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Once confined to the fringes of niche wellness routines and traditional medicine, functional mushroom drinks are rapidly gaining ground in the global beverage market. With brands blending adaptogens, flavour and functionality, the category is tapping into rising demand for natural health solutions without compromise. FoodBev explores.

In recent years, the wellness industry has witnessed a remarkable evolution, with consumers increasingly gravitating toward natural alternatives to enhance their health. Among the emerging trends, functional mushroom drinks have gained significant traction, presenting a unique blend of ancient practices and modern health trends.

These beverages are infused with various mushrooms believed to offer health benefits beyond basic nutrition, including varieties such as reishi, lion’s mane, chaga and cordyceps.

Much room for mushroom drinks

The growing popularity of functional mushroom drinks can be attributed to several key factors. Firstly, heightened awareness of health and wellbeing has prompted consumers to seek out natural remedies over synthetic supplements.

A report by Grand View Research indicates that the global functional beverage market is expected to reach $208.13 billion by 2025, with adaptogenic drinks – like those featuring functional mushrooms – playing a significant role in this growth.

One notable case study is Mush, a brand that has successfully secured funding to expand its reach. In 2021, Mush raised $1.5 million in a seed funding round led by prominent investors interested in the health and wellness sector.

The company focuses on creating ready-to-drink beverages infused with functional mushrooms, aiming to promote mental clarity, energy and overall wellbeing. Their product line, which includes flavours like Lion’s Mane Matcha and Reishi Chocolate, has garnered attention for both its health benefits and appealing taste.

Meanwhile Muush, a start-up offering functional mushroom-based drinks, recently announced it had raised more than £400,000 in its first year, with the business on track to hit £500,000 in the coming months. Founded in 2024 by Dan D'Souza and Matt Martin, Muush has quickly gained traction among consumers seeking beverages that taste great, but also offer nutritional value, without relying on sugar, caffeine or alcohol.

"There's a clear shift happening," said D'Souza. "People want drinks that make sense – low sugar, functional ingredients and something that tastes great. We've developed drinks for people who used to reach for traditional high sugar sodas, but now want something with flavour and nutritional benefit. Muush bridges that gap."

The UK functional beverage market is set to reach £1.2 billion by 2027, and Muush is positioning itself as the brand tackling one of the category’s biggest consumer frustrations: drinks that claim functional benefits but taste medicinal, or great-tasting options overloaded with sugar. The brand's blends, powered by lion’s mane, are designed for people who want both flavour and functionality.

Elsewhere, Dirtea, a well-known UK-based functional mushroom brands, recently partnered with supermarket chain Planet Organic to introduce two seasonal hot drinks across the retailer’s food to go counters. The collaboration brings Dirtea’s mushroom-infused Matcha and Cacao blends to consumers in freshly prepared, premium serves.

The limited-edition menu features a Matcha White Hot Chocolate made with ceremonial-grade Matcha and functional mushrooms such as lion’s mane and tremella, blended with white chocolate, cinnamon and oat milk for a sweet, creamy serve. Alongside it is a Cacao Orange Hot Chocolate crafted with lion’s mane, tremella and reishi-powered cacao, dark chocolate, orange extract and hazelnut milk – a calming, indulgent option designed to support immunity and overall wellbeing during the colder months.

Adapting to the adaptogenic trend

The demand for functional mushroom drinks is further fuelled by the increasing popularity of adaptogens – natural substances that are believed to help the body adapt to stress.

A survey conducted by the National Institute of Health found that 70% of American adults reported experiencing stress daily, highlighting the need for effective stress-relief solutions. Functional mushrooms, known for their adaptogenic properties, are positioned to address this growing concern.

Additionally, the shift towards plant-based diets has opened up a market for innovative, plant-derived products. Brands like Four Sigmatic have capitalised on this trend by launching a range of mushroom-infused coffee and tea products.

The company's Mushroom Coffee, which combines organic coffee with lion’s mane and chaga, not only appeals to coffee enthusiasts but also attracts health-conscious consumers looking for functional alternatives. Four Sigmatic reported a 300% increase in sales in 2020, demonstrating the strong market demand for their unique offerings even going back a few years.

In addition, Mama Shrooms, a British functional mushroom supplements brand founded by wellness cookbook author Gemma Ogston, launched what it claims to be the UK’s first ‘wellness hot chocolate’ developed specifically for teenagers.

Ogston commented: “I created this because I’ve lived it. My daughter struggled with her mental health, and I felt completely helpless. Trying to get her support was incredibly difficult; we were told she wasn’t ‘unwell enough’. That moment changed everything. I wanted to create something real, practical and supportive.” The result is a vegan, gluten-free hot chocolate blend crafted with organic cacao, coconut milk, coconut sugar, functional mushrooms and essential vitamins.

While the potential health benefits of functional mushrooms are promising, scientific research is still emerging. Some studies suggest that these mushrooms can enhance immune function, support cognitive health and improve energy levels.

For instance, research published in the Journal of Medicinal Food indicates that reishi mushrooms may help modulate the immune system, while lion’s mane has been linked to neuroprotective effects that could benefit cognitive function.

However, it is crucial to approach these claims with caution. The lack of regulation in the functional food and beverage market means that product quality and efficacy can vary significantly. Brands that prioritise transparency and rigorous testing will likely gain consumer trust and establish themselves as leaders in this burgeoning market.

Challenges and opportunities

Despite the enthusiasm surrounding functional mushroom drinks, several challenges could impact their widespread acceptance. One significant issue is their taste and palatability. The flavour profile can be unfamiliar or unappealing to some consumers, which may hinder their adoption.

To address this, companies are innovating with flavours and formulations. For example, Ritual has launched a line of sparkling mushroom drinks that combine functional mushrooms with fruit flavours, making them more accessible to a broader audience.

Additionally, the scepticism surrounding the actual benefits of functional mushrooms presents an opportunity for brands to educate consumers. Effective marketing strategies that highlight scientific research, customer testimonials, and clear product benefits can help bridge this gap.

Brands like Om Mushroom Superfood have positioned themselves as educational resources, offering detailed guidance on the health benefits of their products and how they can be incorporated into daily routines. Elsewhere, Spacegoods’ Hydro Dust – formulated with electrolytes, a B vitamin complex, minerals and reishi mushrooms – is another exciting brand gaining traction, particularly in health retailers such as Holland & Barrett.

Functional mushroom drinks represent an exciting frontier in the wellness industry, blending ancient wisdom with contemporary health trends. While they are not yet ubiquitous in every household, the unique benefits of these beverages, coupled with growing consumer interest in natural health solutions, suggest that they could indeed become the next big thing.

As brands continue to innovate and research expands, functional mushrooms are likely to carve out a significant niche in the beverage market, appealing to consumers seeking effective, natural ways to support their health and wellbeing.