North America Edible Mushroom Market Outlook to 2030

North America Edible Mushroom Market Overview

• The North America edible mushroom market is valued at USD 12.7 billion, driven by increasing consumer awareness of the health benefits associated with mushrooms and the growing demand for plant-based, organic food options. The rise in veganism, health-conscious eating habits, and the incorporation of mushrooms in various functional food products have contributed to this growth. Moreover, the foodservice sector's increasing use of mushrooms, particularly in meat substitutes and gourmet cuisine, has further boosted market demand.
• In North America, the United States dominates the edible mushroom market due to its advanced farming infrastructure, significant investments in organic farming, and strong consumer demand for healthy, plant-based foods. Canada also plays a prominent role due to the increasing popularity of mushrooms as a dietary staple, driven by the health-conscious population and the rising number of restaurants offering gourmet and exotic mushroom-based dishes. These countries have developed sophisticated supply chains, ensuring product availability and quality, further consolidating their market positions.
• The USDA Organic Standards regulate organic mushroom farming in North America, ensuring that only mushrooms grown without synthetic pesticides or fertilizers can be labeled as organic. In 2023, over 1,500 mushroom farms in the U.S. were certified organic under these standards, according to the USDA. The certification process is rigorous, requiring farms to adhere to specific guidelines for soil management, water usage, and pest control. Organic certification remains a key factor in the growth of the mushroom market, as consumers increasingly demand organic food products.

North America Edible Mushroom Market Segmentation

• By Type: The North America edible mushroom market is segmented by type into button mushrooms, shiitake mushrooms, oyster mushrooms, and exotic mushrooms (such as reishi, lions mane, and cordyceps). Button mushrooms dominate this segment, as they are the most commonly consumed variety in North America, widely used in everyday cooking and restaurant dishes. Their affordability and availability throughout the year have made them a popular choice among consumers and foodservice providers alike. Additionally, button mushrooms are easy to cultivate and have a versatile flavor, making them a staple in the market.

• By Application: The market is segmented by application into food industry, pharmaceuticals and nutraceuticals, cosmetics and personal care, and functional foods and dietary supplements. The food industry holds the dominant market share, driven by the widespread use of mushrooms as ingredients in a variety of dishes. Their rich flavor profile, combined with the rising popularity of plant-based diets, has spurred growth in this application. Moreover, mushrooms' nutritional benefits, such as being a rich source of vitamins and antioxidants, further fuel their demand in the food industry.

North America Edible Mushroom Market Competitive Landscape

The North America edible mushroom market is dominated by a few key players that lead in production, innovation, and distribution. Companies like Monterey Mushrooms and South Mill Champs have solidified their presence with advanced farming technologies and sustainable practices, while new entrants are making strides by offering exotic and organic varieties. This competitive landscape is marked by the consolidation of companies through mergers and acquisitions, further increasing their market power.

North America Edible Mushroom Market Analysis

North America Edible Mushroom Market Growth Drivers

• Increasing Demand for Organic and Plant-Based Food: The demand for organic and plant-based food is on the rise in North America, driven by increasing health consciousness among consumers. As of 2023, the global shift toward plant-based diets has led to a substantial rise in the consumption of edible mushrooms, particularly in the U.S. and Canada, where they are used as meat substitutes and ingredients in vegan dishes. According to USDA data, over 29 million tons of plant-based food were consumed across North America in 2022. This increase in demand has further bolstered the mushroom market due to its versatility as a plant-based protein source.
• Health and Wellness Trends: Mushrooms, rich in antioxidants, fiber, and vitamins like D and B12, have gained popularity for their health benefits. By 2023, health-conscious consumers in North America have increasingly incorporated mushrooms into their diets. According to the Centers for Disease Control and Prevention (CDC), around 64% of North American adults prioritize immune-boosting foods, and mushrooms are viewed as an ideal addition due to their unique nutritional profile. The rise in chronic illnesses like obesity and cardiovascular diseases has also spurred interest in mushrooms, further increasing their consumption.
• Sustainable Farming Practices: Mushrooms are grown using minimal water and energy, making them one of the most sustainable crops in North America. According to the Food and Agriculture Organization (FAO), mushrooms require only 1.8 gallons of water to produce 1 pound, compared to 15,000 gallons required for beef production. This eco-friendly aspect of mushrooms has been a significant driver of their growth in the region, with many farms transitioning to mushroom cultivation. The National Sustainable Agriculture Coalition highlighted that in 2023, 32% of North American farms adopted sustainable mushroom farming practices to lower their carbon footprints.

North America Edible Mushroom Market Challenges

• Supply Chain Disruptions: The edible mushroom market in North America faced significant supply chain disruptions in 2022 due to labour shortages and transportation delays. According to the U.S. Department of Transportation, 25% of food supply chains experienced delays in 2023, affecting the timely delivery of fresh mushrooms. This led to fluctuations in availability, particularly in urban areas. Additionally, border restrictions and fuel price increases impacted the transportation of mushrooms from farms to retail and foodservice sectors, contributing to price volatility.
• High Costs of Cultivation and Processing: Organic mushroom farming, while environmentally sustainable, comes with high cultivation costs due to the need for specialized composting, labour, and certification. In 2023, the cost of organic certification in the U.S. ranged from $750 to $3,500 annually, according to USDA Organic Program data. Organic farmers also face higher labour costs for manual composting and monitoring, which is estimated to increase production costs by 10% to 15%. This makes it challenging for smaller farms to compete in the market, limiting the supply of organic mushrooms despite rising consumer demand.

North America Edible Mushroom Market Future Outlook

Over the next five years, the North America edible mushroom market is expected to experience significant growth, driven by increasing consumer interest in organic and plant-based diets, advancements in mushroom farming technology, and the growing popularity of functional foods. The expansion of gourmet restaurants and foodservice chains that utilize exotic and medicinal mushrooms is likely to contribute to this trend. Furthermore, the potential use of mushrooms in pharmaceuticals and nutraceuticals, due to their unique medicinal properties, offers promising growth opportunities.

North America Edible Mushroom Market Opportunities

• Technological Innovations in Farming: Technological advancements such as vertical farming and automation present significant opportunities for mushroom cultivation in North America. Vertical farming allows for the production of more mushrooms using less space, which is essential in urban areas where land is scarce. In 2023, 20% of mushroom farms in the U.S. adopted automated harvesting systems, which reduced labour costs and increased yield by 15%, according to the U.S. Department of Agriculture (USDA). These innovations are expected to streamline production and make mushrooms more accessible in urban markets.
• Expansion into Non-Traditional Markets: The edible mushroom market in North America has the potential for expansion into non-traditional sectors like functional foods and cosmetics. In 2023, the U.S. functional food market was valued at $275 billion, with mushrooms being increasingly used in supplements and health products due to their anti-inflammatory and immune-boosting properties. Additionally, the global cosmetics industry has begun incorporating mushroom extracts in skincare products. For instance, Reishi and Chaga mushrooms are used for their anti-aging benefits, presenting a lucrative opportunity for the mushroom market.