middle East & Africa

Check out More Related Studies Published by Fact.MR:

The global outdoor warning sirens market is set to grow from USD 169.7 million in 2024 to USD 280.2 million by 2035, registering a CAGR of 4.8% during the forecast period.

The U.S. vacuum pumps market is projected to grow from USD 2,036 million in 2024 to USD 4,139 million by 2035, expanding at a CAGR of 6.7% between 2025 and 2035.

About Us:

Fact.MR is a distinguished market research company renowned for its comprehensive market reports and invaluable business insights. As a prominent player in business intelligence, we deliver deep analysis, uncovering market trends, growth paths, and competitive landscapes. Renowned for its commitment to accuracy and reliability, we empower businesses with crucial data and strategic recommendations, facilitating informed decision-making and enhancing market positioning.

With its unwavering dedication to providing reliable market intelligence, FACT.MR continues to assist companies in navigating dynamic market challenges with confidence and achieving long-term success. With a global presence and a team of experienced analysts, FACT.MR ensures its clients receive actionable insights to capitalize on emerging opportunities and stay competitive.

Contact:
11140 Rockville Pike
Suite 400
Rockville, MD 20852
United States
Tel: +1 (628) 251-1583
Sales Team: sales@factmr.com
Follow Us: LinkedIn | Twitter | Blog

S. N. Jha
Fact.MR
+1 628-251-1583
sales@factmr.com