Fungal Protein Market Poised for Rapid Growth, Forecasted to Reach USD 6.7 Billion by 2034

The global fungal protein market, a key player in the alternative protein sector, is set to experience significant expansion, with a projected valuation of USD 6.7 billion by 2034. A new market outlook report from a leading research firm reveals a robust Compound Annual Growth Rate (CAGR) of 6.1% over the forecast period, driven by escalating global demand for sustainable food sources and shifting consumer preferences.

The market, valued at USD 4.2 billion in 2024, is gaining momentum as a viable and environmentally sound solution to address global food security challenges. With traditional protein sources like meat and dairy becoming increasingly unsustainable due to their high resource requirements, fungal protein offers a compelling alternative. Produced through an efficient fermentation process, it requires significantly less land, water, and energy, while delivering a highly nutritious product rich in amino acids and fiber.

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According to the semi-annual market update, the market's growth trajectory is accelerating. Following a H1 2023 to H2 2023 CAGR of 5.4% and 3.9%, respectively, the current period from 2024 to 2034 is poised for stronger performance. The CAGR for H1 2024 is projected at 4.2%, with a substantial increase to 5.5% in H2 2024, indicating a strong year-end performance and sustained growth moving forward. This contrasts with the historical growth of 3.5% from 2019 to 2023, showcasing a clear market maturation and heightened investment interest.

The surge is fueled by several key industry highlights. Governments and organizations worldwide are actively promoting alternative proteins, recognizing their role in food security amid climate change. This has spurred significant investments in fungal protein production, with industry leaders like Nature's Fynd and MyForest Foods pioneering innovative products. The broadening range of plant-based protein options has also encouraged innovation, pushing manufacturers to use fungal protein to enhance the taste, texture, and nutritional profile of products such as vegan burgers and sausages.

Furthermore, heightened consumer awareness of protein diversification for balanced diets is a major catalyst. Fungal protein, with its rich amino acid profile and low-fat content, is attracting not only vegetarian and vegan populations but also the growing flexitarian consumer base seeking healthier and more sustainable food choices. The market is also seeing a diversification of applications beyond meat alternatives into beverages, supplements, and animal feed.

Market Comparison and Competitive Landscape

The global fungal protein market is characterized by a mix of dominant Tier 1 players, established regional Tier 2 companies, and agile Tier 3 players. Quorn Foods, a pioneer in mycoprotein-based products, and Nature's Fynd, with its innovative Fusarium flavolapis protein, are prime examples of Tier 1 companies leveraging their scale and R&D. Tier 2 companies like MyForest Foods and Prime Roots are carving out niche markets with mycelium-based products tailored to specific consumer segments.

Globally, the market exhibits varying growth rates by country. While the United States leads with a projected CAGR of 6.5% through 2034, driven by consumer awareness and robust venture capital funding, India is set to exhibit an even higher CAGR of 6.2% during the same period. China, with its large population and shifting dietary habits toward food safety and environmental sustainability, is also a key growth region with a projected CAGR of 3.3%.

Among the various applications, the food and beverage industry remains the most significant, holding a value share of 41.6% in 2024. Within the source categories, yeast dominates with a 70.3% value share in 2024, thanks to its efficient, scalable production, strong nutritional profile, and sustainability benefits. Leading brands in this competitive space include DSM N.V., AB Mauri, Lesaffre Group, Kerry Group, and Alltech, among others, who are continually innovating to secure a competitive edge.

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Key Segments of the Report

By Source:

As per product type, the industry has been categorized into Yeast and Fusarium Venenatum. Yeast Segment is further categorized into Baker's Yeast and Brewer's Yeast.

By End Use Application:

By End Use Application, the fungal protein market is segmented into Food and Beverage, Animal Nutrition, Pharmaceutical and Biotechnology. The Food and Beverage segment is further classified into processed food, beverages, bakery, and dairy. The Animal nutrition segment is again segmented into Aquaculture, Pet Food, Ruminant, and Others (Poultry & Swine).

By Region:

Industry analysis has been carried out in key countries of North America, Latin America, Western Europe Eastern Europe, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and Middle East & Africa.

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This release was published on openPR.