Alternative coffee and tea drinks are conquering the market

Coffee or tea? This question, which was relatively simple around 50 years ago, now often has a whole range of possible answers. Decaffeinated is the simplest option, followed by terms such as sparkling, strong or mushroom-based.

Released on 16/07/2025

Lifestyle & Health
tea- & coffee-based beverages
functional beverages

A post by

Donna Berry

Consultant and editor

Mushroom coffee, functional tea drinks, RTD protein drinks with caffeine and more

Yes, that's right, coffee made from mushrooms. As it turns out, eggs, dairy products, meat, fish and seafood are not the only foods for which there are now numerous alternatives on the market. Some health- and environmentally-conscious consumers are replacing traditional coffee made from Arabica and Robusta beans with coffee that is made entirely or partially from mushrooms.

Tea brands and manufacturers have long been developing alternatives to tea, as herbal teas are not real teas. They are not derived from the Camellia sinensis plant. Herbal teas are classified as tisane, while mushroom coffees are just that: mushroom coffees.

Real tea

All ‘real’ tea is made from the leaves of the same evergreen plant. The leaves are simply processed differently to achieve different flavours.

Traditionally, black tea undergoes a fermentation process after the leaves are picked. This is not a microbial fermentation, but rather a series of reactions caused by the natural enzymes in the tea leaf, which produce thousands of natural compounds. Oolong tea undergoes partial fermentation, while green and white tea undergo almost no fermentation.

Tea and coffee as a basis for energy drinks and functional beverages

All ‘real’ tea contains caffeine, which is why tea and tea extracts are increasingly being used as a base for ready-to-drink energy drinks (RTD). The health-promoting properties of tea include being a concentrated source of antioxidants that support well-being and longevity, as well as a natural source of caffeine for energy and alertness.

Dark teas are fermented after production and form the growing category of kombucha, a drink known more for its health benefits than its refreshing qualities. The addition of special microorganisms results in a sparkling drink with probiotic properties.

All ‘real’ coffee contains caffeine. Like tea, energy drinks often contain coffee and coffee extracts as a natural source of caffeine.

Health-promoting ingredients in coffee and tea alternatives

Coffee and tea alternatives often appeal to consumers who want to improve their mood. Lavender and chamomile, for example, are said to have a calming effect when infused like tea leaves and consumed as a beverage, either hot or cold. They are recognised as adaptogens, a class of non-toxic herbs, mushrooms and minerals that help the body cope with stress and maintain physiological functions in balance. In other words, they help you adapt to your environment.

This is how mushrooms became a drink. But it is not the mushroom that offers the health benefits, but the beta-glucan fibres in the mushroom's cell walls. ‘Adaptogenic mushrooms are becoming increasingly popular,’ says Jennifer Barney, a US start-up consultant, ‘in the form of everyday habits, such as drinking a cup of coffee.’

Functional coffee

Peak State Coffee, for example, produces whole bean coffee enriched with organic extracts from the entire spectrum of adaptogenic functional mushrooms. The ‘Coffee with benefits’ brand is available in three functional varieties, which differ in the profile of the mushroom extracts. The ‘Immunity Boost’ variety is a full-bodied brew with a blend of reishi, cordyceps, lion's mane, turkey tail and chaga mushrooms. ‘Brain Sustain’ delivers the benefits of lion's mane for mental performance and cordyceps for energy support. ‘Stress Less Dark Roast’ contains less caffeine than a light or medium roast and the adaptogenic reishi mushroom, which helps you feel balanced and less nervous throughout the day.

The company Kencko has an instant blend consisting of real coffee caffeine and other additives. The blend contains 1.5 espresso shots for energy and a cup of organic fruit that is nutritious for the body. The lattes are designed to be shaken into the milk of your choice. The blend is available in banana caramel, cinnamon and mocha flavours. 

Mushroom coffee as a coffee alternative

RYZE Superfood, a company founded by two Harvard University graduates in Boston, Massachusetts, produces a mushroom-based coffee alternative with eight ingredients: six organic medicinal mushrooms, medium-chain triglyceride oil and mild Arabica coffee. The instant mix is soluble in hot or cold water. No brewing is necessary.

RYZE founders Andrée Werner and Rashad Hossain spent more than a year searching for the ideal ingredients and developing their formula. According to the founders, mushroom coffee provides a natural boost of concentration and energy without any negative side effects such as anxiety, stomach problems or irregular sleep patterns. With only 48 milligrams of caffeine per serving, RYZE provides about half the amount of caffeine you would expect from conventional coffee, while offering a range of additional benefits. These include positive support for the immune system, digestion, brain function and heart health.

Lupine coffee – coffee without coffee beans

Lupi Coffee, a company based in Hauts-de-France, has developed a coffee-flavoured drink without coffee beans (see header image). The company won the SIAL Innovation Award ‘Own the Change’ at SIAL Paris 2024. Lupins are legumes that bind nitrogen from the air and therefore do not require nitrogen fertiliser. Their roots enable them to grow in poor soil. Lupin seeds are roasted, ground and brewed in a similar way to coffee beans.

Sip Herbals is another US company that produces a caffeine-free herbal coffee alternative. The Faux Joe blends are made from extremely clean ingredients such as roasted organic chicory root, roasted organic carob and roasted organic dandelion root and are a source of natural prebiotic fibre.

Coffee-based protein drink

Arla has teamed up with Starbucks to launch Starbucks Protein Drink with Coffee in the UK. The drink is available in Caffe Latte, Caramel Hazelnut and Chocolate Mocha flavours. The perishable drink comes in 330-millilitre bottles and is made with Arabica coffee, low-fat milk and no added sugar. Each bottle contains 20 grams of protein.

‘We entered the protein drink category with the intention of developing a high-protein drink that supports our customers' active lifestyles and provides a delicious pick-me-up without compromising on taste,’ said Charlotta Oldham, Marketing Director. "At Starbucks, we are proud coffee pioneers and constantly challenge ourselves to find new ways for our customers to enjoy our beverages. The Starbucks Protein Drink with Coffee is the latest addition to our popular ready-to-drink range. Following its successful launch in the UK, we are delighted to be able to offer this beverage innovation across Europe, the Middle East and Africa from 2025.

RTD coffee with added benefits

Crediton Dairy in the UK has also entered the RTD coffee with added benefits category with Arctic Coffee Hi-Protein Caramel Latte. The product was developed in response to consumer demand for more affordable and accessible RTD drinks at a time when prices in coffee shops are higher than usual. Each pack contains 15 grams of milk protein and 125 calories with no added sugar.

‘Coffee shops have always been at the forefront of decadent and daring coffee flavours, and at a time when consumers need a good reason to part with their money, innovation is key to keeping brands relevant,’ said Abigail Kelly, Head of Marketing and Insights. ‘We wanted to bring similarly great-tasting and different options to supermarket shelves to better meet shoppers' needs.’

US coffee brand ALC-A-CHINO has added a dairy-free oat milk ‘Hard Latte’ to its range. It is available in original and vanilla flavours.

‘We believe that with the launch of our coffee shop-inspired product portfolio, we can appeal to an even broader audience,’ said Vince Gioe, Chief Executive Officer. "The development of this product began more than 12 months ago and included feedback from many of our actual customers. We decided to launch the product after seeing growing demand for dairy-free alternatives from consumers who either cannot consume dairy products or have proactively chosen a dairy-free alternative."

Functional tea-based drinks

Monster Energy, known for its bold approach to flavour and endurance, recently launched Rehab Monster Green Tea. This new flavour in the Rehab Monster family combines hydration, antioxidants and energy in a revitalising, non-carbonated drink. It is designed for anyone who wants to recover, refresh and revitalise. Rehab Monster Green Tea is available in five flavours and contains electrolytes (sodium, potassium, calcium and magnesium), vitamins (B3, B5, B6 and B12) and caffeine from green tea. 

The opposite of stimulating is relaxing. That's exactly what Mary Anne Dairy Products Co. in Thailand is aiming for with its lactose-free, ultra-high-heat pasteurised Milk Rose Black Tea. Each chilled 180-millilitre carton contains 110 calories, 2.5 grams of fat, 6 grams of protein, 2 grams of fibre and 5 grams of sugar, none of which is added sugar. The product is also enriched with bone-building vitamins and minerals.

Twinings is launching a new RTD range of Twinings Sparkling Tea. The drink is enriched with numerous vitamins and minerals, including antioxidant vitamin C to support general well-being, and thus meets growing consumer demand for an afternoon treat that tastes good and is good for you.

Twinings Sparkling Tea has been developed by Twinings Master Blenders and herbal experts and combines tea and herbal ingredients with carbonated water and fruit juice. It is available in three varieties, each with unique functional properties. ‘Defence’ contains tangy orange with passion fruit and elderberries, infused with Chinese green tea leaves and enriched with zinc and vitamins C and D to support the immune system. ‘Refresh’ is a juicy raspberry lemonade with hibiscus and Chinese white tea leaves. It is enriched with magnesium, niacin and vitamin C to invigorate the mind and soul. ‘Boost’ consists of tangy lemon, ginger and lemon balm, infused with Indian black tea leaves and enriched with vitamins B6, B12 and C to provide energy.

US retailer Trader Joe's combines the fresh taste of citrus fruits with just the right amount of carbonation in its Organic Sparkling Rosé Tea Beverage, a luxurious new mocktail variant. The drink starts with a combination of four tea and tisane blends – white, black, sencha and pu-erh – and is then complemented with white grape juice concentrate to achieve a fruity flavour. It is then infused with hibiscus flowers, orange peel and rose hips to add distinctive floral and citrus notes.

Further innovation is to be expected in real coffee and real tea, as well as in ingredients that attempt to imitate them. Whether brewed, instant or RTD, hot or cold, the possibilities are endless.

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