Mushroom Coffee Market By Type of Mushroom (Lion’s Mane, Reishi, Chaga, Cordyceps, Shiitake); By Product Form (Ground Coffee, Instant Coffee, Coffee Pods, Ready-to-Drink (RTD) Beverages); By Distribution Channel (Online Retail, Specialty Stores, Supermarkets and Hypermarkets, Health and Wellness Stores); By End User (Individual Consumers, Cafés and Restaurants); By Geography, Segment revenue estimation, Forecast, 2024–2032.

The mushroom coffee market reached USD 2.3 billion in 2023, it will hit USD 4.5 billion at a compound annual growth rate (CAGR) of 9.8 % from 2024 to 2030. This rapid growth is primarily due to the continued growth of the functional beverage sector, innovations in areas such as plant-based and adaptogenic ingredients, and a more wellness-oriented consumer lifestyle.

 

Functional beverages, especially mushroom coffee, are trending. It is a blend of regular coffee and mushrooms like Lion’s Mane, Chaga, Cordyceps, and Reishi. It is consumed for its health benefits, which include increased alertness, lower stress levels, boosted immunity, and sound digestion. Mushroom coffee has thus emerged as suitable to replace traditional coffee due to the increase in health-conscious consumers seeking new and eco-friendly products.

 

Market Drivers

Growing Demand for Functional Beverages: Mushroom coffee is ideal for the category of functional foods and drinks, combining coffee's effects and the alleged health-enhancing effects of mushrooms. The global functional beverages market reached USD 125 billion in 2023 and mushroom coffee has its portion. Example: In 2023, a Californian health café chain food business witnessed a 30% uplift in sales of mushroom coffee drinks due to elevating customers’ awareness of wellness drinks.

 

Popularity of Plant-Based and Adaptogenic Products: Mushroom adaptogens that help with stress regulation and support brain function are becoming increasingly popular within the plant-based eating boom. Example: In the forecasted survey in 2023, it was clear that 40% of the millennial population preferred mushroom coffee to traditional coffee since the former contained adaptogens and lower caffeine content.

Sustainability and Ethical Sourcing: Coffee derived from mushrooms may be promoted more as sustainable and organic and beneficial to consumers who are environmentally sensitive. Example: In 2023, a European brand switched to fully compostable packaging in the mushroom coffee line that helped to boost the product’s sales among environmentally friendly buyers by 20%.

 

Market Opportunities

Expansion into Emerging Markets: As the consumption of functional beverages increases in the Asia-Pacific and the Latin American markets, potential exists for mushroom coffee brand development in these markets. Example: Mushroom coffee containing Lion’s Mane is another that began trending in urban Japan in 2023, offer by a Japanese brand.

 

Development of Ready-to-Drink (RTD) Mushroom Coffee: There is an increasing consumer demand for convenience, and more specifically for on-the-go beverages, thus creating opportunities for RTD mushroom coffee products. Example:In 2022, a brand from the US is offering canned mushroom coffee and in that convenience store segment, actually it has increased its market share by 15%.

 

Customization and Flavor Innovation: The varieties of coffee that are available in the market mean special blends that people can choose depending on their tastes such as those with turmeric or cocoa. Example: Canadian company begins to sell flavored coffees with additions including mushrooms and vanillin to them in 2023 mostly targeting young people.

 

Market Restraints

High Production Costs: Production of medicinal mushrooms requires effort in growing and extraction, and therefore to meet the retail prices of the normal coffee is expensive.

 

Limited Consumer Awareness: However, mushroom coffee is still considered a novelty in many areas; therefore, wholesalers need to invest lots of resources in promotion.

 

Market Segmentation

By Type of Mushroom:

• Lion’s Mane

• Reishi

• Chaga

• Cordyceps

• Shiitake

 

By Product Form:

• Ground Coffee

• Instant Coffee

• Coffee Pods

• Ready-to-Drink (RTD) Beverages

 

By Distribution Channel:

• Online Retail

• Specialty Stores

• Supermarkets and Hypermarkets

• Health and Wellness Stores

 

By End User:

• Individual Consumers

• Cafés and Restaurants

 

By Region:

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East & Africa

 

Segment Analysis of Mushroom Coffee Market

By Type of Mushroom:

Leading Segment: Lion’s Mane

Lion’s Mane mushroom is the leading segment in the mushroom coffee market. Known for its cognitive-enhancing properties, it is widely used in mushroom coffee blends aimed at improving memory, focus & mental clarity. With a growing interest in nootropic ingredients, Lion's Mane has gained significant traction among consumers looking for health benefits beyond typical caffeine. In a 2020 study involving individuals with mild Alzheimer’s disease, researchers found that taking a daily supplement of 1 gram of lion’s mane mushroom over a period of 49 weeks significantly enhanced cognitive test scores compared to a placebo group. This mushroom's popularity is particularly strong in North America & Europe, where health-conscious coffee drinkers seek natural, functional beverages.

Fastest-Growing Segment: Reishi

Reishi is the fastest-growing segment in the mushroom coffee market, driven by its reputation for boosting immunity and promoting relaxation and stress relief. With increasing consumer awareness of the health benefits of functional foods, Reishi mushrooms have seen a rise in demand, especially among consumers seeking natural ways to combat stress & improve overall well-being. This trend is particularly notable in the wellness sector, as more consumers look for adaptogenic ingredients in their coffee.

 

By Product Form:

Leading Segment: Ground Coffee

Ground mushroom coffee is the leading product form in the market. It is widely available and offers consumers a simple & familiar method to enjoy the benefits of mushroom coffee. Ground coffee is especially popular among traditional coffee drinkers who are transitioning to functional beverages. This segment holds a large market share as it allows for easy incorporation of mushroom blends into everyday coffee routines.

Fastest-Growing Segment: Ready-to-Drink (RTD) Beverages

Ready-to-drink (RTD) mushroom beverages are the fastest-growing segment, driven by the increasing demand for convenience & on-the-go options. With busy lifestyles becoming more prevalent, consumers are looking for portable and instant solutions that still provide the health benefits of mushroom coffee. RTD mushroom coffee beverages offer a quick, easy & functional alternative to traditional coffee, making them especially popular among younger, health-conscious consumers.

 

By Distribution Channel:

Leading Segment: Online Retail

Online retail is the leading distribution channel for mushroom coffee, fueled by the increasing trend of e-commerce & direct-to-consumer brands. Consumers are increasingly turning to online platforms for the convenience of shopping from home, discovering new brands & accessing detailed product information. Online retail provides a global reach and allows brands to cater to niche markets, especially those targeting health and wellness-conscious coffee drinkers.

Fastest-Growing Segment: Specialty Stores

Specialty stores are the fastest-growing distribution channel for mushroom coffee. With the rise of health-focused retailers & organic food stores, consumers are turning to specialty stores to purchase functional beverages that align with their lifestyle choices. These stores often emphasize wellness products, and the increasing interest in natural and organic coffee alternatives is driving growth in this segment. Specialty stores provide consumers with the opportunity to discover unique, high-quality mushroom coffee brands.

 

By End-User:

Leading Segment: Individual Consumers

Individual consumers are the leading end-user segment in the mushroom coffee market. As the demand for healthier and functional beverages grows, more individuals are adopting mushroom coffee into their daily routines. Driven by a desire for improved mental clarity, immune support, and reduced stress, individual consumers are the primary drivers of the market, particularly in North America and Europe.

Fastest-Growing Segment: Cafés and Restaurants

Cafés and restaurants are the fastest-growing end-user segment for mushroom coffee. With the increasing trend of health-conscious dining & the rising demand for unique beverages in cafes, many coffee shops are incorporating mushroom coffee blends into their menus. This shift is particularly visible in urban areas where consumers are more inclined to try novel, functional drinks that offer health benefits alongside the traditional coffee experience. The rise of mushroom coffee in cafés is contributing to the segment's rapid growth.

 

By Region:

Leading Region: North America

North America holds the largest market share in the mushroom coffee market, particularly in the United States. The growing popularity of health-conscious living, combined with the increasing adoption of functional beverages, has propelled mushroom coffee into the mainstream. Many brands in North America are innovating in the wellness space, and this region remains a key market for mushroom coffee due to its strong consumer base and established retail infrastructure.

Fastest-Growing Region: Asia-Pacific

Asia-Pacific is the fastest-growing region for the mushroom coffee market, driven by increasing awareness of functional beverages and traditional medicinal mushrooms. Countries like Japan, South Korea & China are seeing significant interest in adaptogenic ingredients & wellness products, including mushroom coffee. The region's growing middle class & increasing demand for health-boosting products are expected to continue driving the market's rapid expansion. Additionally, the traditional use of mushrooms in herbal medicine in many Asian cultures is providing a solid foundation for the growing popularity of mushroom-based products like coffee.

 

Key Players

• Four Sigmatic

• Mud/Wtr

• Rasa Coffee

• FreshCap Mushrooms

• Ryze Superfoods

• Om Mushroom Superfood

• Sun Alchemy

• Sacred 7

• Laird Superfood

• Everyday Dose

 

Mushroom Coffee Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 2.3 billion
Revenue Forecast in 2030	USD 4.5 billion
Overall Growth Rate	CAGR of 9.8%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Type of Mushroom, By Product Form, By Distribution Channel, By End User, By Region
By Type of Mushroom	Lion’s Mane, Reishi, Chaga, Cordyceps, Shiitake
By Product Form	Ground Coffee, Instant Coffee, Coffee Pods, Ready-to-Drink (RTD) Beverages
By Distribution Channel	Online Retail, Specialty Stores, Supermarkets and Hypermarkets, Health and Wellness Stores
By End User	Individual Consumers, Cafés and Restaurants
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	US, Canada, Germany, UK, France, China, Japan, India, etc.
Key Market Drivers	Growing demand for functional beverages, popularity of plant-based and adaptogenic products, and sustainability and ethical sourcing.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

 

Future Outlook

Thus, mushroom coffee promotion is expected to continue its steady, rapid growth due to growing consumer concerns over health and product development, in conjunction with sales in new regions. New markets of Asia-Pacific and LATAM will be instrumental, backed by culture acceptance of mushrooms and increasing focus on wellness.

 

This is because manufacturers who plan to employ sustainability strategies, innovation in flavors, and delivery strategies aiming to meet individual customers’ needs are likely to benefit most from this trend. With these trends and innovations in place, mushroom coffee is expected to become a mass functional beverage by 2030 to support different consumer lifestyles while establishing sustainable systems.