Fungal Protein Market Size

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.

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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.