US-based organic mushroom producer Smallhold has launched what it claims is the world’s first mushroom pesto.
The vegan-friendly pesto is made by dehydrating surplus or imperfect organic mushrooms that would otherwise go to waste. The mushrooms — which include blue oysters, trumpets, and shiitake — are then ground and cooked down with roasted onion and garlic, balsamic vinegar, spices, and oil.
“Our mission has always been to get people to eat more mushrooms — in every way possible.”
Like traditional pesto, the resulting sauce can be used in sandwiches, pasta dishes, dressings, and more. It is currently available at various independent retailers in New York City, Los Angeles, and Austin, Texas.

“Something brand new”
Smallhold uses cutting-edge technology to grow mushrooms in both urban and rural spaces. The company has farms in Brooklyn, New York, Austin, Texas, and LA. Smallhold also operates minifarms, which consist of climate-controlled freestanding units that can produce around 60 pounds of mushrooms per week. The minifarms can be placed in grocery stores and restaurants to provide customers with farm-fresh mushrooms.
The idea of growing mushrooms indoors is rapidly gaining popularity, with German agtech company Tupu recently raising $3.2 million for its technology to grow organic gourmet mushrooms in cities. In September, US rapper and singer Wiz Khalifa launched a brand called MISTERCAP’S, offering at-home mushroom growing kits.
Earlier in the year, Singaporean company Finc announced it would be constructing a smart mushroom factory in Houston, Texas, producing 50 tonnes of enoki mushrooms per day. Forecasts indicate that the global mushroom market is expected to be worth $115.8 billion by 2030.
“Who better to create the world’s first mushroom pesto than a bunch of food-obsessed mushroom farmers?” says Smallhold on its website. “Our mission has always been to get people to eat more mushrooms — in every way possible. We wanted to make it easier and faster, so we created something brand new that would also add value back to the world.”