USA Mushroom Market Outlook to 2030

USA Mushroom Market Overview

• The USA Mushroom Market reached a market size of USD 3 billion in 2023, driven primarily by the increasing consumer demand for organic and fresh produce. The growth trajectory has been bolstered by the rising awareness of the nutritional benefits of mushrooms, including their high vitamin D and antioxidant content.
• The key players in the USA mushroom market include companies like Monterey Mushrooms, Inc., Phillips Mushroom Farms, South Mill Champs, Giorgio Fresh Co., and Ostrom Mushroom Farms. These companies dominate the market due to their extensive distribution networks, innovative farming techniques, and a diverse product range that caters to both the retail and foodservice sectors.
• In 2023, Monterey Mushrooms has launched a new website and innovative packaging aimed at enhancing consumer engagement and sustainability in the U.S. mushroom market. This initiative reflects the growing demand for transparency and sustainability in food products, positioning Monterey Mushrooms to better meet consumer preferences and strengthen its market presence in the competitive mushroom industry.
• Cities like Los Angeles, Chicago, and New York dominate the USA mushroom market due to their large urban populations and high demand for fresh produce. Los Angeles leads with its strong health-conscious consumer base and proximity to significant mushroom farms in California.

USA Mushroom Market Segmentation

By Product Type: The market is segmented by product type into fresh mushrooms, processed mushrooms, and specialty mushrooms. In 2023, fresh mushrooms held a dominant market share under this segmentation, largely due to the growing consumer preference for fresh and minimally processed foods. Fresh mushrooms are widely used in home cooking and restaurants, driven by their versatility in various cuisines.

By Application: The market is also segmented by application into food and beverage, pharmaceuticals, and cosmetics. In 2023, the food and beverage segment emerged as the largest, owing to the extensive use of mushrooms in a variety of culinary dishes. Mushrooms are popular in both home-cooked meals and professional kitchens for their umami flavor and texture, which can mimic meat.

By Region: The market is segmented into the Northeast, Midwest, South, and West. The West region dominated the market share in 2023, attributed to its favorable climate for mushroom cultivation and the presence of major mushroom farms in states like California and Oregon. The West's dominance is also supported by its large urban population centers, such as Los Angeles and San Francisco, which have high demand for fresh, organic, and specialty mushrooms, driven by a health-conscious consumer base.

USA Mushroom Market Competitive Landscape

• Phillips Mushroom Farms: In 2024, Phillips Mushroom Farms is also introducing new products, including a 4-ounce organic white sliced mushroom aimed at reducing waste for smaller households. This aligns with their strategy to meet growing consumer demand for specialty mushrooms, such as lions mane and maitake. Additionally, the company is expanding its production capabilities to include innovative mushroom blends, catering to the increasing interest in plant-based diets and functional foods.
• South Mill Champs: In 2024, South Mill Champs announced the expansion of its distribution network in Florida through the acquisition of Baird Produce, located in the Tampa Wholesale Produce Market. This move is expected to bolster their logistics and distribution capabilities in the region, enhancing service to their customers. Furthermore, South Mill Champs is planning to invest in advanced cold storage facilities to ensure the freshness and quality of their mushrooms during transit, aligning with their commitment to delivering high-quality produce.

USA Mushroom Industry Analysis

Growth Drivers:

• Rising Demand for Organic and Fresh Produce: The USA mushroom market is witnessing significant growth due to the increasing consumer preference for organic and fresh produce. Fresh mushroom retail sales reached $1.53 billion in the first half of 2024, marking a 14.8% increase compared to the previous year. Consumers are becoming more health-conscious, driving demand for organic products, including mushrooms known for their high nutritional value.
• Expansion of Functional Foods Market: The functional foods market, including mushrooms, has been expanding rapidly in the USA. Over 877,500 Americans die annually due to heart disease or stroke, emphasizing the need for functional foods that can help manage these conditions. The mushroom market's growth is fueled by these attributes, with manufacturers increasingly incorporating mushrooms into health supplements and fortified foods.
• Increasing Investments in Mushroom Farming Technologies: Technological advancements in mushroom farming are a significant growth driver in the USA market. Innovations such as the addition of sodium selenite to irrigation water can improve the nutritional profile of mushrooms. Mushrooms treated this way can provide about 100% of the current US RDA for selenium in a single serving, which may enhance consumer demand and open new market niches, aligning with the increasing consumer preference for sustainably produced food.

Challenges:

• Supply Chain Disruptions: The USA mushroom market has faced substantial challenges due to supply chain disruptions. These disruptions have led to delays in deliveries and increased costs for producers and consumers alike. Additionally, logistical issues caused by severe weather events, such as hurricanes and snowstorms, have impacted the timely distribution of mushrooms, further exacerbating supply chain challenges.
• Labor Shortages in Agriculture: Labor shortages remain a critical challenge for the USA mushroom market. The shortage has led to increased labor costs, with wages for farm workers rising. This labor deficit is compounded by restrictive immigration policies, which have historically provided a significant portion of the workforce in the agricultural sector. To mitigate this issue, many mushroom farms are exploring automation and mechanization to reduce dependency on manual labor.

Government Initiatives:

• USDA Organic Transition Initiative: In 2022, the U.S. Department of Agriculture launched the Organic Transition Initiative, allocating USD 300 million to assist farmers in transitioning to organic production. This initiative has directly benefited mushroom farmers by providing financial support and technical assistance to adopt organic farming practices. The program aims to increase the number of certified organic farms in the USA, thereby boosting the supply of organic mushrooms to meet growing consumer demand for organic produce.
• Farm Bill: Mushrooms have been a key focus in the ongoing discussions around the 2023 Farm Bill, particularly in the Senate farm bill hearing on specialty crops. Pennsylvania, which produces about two-thirds of the U.S. mushroom supply, has been advocating for policies that support mushroom farmers. Mushroom growers and other specialty crop producers are advocating for increased research funding, crop insurance access, and other policies to support their industry in the 2023 Farm Bill reauthorization process.

USA Mushroom Future Market Outlook

USA Mushroom Market is projected to continue its exponential growth over the next five years, driven by several key factors. One of the primary drivers is the increasing consumer demand for plant-based and organic foods, which has been steadily rising due to health consciousness and environmental awareness.

Future Trends

• Increased Corporate Adoption of Mushroom: As sustainability becomes a core business objective, more companies will adopt Mushroom in their products and packaging. This trend will be driven by consumer demand for eco-friendly products and regulatory pressures to reduce plastic waste, leading to a steady increase in the use of recycled materials across various industries.
• Development of Uniform National Recycling Standards: In the coming years, there will likely be a push towards the development of uniform national recycling standards in the US. This standardization will simplify compliance for businesses, encourage investment in recycling infrastructure, and create a more cohesive and efficient recycling system, ultimately boosting the Mushroom market.