India Mushroom Market- Trend Analysis & Forecast to 2030

India mushroom market valued at USD ** million and production reached xx thousand tonnes in 2022. The rise in urbanization, changes in dietary habits, and a growing preference for plant-based proteins are fueling demand in both rural and urban areas. Government initiatives to promote edible mushroom farming as a sustainable agricultural practice, along with training programs to equip farmers with modern cultivation techniques, are also contributing to market growth.

Market/ Product Overview

India's mushroom market is emerging as a dynamic segment within the country's agricultural industry, driven by increasing domestic consumption and export potential. Mushrooms, particularly Button, Oyster, and Shiitake, are gaining popularity due to their nutritional benefits, versatility in culinary applications, and growing awareness of their health benefits. The Indian edible mushroom market is characterized by a mix of small-scale producers and larger commercial operations, with production spread across various states including Bihar, Punjab, Haryana, Maharashtra, Himachal Pradesh, and Uttar Pradesh. The rise in urbanization, changes in dietary habits, and a growing preference for plant-based proteins are fueling demand in both rural and urban areas. Government initiatives to promote edible mushroom farming as a sustainable agricultural practice, along with training programs to equip farmers with modern cultivation techniques, are also contributing to market growth. As India positions itself as a significant player in the global mushroom trade, the market is expected to witness robust growth through 2030.

India’s Significance in the Global Mushroom Supply

India is gaining importance in the global mushroom supply chain due to its increasing production capacity and export potential. The country is becoming a key supplier of various mushroom varieties to international markets, leveraging its diverse climate, which supports year-round cultivation. India's growing role is also supported by competitive pricing and a focus on organic and sustainable farming practices.

India Mushroom Production & Demand Trend

India is 4th largest producer of mushroom, accounted for 0.58% share globally. China is world largest producer of mushroom with 93% share followed by Japan and USA. Mushroom production in India has been steadily increasing, driven by the expansion of commercial cultivation and the adoption of modern farming techniques. Demand for mushrooms is also on the rise, fueled by increasing consumer awareness of their health benefits and a shift towards healthier eating habits. This trend is particularly strong in urban areas, where mushrooms are increasingly being incorporated into vegetarian and non-vegetarian dishes alike.

Bihar is the largest producer of mushroom in India accounts for nearly 10-12% share in country total production. Other major states producing mushroom include Odisha, Haryana, Maharashtra, and Punjab. Types of mushroom produced in India include Shiitake, Oyster, Button, Enoki, Morel, Reishi, and Others.

India Mushroom Market Growth Factors

The growth of the mushroom market in India can be attributed to several key factors. The increasing health consciousness among Indian consumers is leading to a higher demand for nutritious and low-calorie food options, with mushrooms fitting well into this trend. The government's support for agricultural diversification and promotion of mushroom farming as a high-income-generating activity is also a significant growth driver. Technological advancements in mushroom cultivation, such as the use of high-quality spawn and improved substrate management, are enhancing yield and quality. Additionally, the rise of the organized retail sector, along with the expansion of e-commerce, is making mushrooms more accessible to consumers across the country. The growing interest in organic and sustainably farmed produce is further boosting the demand for mushrooms. Export opportunities, particularly to neighboring countries and the Middle East, are providing an additional impetus to the market's expansion.

In India, the Directorate of Mushroom Research, located in Solan, Himachal Pradesh, is actively involved in mushroom research and development to promote economic growth, ecological sustainability, and nutritional security across the country. During the year, the research center generated revenue of INR 104.41 lakhs through the sale of literature, mushroom cultures, spawn, fresh mushrooms, value-added products, consultancy, training, and other services.

India Mushroom Market Restraints & Challenges

Despite the promising growth, the Indian mushroom market faces several challenges. One of the primary restraints is the limited availability of quality spawn, which affects the yield and consistency of production. Additionally, mushroom farming in India is still largely fragmented, with a significant portion of production being carried out by small-scale farmers who may lack access to advanced cultivation techniques and resources. The perishability of mushrooms poses a significant challenge, as inadequate cold storage and transportation infrastructure can lead to post-harvest losses. Furthermore, fluctuating climatic conditions can impact production volumes, leading to supply-demand mismatches.

India Mushroom Supply/ Value Chain Bottlenecks/ Challenges

The supply chain for mushrooms in India is fraught with several bottlenecks that hinder market efficiency. The lack of cold storage facilities is a critical issue, as mushrooms are highly perishable and require precise temperature control to maintain their freshness during distribution. Transportation infrastructure is also a challenge, particularly in rural areas where many mushroom farms are located, leading to delays and increased costs in getting products to market. Additionally, there is a need for better coordination between producers, suppliers, and retailers to ensure a smooth flow of products through the value chain. The fragmentation of the market, with numerous small-scale producers operating independently, further complicates supply chain management. The limited access to credit and financing options for small farmers restricts their ability to invest in necessary infrastructure and technology, further exacerbating supply chain inefficiencies.

Price Setting Power of India in Global Mushroom Value Chain

India’s price-setting power in the global mushroom market is gradually increasing, particularly in the export sector. As the country enhances its production capacity and establishes a stronger presence in international markets, it is gaining influence over pricing, especially for organic and specialty mushroom varieties. However, this power is still limited compared to major producers like China.

The primary end-use industries for mushrooms in India include the food and beverage sector, where mushrooms are used extensively in culinary applications, particularly in vegetarian and fusion cuisines. The pharmaceutical industry also utilizes mushrooms for their medicinal properties, while the cosmetic industry is exploring mushrooms for their potential skincare benefits.

India Mushroom Trade (Export & Import) Trend

India's mushroom trade is characterized by growing export activities, particularly to markets in the Middle East, Southeast Asia, and Europe. India exported USD 260 thousand valued mushroom in 2022-23. Indian mushrooms, especially organic and specialty varieties, are gaining popularity in international markets due to their quality and competitive pricing. The country primarily exports fresh, dried, and canned mushrooms. On the import side, India occasionally brings in exotic mushroom varieties not widely cultivated domestically to cater to niche markets within the country. The trade balance is increasingly in favor of exports, contributing positively to the agricultural sector's overall economic performance.

India Mushroom Market Competitive Analysis

The Indian mushroom market is competitive, with numerous players ranging from small-scale farmers to large commercial enterprises. The market is characterized by regional competition, particularly in areas with high mushroom production like Punjab and Himachal Pradesh. Companies are increasingly focusing on product quality, organic certification, and efficient supply chain management to gain a competitive edge, both domestically and in export markets.

■ Himalaya International Ltd.
■ Flex Foods Ltd.
■ Weikfield Foods Pvt. Ltd.
■ Tirupati Balaji Agro Products Pvt. Ltd.
■ Madd Foods
■ Manegrow Agro Products Pvt Ltd.
■ Kwality Foods
■ DK Mushrooms
■ Enviro Mushroom Farms
■ Dr.Mushroom Agro Tech Private Limited
■ Champion Agro Fresh Pvt. Ltd.

Future Outlook

The future of the mushroom market in India looks promising, with steady growth expected through 2030. The market will benefit from ongoing government support for agricultural diversification and the promotion of high-value crops. Increasing consumer demand for healthy, organic, and plant-based foods will continue to drive domestic consumption. Moreover, advancements in cultivation technology and supply chain improvements will enhance production efficiency and reduce post-harvest losses. As India expands its presence in international markets, the export of mushrooms is likely to see significant growth, further strengthening the country’s position in the global mushroom supply chain.