Mycoprotein and mushroom sector

01Overview and value chain

Markers: [EC: EU Novel Food Regulation (EC 2015/2283) | OECD: Food Systems | Regulator: FDA (USA), EFSA (EU)]

The mycoprotein and mushroom sector spans fungal biomass fermentation for alternative protein (mycoprotein), conventional mushroom cultivation for food, and mycelium-based materials for packaging, textiles and leather alternatives. Global mushroom production exceeds 45 million tonnes annually, led by China at 75% of world output. The mycoprotein segment — fungal biomass grown in liquid fermentation — is the fastest-growing sub-sector, with the alternative-protein market for fungal biomass reaching $4.6 billion in 2026 and a CAGR of 12%. Mycoprotein offers a complete amino-acid profile and fibrous texture that mimics whole-muscle meat without the binding agents required by plant-based alternatives.

Key directions of the mycoprotein and mushroom sector:

1. Mycoprotein via fermentation (Quorn, ENOUGH, Meati): Fusarium venenatum, Neurospora crassa and other filamentous fungi grown in aerobic liquid fermentation to produce high-protein biomass with meat-like texture.
2. Mycelium whole cuts (MyForest Foods, Meati): Whole-muscle cuts of mycelium grown in thin sheets or columns, harvested and seasoned as bacon, steak or chicken alternatives.
3. Mushroom-derived functional ingredients (MycoTechnology): Fermented mushroom mycelium used as a functional protein, flavour modulator and texturiser for plant-based and hybrid foods.
4. Mycelium materials (Ecovative, Bolt Threads): Grown-mycelium packaging, construction panels and leather substitutes (Mylo) that biodegrade after use.

Sectoral value chain

[Substrate / Feedstock] ──> [Solid-state or liquid fermentation] ──> [Harvest / Separation]
                                        │
                                (Biomass processing)
                                        │
                                        ▼
[Consumer food] <── [Food formulation] <── [Mycoprotein powder / whole cuts]
[Packaging / Textiles] <── [Mycelium drying & pressing]

Value chain levels

Cross-cutting technologies of the sector:

• Filamentous fungi submerged fermentation: Optimised bioreactor design for high-biomass-density culture of Fusarium, Neurospora and Aspergillus, achieving up to 30 g/L dry biomass.
• RNA reduction via heat shock: Controlled thermal treatment that reduces nucleic-acid content of mycoprotein to <2% (required for regulatory approval and digestibility).
• Mycelium column & tray cultivation: Vertical farming of mycelium on substrate columns or thin trays for whole-cut meat analogues and material sheets.

02US

The United States is the largest consumer market for mycoprotein and the global leader in mycelium materials innovation, driven by venture-backed startups and regulatory clarity via FDA GRAS.

Meati whole-cut mycoprotein, MyForest whole-cut bacon, Ecovative mycelium materials

• Meati Foods: Produces whole-cut mycelium steaks and cutlets from Neurospora crassa in a 100,000 sq ft facility in Colorado. Raised over $250M and sells through 8,000+ US retail locations including Whole Foods and Sprouts.
• MyForest Foods: Ecovative spinout producing mycelium-based whole-cut bacon (MyBacon) from column-grown mycelium. Uses its parent’s patented AirMycelium technology.
• MycoTechnology: Developer of FermentIQ — a functional protein and flavour ingredient produced by fermenting pea/rice protein with shiitake mycelium. Supplies major CPG brands with clean-label protein.
• Ecovative Design: Pioneer of mycelium-grown materials. Products include Mushroom Packaging (compostable foam replacement), MycoFlex (leather alternative), and AirMycelium (lightweight panels). Licensed technology to 25+ companies globally.
• Bolt Threads: Developer of Mylo — mycelium leather alternative, partnered with Stella McCartney, Hermes and Adidas for prototype and limited-edition products.

03CN

China dominates global mushroom cultivation at 42 million tonnes annually (75% of world output), and is investing in industrial automation, CRISPR strain improvement, and mycelium materials R&D.

Xueyu Biotech industrial scale, Guzhen mushroom capital, Cordyceps cultivation

• Xueyu Biotech (雪榕生物): Publicly listed company producing 300,000 tonnes/year of enoki and eryngii mushrooms across 40 fully automated facilities. Represents the apex of China’s industrial mushroom farming, with robotics for inoculation, harvest and packaging.
• Gutian County, Fujian (古田): The “mushroom capital of the world” producing 1.6 million tonnes/year across 30+ species, exporting $400 million annually to 40 countries. IoT-enabled smart factories are being rolled out across the region.
• Cordyceps militaris cultivation: China produces 10,000 tonnes/year of cultivated cordyceps (down from wild Cordyceps sinensis at $2,500–10,000/gram), using controlled-environment facilities at a fraction of the wild-harvest price.
• National Fungi Germplasm Resource Bank: Holds 6,000+ fungal strains; CRISPR editing applied to medicinal mushrooms (reishi, cordyceps) for enhanced bioactive compound yields.

04EU

Europe is the birthplace of commercial mycoprotein (Quorn, 1985) and leads in circular mushroom cultivation, but faces regulatory friction from EFSA’s Novel Food pathway.

Quorn mycoprotein leader, ENOUGH ABUNDA scale-up, circular mushroom farming

• Quorn Foods (UK): The original mycoprotein company, producing Fusarium venenatum biomass in a 50,000-litre continuous fermentation process at its Stokesley facility. Revenues exceeding $300M, products sold in 20+ countries as chilled and frozen meat alternatives.
• ENOUGH (Netherlands): Developer of ABUNDA mycoprotein from Fusarium, produced in a 22,000-litre demonstration fermenter. Targeting 60,000 tonnes/year capacity with a €50M factory in Sas van Gent. Received Novel Food approval in the EU in 2024.
• Circular mushroom cultivation: The Netherlands and Poland lead EU production, with spent mushroom substrate (SMS) recycled as organic fertiliser. Spanish institute CTICH in La Rioja replaces peat cover with wine and olive waste — a zero-waste model.
• Helmholtz Fungal Biotechnology (Germany): Scaling deep-submerged mycelium cultivation for pure mycoprotein without fruiting-body formation, radically reducing water consumption and cycle time.

05Leading companies and research institutes

06Tech stack and innovations

The mycoprotein and mushroom technology stack comprises four integrated domains: submerged fungal fermentation, solid-state mycelium cultivation, post-harvest processing and mycelium material finishing.

1. Submerged fermentation of filamentous fungi:

   • Continuous and fed-batch bioreactor designs optimised for high-density fungal biomass. Quorn’s proprietary continuous air-lift fermenter holds 50,000 L and runs for months without shutdown, achieving steady-state mycoprotein production at >10 g/L/h.
   • Meati uses static vertical fermentation: Neurospora mycelium grows as a contiguous mat harvested in whole sheets, providing whole-cut texture without extrusion.

2. RNA reduction technology:

   • Mycoprotein from fast-growing fungi has naturally high RNA content (up to 10% dry weight). A controlled heat-shock step (64 °C for 10 minutes) activates endogenous ribonucleases that reduce RNA to <2%, meeting FAO/WHO purine limits. This step is integrated into Quorn’s continuous process.

3. Solid-state column cultivation for whole cuts:

   • MyForest Foods and Meati grow mycelium on vertical substrate columns or thin trays. The mycelium forms a cohesive mat (5–15 mm thick) that is harvested, seasoned and cooked as a whole-cut analogue. Cycle time: 7–14 days from inoculation to harvest.

4. Mycelium material finishing:

   • For packaging: wet mycelium-substrate composite is pressed into moulds and dried at 150 °C, forming a rigid, lightweight block that replaces expanded polystyrene.
   • For leather (Mylo, MycoFlex): the mycelium mat is tanned with natural binders (no chromium), dyed and finished to mimic bovine leather grain. Tensile strength reaches 15–25 MPa, comparable to conventional leather.

07Value chains and production pipelines

Industrial production pipeline of continuous mycoprotein fermentation (Quorn process) from feedstock preparation through fermentation, RNA reduction to consumer retail (HACCP / ISO 22000)

┌──────────────────────────┐      ┌──────────────────────────┐
│ 1. Feedstock preparation │ ───> │ 2. Continuous air-lift   │
│    (glucose syrup,       │      │    fermentation (50 kL)  │
│     minerals, vitamins)  │      │    (Fusarium venenatum)  │
└──────────────────────────┘      └──────────────────────────┘
                                                  │
                                                  ▼
┌──────────────────────────┐      ┌──────────────────────────┐
│ 4. RNA reduction via     │ <─── │ 3. Centrifugal harvest & │
│    heat shock (64°C)     │      │    biomass washing       │
└──────────────────────────┘      └──────────────────────────┘
              │
              ▼
┌──────────────────────────┐      ┌──────────────────────────┐
│ 5. Mixing, texturising   │ ───> │ 6. Freezing, packing &   │
│    & flavouring          │      │    cold-chain retail     │
└──────────────────────────┘      └──────────────────────────┘

Stage 1: Feedstock preparation

Glucose syrup, mineral salts, biotin and trace elements are sterilised and continuously fed into the air-lift fermenter. The medium is formulated to maximise Fusarium biomass yield while suppressing ethanol overflow metabolism.

Stage 2: Continuous air-lift fermentation (50,000 L)

The proprietary air-lift fermenter operates as a continuous culture: sterile medium enters at the base, air injected through a sparger drives circulation, and mycoprotein broth overflows from the top. The dilution rate maintains a steady-state biomass concentration of 15–20 g/L. The process runs uninterrupted for 3–4 months.

Stage 3: Centrifugal harvest and washing

The overflow broth passes through a disc-stack centrifuge, separating mycelial biomass as a wet cake (25% solids). The cake is washed with potable water to remove residual medium components.

Stage 4: RNA reduction via heat shock

The wet cake passes through a scraped-surface heat exchanger that raises the temperature to 64 °C for 10 minutes. This activates endogenous ribonucleases that degrade RNA from 10% to less than 2% dry weight, meeting the FAO/WHO purine intake guideline.

Stage 5: Mixing, texturising and flavouring

The RNA-reduced mycoprotein is mixed with natural binders (potato starch, pea fibre), flavours and colours. The blend is passed through a cooker-extruder that texturises the protein into fibrous chunks or mince.

Stage 6: Freezing, packing and cold-chain retail

Formed mycoprotein pieces are blast-frozen, packed in modified-atmosphere trays and distributed through frozen-food retail and food-service channels. The product retains a shelf life of 12 months frozen or 21 days chilled.