Fungi-Based Food System can tame rising food insecurity due to population rise and climate change. However, the association of fungi in the food production process is not new. It influences the food system from cultivation to consumption. The recent developments in food processing have led to nascent food types such as ‘Fungi-based Meat’ and fungi-based enzymes and bioactive compounds to increase the shelf life of food products. The fungi-based food market has grown significantly in the last few years with the potential for its growth.
Fungi-Based Food System: New Developments, Innovations and Trends
Fungi are not new in the food system. They aid food cultivation by breaking down organic matter recycling nutrients, and promoting plant growth through symbiotic relationships. Traditionally, during processing, they help in the production of a wide variety of fermented foods and beverages with unique flavors and textures. However, the newer innovations in Synthetic biology and other biotechnology domains have helped fungi to expand their domain.
Fungi-Based Meat
Fungi are being used as an alternative to meat products. Various companies are involved in making a variety of dishes using fungi.
MeatiIt is a startup that makes a wide variety of fungi-based products such as Meati Classic Cutlet, Meati Crispy Cutlet, and Meati Steak Filet. Prime RootsIt is a California-based company that uses Koji, a Japanese fungus to make salmon burgers, shrimp, lobster, tuna, chicken, sausage, and beef. |
Innovative Enzymes and Bioactive Compounds
Fungi have various value-added applications and can be used to enhance the nutritional value of food products. They may constitute a source of biomass and secondary metabolites and can be genetically manipulated to create products with specific properties. Fungi release valuable enzymes during their metabolic activities and serve numerous functions in food production. Fungal lipases help to improve the taste of dairy products such as cheese and butter. They can eliminate fat found in fish and meat. Similarly, food processor uses pectinase derived from the fungi Aspergillus niger in the extraction of fruit juices from the fruit pulp and their clarification process.
Packaging Material
Mycelium has emerged as a sustainable packaging solution. The root network of a fungus is the main source of Mycelium. It is the part of the mushroom that is typically underground. This natural composite material has properties similar to synthetic foam plastics such as Styrofoam and thus has multiple utilities. The foam is also breathable, resilient, insulating, hydrophobic, and flame-resistant in nature.
Mushroom Based Food Processing
Mushrooms have also emerged as a source of raw material for various types of food processing industries. The food processing industries manufacture varieties of mushroom-based products from canned mushrooms to frozen mushrooms. Further, mushrooms also find applications in other snacks and food items.
Market Analysis: Fungi-Based Food Processing Industry
According to ‘ The Business Research Company’, the fungal protein market grew from $4.06 billion in 2024 to $4.34 billion in 2025 at a compound annual growth rate (CAGR) of 6.9%. The growth is due to increasing demand for plant-based proteins, rising interest in alternative protein sources, rising allergies to animal proteins, expansion of the food and beverage industry, environmental sustainability concerns, government initiatives, and regulations.
Market Forecast
The fungal protein market size is expected to see strong growth. It can grow to $5.71 billion in 2029 at a compound annual growth rate (CAGR) of 7.1%. The main drivers of this growth is increasing consumer awareness, expanding vegan, expanding applications in various industries, global population growth, investments in alternative proteins.
Market Drivers of Fungal Protein
Vegan and vegetarian lifestyles are the main drivers of the growth of the fungal protein market. The use of fungal protein provides a sustainable, nutritional, and adaptable alternative to traditional animal-derived proteins.
Market Major Players
Cayman Chemical Company, Chiron Biotechnology Co. Ltd., Duke Thomson’s India Pvt. Ltd., DuPont de Nemours Inc., Merck Group, Royal DSM, Santa Cruz Biotechnology Inc., MycoTechnology Inc., Meati Food, and Quorn Foods are major market players in this segment.
Policy Analysis: National and International Regulations in the Fungal Food Market
Amid the rapid growth of the Fungi-Based Food Processing Market, there are various national and international policies have come up. These policies aim to aid the development of the food processing industry.
National Regulation in India
The fungi-based food products are regulated by the Food Safety and Standards Authority of India (FSSAI).
Definition of Edible Fungus Products
It defines edible fungus products as products prepared from fresh edible fungi. The products may be dried edible fungi (including freeze-dried fungi, fungus grits, fungus powder), pickled fungi, salted fungi, fermented fungi, fungi in vegetable oils, quick frozen fungi, sterilized fungi, fungus extract, fungus concentrate and dried fungus concentrate. It has also defined edible truffle as the fruiting body of a subterranean ascomycete fungus which is one of the species of the genus Tuber.
Regulation
FSSAI has framed standards of ‘Edible Fungi Products’ under sub-regulation 2.3.62 of the Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011.
Science-Based Standards
The regulating body has provided science-based standards for articles of food and regulates their manufacture, storage, distribution, sale, and import to ensure the availability of safe and wholesome food.
Import List
FSSAI has also maintained a list of edible truffles and included 11 edible fungal species in it. These are Tuber melanosporum Vittadini, Tuber aestivum Chatin, Tuber uncinstum Chatin, Tuber mezsentericum Vittadani, Tuber magnatum Pico and Tuber macrosporum Vittadani.
International Standards
Food and Drug Administration Regulations
US-FDA regulates the ‘Fungi Based Food Products with mandatory labeling, safety regulations, and publishing a list of harmful fungal products.
Labeling Requirements
The food processors must label the food products which contain fungal substrates used in the food products. The label must provide information of fungal ingredients and identify the fungal part and growth stage.
Safety Regulations
FDA releases a list of fungus products or species that it deems to be unfit for human consumption based on scientific study and research. Recently, it expressed concerns about Amanita muscaria and its constituents in foods. Similarly, it restricted the use of psychoactive mushrooms in some edibles. FDA also issued an advisory on morel mushrooms after an outbreak of illnesses.
Conclusion
The availability and scope of the fungi-based food processing industry are enormous. It has the potential to combat food insecurity and enhance food standards such as taste, color, and shelf-life. Amid the ‘Vegan Movement’, fungi-based food has emerged as a source of vegan protein. These multi-faceted advantages have prompted the growth of the market share of fungi-based food systems.