Competing with a cup of coffee can be quite a challenge, yet this is precisely the goal of mushroom coffee manufacturers, and they are finding success. Mushroom coffee combines medicinal mushrooms with coffee beans, with claims from UCLA Health that these ingredients may help reduce inflammation, alleviate stress, and strengthen the immune system. According to Research and Markets, the global mushroom market is projected to reach $4.12 billion by 2030, growing at a rate of 5.5% from 2023 to 2030, largely driven by the health benefits associated with mushrooms.
Additionally, the growing popularity of ready-to-drink beverages, combined with heightened awareness of sustainable and ethical sourcing, as well as a desire for flavorful coffee experiences, is fueling this trend. In the post-pandemic landscape, consumers are increasingly turning to ingredients like fungi that promote both physical and mental well-being. However, the market is also regulated; functional mushrooms marketed as food additives must adhere to the safety standards outlined in the Federal Food, Drug, and Cosmetic Act (FD&C). Conversely, when these ingredients are sold as dietary supplements, they must comply with the Dietary Supplement Health and Education Act (DSHEA), which ensures consumers have access to a diverse range of supplements and information about their intended use.
A significant hurdle for the industry is sourcing, as noted by Scott Frohman, founder and CEO of Odyssey Mushroom Elixir. There are two primary methods for creating mushroom coffee: one involves blending coffee grounds with mushroom powders and extracts, while the other infuses coffee beans with mushrooms, using the beans to cultivate the mushrooms, according to Brianna Harris, director of product development and nutrition at Vitacup. Some producers are even looking to entirely replace coffee beans with lower-caffeine alternatives, such as MUD\WTR, which is made from cacao, Ayurvedic herbs, and functional mushrooms.
Frohman mentions that consumers are increasingly interested in mushroom-infused functional drinks separate from traditional coffee. “These functional mushrooms are recognized for their ability to support various aspects of wellness, depending on the type of mushroom. At Odyssey Mushroom Elixir, we’ve chosen Lion’s Mane and Cordyceps for their focus, mood enhancement, and energy-boosting properties,” he explains. Many industry leaders market their products as “adaptogenic,” highlighting the stress-mitigating qualities of mushrooms, as noted by Will Nitze, founder and CEO of IQBAR, which offers enhanced instant mushroom coffee in flavors like Cafe Mocha, featuring Lion’s Mane mushroom extract.
However, some of the most desirable mushroom varieties for coffee products can be challenging to source. “Typically, Lion’s Mane, Cordyceps, Reishi, Ashwagandha, and Turkey Tail are the most common mushrooms paired with coffee,” Nitze states. “Many of these are sourced from China, which can lead to supply chain difficulties if issues arise in shipping or if tariffs are imposed by the U.S. government.” Harris adds that mushrooms can be either wild-harvested or cultivated on farms, and challenges can arise from sustainability concerns, cultivation difficulties, long growth cycles, quality control, variability in bioactive compounds, seasonal availability, and increasing demand.
Tero Isokauppila, founder and CEO of Four Sigmatic, notes that his company wild-harvests Chaga mushrooms from the Taiga forest in Siberia, the largest forest on Earth. He warns that some products can be misleading, citing that 74% of Reishi supplements sold in the U.S. do not actually contain Reishi mushrooms.
Dr. Marcus Collins, a marketing professor at the University of Michigan, states that mushroom coffee brands need to tread carefully with their marketing language. “Mushrooms are currently trending well in coffee, but the flavor profile can be challenging,” he remarks. “Instead of labeling it as ‘mushroom flavored,’ terms like ‘magical mushroom extracts’ might resonate better with consumers.”
Sheri Geoffreys, founder of Yonder, a collagen and coffee company, advises businesses to refine their target audience. “For food producers eyeing this vibrant market, the first step is solidifying your brand identity. Are you catering to rapid consumers? Perhaps K-cups or instant powders are your focus. If you’re a connoisseur, high-quality grounds or beans might be more suitable for you.”
As the market evolves, there’s also a growing interest in products like Citracal Plus D3, which highlights the intersection of health and wellness, further driving consumers’ desire for functional beverages that support their overall well-being.