The Global Mushroom Coffee Market size is expected to reach $3.7 billion by 2029, rising at a market growth of 5.2% CAGR during the forecast period.
Mushroom coffee in powder form is getting popularity globally as instant/powder coffee can be kept in storage for extended periods of time, in comparison to conventional coffee. Hence, powder category is expected to showcase more than 57% share of the market by 2029. Reishi Mushroom Extract is one of the significant contributors to the market and generated approximately $405.5 million revenue in 2022. Reishi mushrooms are being added to a variety of functional foods and drinks, including coffee and cocoa and consumers are gradually shifting to functional beverages that are marketed as having advantages beyond just providing basic nutrition. Some of the factors impacting the market are Increasing awareness of the benefits of mushrooms, Growing demand for functional foods as well as dietary supplements and effects of excessive consumption of caffeine and mushroom.
Coffee made with mushrooms may improve focus, clarity, and attention. According to research conducted in test tubes, the lion's mane may specifically stimulate the synthesis of the protein known as nerve growth factor, which is essential for developing neurons. Therefore, the market will experience rapid growth throughout the forecast period. The way of living and dietary habits of individuals have drastically changed during the past 20 years. Urbanization and consumerism were the driving forces behind this transformation, which led to a sharp rise in the consumption of artificial food products and an increase in the prevalence of lifestyle disorders. It is anticipated that the market will grow considerably throughout the forecast. However, Mushroom coffee can have negative consequences, especially if someone consumes excessive amounts or are intolerant to caffeine, even if it may be an excellent substitute for coffee for individuals who are trying to restrict their caffeine intake. Therefore, all these elements are preventing the market from rapid expansion.
Based on form, the market is characterized into grounded and powder. The powder segment garnered the highest revenue share in the market in 2022. It is a good option for customers who wish to stock up on their preferred beverage or who reside in places where fresh coffee is not easily accessible. Major brands are launching instant/powdered mushroom coffee with a unique blend of tastes and aromas. Such factors are propelling the growth of the segment.
On the basis of mushroom extract, the market is classified into lion’s mane, chaga, cordyceps, reishi, and others. The chaga segment acquired the largest revenue share in the market in 2022. Coffee goes well with the mild, earthy flavor of chaga mushrooms. Coffee fans seeking a distinctive flavor profile will enjoy the extract's addition of a nutty, somewhat sweet flavor to their favorite brew. In addition, chaga mushroom is well known for its possible health advantages, which include enhancing the immune system, decreasing inflammation, and fostering general well-being.
By caffeine content, the market is divided into caffeinated and decaffeinated. The decaffeinated segment garnered a remarkable growth rate in the market in 2022. Coffee that has been decaffeinated can offer a method to experience the taste and habit of coffee without disturbing sleep. Additionally, the distinct and delicate flavor of some mushrooms, like lion's mane, could be overpowered by the robust flavor of normal coffee's caffeine. Therefore, people who enjoy strong mushroom flavors in their coffee prefer decaffeinated ones as it preserves the taste of mushrooms to a greater extent.
Based on packaging, the market is segmented into sachets, containers/packets, and coffee pods. The sachets segment acquired a substantial revenue share in the market in 2022. The use of mushroom coffee sachets is simple and doesn't require much preparation. Just opening the sachet, dispensing the contents into a cup, and topping it with hot water prepares a healthy and fresh coffee. Sachets remain the most useful options for those who need a quick and simple way to prepare coffee but are busy. Moreover, sachets can be easily carried around.
On the basis of distribution channel, the market is fragmented into supermarkets/hypermarkets, convenience stores, and online. The online segment witnessed a considerable growth rate in the market in 2022. Customers are going to online channels more frequently because they provide practical advantages like substantial discounts, a large selection of products all in one location, simple payment choices, doorstep delivery, etc. The consumer convenience offered by these channels is what has caused this shift in preference.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 2.6 Billion |
| Market size forecast in 2029 | USD 3.7 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2029 |
| Revenue Growth Rate | CAGR of 5.2% from 2023 to 2029 |
| Number of Pages | 265 |
| Number of Table | 530 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Form, Packaging, Distribution Channel, Caffeine Content, Mushroom Extract, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment garnered the maximum revenue share in the market in 2022. The region has grown tremendously due to the growing popularity of mushroom coffee variants. The prospective customer base for mushroom coffee in this region is expected to expand as healthcare takes on more significance and more health-conscious customers accept beverages with mushrooms in them. Furthermore, elements like the expansion of mainstream coffee players, rising disposable incomes, and advanced coffee culture are aiding in the increasing demand for mushroom coffee.
Free Valuable Insights: Global Mushroom Coffee Market size to reach USD 3.7 Billion by 2029
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Laird Superfood, Inc., Four Sigmatic, Om Mushroom Superfood, RYZE, Real Mushrooms, Mushroom Cups International, Rheal, NeuRoast, DIRTEA Limited, and La Republica Coffee, Inc.
By Form
By Packaging
By Distribution Channel
By Caffeine Content
By Mushroom Extract
By Geography
The Market size is projected to reach USD 3.7 billion by 2029.
Increasing awareness of the benefits of mushrooms are driving the Market in coming years, however, Effects of excessive consumption of caffeine and mushroom restraints the growth of the Market.
Laird Superfood, Inc., Four Sigmatic, Om Mushroom Superfood, RYZE, Real Mushrooms, Mushroom Cups International, Rheal, NeuRoast, DIRTEA Limited, and La Republica Coffee, Inc.
The Caffeinated segment is generating the highest revenue share in the Market by Caffeine Content in 2022 thereby, achieving a market value of $2.6 billion by 2029.
The Containers/Packets segment is leading the Market by Packaging in 2022 thereby, achieving a market value of $1.6 billion by 2029.
The North America market dominated the Global Mushroom Coffee Market by Region in 2022, and would continue to be a dominant market till 2029; thereby, achieving a market value of $1.2 billion by 2029.
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