India Mushroom

Mushrooms are the fruiting bodies of fungi that are grown for food processing or for medicinal reasons. It is packed with important nutrients and are usually used in cooking, food processing, and for making health supplements. Due to the low area needed and resources used, mushrooms are becoming a preferred agricultural product in India.

The India Mushroom market is set to show a growth rate of about 12.50% during the forecast period (2025-2033F). The leading reason for the India mushroom market’s growth is that more people are becoming aware of the health benefits of mushrooms, specifically their rich plant protein. Additionally, shifting to vegetarian and vegan lifestyles, as well as urbanization, causes demand to rise both for fresh and processed mushroom products. Moreover, governments offering horticulture schemes and subsidies motivate farmers and entrepreneur-farmers to take up growing mushrooms for business.

For instance, in January 2025, the Bihar government, under the leadership of Nitish Kumar, promoted mushroom farming as a profitable venture by offering substantial support to cultivators. The government aimed to help farmers minimize potential losses by providing financial assistance and guidance.

The Horticulture Directorate of the Agriculture Department launched a “Mushroom Production in Huts” scheme, which covers 50% of the initial setup costs. The scheme operates on a first-come, first-served basis, with each applicant eligible for support for only one unit.

• Based on the type, the market is segmented into button mushroom, oyster mushroom, shiitake mushroom, milky mushroom, and others. Among these, the button mushroom market held the dominant share of the market in 2024. In India, people mostly buy button mushrooms because it is easy to find, relatively cheap, and fit well into Indian recipes. The fact that button mushrooms are always in demand has made them a favored crop for commercial growers. This high demand allows companies to produce and distribute goods in greater quantities and on a routine basis. As per the Indian Council of Agricultural Research (ICAR), on December 31, 2024, the country primarily focuses on the production of white button mushrooms, which account for over 70% of the total output, followed by oyster and milky mushrooms.

o States like Bihar, Maharashtra, Punjab, Haryana, and Uttar Pradesh are leading producers due to their favourable climatic conditions.

• Based on the form, the market is segmented into fresh mushroom, dried mushroom, canned mushroom, and others. Among these, the fresh mushroom market held the dominant share of the market in 2024. Because of the health benefits and natural processing, fresh mushrooms are more popular among the health-conscious people of India. With more demand for fresh foods, companies are more likely to invest in storing, handling, and transporting them. Therefore, some companies are now offering packaged fresh meals for faster selling and buying in the fresh mushroom market.
• Based on the application, the market is segmented into food, pharmaceuticals, cosmetics, and others. Among these, the pharmaceuticals segment is expected to grow with a significant CAGR during the forecast period (2025-2033). Many pharmaceutical and nutraceutical companies are growing because of the medicinal properties of mushrooms like reishi and cordyceps. As a result, companies that grow and process functional mushrooms are gaining access to different sources of income. The segment’s potential for high margins encourages industry players to come up with new products.
• Based on the distribution channel, the market is segmented into supermarkets/hypermarkets, grocery stores, online stores, and others. Among these, the supermarkets/hypermarkets segment is expected to grow with a significant CAGR during the forecast period (2025-2033). Modern stores help mushroom products become visible, always be on shelves, and gain consumers’ trust, so they are important distribution routes for mushrooms. As supermarkets now have bigger organic and fresh fruit and vegetable sections, which allows them to sell packaged mushrooms. Because of this, mushroom manufacturers see their products being recognized more and sold in higher numbers.
• For a better understanding of the market adoption of the India Mushroom market, it is analyzed based on its state-wise presence in India, such as North India, East India, West India, and South India. North India dominates the market in 2024. The majority of mushroom growth in India comes from North India, with button mushrooms being the highest produced in Punjab, Haryana, Himachal Pradesh, and Uttarakhand. With the existence of commercial farms, cold chain systems, and food-processing units, the region’s output grows, and products can always be available. This strong ecosystem gives companies the ability to grow and reach both local and overseas customers easily. On 8th September 2022, Chief Minister Jai Ram Thakur performed inaugurations and laid foundation stones of 92 developmental projects worth about Rs. 980 crores at Sidhpur and Cholthara in Dharampur assembly constituency of Mandi district. Jai Ram Thakur also inaugurated the INR 6.4 crore Mushroom Development Centre, and performed the foundation stones INR 2.48 crore Mushroom Compost Making Unit, Sidhpur, and HRTC Workshops at Dharampur and Sarkaghat.
• Some major players running in the market include Saptarishi Agro Industries Ltd, Himalaya Food International Ltd., Flex Foods Limited, Nuvedo labs Pvt Ltd, Dr. Kurade’s, GreenTokri, Gourmet Mushroom Company, Planet Mushroom, Manegrow Agro Products, Jsons Mushrooms & Agro.