Mycelium leather market is anticipated to grow at a significant CAGR of 9.1% during the forecast period (2024-2031). The market growth is attributed to the increasing demand for mycelium leather as a replacement for natural leather. The mycelium leather exhibits material progression in tandem with the increasing amount of research and development which is further aiding to its growing global demand.

Market Dynamics

Increasing Adoption by Luxury Fashion Brands

Luxury Fashion Brands such as Stella McCartney, Balenciaga and Hermès incorporate mycelium leather into their products. The mycelium leather is made from the root of mushrooms and treated to replicate the qualities of traditional leather. With further investment, the technology could design out waste and pollution at the earliest step of production. It is a perfect material for use in fashion goods as it resists stains and water and does not break or fade with time. Mycelium leather has a lot of potential, and companies like Hermes are setting a standard. In the coming years, more brands are anticipated to use mycelium leather. The emergence of mycelium leather suggests that fashion will be more ethical and sustainable than in the past.

Growing demand for sustainable clothing 

The growing demand for sustainable and eco-friendly fabric is another contributor to the global market growth. The mycelium produces a silky, supple fabric that resembles animal leather as it develops with plant fibers. To maintain consistency and coherence, the mycelium produces a kind of adhesive between the strands. The process of growing leather typically takes two to three weeks to finish. Using mycelium in place of animal leather in textiles is one of the more successful uses of the material. One of its benefits is that, like animal leather, mycelium-based leather may be bleached and dyed. It takes less time to produce as well. By helping to transform the way people across the globe use animal products, mycelium leather substitutes also serve to allay ethical worries about farming.

Market Segmentation

• Based on the type, the market is segmented into dyed mycelium leather, and unstained mycelium leather.

• Based on the end-user, the market is segmented into fashion and apparel, automotive, furniture, home decor, consumer goods, and others (upholstery). 

Dyed Mycelium Leather is projected to hold the Largest Segment

The dyed mycelium leather segment is expected to hold the largest share of the market. The primary factors supporting the growth include the increasing demand for desirable colored mycelium leather- product. The mycelium material absorbs the dye over time that result in a colored leather-like product. Surface painting can be applied or sprayed with dye to achieve the desired color. This method is useful to add intricate designs or patterns to the surface. A popular technique for coloring mycelium leather is submersion dyeing, which entails soaking the material in a dye solution. The dye solution, which might be synthetic or natural, is found in the dye bath. Over time, the mycelium substance absorbs the dye, creating a product that resembles colored leather.

Fashion and Apparel Segment to Hold a Considerable Market Share

The fashion and apparel segment is expected to hold a considerable market share. The factors supporting segment growth include increasing demand for plant-based, sustainable, biodegradable, and resource-efficient material in the leather industry. The leather alternative material that sparked a “mushroom leather” movement, is made from mycelium, the underground root structure of mushrooms, an infinitely renewable resource. Mycelial fibres provide a soft, supple feel with fine texture.  The mycelium leather is designed to have flexibility, making it highly versatile to be used in a variety of products. 

Regional Outlook

Global mycelium leather market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Global Mycelium Leather Market Growth by Region 2024-2031

North America Holds Major Market Share

The expansion of the market in the region is driven by the growing adoption of governmental and regulatory frameworks that encourage the adoption of environmentally friendly and sustainable bio based material have been put in place in response to the growing environmental concerns. According to the Faunalytics, in November 2023, the demand for non-animal leather is still developing. While the leather industry as a whole is expected to reach $360 billion by 2025, synthetic leather only makes up about $20 billion, and many consumers still prefer animal-based leather for its texture, performance, and convenience. The market players in the region offer mycelium patented product and technology to grow a new category of materials used in the fashion, footwear, automotive, and decor industries. For instance, MycoWorks offer Reishi a new natural material made from proprietary Fine Mycelium technology. Reishi features the inherent strength, durability, and hand-feel of the finest animal leathers with lower environmental impact. Grown in California facilities, Reishi is tanned and finished by heritage tannery partners in Europe using MycoWorks’ proprietary chrome-free tanning and dying technologies. 

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the mycelium leather market include Bolt Threads, Ecovative LLC, Modern Meadow, Inc., Mycoworks Inc. and Polybion among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. 

Recent Developments

• In October 2023, Vrije Universiteit Brussel has developed the first fully bio-based and biodegradable handbag based on mycelium. The VUB team developed a method that can provide reinforcement with bio-based components, significantly improving the product’s durability. The research resulted in the development of the first prototype of a handbag that is 100% sustainable.

• In November 2021, ADIDAS announced to introduce plant-based shoes made from mushroom leather. Created using mycelium, Adidas’ newest “leather” will join the brand's line of animal-free versions of its most iconic shoes, launched earlier this year as part of its sustainability initiative.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the mycelium leather market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.