Mushroom Coffee Market Key Insights:

The Mushroom Coffee Market size was USD 3.01 billion in 2024 and is expected to Reach USD 4.61 billion by 2032 and grow at a CAGR of 5.5% over the forecast period of 2025-2032.

The market is growing as a consequence of rising sales of coffee that is ready to drink, increasing interest in functional foods and drinks, and improved consumer understanding of the health benefits of mushrooms.

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The mushroom coffee market is expected to rule the market over the projection period, with a share of 72.5% in 2022. Because it may be readily dissolved in water or other liquids, mushroom coffee is most easily consumed in powder form. One anticipates that the liquid sector will hold a 25% share in 2022. Customers can choose liquid mushroom coffee because it is offered ready-to-drink.

Mushroom Coffee Market Size and Forecast:

• Market Size in 2024: USD 3.01 Billion

• Market Size by 2032: USD 4.61 Billion

• CAGR: 5.50% from 2025 to 2032

• Base Year: 2024

• Forecast Period: 2025–2032

• Historical Data: 2021–2023

In 2024, the Reishi mushroom extract market segment is anticipated to have a 35% market share, dominating the market over the projected period. The health advantages of reishi mushrooms include increased attention, lowered stress levels, and improved immunological performance. In 2024, it is anticipated that the Maitake mushroom extract market will have a 10% market share. The health advantages of maitake mushrooms include a stronger immune system, better blood sugar regulation, and lower cholesterol levels.

Mushroom Coffee Market Highlights:

• Reishi mushroom extract is expected to hold a 35% market share in 2024, offering benefits such as enhanced focus, reduced stress, and improved immunity

• Maitake mushroom extract is projected to have a 10% market share in 2024, providing stronger immunity, better blood sugar regulation, and lower cholesterol

• Rising consumer understanding of mushrooms’ health benefits including bioactive compounds that support immunity, gut health, cognitive function, and inflammation reduction is driving demand in functional foods, beverages, and supplements

• Companies are expanding offerings beyond traditional forms into mushroom-infused coffees, teas, protein powders, snacks, and ready-to-drink beverages, targeting wellness-focused, fitness, and vegan consumers

• Varieties like reishi, lion’s mane, and chaga are increasingly valued for adaptogenic and neuroprotective properties, enhancing product appeal

• Lack of knowledge, misconceptions about taste or safety, and limited education on mushroom benefits restrict market adoption, highlighting the need for awareness campaigns and informative labeling

Mushroom Coffee Market Drivers:

• Growing understanding of mushrooms' health advantages

The growing understanding of mushrooms’ health advantages has significantly boosted their popularity in functional foods, beverages, and supplements. Mushrooms are rich in bioactive compounds, including polysaccharides, beta-glucans, antioxidants, vitamins, and minerals, which support immunity, gut health, and overall well-being. Research highlights their potential in reducing inflammation, regulating blood sugar, and improving cognitive function. Certain varieties, such as reishi, lion’s mane, and chaga, are increasingly valued for their adaptogenic and neuroprotective properties. As consumer awareness about natural remedies and preventive healthcare rises, mushrooms are being incorporated into daily diets through powders, coffees, teas, and fortified food products, driving strong market demand.

• Expanding the product offering

Expanding the product offering in the mushroom-based industry involves diversifying beyond traditional forms like dried mushrooms or capsules into innovative formats that cater to modern consumer lifestyles. Companies are introducing mushroom-infused coffees, teas, protein powders, snacks, chocolates, and ready-to-drink beverages to meet growing demand for convenient functional foods. This strategy not only broadens consumer choice but also captures niche segments such as fitness enthusiasts, wellness-focused individuals, and vegan consumers. By combining mushrooms with other superfoods, adaptogens, and plant-based ingredients, brands can create differentiated products that stand out in a competitive market and strengthen their presence across multiple distribution channels.

Mushroom Coffee Market Restraints:

• Consumer ignorance impedes market expansion

Consumer ignorance significantly impedes market expansion in the mushroom-based products industry. Many potential customers remain unaware of the health benefits of mushrooms, including immune support, cognitive enhancement, and anti-inflammatory properties. Misconceptions about taste, preparation, or safety further limit adoption, especially among mainstream consumers. Lack of education about different mushroom varieties, their functional uses, and the efficacy of mushroom-infused products reduces willingness to try or pay a premium. This knowledge gap restricts market penetration and slows growth despite rising interest in wellness and natural remedies. Targeted awareness campaigns and informative labeling are essential to overcome these barriers and drive broader consumer acceptance.

Mushroom Coffee Market Opportunities:

• Increasing consumer awareness of health issues

Increasing consumer awareness of health issues is driving demand for functional and natural products, including mushroom-based foods and beverages. As people become more conscious of immunity, mental wellness, and preventive healthcare, they actively seek ingredients with scientifically supported benefits. Mushrooms, rich in antioxidants, polysaccharides, and adaptogens, are recognized for supporting immunity, reducing inflammation, and enhancing cognitive function. This shift in consumer behavior encourages experimentation with mushroom-infused coffees, teas, supplements, and snacks. Companies leveraging educational campaigns, clear labeling, and evidence-based claims can capitalize on this trend, expanding market reach and fostering long-term loyalty among health-conscious and wellness-focused consumers.

Mushroom Coffee Market Segment Analysis:

By Form

In the mushroom-based products market, powdered mushrooms are both the dominant and fastest-growing segment. They hold around 65% of the market due to their convenience, longer shelf life, and versatility in functional foods, beverages, and supplements. Powders are increasingly preferred for mushroom coffees, teas, protein bars, and ready-to-drink products, making them the key driver of market growth, while grounded forms account for a smaller share of roughly 35%.

By Mushroom Extract

Reishi is currently both the dominant and fastest-growing segment due to its widespread recognition for immunity, stress relief, and adaptogenic benefits. Lion’s Mane is also experiencing rapid growth, driven by increasing consumer interest in cognitive and neuroprotective health, but Reishi maintains the largest market share.

By Caffeine Content

In 2024, caffeinated mushroom coffee dominates the market with around 74% share, reflecting strong consumer preference for energy-boosting beverages. Decaffeinated products are the fastest-growing segment, driven by increasing demand for health-focused, low-stimulation functional drinks, and are expected to gain significant traction by 2032 as wellness trends continue to rise.

REGIONAL ANALYSIS

North America Mushroom Coffee Market Trends:

 In 2024, North America is the mushroom coffee's largest market, accounting for 35% of the global market share. The need for ready-to-drink beverage options is rising, people are becoming more aware of the health benefits of mushrooms, functional foods, and beverages are becoming more popular, and the mushroom coffee market is growing in North America.

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Europe Mushroom Coffee Market Trends:

In 2024, Europe will account for 25% of the global mushroom coffee market making it the second-largest market. The mushroom coffee market is spreading throughout Europe because of factors that are similar to those in North America as well as the growing popularity of coffee shops and cafes in the area.

Asia-Pacific Mushroom Coffee Market Trends:

In 2024, Asia Pacific will be the third-largest mushroom coffee market accounting for 20% of the global market share. The growth of the middle class in the region, growing consumer demand for healthy foods and beverages, and greater consumer awareness of the health benefits of mushrooms are all factors influencing the Asia Pacific mushroom coffee market.

Latin America Mushroom Coffee Market Trends:

In 2024, Latin America will account for approximately 10% of the global mushroom coffee market. Growth is driven by rising awareness of health and wellness, increasing adoption of functional beverages, and a growing coffee culture in urban centers, encouraging consumers to explore mushroom-infused alternatives.

Middle East & Africa Mushroom Coffee Market Trends:

In 2024, the Middle East & Africa will hold around 10% of the global market share. The market is expanding due to increasing health-conscious consumer behavior, rising disposable incomes, and the introduction of mushroom coffee in modern retail and specialty cafes across key countries in the region.

Mushroom Coffee Market Key Players:

• RYZE

• Mushroom Cups International

• Real Mushrooms

• Four Sigmatic

• Laird Superfood

• Rheal

• Om Mushroom Superfood

• NeuRoast

• DIRTEA

• La Republica Superfoods

• VitaCup

• Sun Alchemy

• FreshCap Mushrooms

• Peak and Valley

• Funguys Coffee

• MUD\WTR

• Naturealm

• RASA

• Longevity Coffee

• Shroomwell

Mushroom Coffee Market Competitive Landscape:

PsyKey Inc. is a wellness company founded in 2019 and headquartered in Toronto, Canada. Specializing in functional mushroom-infused coffees, PsyKey combines 100% fair trade organic Arabica beans with medicinal mushrooms like lion’s mane, reishi, and chaga. Their product line includes blends such as “Mind & Memory,” “Immune & Defend,” “Calm & Relaxed,” and “Reishi Gano Good,” all available in single-serve pods. PsyKey aims to enhance cognitive function, immunity, and stress resilience through its innovative beverages

• A brand of coffee laced with mushrooms was released by Psykey in June 2022. There are four different varieties, including "Mind and Memory," "Immune and Defend," "Calm and Relaxed," and "Reishi Gano Good."

Reishi Mushroom Coffee is a wellness beverage that combines premium coffee with reishi mushroom extract to support immune health, reduce stress, and enhance overall well-being. Reishi mushrooms, known for their adaptogenic properties, are blended into the coffee to provide a calming effect without the jitters associated with traditional coffee. This functional drink offers a balanced energy boost, making it a popular choice for health-conscious individuals seeking a natural alternative to conventional coffee. The concept of mushroom coffee dates back to Finland during World War II when coffee beans were scarce, leading people to experiment with alternative ingredients like reishi mushrooms. Today, brands such as Four Sigmatic and GANOHERB have popularized this trend, offering various mushroom-infused coffee products to consumers worldwide.

• In February 2023, Reishi Mushroom Coffee announced that it had started selling its products in Whole Foods Market stores around the nation. To manufacture its products, the company employs organic coffee and reishi mushroom extract.

Mushroom Coffee Market Report Scope: