China Mushroom Market- Trend Analysis & Forecast to 2030

China mushroom production reached 45.44 million tonnes in 2022 and is projected to grow at a CAGR of xx% from 2020 to 2030. The mushroom market in China is a vital component of the global agriculture industry, driven by the country's extensive production capacity, rich biodiversity, and growing domestic demand. China per capita consumption of mushroom is more than 20 kg per person per year. According to FAO, China is the world’s largest producer, accounted for more than 94% of global production in 2022.

Market/ Product Overview

The mushroom market in China is a vital component of the global agriculture industry, driven by the country's extensive production capacity, rich biodiversity, and growing domestic demand. China is the world’s largest producer and consumer of mushrooms, accounting for more than 70% of global production. The market is characterized by a wide variety of mushroom species, including Shiitake, Oyster, and Button mushrooms, with extensive applications across food, pharmaceuticals, and cosmetics industries. Rapid urbanization, rising health consciousness, and increasing disposable income among Chinese consumers are fueling the market's expansion. Moreover, the Chinese government's support for agricultural innovation and sustainable practices is further propelling the growth of the mushroom industry, positioning China as a global leader in mushroom production and trade. The market is expected to witness steady growth through 2030, driven by advancements in cultivation techniques, expanding export markets, and a robust domestic consumption base.

China’s Significance in the Global Mushroom Supply

The global mushroom production market has been growing steadily, driven by rising demand for edible and medicinal mushrooms. Leading producers include countries such as China, Japan, the United States, India, and Poland. China dominates the global market, accounting for over 75% of total production, followed by Europe and North America.

China plays a pivotal role in the global mushroom supply chain due to its dominant production capacity and diverse mushroom varieties. Its vast network of suppliers and exporters ensures a steady global supply, making China the cornerstone of the international mushroom market. The country's ability to produce high volumes at competitive prices strengthens its influence on global pricing and availability.

China Mushroom Production & Demand Trend

China's mushroom production has seen consistent growth over the past decade, supported by advances in agricultural technology and the expansion of cultivation areas. The demand for mushrooms within China is also rising, driven by the increasing popularity of mushrooms as a healthy, versatile food ingredient. The domestic market's growth is further supported by consumer awareness of the nutritional and medicinal benefits of mushrooms, leading to higher consumption across various demographics.

Shiitake mushrooms, also known as tasty mushrooms, are the most commonly consumed variety in China, followed by various types of oyster mushrooms. Some of the mushroom types produced in China include Shiitake, Oyster, Button, Tremella, King trumpet mushroom, Bamboo Fungus, Reishi and Others.

China Mushroom Market Growth Factors

Several factors contribute to the growth of the mushroom market in China. Firstly, the increasing health consciousness among Chinese consumers, coupled with the rising demand for organic and natural food products, is boosting mushroom consumption. Additionally, the Chinese government's initiatives to modernize agriculture and promote sustainable farming practices are facilitating the expansion of mushroom cultivation. Technological advancements in mushroom farming, such as improved substrate management and controlled environment agriculture, are enhancing production efficiency and output. The expansion of e-commerce platforms is also making it easier for consumers to access a wide variety of mushrooms, further driving market growth. Lastly, the growing export opportunities to neighboring countries and other global markets are providing an additional impetus to the market's expansion.

China Mushroom Market Restraints & Challenges

Despite the growth opportunities, the mushroom market in China faces several challenges. One of the primary restraints is the vulnerability of mushroom production to climate conditions, which can lead to fluctuations in yield and quality. Additionally, the market is highly fragmented, with numerous small-scale producers struggling to achieve economies of scale. The lack of standardized quality control across different regions can also hinder the market's growth. Furthermore, the increasing competition from other mushroom-producing countries poses a challenge to China's dominance in the global market. Finally, the rising cost of labor and raw materials, coupled with the need for continuous investment in technology, adds to the operational challenges faced by producers.

China Mushroom Supply/Value Chain Bottlenecks/Challenges

The mushroom industry value chain involves several stages from cultivation to processing and distribution. Mushrooms are widely valued for their nutritional, medicinal, and culinary benefits. The value chain in the mushroom industry ensures that the final product meets quality standards for consumption in both fresh and processed forms.

The mushroom supply chain in China encounters several bottlenecks that could impact market growth. One of the key challenges is the lack of efficient cold storage and transportation infrastructure, which is crucial for maintaining the freshness and quality of mushrooms during distribution. The perishability of mushrooms necessitates quick and reliable logistics, which is often difficult to achieve in rural production areas. Additionally, the supply chain is often hampered by inconsistencies in production volumes, leading to supply-demand mismatches. The fragmented nature of the industry, with numerous small-scale producers operating independently, further complicates the coordination within the supply chain. Moreover, regulatory challenges, including varying standards for food safety and quality, can create hurdles for both domestic distribution and international trade.

Price Setting Power of China in Global Mushroom Value Chain

China holds significant price-setting power in the global mushroom market due to its dominant position as the leading producer and exporter. The country’s ability to produce high volumes at low costs allows it to influence global market prices. However, this power is occasionally challenged by fluctuations in production and competition from emerging mushroom-producing countries.

Mushroom End-use Industries

The primary end-use industries for mushrooms in China include the food and beverage sector, where mushrooms are used as a key ingredient in various dishes, and the pharmaceutical industry, which utilizes mushrooms for their medicinal properties. Additionally, the cosmetics industry is increasingly incorporating mushrooms into skincare products, driven by the growing demand for natural and organic ingredients.

China Mushroom Trade (Export & Import) Trend

China is a major player in the global mushroom trade, with its export market growing steadily over the years. The country exports a wide range of mushroom products, including fresh, dried, and processed mushrooms, to markets in Asia, Europe, and North America. The demand for Chinese mushrooms is driven by their quality, variety, and competitive pricing. While China primarily focuses on exports, it also imports certain mushroom varieties that are not domestically produced in sufficient quantities, catering to the diverse preferences of its domestic consumers. The trade balance remains strongly in favor of exports, contributing positively to the country's economy.

In 2023, China exported mushrooms valued at USD 1.52 billion. Exports of fresh or chilled Agaricus genus mushrooms amounted to around USD 47.02 million, while Shiitake mushroom exports totaled around USD 60.47 million. Hubei is a key hub for China's edible fungi industry, renowned for its robust production of Shiitake mushrooms. The province plays a vital role in the country’s mushroom export market, making significant contributions to the global supply of edible fungi. Major export destinations for Chinese mushrooms include Malaysia, Vietnam, Russia, South Korea, and Japan.

China Mushroom Market Competitive Analysis

The Chinese mushroom market is highly competitive, with numerous players ranging from small-scale farmers to large agricultural enterprises. The market is characterized by intense competition, particularly in the export sector, where companies vie for market share in key global markets. Innovation in cultivation techniques, supply chain management, and product differentiation are critical factors that determine the competitive standing of market participants.

■ Fujian Xueping Mushroom Co., Ltd.
■ Yichang Daziran Biotechnology Co Ltd.
■ Shanghai Finc Bio-Tech Inc.
■ Qingdao Yuguan Food Co., Ltd.
■ Xiamen Gulong Food Co., Ltd.
■ Zhangzhou Greencan Food Co., Ltd.
■ Shandong Zhusheng Food Co., Ltd.
■ Fujian Zishan Group Co., Ltd.
■ Dongguan Guanli Mushroom Co., Ltd.
■ Linyi Double Happiness Food Co., Ltd.
■ Fujian Anxi Shunyi Mushrooms Industry Co., Ltd.
■ Zhongjing Food Co., Ltd.
■ Qihe Biotech
■ Cheng Fa Mushroom Develop Co., Ltd.
■ Zhejiang Forest Food Co., Ltd.
■ Zhejiang Jinhua Jinli Mushroom Co.

Future Outlook

The future of the mushroom market in China looks promising, with steady growth expected through 2030. The market will likely benefit from continued advancements in agricultural technology and the expansion of export opportunities. Rising consumer demand for healthy and organic products will further drive domestic consumption. However, addressing supply chain bottlenecks and maintaining quality standards will be crucial for sustaining growth. The industry is also expected to see increased investment in research and development, focusing on enhancing yield, expanding the variety of mushrooms produced, and exploring new applications in food, pharmaceuticals, and cosmetics.