The global mycelium market was estimated to be at $2.48 billion in 2020, which is expected to grow with a CAGR of 7.7% and reach $3.84 billion by 2026. The growth in the global mycelium market is expected to be driven by increasing demand for sustainable materials and their contribution to the circular economy.
With an increased worldwide focus on achieving net-zero emissions, the shift to eco-friendly, sustainable products brings significant sales and financing opportunities. The shift is more prominent in food and beverages industry in regions such as North America and Europe. The U.S. plant-based meat retail sales grew by 45% to $1.4 billion sales in 2020. This infers that mycelium can be a great alternative to conventional animal-based food products.
Furthermore, mycelium-based packaging has a moderate to high impact on the plastic and styrofoam packaging industry. Companies such as Dell and IKEA have already started using mycelium-based packaging materials for their products. Cosmetic companies are using mycelium-based packaging material due to its strength and leakproof properties. Therefore, the customizable properties of mycelium present it as a go-to option for industries globally.
Europe generated the highest revenue of $1.08 billion in 2020, which is attributed to the R&D advancements and supporting government regulations in the Europe region. Europe is an attractive region for the mycelium market because of the availability of the different market fragments.
The global mycelium market has seen major development by key players operating in the market, such as business expansion, partnership, collaboration, and joint venture. The favored strategy for the companies has been product launches to strengthen their position in the mycelium market. For instance, in January 2022, M&S Food collaborated with Monaghan Group to supply mycelium protein-based vegetable balls and vegetable mince to expand its plant kitchen range.