Mycelium Based Packaging Market size was valued at USD 420 million in 2024 and is anticipated to reach USD 1047.4 million by 2032, at a CAGR of 12.1% during the forecast period.
REPORT ATTRIBUTE
DETAILS
Historical Period
2020-2023
Base Year
2024
Forecast Period
2025-2032
Mycelium Based Packaging Market Size 2024
USD 420 Million
Mycelium Based Packaging Market, CAGR
12.1%
Mycelium Based Packaging Market Size 2032
USD 1047.4 Million
The Mycelium Based Packaging Market grows due to rising demand for sustainable alternatives to plastics, stricter environmental regulations, and increasing corporate commitments to circular economy practices. It benefits from strong adoption in food, beverage, and e-commerce sectors where reliable protective and biodegradable solutions are required. Key trends include expanding applications in healthcare, construction, and consumer goods, along with advancements in molding techniques and automated production. Partnerships between biotech firms and global brands strengthen commercialization, while research efforts focus on improving durability, reducing growth cycles, and enhancing scalability. These factors position mycelium packaging as a viable long-term packaging solution.
The Mycelium Based Packaging Market shows strong growth in North America and Europe, supported by strict environmental policies and early commercial adoption, while Asia-Pacific emerges as the fastest-growing region with rising e-commerce and industrial demand. Latin America and the Middle East & Africa explore niche opportunities using abundant agricultural residues. Key players driving innovation and commercialization include Rebelly, Nature’s Fy, Atlast Food Co, All G Foods, MycoWorks, Deep Branch Technology, Every Company, MycoTechnology, NOVAMED, and Meati Foods.
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The Mycelium Based Packaging Market was valued at USD 420 million in 2024 and is projected to reach USD 1047.4 million by 2032, growing at a CAGR of 12.1%.
Rising demand for sustainable alternatives to plastics and stricter global regulations drive strong market growth.
Expanding applications in food, beverage, e-commerce, healthcare, and construction boost adoption across industries.
Leading players focus on scalability, durability, and automation, with firms like MycoWorks and Atlast Food Co investing in innovation.
High production costs and limited large-scale facilities act as restraints, slowing broader commercialization.
North America and Europe lead the market due to strict environmental rules, while Asia-Pacific grows fastest with industrial and e-commerce demand.
Latin America and the Middle East & Africa show emerging opportunities, supported by agricultural residue use and sustainability initiatives.
Market Drivers
Rising Sustainability Demands and Shift Toward Eco-Friendly Materials
The Mycelium Based Packaging Market benefits from global pressure to reduce plastic waste. Governments, corporations, and consumers push for alternatives that meet environmental standards. It uses agricultural waste and fungal networks to create biodegradable materials. The process eliminates harmful residues and breaks down naturally without polluting soil or water. Major brands explore it as a replacement for petroleum-based foams and plastics. Growing public awareness of single-use plastics accelerates adoption across industries.
For instance, MycoTechnology’s Aurora facility is true. MycoTechnology scaled its manufacturing operations to an 86,000 sq ft facility in Aurora, Colorado, where it produces its innovative ingredients, including the ClearIQ™ and the newly introduced ClearHT™ lines.
Increasing Adoption in Food and Beverage Packaging Applications
Food safety regulations drive the Mycelium Based Packaging Market toward strong opportunities in perishable goods. It offers excellent thermal insulation and moisture resistance for food delivery, storage, and retail packaging. The material maintains product integrity while reducing contamination risks. Companies in the beverage sector apply it for protective bottle and can packaging. Its lightweight nature reduces transport costs and energy usage in logistics. Regulatory support for sustainable packaging aligns with rising demand from foodservice operators.
For instance, Rebellyous Foods developed its patented Mock 2 production system, transforming plant‑based meat making into a fully continuous, automated process. This system achieves 2,500 to 5,000 pounds per hour throughput on a single processing line.
Expanding Role in E-Commerce and Protective Packaging Solutions
The surge in online retail supports growth in the Mycelium Based Packaging Market. Fragile products require reliable, durable, and shock-resistant protective solutions. It provides cushioning strength comparable to conventional foams while offering biodegradability. Electronics, cosmetics, and home appliances sectors adopt it to meet green packaging commitments. Lower production costs through local agricultural waste sourcing make it commercially viable. Global courier firms test the technology to cut their plastic footprint in distribution networks.
Advancements in Manufacturing Technologies and Scaling Potential
Continuous research enhances the commercial viability of the Mycelium Based Packaging Market. It benefits from improvements in molding techniques, automation, and scalability. Customization options allow manufacturers to design shapes tailored for diverse industries. Recent innovations improve material density and durability without chemical additives. Investments in pilot plants and collaborations with biotech firms accelerate scaling capacity. Strong research ecosystems in North America and Europe push the technology toward mass adoption.
Market Trends
Growing Integration of Circular Economy Principles Across Packaging Supply Chains
The Mycelium Based Packaging Market aligns with expanding circular economy practices. It transforms agricultural byproducts into biodegradable packaging, reducing landfill dependency. Brands integrate it into closed-loop systems that prioritize resource efficiency. Companies highlight carbon footprint reduction as a key differentiator for customers. It supports waste-to-value strategies that attract regulatory and consumer approval. This trend reinforces sustainability as a central pillar of packaging innovation.
For instance, with Rei-Tanning™, Reishi™ achieved 20,000 Flex cycles and 25,600 abrasion cycles, bringing its durability on par with luxury-grade leathers.
Rising Collaborations Between Biotech Firms and Global Consumer Brands
Strategic partnerships shape the Mycelium Based Packaging Market. Large consumer goods companies invest in startups to scale bio-based packaging capacity. It accelerates commercialization through shared research, pilot production, and global distribution networks. Biotech firms secure credibility by aligning with household brand names. Joint development agreements help overcome early-stage supply limitations. This trend signals stronger integration of biotechnology into mainstream packaging markets.
For instance, MycoWorks projects that with optimization, carbon emissions for producing 1 m² of Reishi™ will decrease from 13.88 kg CO₂-eq to 2.76 kg CO₂-eq, highlighting major gains in sustainability.
Expansion of Application Scope Beyond Food and Consumer Goods Packaging
The Mycelium Based Packaging Market now extends into industrial and specialty applications. It serves automotive, electronics, and healthcare sectors seeking sustainable protective materials. The ability to mold into custom forms creates design flexibility for complex products. It provides insulation, strength, and biodegradability unmatched by conventional foams. Niche sectors adopt it to comply with sustainability certifications. The broadening of use cases strengthens the market’s long-term potential.
Increasing Focus on Automation and Scalable Production Methods
The Mycelium Based Packaging Market advances through innovation in automated manufacturing. It relies on controlled growth chambers and precision molding techniques. Investments in robotics and smart monitoring shorten production cycles. It enhances consistency and ensures quality control for large-scale orders. Pilot facilities transition into commercial plants with higher throughput. This trend indicates readiness for industrial-level adoption across global packaging supply chains.
Market Challenges Analysis
High Production Costs and Limitations in Scaling Capacity
The Mycelium Based Packaging Market faces persistent challenges in production economics. It requires controlled growth conditions, specialized substrates, and extended cultivation cycles. These factors increase operational costs compared to mass-produced plastics. Limited automation further restricts output capacity, slowing adoption in high-volume industries. It struggles to compete on price when conventional alternatives dominate global supply chains. Small and mid-sized enterprises find it difficult to match the economies of scale of established packaging producers. Investment in scalable facilities remains essential to address cost barriers.
Regulatory Uncertainty and Market Acceptance Barriers
The Mycelium Based Packaging Market also contends with fragmented regulatory frameworks. It must comply with varying standards for biodegradability, compostability, and food safety across regions. Certification delays slow entry into critical markets such as food and healthcare. It also faces resistance from customers unfamiliar with bio-based materials. Concerns over durability, shelf life, and performance consistency create hesitation in adoption. Consumer education and transparent testing data are required to build trust. Overcoming these challenges is necessary to achieve broader industry acceptance.
Market Opportunities
Rising Demand for Sustainable Alternatives Across Global Packaging Sectors
The Mycelium Based Packaging Market holds strong opportunities through rising sustainability commitments. Governments enforce strict regulations against single-use plastics, creating space for bio-based solutions. It delivers compostable, non-toxic, and renewable options that align with these policies. Consumer preference for eco-friendly products further strengthens the market position. Large corporations seek green packaging to enhance brand credibility and meet corporate responsibility targets. It benefits from global initiatives that incentivize biodegradable and low-carbon materials. The alignment of regulation, consumer demand, and corporate strategy builds a favorable growth environment.
Expansion Potential in Emerging Industries and Niche Applications
The Mycelium Based Packaging Market also gains momentum in sectors beyond food and retail. It offers protective, durable, and customizable designs for electronics, healthcare, and automotive components. Biodegradable insulation and molded solutions create value for industries seeking lightweight yet strong materials. It can address niche requirements in pharmaceuticals, where sterile and safe packaging is critical. Rising e-commerce volumes further expand opportunities for cushioning and shipping protection. The ability to replace petroleum-based foams with a renewable option creates long-term adoption pathways. This diversification into multiple industries provides resilience and scalability for future growth.
Market Segmentation Analysis:
By Type
The Mycelium Based Packaging Market divides into pure mycelium, composite, foam, and other formats. Pure mycelium packaging gains traction due to its natural biodegradability and clean production process. It suits industries that require minimal chemical treatment and high sustainability credentials. Mycelium composite packaging combines fungal networks with agricultural waste, offering higher strength and durability. It is widely used where shock absorption and load-bearing performance are important. Mycelium foam packaging replicates traditional foams in cushioning properties while maintaining biodegradability. Other forms address niche demands in specialty applications across smaller markets.
For instance, Aerbio (formerly Deep Branch) currently produces 200 kilograms of the single-cell protein ‘Proton’ per month. Engineering is underway for a larger ‘Market Launch Facility’ with a projected production capacity of 250 metric tonnes per year, demonstrating a viable scale-up strategy for commercial animal feed production.
By Packaging Format
Packaging format plays a vital role in aligning with industry requirements. Blocks remain dominant, especially in protective packaging for electronics and consumer goods. It delivers cushioning strength, form stability, and a reliable alternative to expanded polystyrene. Sheets appeal to industries such as foodservice and healthcare due to their flexibility and ease of customization. They serve as liners, trays, and flat protective layers for sensitive products. Other formats include molded inserts and specialty shapes developed for custom industrial use. These formats expand design versatility and demonstrate the adaptability of mycelium-based solutions.
For instance, Mega Ranch facility in Thornton, Colorado spans 100,000 sq ft. It is designed to produce tens of millions of pounds of whole-food mycelium annually.
By End User
End-user adoption highlights the broad utility of mycelium packaging. The food and beverage sector leads usage, supported by demand for sustainable alternatives to plastic containers and trays. It provides thermal insulation, moisture resistance, and food-safe properties, which ensure compliance with regulatory standards. Consumer goods companies adopt mycelium packaging to reinforce brand sustainability initiatives. Healthcare industries explore sterile, biodegradable formats that meet safety and environmental expectations. Construction emerges as a new adopter, applying it in insulation and lightweight structural materials. Other sectors, including logistics and specialty retail, recognize its potential for protective, low-impact packaging.
Segments:
Based on Type:
Pure mycelium packaging
Mycelium composite packaging
Mycelium foam packaging
Others
Based on Packaging Format:
Blocks
Sheets
Others
Based on End-User:
Food and beverage
Consumer goods
Healthcare
Based on the Geography:
North America
U.S.
Canada
Mexico
Europe
Germany
France
U.K.
Italy
Spain
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
South-east Asia
Rest of Asia Pacific
Latin America
Brazil
Argentina
Rest of Latin America
Middle East & Africa
GCC Countries
South Africa
Rest of the Middle East and Africa
Regional Analysis
North America
North America holds about 38% of the Mycelium Based Packaging Market. Strong government rules on reducing plastic waste push companies to adopt bio-based packaging. Big players like Ecovative Design run large facilities and supply food, consumer goods, and e-commerce companies. It also benefits from wide access to agricultural waste that supports production. Investments in automation help companies scale faster. Many brands in the U.S. and Canada prefer it to meet sustainability goals.
Europe
Europe has around 31% of the market. The European Union’s strict environmental rules support mycelium packaging adoption. It is widely used in food, cosmetics, and luxury goods. Research institutes and startups work together to develop stronger and lighter products. Several EU projects fund trials to improve compostable packaging. Companies in Germany, the Netherlands, and the U.K. lead many initiatives. It helps brands reduce carbon impact and meet green supply chain standards.
Asia-Pacific
Asia-Pacific covers about 22% of the Mycelium Based Packaging Market. Rising e-commerce and strong electronics exports create high demand for protective packaging. Countries like China, India, and Japan use local crop waste to lower costs. Research centers focus on shortening growth cycles to speed production. It is used in food, electronics, and logistics sectors. Many startups in the region expand small pilot projects into full-scale production. Governments also encourage sustainable materials through new policies.
Latin America
Latin America holds about 7% of the Mycelium Based Packaging Market. Countries such as Brazil, Mexico, and Chile explore it as a way to reduce plastic waste. The region has strong access to agricultural byproducts like corn husks, sugarcane bagasse, and coffee waste that support mycelium growth. Food and beverage companies test it for trays, containers, and protective blocks. Local startups work with universities to scale pilot plants into larger facilities. Governments slowly introduce sustainability policies that encourage bio-based packaging. It remains small but shows strong promise due to natural resource availability.
Middle East & Africa
The Middle East and Africa make up about 9% of the market. The region looks at both packaging and construction uses for mycelium. Gulf countries test it in insulation panels and packaging for luxury exports. Access to crop waste supports local supply chains. Universities in the region run trials with industry partners to increase awareness. It is still small but growing as sustainability gains importance. Certification for green buildings also supports adoption.
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The Mycelium Based Packaging Market players include Rebelly, Nature’s Fy, Atlast Food Co, All G Foods, MycoWorks, Deep Branch Technology, Every Company, MycoTechnology, NOVAMED, and Meati Foods. The Mycelium Based Packaging Market is defined by rapid innovation, strong sustainability drivers, and rising demand from multiple industries. Companies focus on developing biodegradable solutions that can replace traditional plastics while maintaining durability and performance. Competition revolves around scaling production, improving cost efficiency, and meeting strict regulatory standards for food safety and compostability. Research centers and startups invest in advanced molding techniques, shorter growth cycles, and automation to boost output. Partnerships with consumer goods, e-commerce, and healthcare sectors expand adoption and strengthen credibility. The market’s competitive edge comes from the ability to deliver consistent quality, reduce environmental impact, and integrate seamlessly into existing supply chains.
Recent Developments
In April 2025, Donald Trump’s proposed tariff policies policies are expected to impact the global pulp and paper industry by increasing production costs, shifting trade patterns and creating pricing. If tariffs are imposed on imported materials or equipment used in packaging products, producers could face higher operational expenses.
In February 2024, Morae worked alongside Evocative, a company that specializes in mycelium packaging, to create sustainable mushroom-based packaging for the haircare brand, the Rootist. This innovative tray is fully compostable, allowing consumers to compost it at home.
In November 2023, South Mill Champs made a significant announcement confirming its acquisition of World Fresh Produce, a global company specializing in fresh produce sourcing. South Mill Champs is renowned for producing diverse mushroom products for food service, co-packing, and private-label purposes, including Minute Mushrooms, Saucy Mushrooms, and Shrooms Mushroom Coffee.
In November 2023, Xampla announced a collaboration with 2M Group of Companies to scale up the production and distribution of its fully biodegradable plant-based materials. 2M will manufacture multiple tonnes of Morro materials at its Milton Keynes Manufacturing site.
Report Coverage
The research report offers an in-depth analysis based on Type, Packaging Format, End-User and Geography. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook
The Mycelium Based Packaging Market will grow with stronger demand for eco-friendly materials.
Companies will scale automated production to meet high-volume industrial requirements.
Food and beverage industries will adopt it for safe and sustainable packaging solutions.
E-commerce growth will create opportunities for protective blocks and cushioning products.
Research will improve material density and reduce growth cycle times.
Healthcare applications will expand through sterile and compostable packaging formats.
Construction will adopt it in insulation and lightweight structural materials.
Strategic collaborations will increase between biotech firms and global consumer brands.
Governments will support adoption with stricter regulations against plastic waste.
Global supply chains will integrate it into sustainability commitments and carbon reduction goals.
1. Introduction
1.1. Report Description
1.2. Purpose of the Report
1.3. USP & Key Offerings
1.4. Key Benefits for Stakeholders
1.5. Target Audience
1.6. Report Scope
1.7. Regional Scope
2. Scope and Methodology
2.1. Objectives of the Study
2.2. Stakeholders
2.3. Data Sources
2.3.1. Primary Sources
2.3.2. Secondary Sources
2.4. Market Estimation
2.4.1. Bottom-Up Approach
2.4.2. Top-Down Approach
2.5. Forecasting Methodology
3. Executive Summary
4. Introduction
4.1. Overview
4.2. Key Industry Trends
5. Global Mycelium Based Packaging Market
5.1. Market Overview
5.2. Market Performance
5.3. Impact of COVID-19
5.4. Market Forecast
6. Market Breakup by Type
6.1. Pure mycelium packaging
6.1.1. Market Trends
6.1.2. Market Forecast
6.1.3. Revenue Share
6.1.4. Revenue Growth Opportunity
6.2. Mycelium composite packaging
6.2.1. Market Trends
6.2.2. Market Forecast
6.2.3. Revenue Share
6.2.4. Revenue Growth Opportunity
6.3. Mycelium foam packaging
6.3.1. Market Trends
6.3.2. Market Forecast
6.3.3. Revenue Share
6.3.4. Revenue Growth Opportunity
6.4. Others
6.4.1. Market Trends
6.4.2. Market Forecast
6.4.3. Revenue Share
6.4.4. Revenue Growth Opportunity
7. Market Breakup by Packaging Format
7.1. Blocks
7.1.1. Market Trends
7.1.2. Market Forecast
7.1.3. Revenue Share
7.1.4. Revenue Growth Opportunity
7.2. Sheets
7.2.1. Market Trends
7.2.2. Market Forecast
7.2.3. Revenue Share
7.2.4. Revenue Growth Opportunity
7.3. Others
7.3.1. Market Trends
7.3.2. Market Forecast
7.3.3. Revenue Share
7.3.4. Revenue Growth Opportunity
8. Market Breakup by End-User
8.1. Food and beverage
8.1.1. Market Trends
8.1.2. Market Forecast
8.1.3. Revenue Share
8.1.4. Revenue Growth Opportunity
8.2. Consumer goods
8.2.1. Market Trends
8.2.2. Market Forecast
8.2.3. Revenue Share
8.2.4. Revenue Growth Opportunity
8.3. Healthcare
8.3.1. Market Trends
8.3.2. Market Forecast
8.3.3. Revenue Share
8.3.4. Revenue Growth Opportunity
9. Market Breakup by Region
9.1. North America
9.1.1. United States
9.1.1.1. Market Trends
9.1.1.2. Market Forecast
9.1.2. Canada
9.1.2.1. Market Trends
9.1.2.2. Market Forecast
9.2. Asia-Pacific
9.2.1. China
9.2.2. Japan
9.2.3. India
9.2.4. South Korea
9.2.5. Australia
9.2.6. Indonesia
9.2.7. Others
9.3. Europe
9.3.1. Germany
9.3.2. France
9.3.3. United Kingdom
9.3.4. Italy
9.3.5. Spain
9.3.6. Russia
9.3.7. Others
9.4. Latin America
9.4.1. Brazil
9.4.2. Mexico
9.4.3. Others
9.5. Middle East and Africa
9.5.1. Market Trends
9.5.2. Market Breakup by Country
9.5.3. Market Forecast
10. SWOT Analysis
10.1. Overview
10.2. Strengths
10.3. Weaknesses
10.4. Opportunities
10.5. Threats
11. Value Chain Analysis
12. Porter’s Five Forces Analysis
12.1. Overview
12.2. Bargaining Power of Buyers
12.3. Bargaining Power of Suppliers
12.4. Degree of Competition
12.5. Threat of New Entrants
12.6. Threat of Substitutes
13. Price Analysis
14. Competitive Landscape
14.1. Market Structure
14.2. Key Players
14.3. Profiles of Key Players
14.3.1. Atlast Food Co
14.3.1.1. Company Overview
14.3.1.2. Product Portfolio
14.3.1.3. Financials
14.3.1.4. SWOT Analysis
14.3.2. NOVAMED
14.3.2.1. Company Overview
14.3.2.2. Product Portfolio
14.3.2.3. Financials
14.3.2.4. SWOT Analysis
14.3.3. MycoTechnology
14.3.3.1. Company Overview
14.3.3.2. Product Portfolio
14.3.3.3. Financials
14.3.3.4. SWOT Analysis
14.3.4. Every Company
14.3.4.1. Company Overview
14.3.4.2. Product Portfolio
14.3.4.3. Financials
14.3.4.4. SWOT Analysis
14.3.5. Rebelly
14.3.5.1. Company Overview
14.3.5.2. Product Portfolio
14.3.5.3. Financials
14.3.5.4. SWOT Analysis
14.3.6. MycoWorks
14.3.6.1. Company Overview
14.3.6.2. Product Portfolio
14.3.6.3. Financials
14.3.6.4. SWOT Analysis
14.3.7. Deep Branch Technology
14.3.7.1. Company Overview
14.3.7.2. Product Portfolio
14.3.7.3. Financials
14.3.7.4. SWOT Analysis
14.3.8. Nature’s Fy
14.3.8.1. Company Overview
14.3.8.2. Product Portfolio
14.3.8.3. Financials
14.3.8.4. SWOT Analysis
14.3.9. All G Foods
14.3.9.1. Company Overview
14.3.9.2. Product Portfolio
14.3.9.3. Financials
14.3.9.4. SWOT Analysis
14.3.10. Meati Foods
14.3.10.1. Company Overview
14.3.10.2. Product Portfolio
14.3.10.3. Financials
14.3.10.4. SWOT Analysis
15. Research Methodology
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Frequently Asked Questions
What is the current market size for Mycelium Based Packaging Market, and what is its projected size in 2032?
The market was valued at USD 420 million in 2024 and is projected to reach USD 1047.4 million by 2032.
At what Compound Annual Growth Rate is the Mycelium Based Packaging Market projected to grow between 2025 and 2032?
The market is projected to expand at a CAGR of 12.1% during 2025–2032.
Which Mycelium Based Packaging Market segment held the largest share in 2024?
The food and beverage segment held the largest share in 2024.
What are the primary factors fueling the growth of the Mycelium Based Packaging Market?
Key drivers include rising demand for eco-friendly alternatives, strict environmental rules, and adoption in food, e-commerce, and healthcare sectors.
Who are the leading companies in the Mycelium Based Packaging Market?
Major players include Rebelly, Nature’s Fy, Atlast Food Co, All G Foods, MycoWorks, Deep Branch Technology, Every Company, MycoTechnology, NOVAMED, and Meati Foods.
Which region commanded the largest share of the Mycelium Based Packaging Market in 2024?
North America commanded the largest share in 2024 with about 38%.
About Author
Rajdeep Kumar Deb
Lead Analyst – Consumer & Finance
Rajdeep brings a decade of consumer goods and financial services insight to strategic market analysis.
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