Mushroom Beer Market By Type of Mushroom (Reishi, Chaga, Lion’s Mane, Cordyceps, Shiitake); By Alcohol Content (Low-Alcohol 0.5%-4%, Standard 4%-6%, High-Alcohol 6%-10%); By Distribution Channel (On-Trade Bars and Restaurants, Off-Trade Supermarkets, Online Retail, Specialty Stores); By End User (Millennials, Gen Z, Health-Conscious Consumers); By Geography, Segment revenue estimation, Forecast, 2024–2032.

The mushroom beer market was estimated at USD 210 million in 2023 and is expected to reach USD 560 million by 2030 during the forecast period of 2024 to 2030, at a compound annual growth rate (CAGR) of 14.8%. The market is driven by rising consumer concern for the health aspects of functional beverages, the rise in the craft beer segment, and the benefits of medicinal mushrooms.

 

The mushroom beer market concerns a unique sub-sector of the craft beer sector, which combines conventional brewing techniques with functional additives such as medicinal mushrooms. Mushroom beer is also beneficial to human health by boosting immunity, fighting stress, and improving gut health through the presence of certain mushrooms such as Reishi, Chaga, and Lion’s Mane. This product targets consumers interested in health and new interesting forms of alcohol and beer lovers wishing to try something new.

 

Market Drivers

Rising Popularity of Functional Beverages: There is a growing trend among consumers choosing to drink products without just the necessary hydration for their bodies. Mushroom beer, similar to craft beers and containing healing mushrooms, fits into this category of functional beers. Example: In 2023, a brewery in the United States introduced Chaga beer, and due to this, there was a 30% rise in sales to millennials.

 

Expansion of the Craft Beer Industry: The craft beer market has grown globally, and breweries have sought to bring different products to the market. Mushroom beer can easily be sold within this trend by providing an extra selling proposition. In 2023, there was an 8.5% growth in the craft beer market and the use of functional ingredients such as mushrooms in beer.

 

Increasing consumer awareness of the health benefits of Mushrooms: Mushrooms like Reishi, Cordyceps, and Lion’s Mane are gaining popularity primarily because of their adaptogenic and nutritional benefits like boosting immunity, reducing stress, and improving brain functions. Example: As of 2022, beverages with medicinal mushrooms had a sixty percent chance of being consumed by health-conscious consumers.

 

Rise in Vegan and Plant-Based Lifestyles: Mushroom beer targets vegan and plant-based consumers as its product does not contain any dairy products, is natural, and does not harm animals, thus incorporating the plant-based lifestyle. Example: A brewery in the U.K. launched a mushroom beer that is vegan in 2023 and was favored by plant-based consumers.

 

Market Opportunities

Introduction of Non-Alcoholic Mushroom Beer: The market trend suggests that breweries should consider launching mushroom-flavored non-alcoholic beers, given that some people have shifted from alcoholic beer to non-alcoholic functional beverages. Example: In 2023, a Canadian-based company introduced mushroom Beer, better sales of which were recorded in wellness outlets by about 20% compared to regular stores.

 

Collaborations with Functional Beverage Brands: Cooperation between breweries and functional beverage firms is mutually beneficial in new product creation and market penetration, especially in burgeoning functional beverage markets. Example: A craft brewery in the United States teamed up with a mushroom supplement company in 2023 to help launch a series of beers with health benefits.

 

Market Restraints

Limited Consumer Awareness: There is increased interest in mushroom beer due to its health benefits, but this product is still not widely known and recognized by consumers, thus not widely accepted.

 

High Production Costs: The employment of better-quality mushrooms and the extra processing that may be done in the process may necessitate high production costs, which in turn would call for high sales costs, which many consumers might not be able to afford.

 

Regulatory Challenges: National and regional differences in foods and beverages’ legal requirements and standards, such as functional claims and new ingredients, are some of the issues that stand as barriers to market growth.

 

Market Segmentation

By Type of Mushroom:

• Reishi

• Chaga

• Lion’s Mane

• Cordyceps

• Shiitake

 

By Alcohol Content:

• Low-Alcohol (0.5%-4%)

• Standard (4%-6%)

• High-Alcohol (6%-10%)

 

By Distribution Channel:

• On-Trade (Bars, Restaurants)

• Off-Trade (Supermarkets, Online Retail, Specialty Stores)

 

By End User:

• Millennials

• Gen Z

• Health-Conscious Consumers

 

By Region:

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

 

Segment Analysis

Leading Type of Mushroom: Reishi

In 2023, Reishi mushroom beer represented 35% of the market revenue because it has immunostimulating and anti-stress effects, increasing its popularity among consumers focused on a healthy lifestyle.

 

Leading Distribution Channel: On-Trade

The on-trade sector represented 50 % of the market revenue in 2023 due to bars and restaurants using mushroom beer as a specialty craft beer. Example: When mushroom beer was included in craft beers, foot traffic in a bar in New York City escalated by 20%.

 

Regional Analysis

North America is the largest market and contributed 45% of the global revenue in 2023 due to the high penetration of craft beer and busy lifestyles requiring healthy drinks. The U.S. and Canada are currently responsible for 80% of total sales of mushroom beer in North America, which indicates their dominance in this sector. Example: Chaga mushroom beer was pioneered in 2023 by a Californian brewery that received much attention and recorded a 25 percentage point increase in sales across health-conscious stores.

 

The Europe region accounts for 30% of the total revenues, as new and diverse markets for brewing have been developed due to the long-standing traditions of beer production. Example: A Danish brewery released Lion’s Mane mushroom beer in 2022 to cater to cognitive health buffs and achieved high engagement with the Nordic market.

 

Asian-Pacific region is the fastest growing market due to its traditional medicinal mushroom use, high disposable income, and interest in craft beer in countries like China, Japan, and Australia. Example: In 2023, brewing Australia beer requires a mushroom stout, and the people of Brewing Australia are eager to capture the beer.

 

Key Players

• Omnipollo

• Dogfish Head Brewery

• Garage Project

• Sierra Nevada Brewing Co.

• Wildcraft Brewery

• Four Sigmatic

• Rogue Ales

• Brooklyn Brewery

• Mountain Culture Beer Co.

• Beavertown Brewery

 

Future Outlook

The mushroom beer market stands to gain high growth rates due to the growing interest in functional beers, perceived healthy beers, and the steady growth of craft beers on the market. Asia-Pacific and Latin America will contribute significantly, driven by increasing disposable income, society acceptance of mushrooms, and the growing craft beer market.

 

Companies that create a strong value proposition by paying attention to research and development, sustainability, and cost-effectiveness are likely to receive more attention from consumers. Mushroom beer is expected to become a global normal functional drink by 2030 by focusing on various consumer demands.