Chagaccino: Fungal Coffee with Billion Dollar Potential

Just when I  thought (and maybe you agree with me) that the world of fancy coffee drinks couldn't get any more complicated, along comes chagaccino: cappuccino-ish type drink made of that dusty chaga mushroom.

 And while some might think: “well, it’s too niche” there are some pretty impressive numbers to contemplate. 

E.g.according to Grand View Research, the global adaptogenic mushroom market hit $11.72 billion back in 2022 (when it probably was way less trendy). And it's not slowing down anytime soon, with projected 10.8% CAGR in the coming years. 

Mushroom coffee is continuously on the rise.

The same goes for chaga mushroom.

And while chagaccinos are having a moment, there’s a huge room to grow there. Let’s take a look at my favorite place to search for sales opportunities - Amazon. While there are tons of chaga coffee products only one company, Renude, is currently capitalizing on "chagaccino" search term, raking in around 1,000 sales per month.

But are these mushroom-infused drinks truly the next big thing in the world of coffee?

Let's dive deeper into the fungal madness and see what's really brewing.

^{Disclaimer: I discovered this trend using Exploding topics (I am an affiliate and a long-time fan of this tool), which has become my go-to resource for uncovering under-the-radar opportunities. While the tool doesn’t provide the research that comes with my newsletter If you're into finding even more trends in all the fields this tool is definitely worth a look.} 

Table of Contents

• Current state and financial opportunities

• Benefits and drawbacks

• How to navigate this trend and why should you care …

Current state and financial opportunities

The chaga mushroom market is projected to hit $2.1 billion by 2034, growing at a respectable 7.2% CAGR. And it's not just chaga - the entire adaptogens market is expected to reach $30.1 billion by 2032. Clearly, people are hungry (or should we say thirsty?) for these functional ingredients.

Now, let's talk about the real opportunities here. While Renude might be the only brand currently capitalizing on the term "chagaccino" on Amazon, there's plenty of room for innovation. There are other brands selling chagacchino (marketed as such, to capitalize on the trends volume)  e.g Alfred or Blue Farm - but at the moment of writing this report they are not being sold on Amazon.  

A closer look at Renude though raises some interesting questions. The company describes itself as "Creators of the Chagaccino, the millennial version of the mocha frappuccino!" However, it's worth noting that "chagaccino" is a term used by various brands to describe cappuccino-type drinks made with chaga mushroom powder. Did Renude patented or trademarked it?? It’s highly unlikely. At least I wasn’t able to locate  information (with proof) about it on their website. 

Some might note that the team behind Renude appears to have limited experience in supplements or nutrition, which could impact product development and consumer trust. 

You'd think a company peddling fancy mushroom drinks (and promising a bunch of health benefits) would have a team of mycology PhDs and nutrition gurus. But a quick look at the team’s credentials reveals a cast that's more "Silicon Valley startup" than "health gurus." We're talking about a CEO with a mysteriously blank work history, an office manager turned business operations, and a former actress doing social media for the company. But hey, who needs industry experience when you've got cool packaging and an exploding trend to capitalize on?

Additionally, scrutiny of their product labeling raises questions. The nutritional information (along with splelling mistakes) lists 6g of carbs primarily from erythritol, yet other ingredients like monk fruit sweetener, cocoa, chaga, and cinnamon — all of which contain carbohydrates — are not accounted for at all. This inconsistency might cause consumers to question the accuracy of the nutritional content and the overall transparency of the brand.

Moreover, the ingredients include a "Proprietary Blend" of chaga mushroom, cacao, and Ceylon cinnamon, but without detailed breakdowns, it's challenging for consumers to understand exactly what they're consuming. 

Now, before you think I'm picking on poor Renude, let's zoom out a bit. The entire chaga market is about as well-regulated as a toddler's birthday party (not much). While it might be a good market to regulate given the fact that chaga is easily counterfeited. Thus this research looked at the random samples of chage and established that some chaga extracts from China and Finland were counterfeit, while Siberian extracts were of high quality.  

On unrelated occasions even the big guns are getting involved. A few years ago the FDA, not known for its sense of humor, has been sending out warning letters to chaga sellers from Canada who got a bit too creative with their marketing. Turns out, claiming your mushroom coffee can cure COVID is a big no-no. Who knew?
Even though in Canada they are pretty strict with regulation of this product: you need to get your chaga products cleared by Health Canada before you can even think about selling them.

So if you're thinking of jumping on the chagaccino trend, you might want to crack the code of quality sourcing, accurate labeling, and not ticking off the FDA. If you are up for it you might just have the next big thing in coffee. 

Benefits and drawbacks

Now, let's address the elephant in the room: does this stuff actually do anything? Well, it’s quite well researched of an ingredient. And I’ll just cite a few studies here, so as to shed some light on chaga’s potential health benefits:

• According to some studies, chaga mushrooms might have some impressive health benefits. We're talking potential anti-inflammatory properties, antioxidant effects, and even possible cancer-fighting abilities.

• Research suggests chaga may help reduce inflammation, potentially benefiting those with conditions like inflammatory bowel disease.

• Chaga is rich in antioxidants, which can combat oxidative stress and may improve overall health.

• Some studies indicate that chaga can modulate the immune system, enhancing the body's ability to fight off illnesses. And the list goes on.

But before you start chugging chagaccinos like there's no tomorrow, let's pump the brakes a bit. 

The high oxalate content in chaga presents a significant health concern. There have been reports of kidney damage associated with excessive chaga consumption.  Cases of oxalate nephropathy and even end-stage renal disease have been reported. Not to mention that the supplement industry is not tightly regulated, which can lead to inconsistencies in product quality and labeling, so you might think that you are drinking the healing nectar but in fact you are biting the dust.

How to navigate this trend and why should you care?

The chagaccino trend is more than just another way to get your caffeine fix (in most cases it doesn’t even have it). But in a way it can be the future of functional beverages. As consumers become more health-conscious and interested in foods and drinks that offer benefits beyond basic nutrition, we're likely to see more products like this hitting the market.

The appeal is clear - a coffee-like drink that might offer anti-inflammatory benefits and antioxidant properties, all while potentially supporting your immune system. But with prices ranging from $25-45 per pack and some concerning reports about kidney damage from excessive consumption, should you jump on this mushroom coffee trend?
So before you clear out your coffee budget for these fancy fungal beverages, let's look at how to approach this trend safely.

Know if chagaccino might be right for you:

• You're looking to reduce regular coffee intake

• You're interested in functional beverages

• You enjoy trying innovative health drinks

• You're NOT prone to kidney stones

• You don't have kidney disease or related issues

What to look for when buying:

• Source of chaga (Siberian is considered highest quality)

• Third-party testing results

• Clear ingredient breakdown (not just "proprietary blend")

• Detailed nutritional information

• Warning labels and recommended serving sizes

• Transparent manufacturing location

Save money while exploring chagaccino:

• Start with single servings before buying in bulk

• Compare price per serving across brands

• Look for sample packs to try first

• Consider making your own with quality chaga powder

• Watch for subscription options from trusted brands

Smart usage tips:

• Start with half the recommended serving

• Don't exceed daily recommendations

• Monitor how your body responds

• Best consumed as an occasional coffee alternative, mixed with plant-based milk, before workouts, NOT with kidney-stressing medications

• Warning signs to watch for: stomach discomfort, changes in urine color, kidney pain, unusual fatigue

One thing's certain - while chagaccino shows promise as a functional beverage, it's not something to consume carelessly. Start slowly, choose reputable brands, and listen to your body.