The Fungal Protein Market is anticipated to reach $397.5 million by 2029, growing at a compound annual growth rate (CAGR) of 7.6% during the forecast period from 2023 to 2029. In terms of volume, the market is expected to reach 23,185 tons by 2029, with a CAGR of 6.2% over the same period. This market growth is driven by increasing demand for allergen-free foods, rising consumption of processed foods, and growing interest in meat-substitute products. Additionally, the expanding use of yeast extract in the processed food industry presents significant growth opportunities for market participants. However, undefined regulatory guidelines may pose a challenge to market growth.
The fungal protein market includes ingredients such as fusarium venenatum extract, mushrooms, and yeast extract. Fusarium venenatum is a filamentous fungus used to produce mycoprotein on a commercial scale. Mycoprotein is a viable solution for meeting the growing global demand for protein in an environmentally and economically sustainable manner. Its manufacturing process is both efficient and environmentally friendly, making it a more sustainable protein source compared to more resource-intensive and environmentally damaging alternatives.