MUSHROOM CULTIVATION

MUSHROOM
A mushroom or toadstool is the fleshy, spore-bearing
fruiting body of a fungus, typically produced above
ground, on soil, or on its food source
Types of Mushrooms

• White button
• Oyster
• Portabella
• Chanterelle
• Cremini
• Shitake
• Enoki
Industry & Market Analysis
The mushroom cultivation industry has experienced
significant growth in recent years. The global mushroom
market was valued at $ 62.44 billion in 2022 and is
expected to reach $ 90.88 billion by 2027, growing at a
CAGR of 9.8 % during the forecast period

Fortune Business Insights says that the global

consumption was 14.35 million tonnes in 2020 and is
projected to reach 24.05 million tonnes by 2028.
 Market Segmentation:
• Mushroom Types: Common segments include button
mushrooms, shiitake mushrooms, oyster mushrooms, and others.
• Product Forms: Fresh mushrooms, dried mushrooms,
canned/preserved mushrooms, and mushroom extracts/powders.
• Distribution Channels: Supermarkets/hypermarkets, specialty
stores, online retail, and foodservice channels.
• End-use Applications: Food processing, foodservice, retail,
pharmaceuticals, and dietary supplements.
 Market Structure:

Fragmented Market: Small-Scale Growers:

• Diverse mix of growers, including small- • Local and Regional Focus:
scale and large commercial producers. • Operate on a small scale, often serving local or
• Wide range of cultivation methods regional markets.
employed. • Traditional farming methods utilized.
Large Commercial Producers:
Global Market Reach:
• Utilize advanced technologies such as CEA and
vertical farming.
• Supply mushrooms to broader markets, including
supermarkets and foodservice channels.

Economies of Scale:
• Ability to meet large-scale demand efficiently.
• Cost advantages through volume production
 POTENTIAL AND OPPORTUNITY
Growing Demand: Mushrooms are becoming
increasingly popular in Pakistan due to their nutritional
value and unique flavors.
Climate Suitability: Pakistan's diverse climate and
geographical conditions provide a favorable environment
for mushroom cultivation.
Economic Viability: Mushroom cultivation offers a
profitable business opportunity. The initial investment
and infrastructure required for starting a mushroom farm
are relatively low compared to other agricultural
ventures.
Export Potential: Pakistan has the potential to export
mushrooms and mushroom products to international
markets.
Value-Added Products: Besides fresh mushrooms, there
are various value-added products that can be developed,
such as mushroom powder, pickles, sauces, and dried
mushrooms.
Competitive Analysis
Competitor Description in Pakistan:
• The mushroom market in Pakistan consists of a mix of small-scale
growers, medium-sized farms, and a few larger commercial
producers.
• Small-scale growers typically operate locally, catering to nearby
markets, while larger commercial producers have a wider market
reach.
• The market also includes mushroom importers who bring in
mushrooms from other countries to meet the demand.
 BARRIERS TO ENTRY :

Technical Knowledge and Expertise:

In-depth knowledge of mushroom cultivation
techniques, spawn production, and crop management
is necessary for successful entry.
Capital Investment:
Setting up a mushroom farm requires initial
investment in infrastructure, growing facilities, and
equipment.
Market Access and Distribution:
Building relationships with retailers, distributors, or
establishing direct-to-consumer channels can be
challenging for new entrants.
 Market Dominance in Pakistan:
• The mushroom market in Pakistan does not have a single dominant
player.
• Small-scale growers and medium-sized farms contribute to local and
regional supply, while larger commercial producers often have a wider
market reach.
• Market share and dominance can be influenced by factors such as
product quality, price competitiveness, and distribution capabilities.
 Market & Industry Analysis:

• The mushroom market is experiencing steady growth due to

increased consumer awareness of the nutritional benefits and
culinary versatility of mushrooms.
• Growing demand for mushrooms in various sectors, including
foodservice, retail, and the health and wellness industry.
• The mushroom industry is influenced by factors such as
changing dietary preferences, rising popularity of vegetarian
and vegan diets, and the demand for sustainable and plant-
based protein sources.
 Target Market
Consumer Market: There is a growing demand for
mushrooms among health-conscious individuals,
vegetarians, and those looking for alternative protein
sources.
Restaurants and Hotels: Establishments in the
hospitality industry, such as restaurants and hotels, often
include mushrooms in their menus.

Supermarkets and Retailers: Collaborating with

supermarkets and retailers can help reach a wider consumer
base. These outlets can offer fresh mushrooms and
packaged mushroom products to cater to the growing
demand.
Online Shoppers: Target individuals who regularly shop
for groceries and food products online. Like on Daraz,
amazon
Mushroom Farming Requirement

For the production of 100kg of mushroom per cycle

items Quantity price

Land 10*10ft 100,000Rs one time
Steel pipe 10 lengths 50,000Rs one time
1 kw setup 1 150,000 one time
Sheet 20 100,000 one time
Temperature and 1 20,000 one time
humidity control
unit
mushroom spawn 10kg 13,000Rs
spawn 500kg 10,000Rs
Other - 10,000Rs monthly
Total 453,000Rs
 BREAK EVEN
Cost Per Kg of Mushroom
1200000

Item Cost per Kg

1000000
mushroom 130Rs
spawn
spawn 100Rs 800000

Labor 200Rs
Packing 100Rs fixed cost
600000

cost
variable cost
Marketing 150Rs sale cost

Transport 50Rs
400000
Other 100
Total 830Rs
200000

Sale price of mushroom = 1200Rs/kg

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