Health and wellness trends have been reshaping the coffee market for some time now. As younger consumers increasingly prioritise wellbeing, sustainability, and fitness, roasters are finding new ways to tap into demand.
Mushroom coffee, in particular, has captured the attention of health-conscious millennials and Gen Z consumers who are no longer satisfied with simple beverage options. Combining the purported health benefits of adaptogenic mushrooms such as lion’s mane, Chaga, and reishi, these functional coffee products offer consumers more than a caffeine boost.
For roasters and coffee shops looking to stay ahead of the curve, adding mushroom coffee to their menus could be a strategic move, but quality needs to be a priority.
To learn more, I spoke to Jordan G.L. Hardin, Director of Food & Beverage for Alfred, coffee content creator Vivian Nguyen, and Brandon Mizrahie, the CEO and founder of Renude.
You may also like our article on why coffee is the original superfood.
Mushroom coffee: Ancient medicine reimagined
Although they may seem like a recent addition to the functional beverage market, mushrooms have been used medicinally for centuries, especially in Asia. For thousands of years, traditional medicine practices in countries like China and Japan have revered mushrooms such as lion’s mane, Chaga, and reishi for their purported medicinal properties.
Chaga mushrooms have also long been used by indigenous Siberian and Nordic communities as traditional remedies for various ailments. The reishi mushroom was dubbed the “mushroom of immortality” in ancient texts, symbolising its perceived health benefits.
The contemporary resurgence of mushroom-based wellness products, meanwhile, dates back as early as the 2010s. At this time, millennials and Gen Z, in particular, started to express interest in natural, holistic alternatives to conventional health supplements, driving significant market growth for adaptogenic mushrooms.
Included in this boom was mushroom coffee, which is typically made from blending medicinal mushrooms with ground coffee. The mushrooms are processed to isolate their healthy compounds, and then the mixture is turned into a powder to combine with milk or water.
What’s driving the recent trend?
“The rise of mushroom and functional coffee is fueled by a seismic shift in what consumers want from their drinks – health benefits with a purpose,” says Brandon Mizrahie. He is the CEO and founder of Renude, a functional mushroom beverage brand in Los Angeles, California.
Gen Z consumers increasingly prioritise health and wellness in their everyday lives. McKinsey’s latest Future of Wellness research, which surveyed more than 5,000 consumers across China, the UK, and the US, found that Gen Z outspends older consumers on mindfulness-related wellness products, including food and beverage items like coffee, which drives innovation in the market.
“Historically, functional beverages leaned heavily on energy boosts and electrolytes – think caffeine and hydration for the gym and athletic crowd. But now, the spotlight’s shifting to benefits like gut health, stress support, brain function, and even beauty,” Brandon adds.
“Mushroom coffee fits perfectly here; chaga mushrooms offer these functional adaptogenic benefits while its alkalinity balances coffee’s acidity.”
Indeed, most brands promote mushroom coffee on the basis of improving mental clarity and focus. They also often highlight that the adaptogens contained in mushrooms help the body’s nonspecific response to stress, supporting overall wellbeing.
So why mushrooms and coffee?
Considered unorthodox to some, the combination of mushrooms and coffee is more common than we might think. After World War II, there was a global shortage of coffee, so countries such as Finland began to use chaga mushrooms instead, aiming to replicate the flavour profile of coffee.
Additionally, both adaptogenic mushrooms and black filter coffee are considered “superfoods”. For decades, the health benefits of filter coffee (especially without milk and sugar) have been well-documented. There is plenty of evidence to show that its high antioxidant content can improve life expectancy and reduce the risk of certain diseases, including Parkinson’s and diabetes.
“Mushrooms and coffee pair well because they enhance each other in flavour and function, creating a delicious and purposeful synergy,” Brandon tells me. “Coffee’s bold, roasted profile matches the earthy, subtle richness of mushrooms like chaga.
“Wild-foraged chaga, the star of Renude’s Chagaccino, blends with espresso and milk to create a smooth, almost caramel-like depth. Some customers say it tastes like coffee ice cream,” he adds.
Regulating caffeine consumption
With the burgeoning demand for wellness products, mushroom coffee caters to the growing interest in functional beverages with unique flavour experiences. Simultaneously, as all-day coffee consumption rises, people are becoming increasingly conscious of regulating their caffeine intake.
The bioactive compounds in chaga mushrooms, like polysaccharides and antioxidants, work similarly to L-theanine in tea, for example. This can reduce the intensity of caffeine’s impact on the body, which drives interest in mushroom coffee products.
“People are paying more attention to what goes into their coffee, making it as much about wellness as it is about caffeine,” says Vivian Nguyen, a prominent coffee content creator. “Renude’s Chagaccino is a leading example of the mix of coffee, customisation, and wellness. It lets people upgrade their coffees with chaga mushrooms, known for boosting immunity, reducing stress, and providing steady energy.”
Additionally, coffee is slightly acidic, with a pH of around 4.5 to 5. Chaga mushrooms, meanwhile, are highly alkaline due to their mineral content, which includes potassium and magnesium. This pH balance can ease the acidity some people feel from coffee, which makes it gentler on the stomach.
How can cafés tap into the mushroom coffee trend?
The 2024 Global Wellness Economy Monitor projects the wellness economy to grow to nearly US $9 trillion by 2028. This makes it a lucrative market for roasters and coffee shops to expand into, but maintaining quality standards and workflow efficiency remains crucial.
It can be challenging for baristas to incorporate and store new ingredients and menu items on bar, especially in coffee shops with a smaller footprint. As such, café operators need to invest in practical options that baristas can easily add to drinks without disrupting service.
“Renude’s powders offer a one-move upgrade that keeps the workflow tight,” Brandon says. “For our 2,500 coffee shop partners, it’s a lifeline: they skip the ordering chaos, charge the premium, and keep customers coming back.”
At a time when coffee prices, inflation rates, and business costs remain high, increasing the average ticket spend at cafés has never been more critical for owners and operators. Add-ons, such as functional ingredients, are an easy way to achieve this, especially as the trend towards customisation persists.
“Kerry Group’s research shows 86% of customers are willing to pay a premium for functional beverages, reflecting a broader wellness movement where coffee’s role is evolving beyond just a caffeine fix,” Brandon explains. “Baristas simply scoop our powder into drinks, allowing them to serve a latte with health benefits in seconds.”
He adds that one of Renude’s café partners generates close to US $64,000 in monthly revenue from Chagaccino sales across 21 locations. The chain’s average monthly Chagaccino cost is close to US $7,200, showcasing the potential to boost net profits.
Renude also offers Chaga Matcha and Reishi Cacao powders, both made from 100% organic ingredients like Peruvian cacao and Ceylon cinnamon, that cater to the growing demand for both health and quality.
Intentionality is key
The burgeoning mushroom coffee market is an opportunity for roasters and coffee shops to differentiate and generate new revenue, but marketing these products may require an initial strategic approach.
“Our original marketing for the Chagaccino was straightforward: it’s like a mocha, powered with mushrooms, but with monk fruit sweetener for a zero-sugar, lower-calorie drink that still has your choice of milk and espresso,” Jordan says.
“However, you should always be wary when making too-specific health and wellness claims as they can be unscientific, even bordering on unethical,” he adds, emphasising the vigilance and due diligence required when promoting health claims. “Keep the messaging simple. If the customers believe in your brand, they don’t need a laundry list of benefits.”
Simple, “clean” ingredients cater to the demand for health and wellness, but indulgence still plays a key role in consumer preferences.
“An iced Chagaccino tastes like a cinnamon cereal milk latte,” Vivian says, underscoring the trend towards “newstalgia” – where Gen Z show increasing interest in popular, sweet foods from the 1980s and 90s.
“Signature drinks allow cafés to express their creativity, and they help keep customers interested but often don’t become their everyday drink,” Jordan tells me. “However, if you can offer them something that is more like a classic drink, like Renude’s Chagaccino, and with added benefits, it’s much more likely that they will make it part of their normal routine.”
The coffee industry has long embraced beverages like matcha and turmeric lattes that tap into wellness and customisation trends. With its market value projected to increase by over 54% by 2032, mushroom coffee is poised to become the next up-and-coming functional beverage that coffee businesses can leverage to capture a new audience and retain a loyal one.
Simply adding it to a menu, however, may not be the right approach for every coffee shop. Operators, owners, and baristas must find ways to incorporate mushroom coffee into their offerings that prioritise quality and efficiency.
Enjoyed this? Then read our article on why customised drinks will become more popular.
Photo credits: Renude
Perfect Daily Grind
Please note: Renude is a sponsor of Perfect Daily Grind.
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