India Mushroom Coffee Market by Region, Competition, Forecast & Opportunities, 2021-2031F

The India Mushroom Coffee Market was valued at USD 145.25 Million in 2025, and is projected to reach USD 190.62 Million by 2031, rising at a CAGR of 4.63%. The India mushroom coffee market is witnessing steady growth, driven by rising health consciousness, increasing adoption of functional beverages, and the growing popularity of natural ingredients.

Mushroom coffee, infused with varieties like reishi, chaga, lion’s mane, and cordyceps, is gaining traction as consumers seek alternatives to traditional coffee that provide enhanced focus, immunity support, and reduced caffeine dependence. The urban population, fitness enthusiasts, and millennials are the primary adopters, supported by e-commerce platforms that expand product availability across regions. Additionally, the rising influence of wellness trends, plant-based diets, and Ayurveda-inspired products is fueling demand.

Key Market Drivers

Rising Health Consciousness and Demand for Functional Beverages

One of the most significant drivers of the mushroom coffee market in India is the rapid rise in health consciousness and the growing preference for functional beverages. In 2025, data from the National Family Health Survey (NFHS)-5 (2019-21) reveals that 24% of Indian women and 23% of Indian men are overweight or obese. Indian consumers are increasingly prioritizing products that not only provide refreshment but also deliver additional health benefits. With lifestyle-related diseases such as diabetes, hypertension, obesity, and stress disorders on the rise, consumers are moving away from sugar-loaded or highly caffeinated drinks and seeking healthier alternatives.

Mushroom coffee is emerging as an attractive option because it combines the familiar taste and stimulating properties of coffee with the medicinal benefits of mushrooms like reishi, lion’s mane, chaga, and cordyceps. These functional mushrooms are associated with boosting immunity, enhancing mental focus, supporting gut health, and reducing stress - qualities that resonate with health-focused consumers. Furthermore, as India experiences a growing wellness movement that aligns with Ayurveda, yoga, and holistic living, mushroom coffee is being positioned as a natural, plant-based beverage solution. The shift in mindset toward preventive healthcare and functional nutrition has created strong momentum for mushroom coffee adoption, especially among urban millennials and young professionals who value long-term wellness over instant gratification.

Key Market Challenges

Limited Consumer Awareness and Knowledge Gap

One of the biggest challenges facing the India mushroom coffee market is the limited consumer awareness and knowledge gap regarding the product. While urban consumers are becoming more open to functional foods and beverages, mushroom coffee is still a relatively new concept in India. Most consumers are unaware of what mushroom coffee actually is, how it differs from regular coffee, and what specific health benefits it offers. The idea of adding mushrooms - traditionally associated with savory dishes - to coffee can also create skepticism among first-time buyers who may perceive the taste as unappealing. This lack of understanding often results in reluctance to try the product, restricting its penetration beyond niche wellness enthusiasts.

Unlike green tea, herbal supplements, or protein shakes that have had years of consumer education and marketing, mushroom coffee still has to overcome the barrier of establishing itself as a mainstream health beverage. To counter this, brands must invest heavily in awareness campaigns, product sampling, influencer collaborations, and transparent communication about ingredients and benefits. However, until greater awareness and trust are built, the lack of familiarity will continue to slow down the growth of mushroom coffee in India compared to more established functional beverages.

Key Market Trends

Premiumization and Niche Positioning of Mushroom Coffee

A key trend shaping the India mushroom coffee market is its positioning as a premium, niche beverage that appeals to a health-conscious and aspirational consumer base. Unlike regular coffee or tea, mushroom coffee is marketed as a lifestyle product that goes beyond taste and caffeine, promising benefits such as immunity support, enhanced focus, and stress relief. This premiumization trend is evident in the pricing strategy, branding, and packaging choices of companies operating in the segment. Attractive packaging, clean-label claims, organic certifications, and eco-friendly branding are being used to build exclusivity and highlight quality.

For urban consumers, mushroom coffee is not only a beverage but also a wellness statement that signals their commitment to healthier living. The aspirational positioning of mushroom coffee also aligns with the rising trend of consumers associating themselves with products that reflect their identity and values, such as fitness, mindfulness, and sustainability. Similar to how green tea and protein supplements transitioned from niche products to mainstream wellness essentials, mushroom coffee is gradually following the same trajectory. However, this premiumization ensures that early adopters are primarily young professionals, entrepreneurs, and fitness enthusiasts in Tier-1 cities, who are willing to pay a higher price for wellness-centric beverages.

Key Market Players

• Dirtea Limited
• NeuRoast
• Om Mushroom Superfood
• Rheal
• Four Sigmatic
• Real Mushrooms
• RYZE Superfoods
• Laird Superfood Inc
• Mushroom Cups International
• La Republica Superfoods.

Report Scope:

In this report, the India Mushroom Coffee Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Mushroom Coffee Market, By Form:

• Grounded
• Powder

India Mushroom Coffee Market, By Packaging:

• Packets
• Containers
• Sachets
• Others

India Mushroom Coffee Market, By Distribution Channel:

• Supermarkets/Hypermarkets
• Departmental Stores
• Online
• Others

India Mushroom Coffee Market, By Region:

• North
• South
• East
• West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Mushroom Coffee Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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