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Mushrooms Industry Benchmarks
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Mushrooms market report transcript
Mushrooms Global Market Outlook
Mushroom growth figures in 2020–2021 is forecasted to be slightly higher compared to 2019–2020, due to the increasing demand and production potentials in many regions.
China and Japan are the top two producers and China is the leading exporter while Japan produce relative volume, do not export, due to internal demand
Impact of COVID-19 on Mushrooms Industry
Prices of mushrooms are stable, due to stable production in major regions like China, other Asian countries, and Europe. However, demand is expected to increase by processing industries and quick serving food chains.
Although major supply countries, China, the Netherlands and Poland, are not under lockdown, supply disruptions can be expected due to the transport costs and increasing energy prices concern.
Major suppliers are facing challenges, owing to labor shortages. However, most suppliers are focusing on restoring their supply chain activities, thus supply has seen great recovery.
Procurement Centric Five Forces Analysis on Mushrooms Industry
The suppliers have better negotiation power, as they are fragmented players and volumes are at risk. The intensity of rivalry is medium to high in the mushroom industry, and the players are increasing in the processing sector.
The suppliers have higher negotiation power than buyers, as the demand is high
The suppliers are fragmented and volume is small from each buyer
The suppliers also have the advantage of less production cost owing to cheap raw materials used for cultivation
Barriers to New Entrants
Barriers for new entrants in fresh mushrooms may be lesser owing to the large-scale availability of raw materials but higher in the processing sector due to higher capital requirements
The major firms create and maintain competitive advantage through quality, customer service, and consistent supply
Intensity of Rivalry
Mushroom is mainly used in domestic consumption and processing industries. The supply of mushrooms also depends on the weather.
Threat of Substitutes
The threat of substitutes for mushrooms by other foods is medium. There are wide variety of food substances that can be used in place of mushrooms
Cottage cheese or Indian paneer, processed form of condensed milk is an effective alternative to mushrooms used in food in Indian sub continent. As the diary industry is growing, cottage cheeses have huge scope to easily use as substitutes for mushrooms
Soybean chunks are another substitutes for mushrooms
The buyers are the food companies. They do not influence the prices as much as the suppliers. The prices are driven by seasonal and fundamental factors as well
Based on preferences for specific varieties, prices may vary among the varieties of mushrooms
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