Dried Mushroom Market Expected to Reach $8.6 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Dried Mushroom Market," The dried mushroom market size was valued at $3.9 billion in 2021, and is estimated to reach $8.6 billion by 2031, growing at a CAGR of 8.6% from 2022 to 2031.

Dried mushrooms are basically dehydrated. The flavor of dried mushrooms becomes concentrated and intense as they dry. They have a meatier feel when rehydrated than that when fresh. Unlike fresh mushrooms, dried mushrooms do not need to be refrigerated They have a longer shelf life and have a stronger flavor, making them an ideal pantry component.

Prolonged shelf life and high nutritional qualities have been driving the growth of the dried mushroom market during the forecast period of 2022-2031. The growing public knowledge of the benefits of mushroom consumption is supporting the dried mushroom industry in increasing its growth rate. Increasing use of dried mushrooms in various end use industries such as food service, food processing, cosmetic & beauty care, and pharmaceutical industry is likely to create more demand for dried mushrooms.

Cosmetics are intended to wash and beautify the skin. Customer demand for cosmetics incorporating natural and/or organic components is increasing nowadays, as is consumer desire for products thought to be healthier, organic, and ecological. Thus, ceramides, lentinan, schizophyllan, omega 3, 6, and 9 fatty acids, carotenoids, resveratrol, and other compounds isolated from macrofungi, particularly mushrooms, are now making their way into cosmetics. Many mushroom components have powerful antioxidant and anti-inflammatory qualities and are commonly used to treat cosmetic issues, including as fine lines, wrinkles, uneven tone, and texture. Dried or powder form of the mushroom is majorly used in cosmetic and personal care industries, thus increasing use of mushroom based cosmetic and personal care products is likely to generate more dried mushroom market demand during the forecast period.

According to the dried mushroom market analysis, the dried mushroom market is segmented into type, application, sales channel, and region. On the basis of type, the market is categorized into button, shiitake, oyster, and other. As per application, it is segregated into food service industry, retail, and industrial. Industrial applications are further segregated into pharmaceutical industry, food processing industry, and others. According to sales channel, it is segmented into business to business and business to consumer. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, France, Spain, Italy, Netherlands, Germany, Turkey, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and Rest of Asia-Pacific), and LAMEA (Brazil, South Africa, United Arab Emirates, and Rest of LAMEA).

On the basis of type, the button segment was valued at $787.9 million in 2021 and is expected to grow at CAGR of 9.0% during the forecast period. Soup powder, pasta salads, snack spices, stuffing, casseroles, meat, and rice recipes all utilize dehydrated or dried mushrooms as an ingredient. Furthermore, most grocery stores in the Western world sell this dried button mushroom in canned and fresh versions. Minerals and vitamins are abundant in dried button mushrooms. Thus, the aforementioned reasons contribute to the expansion of the dried mushroom market size via the button segment over the projection period.       

On the basis of application, the food service industry segment was valued at $1,571.9 million in 2021, and is expected to reach $3,445.1 million by 2031, with a CAGR of 8.4%. As food service industry is growing day by day, there has been changing trends in the market. There was a time when it was not common for people to go outside to eat food. But as era changed, hotels and restaurants have seen a drastic change in consumers’ tastes and preferences. This can be stated as one of the lucrative opportunities for the dried mushroom market growth because of their commercial use. There are some mushroom species that are harvested from the wild for commercial sale. As a result, manufacturers are going to gain more profits by selling wild species of dried mushrooms. Various types of dried mushrooms, including porcini, chanterelle, morels, trumpets, oyster mushrooms, and truffles are used in European cuisine. People grind dried mushroom into a powder to mix into dishes and this is the popular method to use dried mushroom in household and food service industry.

According to the dried mushroom market trends, depending on sales channel, the business to consumer segment was valued at $2,767.1 million in 2021, and is expected to grow at highest CAGR of 9.3%. Growing mushroom acceptance and awareness regarding mushroom benefits over fresh mushrooms are expected to support dried mushroom growth through the business to consumer segment throughout the projected period. Dried mushrooms are more durable and convenient to utilize in the home. Furthermore, the availability of dried mushrooms in a variety of packaging such as glass jars and sealable bags, encourages consumers to purchase dried mushrooms for domestic consumption.

According to the dried mushroom market opporyunuty, region wise, North America garnered a significant dried mushroom market share in 2021, and is expected to maintain its market share throughout the dried mushroom market forecast period. North America has been gaining a sizable share of the global dried mushroom market and is expected to increase its share during the forecast period. The increased demand for natural and organic food, together with an increasing number of health-conscious consumers across the regions, may serve as significant growth drivers for the dried mushroom market. Furthermore, increased demand for dried mushrooms from the food processing and food service sectors is expected to drive demand in the North America region.

The players operating in the dried mushroom industry have adopted product launch and business expansion as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market and gain dried mushroom market opportunities. The key players profiled in this report include Sun Hing Foods, Inc., Merchant Gourmet, Agro Dutch Industries Ltd., Monterey Mushrooms, Inc., California Mushroom Farms Inc., Monaghan Mushrooms, Weikfield Foods Pvt. Ltd., Hughes Mushroom, Drinkwater Mushrooms Ltd., Bonduelle, OKECHAMP S.A., Banken Champignons, The Mushroom Company, White Prince Mushrooms Pty Ltd, and Ann Miller's Specialty Mushrooms Ltd.

Key findings of the study

• The dried mushroom market was valued at $3,857.8 million in 2021, and is estimated to reach $8,626.6 million by 2031, growing at a CAGR of 8.6% during the forecast period. 
• By type, the oyster segment is estimated to witness the fastest growth, registering a CAGR of 9.8% during the forecast period.
• In 2021, depending on application, the retail segment was valued at $771.1 million, accounting for 20.0% of the global dried mushroom market share. 
• In 2021, depending on sales channel, the business to business segment was valued at $2,767.7 million and is expected to grow at a CAGR of 8.3%. 
• In 2021, the Netherlands was the most prominent market in Europe, and is projected to reach $744.9 million by 2031 growing at a CAGR of 6.7% during the forecast period.