Fungal Protein Market Size - By Type, By Application Analysis, Share, Growth Forecast, 2025 - 2034

Fungal Protein Market Size

The global fungal protein market size was valued at USD 69.6 million in 2024 and is estimated to grow at a CAGR of over 5.6% from 2025 to 2034, owing to technological breakthroughs in fungal strain development and production methods, coupled with rising awareness of the nutritional benefits of fungal proteins. These advancements enhance production efficiency and product quality. At the same time, heightened consumer awareness of the health benefits of fungal proteins drives demand across the food, beverage, and pharmaceutical sectors, positioning fungal proteins as a viable and sustainable protein source in the market.
 

The growth of the fungal protein industry is driven by increasing demand for plant-based and sustainable protein sources. Consumers are favoring environmentally friendly alternatives, prompting innovations in fungal protein production. Furthermore, the expanding application scope across the food, beverage, pharmaceutical, and animal feed industries broadens market opportunities. This trend underscores a shift toward sustainable diets and the versatile use of fungal proteins, driving market growth and diversification.
 

For instance, in January 2024, Nature’s Fynd introduced the world’s first fungi-based yogurt, expanding its retail offerings, including dairy-free cream cheese and meatless breakfast patties.
 

The fungal protein market faces challenges due to high production costs and stringent regulatory challenges. However, these challenges offer opportunities for innovation and industry leadership. Investing in advanced production technologies and collaborating closely with regulatory authorities can improve scalability and ensure compliance, promoting sustainable expansion. Such challenges stimulate strategic planning and differentiation, leading to advancements in product quality and market readiness for alternative protein sources.
 

Fungal Protein Market Trends

The fungal protein industry is propelled by rising investment and collaboration, fostering innovation in production methods and product development. This trend encourages partnerships and funding that accelerate research, expand market reach, and enhance product offerings.
 

Additionally, global market expansion plays a pivotal role as companies capitalize on increasing acceptance of fungal proteins worldwide, tapping into diverse consumer preferences for sustainable and plant-based protein sources across various industries. For instance, in February 2024, 70/30 Food Tech plans to establish a mycelium research lab aimed at developing cost-effective proteins for Asia following a successful seed-extension fundraising round in Shanghai.
 

Fungal Protein Market Analysis

The fusarium venenatum segment will capture USD 74.2 million and demonstrate a 5.6% CAGR through 2034. Fusarium venenatum, known for producing mycoprotein, has emerged as a key player in the alternative protein sector. Its application in meat substitutes, such as the popular brand Quorn, is experiencing rapid growth, driven by increasing consumer awareness of plant-based diets and environmental sustainability. This trend reflects a broader shift toward protein alternatives that are both eco-friendly and health-conscious, further boosting the market’s expansion.
 

Baker’s Yeast, Brewer’s Yeast, and Fusarium venenatum have seen significant growth due to the rising demand for sustainable and plant-based protein sources. Baker’s Yeast is widely used in baking and fermentation processes, contributing to a surge in demand for functional foods and nutritional supplements. Meanwhile, Brewer’s Yeast, a by-product of brewing, is gaining popularity in the animal feed industry due to its high protein content and nutritional benefits.
 

The food & beverage segment held a 55.1% of the fungal protein market share in 2024, amounting to USD 38.5 million, and is projected to grow at a 5.4% CAGR from 2025 to 2034. In food and beverage, fungal protein is gaining traction as a sustainable and nutritious alternative to traditional animal-based proteins, increasingly used in plant-based foods, meat substitutes, protein powders, and dairy alternatives, driven by rising consumer demand for health-conscious and environmentally friendly options.
 

In animal nutrition, fungal protein offers a cost-effective and eco-friendly alternative to conventional feed ingredients, particularly in poultry, aquaculture, and livestock. Its growing use in animal feed is driven by the need for sustainable protein sources. In pharmaceuticals, fungal proteins are utilized in the production of enzymes, probiotics, and biologically active compounds, contributing to the development of specialized drugs and health products.
 

The U.S. fungal protein market is anticipated to achieve USD 31.5 million, with a CAGR of 5.3% during 2025 to 2034, driven by increasing consumer demand for sustainable, plant-based protein alternatives. As awareness around environmental sustainability and health-conscious eating rises, fungal protein is gaining popularity in food and beverage products, particularly meat substitutes, protein powders, and dairy alternatives. Innovations in production technologies, such as fermentation processes, are improving the efficiency and scalability of fungal protein, making it more cost-effective and accessible.
 

Additionally, the growing adoption of fungal protein in animal feed is boosting its demand in the U.S. market, as it offers a sustainable alternative to traditional feed ingredients like soy and fishmeal. The pharmaceutical sector is also exploring fungal proteins for applications in enzyme production and biologically active compounds. As regulatory approval progresses and consumer preferences shift toward environmentally friendly solutions, the U.S. fungal protein industry is expected to continue expanding, presenting opportunities for growth across multiple sectors.
 

Fungal Protein Market Share

Companies include, Lesaffre Group, Angel Yeast, DSM, Kerry Group, and Lallemand, Inc. are key players driving innovation and growth in the fungal protein industry. Lesaffre Group, a global leader in yeast-based products, leverages its expertise in fermentation technology to develop high-quality fungal proteins for food, animal feed, and health applications. Angel Yeast, one of the largest yeast producers globally, focuses on producing sustainable fungal proteins for both human consumption and animal nutrition, capitalizing on its advanced fermentation processes.
 

DSM, a global science-based company, is involved in the production of fungal protein through biotechnology and fermentation, particularly for use in animal feed and plant-based food products. Kerry Group, known for its ingredients and flavor solutions, integrates fungal protein into plant-based foods and beverages, meeting the growing demand for sustainable protein sources. Lallemand, Inc. excels in yeast and fermentation solutions, contributing to the development of fungal proteins for functional foods, probiotics, and animal nutrition, supporting the industry's expansion.
 

Fungal Protein Market Companies

Major players operating in the fungal protein industry are:

• AB Mauri
• Angel Yeast
• Biospringer
• DSM
• Halcyon Proteins
• Kerry Group
• Lesaffre Group
• Lallemand, Inc.
• Mycotechnology, Inc.
• Synergy Flavors
   

Fungal Protein Industry News

June 2024: Pureture introduced a groundbreaking yeast protein innovation, marking a significant advancement in sustainable protein alternatives for the market. This advancement will enhance the competitiveness of fungal protein, fostering broader industry growth.
 

October 2023: Angel introduced a range of biotechnological products across the microbiological, animal, and human nutrition sectors.  Highlights included ultrafiltration yeast extract FM888, yeast protein hydrolysate FP108, soy protein hydrolysate FP408, cell wall components, yeast protein, β-glucan, and more. This innovation will drive growth by enhancing the nutritional value and sustainability of fungal protein in both human and animal nutrition.
 

This fungal protein market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Type

• Baker’s yeast
• Brewer’s yeast
• Fusarium venenatum

Market, By Application

• Food & beverages
  • Processed Food
  • Beverages
  • Bakery
  • Dairy
  • Others 
• Animal nutrition
  • Poultry
  • Swine
  • Aquaculture
  • Pet food
  • Equine
• Pharmaceuticals

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• MEA
  • South Africa
  • Saudi Arabia
  • UAE