The global market for edible mushrooms has seen remarkable growth, with India emerging as a key player in this expanding industry.
By 2024, the market was estimated to be valued at around $67.4 billion, projected to reach $97.1 billion by 2029, with a compound annual growth rate (CAGR) of 7.57 per cent. This rapid increase is a clear reflection of the rising consumer demand for the nutritional and environmental advantages of mushrooms, alongside the growing trend of plant-based diets like vegan.
Market dynamics
In India, the edible mushroom sector experienced imperative growth in 2024, with forecasts suggesting a market value of $34.7 billion by 2025.
This upsurge can be attributed to the increasing popularity of mushrooms as a nutritious and versatile super food option. Varieties such as oyster, shiitake, lion’s mane, and button mushrooms have gained particular favor due to their strong nutritional benefits.
The shift towards vegan and vegetarian diets has also boosted the interest in mushrooms as an essential source of plant-based protein.
Health and environmental benefits
Mushroom cultivation offers several health benefits and is aligned with sustainable practices. They are rich in vital nutrients, such as vitamins, minerals, and antioxidants, making them an excellent addition to a balanced diet.
With low calories and fat content, mushrooms are also beneficial for those managing their weight. Furthermore, researches indicates that mushrooms can enhance immune function and lower the likelihood of chronic illnesses and so much more.
From an environmental perspective, mushroom farming is a sustainable agricultural practice. It requires significantly less land and water than traditional farming, and it can effectively utilize agricultural waste as a growth substrate, thereby reducing waste while promoting ecological sustainability.
Additionally, the process generates fewer greenhouse gases than livestock farming, supporting global initiatives aimed at combating climate change.
Impact of policy
Recognising the potential of the mushroom cultivation sector, the Indian government has enacted several supportive policies.
In 2025, a subsidy initiative was launched, providing up to 50 per cent financial assistance to mushroom farmers. This programme aims at facilitating the adoption of mushroom farming by offering essential resources. Furthermore, the government has introduced training sessions to educate farmers about sustainable farming techniques and spawn production.
These policy initiatives have positively influenced the industry, resulting in greater production levels and enhanced mushroom quality. Government support has also generated employment opportunities, especially in rural regions, thereby contributing to economic growth.
Innovations in the Industry
Technological advancements play a vital role in transforming mushroom farming. Innovations like automated cultivation systems, refined spawn production methods, and precision farming are revolutionizing the sector. These advancements help farmers streamline production processes, minimize labor costs, and improve mushroom quality.
For example, germination chambers and autoclaves are employed to create sterile environments that prevent disease in crops.
The development of high-quality tissue cultures and mother spawns has led to healthier and more abundant mushroom yields. As these technologies continue to evolve, they are anticipated to drive significant growth in the edible mushroom market, making it an appealing opportunity for farmers and consumers alike.
Economic and ecological importance
Mushrooms are crucial in promoting sustainable agricultural practices and influence commodity markets in India. The rapid expansion of the edible mushroom sector, along with the health and environmental benefits associated with mushroom farming, highlights the economic and ecological significance of this industry. With ongoing government support and continuous technological advancements, the future of mushroom farming seems bright, providing valuable insights into sustainable agriculture’s potential.
In summary, mushrooms are leading a transformative movement in agriculture, yielding both economic opportunities and environmental benefits. As we look to the future, the growth trajectory of the edible mushroom market is set to deliver substantial advantages to India’s agricultural sector and beyond.
The author is CEO & Founder, And Fungi
