Global mushroom coffee market was valued at USD 3.01 billion in 2023, expected to reach USD 5.18 billion in 2031, with a CAGR of 7.03% for the forecast period between 2024 and 2031.
Annually, more than 400 billion cups of coffee are consumed worldwide, one of the most popular drinks worldwide. With growing health and wellness trends, especially among millennials and generation Z, several health-based functional products have entered the market, affecting the coffee market as well. In major coffee-consuming markets, mushroom coffee has gained popularity due to its numerous health benefits as stated by the manufacturers.
Social media is acting as a catalyst for this market, spreading the word about medicinal mushrooms being used with coffee beans and providing health benefits to consumers. Companies are capitalizing on the trend which is quite popular among younger generations. Different varieties of mushrooms tend to provide different benefits. For instance, lion’s mane is claimed to be good for neuron development, turkey tail for boosting immunity and decreasing inflammation, cordyceps for cancer prevention, chaga for curing ulcers and suppressing other food allergies, and reishi for preventing heart-related diseases.
These medicinal mushrooms contain antioxidants and adaptogens and are rich in nutrients. Companies often promote them for providing mental clarity and other various health benefits. Ongoing research and developments in the industry are fuelling innovations in the market, leading to the launch of a range of coffees in various forms, such as ground, powdered, and pods, which provide health-optimizing benefits to users.
In September 2023, ORGANO launched an innovative reformulation of its Nespresso-compatible mushroom-infused Italian specialty coffee blend in pods. Crafted in Italy, these three espresso products, namely TRE, DUE, and UNO, utilize premium coffees sourced from Brazil, Peru, and Uganda, infused with the finest organic Ganoderma ('Reishi') mushroom.
Health Advantages to Drive Market Growth
The global mushroom coffee market includes a diverse range of coffee products providing numerous health benefits to consumers. Beneath being amongst the niche beverages, it has a rising trend among youngsters and other health-conscious consumers. Compared to regular coffee, it contains less caffeine and is perfect for caffeine-sensitive people. Low intake of caffeine helps reduce jitters and improves the quality of sleep. Incorporated with adaptogens, these coffees reduce the amount of cortisol in the body, further reducing the effects of stress. The polyphenols in mushrooms act as antioxidants, reducing inflammation in the body and boosting the immune system.
In October 2023, Daily Grynd launched Monkey Brew, a unique four mushroom coffee alternative designed for health-conscious individuals seeking an economical and nutritious option to conventional coffee. Monkey Brew featured a distinct mix of Lion’s Mane, Cordyceps, Turkey Tail, Ashwagandha, Turmeric, Cacao, and Chicory Powder.
Unconventional Ingredients in Beverages Fuel the Market
The food and beverage market landscape are dynamic. A notable shift towards unique and unconventional ingredients can be observed in the market. Mushroom coffee manufacturers are reflecting and capitalizing on the trend with the incorporation of mushrooms with coffee beans. The spirit of experimentation using two disparate ingredients offers a unique flavor profile that appeals to the consumers based on their tastes and preferences. Many coffee lovers look for options with less caffeine and more relaxing properties. Mushroom coffee emerges as the perfect option for them, quenching their coffee thirst and providing health benefits as an add on. The product resonates with the desire of people for adventure and discovery. Consumers craving authenticity and excitement are majorly fascinated by the idea of such products. In October 2023, Shroomi expanded its portfolio into the food industry by introducing its Mental Performance Mushroom Coffee Line. The range featured four distinct SKUs, Light Roast Mexico Chiapas, Medium Roast Nicaragua Matagalpa, Dark Roast Guatemala Huehuetenango, and Half Caffeinated Roast Peru La Florida. Each variant was certified organic and fair trade, boasting 16,000 mg of Lion’s Mane, Reishi, and Chaga mushrooms aimed at promoting brain health.
North America Holds a Larger Market Share
Compared to other regions, North America leads the global mushroom coffee market. Several factors are responsible for the region’s strong market presence. After water, which is consumed by 66% Americans daily, the most consumed beverage in the region is coffee at 63%. In 2022, as per the National Coffee Association, the consumption of coffee surged to a two-decade high. This region's well-established coffee culture opens the doors for innovations in the form of mushroom coffees. People, there are more aware of the new coffee trends and are regularly looking for substitutes for coffee. As per the U.S. Food and Drug Association, 400 milligrams of caffeine per day is recommended to keep the balance of the body, which is about 4 cups of regular coffee a day. Avid coffee drinkers are keen on decreasing the caffeine content in their bodies, driving them towards the more sustainable option of mushroom coffee.
Packaging in Form of Packets Gain Traction in the Market
Although sachets are easy to use and provide an on-the-go option to consumers, people generally prefer buying mushroom coffees in resealable packet form that locks the freshness of the coffee and prevents oxygen and moisture from entering. It further prevents staling of coffee and loss of freshness. In some conditions, coffees develop a fragmented and moldy flavor, resulting in darker color of the product, when exposed to excess moisture. The safety and quality of coffee is compromised in such cases as it develops the risk of contamination. Hence, manufacturers of mushroom coffee introduce packaging solutions which allow consumers to keep the product as fresh as new.
For instance, in September 2023, Z Natural Foods introduced Organic Instant 7 Mushroom Coffee (Black) in airtight, resealable foil packets for maximum freshness, combining flavor and wellness. The coffee is a blend of premium organic coffee with seven organic mushrooms comprising Lion’s Mane, Cordyceps, Reishi, Maitake, Turkey Tail, Red Reishi, and Chaga for a revitalizing brew.
Future Market Scenario (2024 – 2031F)
- Mushroom coffee is an ongoing market trend that took social media by storm, gaining popularity in a very short span of time. The trend is supposed to last with better product innovations involving new flavor combinations, packaging formats, and new varieties of mushrooms.
- The market has great potential to expand in emerging markets such as Asia-Pacific and Latin America. Rising urbanization, increasing disposable incomes, and changing lifestyles can be major drivers of demand in these markets.
- The growing demand for natural and functional beverages and the rising awareness of people about numerous health benefits of medicinal mushrooms are expected to sustain the growth of mushroom coffee market.
Report Scope
"Mushroom Coffee Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global mushroom coffee market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
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