Global Mushroom Coffee Market Size, Share and Industry Analysis Report By Source Type (Arabica, Liberica and Robusta), By Form (Granular/ Grounded and Powder/Instant), By Mushroom Extract (Lions mane, Chaga, Lingzhi, Cordyceps and Others), By Packaging (Sachets, Packets and Bottles), By Distribution Channel, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

Global Mushroom Coffee Market was valued at USD 2.7 Billion in 2023, size is expected to be worth around USD 4.3 Billion by 2032. Between 2023 and 2032, this market is estimated to register the highest CAGR of 5.4%.

Mushroom coffee is a delicate blend of coffee beans and mushrooms combined to form smooth, brewed dark, and nutty coffee. The mushroom coffee is generally used as medicinal mushroom extract other than culinary mushrooms such as Portobello and shiitake. Generally, mushroom extract is used in mushroom coffee. The mushroom extract has anti-inflammatory agents.

This mushroom coffee levels the cortisol in your saliva and blood, so it is used to manage stress levels, and ease inflammation. It has delicious flavors that vary from decadent and rich to subtle, fresh, and delicate, depending on the type of mushrooms. The mushroom coffee is a unique morning beverage prepared by mixing mushroom extract it almost has a sweet flavor.

The popularity of mushroom coffee is that people are looking for products that are healthy and environmentally friendly. Mushroom coffee is appealing because it combines a unique taste with potential health benefits, making it an attractive choice for those looking to add something new to their daily routine.

In addition to their well-known ability to strengthen immunity and reduce inflammation, some studies have revealed that some kinds of mushrooms may also aid brain health, potentially leading to increased focus and memory.

The need for an alternative to regular coffee is another element fueling the demand for mushroom coffee. Regular coffee is known to give some people jitters or anxiety; mushroom coffee, on the other hand, is touted as a method to enjoy the energy-boosting properties of coffee without any of the drawbacks.

Key Takeaways

1. Market Growth: The Mushroom Coffee Market was valued at USD 2.6 Billion in 2022 and is projected to reach around USD 4.3 Billion by 2032, with an expected (CAGR) of 5.4%
2. powder/instant mushroom coffee held a dominant market position, capturing more than a 61.8% share.
3. Chaga mushroom extract held a dominant position in the mushroom coffee market, capturing more than a 29.2% share.
4. packets held a dominant market position in the mushroom coffee industry, capturing more than a 50.2% share.
5. supermarkets/hypermarkets held a dominant market position in the mushroom coffee sector, capturing more than a 45.2% share.

By Source Analysis

The Arabica is the Most Dominating Source in the Mushroom Coffee Market

Based on source type, the mushroom coffee market is segmented into Arabica, Liberica, and Robusta. The Arabica is the most dominating source in the mushroom coffee market, due to its smooth taste and smooth texture. The Robusta coffee is harsh and stark as compared to Arabica. The amount of chromogenic acid in robusta coffee helps to lower blood pressure.

The robusta coffee has a low price as compared to Arabica such factor helps to increase demand for the robusta. Liberica is also a unique coffee product.  It is a completely separate species of coffee with almond-shaped beans that have an exceptional aroma, floral and fruity with a slightly smokey and dark chocolate flavor.

By Form Analysis

Instant/Powder Form is the Most Dominating Segment in the Market

In 2023, powder/instant mushroom coffee held a dominant market position, capturing more than a 61.8% share. The primary reason for this dominance is convenience. Instant coffee appeals to busy consumers who want a quick and easy way to enjoy mushroom coffee without the need for brewing equipment. The growing demand for on-the-go health-focused beverages has further fueled this segment’s growth.

The granular/grounded form, while holding a smaller share, is steadily gaining popularity among traditional coffee drinkers. This form offers a more authentic coffee experience, with a richer taste profile. Many consumers who prefer brewing their coffee at home or enjoy a slower, more artisanal preparation process are turning to this option. Both segments are expected to expand as consumer interest in mushroom coffee grows.

By Mushroom Extract Analysis

Chaga is Most Dominating Segment in the Mushroom Coffee Market

n 2023, Chaga mushroom extract held a dominant position in the mushroom coffee market, capturing more than a 29.2% share. Its popularity stems from its reputed health benefits, such as boosting immunity and reducing inflammation. This has attracted consumers interested in functional beverages that offer more than just caffeine.

Lion’s mane follows closely, favored for its potential cognitive-enhancing properties. It appeals to a growing segment of consumers seeking mental clarity and improved focus from their dietary choices. Lingzhi, or reishi, known for its calming effects and health-boosting properties, also captures a significant portion of the market. Cordyceps is valued for its energy-boosting effects, often chosen by those with active lifestyles.

By Packaging Analysis

packets is the Most Dominating Segment in the Market in 2022

In 2023, packets held a dominant market position in the mushroom coffee industry, capturing more than a 50.2% share. This preference is largely due to the convenience and portability that packets offer, making them ideal for consumers on the go. Additionally, packets are easy to store and have a long shelf life, which appeals to both retailers and customers.

Sachets, although smaller in market share, are popular among those who seek single-serving options that are easy to use and dispose of. This format is particularly appealing to office workers or travelers who may not have access to full kitchen facilities. Meanwhile, bottles, made from glass or plastic, are gaining traction among eco-conscious consumers who prefer durable and reusable packaging. Each packaging type caters to different consumer needs and lifestyles, reflecting varied preferences across the mushroom coffee market.

By Distribution Channel Analysis

The supermarkets/hypermarkets Dominates the Distribution Channel Segment of the Mushroom Coffee Market

In 2023, supermarkets/hypermarkets held a dominant market position in the mushroom coffee sector, capturing more than a 45.2% share. This dominance is largely due to the wide variety of products available and the convenience of finding everything in one place. Consumers appreciate the ability to compare different brands and types of mushroom coffee on the spot, making it easier to make informed purchasing decisions.

E-commerce is also a strong player in the market, favored for its convenience and the growing trend of online shopping. Customers enjoy the ease of home delivery and often find online-exclusive deals or a wider selection than in physical stores. Convenience stores hold a smaller share but are essential for quick, on-the-go purchases, appealing particularly to busy commuters or those needing a quick coffee fix without the hassle of larger shopping venues. Each distribution channel offers unique advantages, catering to the diverse preferences and lifestyles of mushroom coffee drinkers.

Key Market Segments

By Source Type

• Arabica
• Liberia
• Robusta

 By Form

• Granular/ Grounded
• Powder/Instant

By Mushroom Extract

• Lions mane
• Chaga
• Lingzhi
• Cordyceps
• Others

By Packaging

• Sachets
• Packets
• Bottles (Glass/Plastic)

By Distribution Channel

• Supermarkets/Hypermarkets
• E-commerce
• Convenience Store

Driving Factors

Increasing Awareness About the Natural Ingredients

The mushroom coffee market is growing as increasing consumption of coffee exports and all age groups increase demand worldwide, especially in India, the Philippines, and China. Mushroom coffee has several benefits: reduced stress, high energy, and fat burning. The increase in global and local mushroom coffee shops helps to drive the demand for various mushroom coffee as customers are willing to pay for high-quality mushroom coffee, which has become a medium for socializing.

So many coffee shops are booming and increasing demand for coffee, such as Costa, Starbucks, CCD, and others. Giving the best service, loyalty, and new modern brands helps the growth of customer satisfaction. Such factors drive the development of the mushroom coffee market growth. Also, rising demand for organic varieties due to increasing awareness about the health benefits of mushroom coffee is expected to drive demand for mushroom coffee. Also, introducing several flavors using different mushroom extracts will likely drive market growth.

Restraining Factors

Respiratory Diseases and Some Side Effects in Mushroom Extract Restrict the Growth of the Market

Several coffee-producing regions have experienced environmental problems due to weather changes in the mushroom or coffee production process causing water pollution. Advanced developed techniques hurt the environment. Cultivating mushrooms requires a lot of labor and high costs for the cultivation, changing weather, and operation of mushrooms, which hamper the market growth. The short life of mushrooms restricts the growth of the market.

Sometimes consumption of mushroom coffee has become highly risky due to some mushroom spores causing allergies and other respiratory diseases, which may hinder the growth of the mushroom coffee market. Chaga mushroom coffee is highly toxic, which increases kidney stones, digestive problems, or trouble with grains. Such a factor hinders the growth of the mushroom coffee market.

Opportunity

High Production of Mushroom Extract Creates Significant opportunities

Several governments are taking various initiatives in the developing areas, which is expected to motivate small-scale companies and help the underprivileged by being involved in the development process in many companies, which is expected to boost the market’s growth. Several strategies are adopted by companies in many industries that help to increase demand for mushroom coffee.

The mission-critical priorities will get the attention of major key players in the mushroom coffee market. With the increase in demand for mushroom coffee in developing regions, where major key players export the top supply chain due to coffee remaining a standard beverage, the development of mushroom coffee creates significant opportunities for the growth of the mushroom coffee market.

Trends

Increase in Consumer Awareness

Consumers are becoming more aware of the product manufacturing that they buy with their rates. It is necessary in the case of the supply chain of beverages and food products to ensure the creditability of their coffee rate. Consumer concerns about deficiency, environmental destruction, and social justice drive the demand for sustainable beverage labels and brands. Several certification organizations are checking the manufacturing procedures and their supply chain of mushroom coffee. Due to these factors, the market is expected to grow significantly during the forecast period.

Regional Analysis

North America is Most Dominating Region in the Mushroom Coffee Market in 2022

North America is the most dominating region in the mushroom coffee market, holding the highest share. The primary factor of coffee mushrooms is being healthy and admiration for coffee, which helps expand the mushroom coffee market in this region. Due to the growing healthcare sector and the reach potential of mushroom coffee in North America.

It will help to get approval for mushroom beverages among health-conscious consumers. Europe is also expected to show significant growth during the forecast period. Due to the increase in consumption of mushroom coffee, it can delay due to ignorance. Once consumers become aware of mushroom coffee, the market will boost during the forecast period.

Key Regions

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

Several key players are concentrating on various strategies to build their particular companies in foreign markets. Several mushroom coffee market companies focus on growing their R&D facilities and operations.

Furthermore, businesses in the mushroom coffee market are developing portfolios and new product expansion strategies through mergers, investments, and acquisitions. In addition, numerous key players are now concentrating on different marketing strategies, such as increasing awareness about natural ingredients and expanding production capacity.

Due to the presence of many local and regional players, the market is fragmented. Market players are subject to intense competition from top players, particularly those with strong brand recognition and high distribution networks. Companies have gained various expansion strategies, such as partnerships and product launches, to stay on top of the market.

Top Key Players

• Renude Chagaccino
• Four Sigmatic
• Sollo Food
• Fujian Xianzhilou Nutra-Industry CO., Ltd
• Nutra-Industry CO., Ltd
• Rachel A. Gut Health
• Wunderground
• Other key players

Recent Developments

• In June 2022, PsyKey debuted its functional mushroom-infused coffee range. Four functional new formulations developed are “Calm & Relaxed,” “Immune & Defend,” “Mind & Memory,” and “Reishi Gano Good.”
• In January 2022, Mushroom Keto Coffee was formally released by RYZE Superfoods, a mushroom-based superfood firm. It is a healthy coffee substitute that purportedly gives focus and energy while avoiding the side effects of caffeine, like anxiety, jitters, and poor sleep.

Report Scope