Mycelium-based Packaging Market Size – By Type, Function Type, Packaging Format, End Use Industry Analysis, Share, Growth Forecast, 2025 - 2034

Mycelium-based Packaging Market Size

The global mycelium-based packaging market was valued at USD 84.9 million in 2024 and is projected to grow at a compound annual growth rate (CAGR) of 9.4% during the forecast period from 2025 to 2034. By the end of 2034, the market is expected to reach a valuation of approximately USD 208.8 million.
 

The historical expansion of the market can be linked to rising concern about the environment, as well as the adoption of green alternatives to typical plastic packaging. Governments across the globe have placed severe restrictions on the use of plastic, thereby increasing the need for mycelium-based biodegradable materials. Furthermore, people’s perception with regard to sustainability and eco-friendliness of the packaging materials is also critical in determining the growth of the market. According to According to Statista, the sustainable packaging market was valued at over USD 270 billion in 2024, reflecting steady growth in recent years.
 

Driving forces of the market include the lightweight, durable, and compostable mycelium-based packaging materials derived from fungus roots and versatility. These materials are used to package products in the food and beverage industry, electronics, and even personal care items. In addition, growing competition and new markets are seeing the benefits of reduced carbon footprints with mycelium-based packaging. This change, along with various changes in production technologies, has made the mycelium-based packaging more affordable, attracting many other consumers and producers.
 

The company's commitment to sustainability suggests that the detailed forecast performance period sustained growth during 2025 to 2034 due to an increase in market opportunities. Investment in the research and development of mycelium-based packaging systems will improve the efficiency of scalability and performance. Also, the innovative and unsolved packaging problem of the growing e-commerce industry is expected to further increase demand for these mycelium-based packaging solutions and thus increase market demand.
 

Since the market is lacking in some regions, advanced competition from other biodegradable packaging materials restricts moving the mycelium-based packaging industry towards promising growth. Sustained consumer and business education efforts for mycelium-based packaging are expected to overcome these challenges in the long run.
 

Emphasis on sustainability, supported policies, improved production technology, and heightened environmental concern are the factors expected to fuel the global market growth for mycelium-based packaging materials. A projection of over two-fold valuation from 2024 to 2034 further highlights the potential of mycelium-based packaging materials becoming a leader in sustainable packaging.
 

Mycelium-based Packaging Market Trends

The mycelium-based packaging sector is undergoing rapid changes due to shifts in consumer behaviour, advancements in technology, and changes in regulations. Below are the industry trends along with their effects:
 

The movement toward eco-friendly packaging: International interest in sustainability serves as the cornerstone for the promotion of mycelium-based products. Packaging that is compostable and does not harm the environment is becoming a must; therefore, most buyers are becoming more conscious. This trend encourages companies to adopt mycelium-based alternatives in packaging to meet customer scepticism while the Council for Sustainable Solutions targets. For example, food and beverage companies are switching from conventional plastic to mycelium-based packaging to enhance waste reduction for marketing purposes.
 

The mycelium manufacturing industry is also experiencing a technological revolution: New packaging mycelium processing threatens amelioration in the value, volume, and affordability of mycelium products. Novel technologies like enhanced substrate formulations and automated packing ensure that manufacturers can make higher-grade, more reliable, and long-lasting packaging materials. This expansion is also applicable to the electronics and cosmetics industries due to the high concern for aesthetics and fortification, which broadens the scope of usage for mycelium-based packaging.
 

Plastic and biodegradable material policies: The environmental policies of different governments have been shifting toward more restrictive strategies on the management of plastic waste. Mycelium-based packaging is fully supported by legislation such as bans on single-use plastics and incentives towards more sustainable packaging. A good illustration is the increased use of mycelium products as alternatives to older products, which was addressed in the United Directive on Single-Use Plastics. On November 2022, the European Commission published a communication1 addressing the role of biobased, biodegradable, and compostable plastics (colloquially known as bioplastics) in achieving the EU’s climate goals. The communication aims to highlight the applications and conditions under which biobased and biodegradable plastics present a more environmentally friendly alternative to traditional plastic materials.
 

The investment of sustainable startups: Due to the environmentally friendly nature of mycelium, it has attracted heavy investments from companies aimed at mycelium innovations, which, in turn, improves its commercial attractiveness. These sustainable-focused companies are funded by large corporates or venture capital companies. This focus on scalability and commercial viability strengthens innovation and provides a scope for these startups to prosper in a new market.
 

Growing acceptance across new industries: This is most notable in the food and beverage industry, where mycelium packaging is used not only to wrap fresh agricultural products, drinks, and even pre-prepared meals, but also in the electronics industry as protective casings and in cosmetics as packaging for products where mycelium is marketed as an environmentally sustainable product. This wide industrial application improves the adaptability and marketable value of mycelium bioproducts.
 

If the Trump administration returns, potential tariffs on imported bio-based materials or eco-friendly packaging could impact the growth of the mycelium-based packaging market. A protectionist stance might favor traditional plastic and fossil fuel-based packaging industries, leading to higher duties on imported mycelium products or related inputs from innovation hubs like Europe or Asia. This would raise costs for U.S. companies dependent on global supply chains, slowing adoption in sectors like food, electronics, and e-commerce. Domestic producers might see reduced foreign competition but could also face challenges if they rely on imported equipment or biological strains. Additionally, a possible rollback of green incentives and environmental regulations could reduce investment and innovation in sustainable packaging. However, rising consumer demand for eco-friendly solutions might still drive local development and manufacturing of mycelium packaging despite the policy headwinds.
 

Mycelium-based Packaging Market Analysis

Based on type, the mycelium-based packaging industry is segmented into types such as pure mycelium packaging, mycelium composite packaging, mycelium foam packaging and others. The pure mycelium packaging segment is projected to reach USD 40.7 million by 2034, growing at a CAGR of over 9.3% during the forecast period. The use of pure mycelium packaging is rising because of its application in food and beverage industries and biodegradability. This segment is likely to experience sharp growth. It is preferred due to its lightweight and durable nature, making it an ideal solution for industries looking to cut down on their negative environmental impact. Sustained demand for sustainable alternatives to plastic also aims to propel growth for this segment.
 

Mycelium composite packaging, which includes mycelium combined with agricultural waste or other natural fibers, is also aiding the growth of the market significantly. This type is particularly useful in protective packaging, such as cushioning for fragile items. Its ability to supplant traditional Styrofoam while being relatively inexpensive fosters its use in many industries, such as electronics and e-commerce.
 

Mycelium foam packaging is now emerging as the main innovation in the market. Its unique structure makes it adept at providing insulation to temperature-sensitive products as well as adding value-shielding shock absorbance. Increased focus on cutting down carbon footprint along the supply chain is also driving growth for mycelium foam packaging as it supports emission reduction targets.
 

Other forms of mycelium-based packaging, including unique designs, are further helping the market grow. These designs meet specialized applications and particular needs for different sectors, which leads to market expansion. The multifunctionality of mycelium-based materials keeps bringing in funding for research and development, which guarantees constant improvements in product designs.
 

By function type, the mycelium-based packaging market is divided into three segments: cushioning, bracing, and void fill. The cushioning segment leads the market, holding a 67.5% share. It is projected to grow at a CAGR of over 9.5% from 2025 to 2034, reaching an estimated valuation of more than USD 141.6 million by 2034 due to rising demand for protective packaging in e-commerce, electronics, and healthcare industries. Changes within this segment have been positive, as an increased focus has been put on lessening product damage during transportation, adopting green foams, and the general shift toward eco-friendly business practices. A few challenges this segment will tackle are cyclic volatility in raw material prices and growing needs for budget-friendly options.
 

Although the bracing segment may have a lower share of the market, it is growing in popularity due to its ability to restrain the movable parts of the product during transit. This type of function is most common in industries dealing with fragile and high-value items such as fine glass and jewelry. Strengthened bracing works tantalizingly with lightweight and recyclable materials, attracting more designers. Balancing performance with affordability remains a problematic challenge for this segment.
 

The third part, void fill, addresses the need for preventing movement of products through filling any empty spaces in the packaging. This part is experiencing steady growth driven by the expansion of e-commerce and the requirement for cost-effective packaging for various product dimensions. The greater adoption of biodegradable and recyclable void fill materials is noteworthy as it contributes to global sustainability goals. Pricing strategies are crucial to this segment since cuts in the business’ expenses will need to be met with environmental policies. While there are opportunities for growth in the segment, challenges including the availability of materials and solutions to address changing consumer and industry needs need to be solved.
 

Mycelium-based packaging market is classified into three main forms: blocks, sheets, and others. Each form has its specific uses and has varying growth opportunities alongside challenges. The Blocks segment continues to dominate the market due to its popularity as a protective package for fragile goods. It has become a sustainable alternative to traditional foam-based packaging materials which has enabled its adoption in consumer goods and electronic packaging. Despite this, wider adoption is still restricted by issues like scalability and production costs.
 

The market is divided by major end-use industries as follows: food and beverage, consumer goods, healthcare, construction, and others. Each sector offers different adoption drivers and challenges for mycelium-formed packaging technology for the specific industry.
 

In the food and beverage industry, the growth driver lies in the sustainable and biodegradable packaging. The increasing consumer demand for alternatives to eco-harmful goods and plastic usage in food products, alongside strict laws controlling single-use plastics, enhances the market. However, maintaining industry-critical food safety standards and competitiveness in cost with traditional materials challenges the sector. The slogan of the environmentally aware and actively concerned consumers helps the brands push for sustainability. The underscore of the company’s sustainability impression is the mycelium packaging and the actively changing marketable alterations in the consumer goods sector.
 

In the regional landscape, the North American mycelium-based packaging market is expected to grow at a CAGR of over 9.2% from 2025 to 2034. North America is one of the leading regions owing to the rising environmental concern and enabling government policy. The market on a country level is particularly dominated by the U.S. due to the advanced packaging industry in the country along with the increasing need for sustainable packaging options. Adoption of mycelium-based products has been further driven by federal and state-level policies aimed at promoting environmental sustainability in packaging.
 

Marketers in the U.S. are profiting along with the rigid mandates regarding single-use plastics and shifting consumer preferences towards biodegradable packaging. The robust e-commerce sector is also increasingly contributing to the sustainable packaging materials market, as supplying businesses tend to integrate sustainable practices into their operations owing to heightened consumer demand. With the presence of most US market players, ongoing research and development activities are bound to become innovative drivers for expanding the use and scope of mycelium-based packaging.
 

Canada, albeit with a lesser share when juxtaposed with the United States, is also experiencing growth in the mycelium-based packaging market. The local government’s goal of reaching a target of issuing net-zero plastic waste by 2030 is also encouraging sustainable packaging alternatives. Besides, the country's robust agricultural industry has a surfeit of primary resources like agricultural by-products, which are vital for the production of mycelium-based packaging. This resource availability, together with heightened marketing from consumers and businesses, is propelling growth in Canada.
 

Some region-specific factors, such as the increasing need for sustainable packaging in food and beverages, cosmetics, and consumer goods, are strengthening the North American market. Companies from these sectors are shifting to mycelium-based packaging in a bid to lessen their environmental impact as well as meet emerging guidelines, policies, and legislation. Shifts toward a circular economy and carbon emission reduction initiatives are also driving market growth in the region.
 

The North American economy, with its high disposable income as well as concentration towards eco-friendliness, provides further market opportunities. Customers are ready to spend extra money on eco-friendly products, which motivates manufacturers to adopt ‘green’ packaging initiatives. Also, partnerships of packaging firms with both industry and academic researchers are further promoting development, improving the quality and production volume of mycelium shipping containers.
 

Thus, the mycelium-based containers in North America have a significant growth potential with favorable government investment policies, rising consumer sentiment, and strong support from the industrial backbone in the region. The market is currently dominated by the US and Canada, who are committed to sustainability and innovative packaging. These dynamics will promote the growth of the market during the forecast period.
 

Mycelium-based Packaging Market Share

In the mycelium-based packaging industry, leading companies such as Ecovative Design, GROWN bio, Magical Mushroom Company, Mycobez AG, and Mushroom Packaging are the top 5 players which form a value chain that captures more than 45% of the total market share. Ecovative Design is positioned as a market leader for being the first to create mycelium-based packaging and continues to dominate market focus due to innovation and sustainability.
 

Ecovative Design has furthered its competitive advantage by employing its patented molding technology that allows the design of high-quality biodegradable packaging products. The firm has also been proactively working with multinational companies to penetrate emerging markets and neighboring regions to meet the demand for green packaging in order to further establish brand equity. Its collaborations alongside relentless investments in research and development positioned the firm as an unparalleled leader in tailoring diverse industry requirements.
 

Another key market player GROWN bio has also been heavily focused on meeting the demand of providing international-grade green packaging by expanding its production capabilities. The firm has also ventured into other domains, such as employing mycelium-based materials as protective casing for sensitive electronics and other consumer goods. GROWN bio’s effort for market diversification through portfolio expansion targeting niche segments has further positioned the firm in a competitive advantage.
 

Its low-cost, customizable mycelium-based packaging products are redesigning their strategy. The Magical Mushroom Company started pursuing partnerships with retailers and manufacturers. Their mycelium packaging is inexpensive, and providing businesses with paperless sustainable solutions that easily adhere to business standards makes The Magical Mushroom Company an ideal choice.
 

Mycrobez AG has directed its resources towards improving the performance and durability of their products with R&D activities. They also integrated 3D engineering technologies into their production processes. These efforts have broadened market access for Mycrobez AG and improved their competitive edge.
 

Mushroom Packaging is known as an innovator as it addresses unmet needs by creating industry-specific packaging for food and beverages, cosmetics, and e-commerce. The company has also taken an active role in promoting sustainability by creating awareness campaigns on the advantages of mycelium packaging to increase its adoption in the market.
 

Mycelium-based Packaging Market Companies

Innovative firms like Ecovative Design, GROWN bio, Magical Mushroom Company, Mycrobez AG, and Mushroom Packaging are strong drivers of the mycelium-based packaging industry. The companies account for a significant share of the market. Ecovative Design utilizes its technology and alliance-first strategy to lead the market. GROWN bio specializes in increased production and targeted uses, and the Magical Mushroom Company concentrates on affordability and scalability. Research and advanced manufacturing is done by Mycrobez AG. Particular orders from industry clients are met by Mushroom Packaging. These firms address the need for more sustainable alternative packaging through collaboration, diversification, and other marketing efforts.
 

Mycelium-based Packaging Industry News

• In September 2024, IKEA announced a switch to biodegradable packaging made from mushrooms, developed by American company Ecovative, in a move to reduce environmental waste. Each year, over 14 million tons of non-biodegradable polystyrene—made from petroleum—are discarded in landfills, contributing to severe pollution, with projections indicating that by 2050, 99% of birds may have plastic in their stomachs. The new packaging, made from mycelium grown around agricultural waste, fully decomposes in a garden within weeks and is already used by major companies like Dell to replace polystyrene-based cushioning.
   
• Trump administration tariffs April 2025: In the future, Donald Trump’s proposed tariff policies might possibly impact the mycelium-based packaging industry by increasing production costs and disrupting global trade flows. If tariffs are imposed on imported materials or equipment used in packaging products, producers could face higher operational expenses. Additionally, there could be retaliatory tariffs from key export markets like China or Mexico, which might reduce international demand for U.S. mycelium-based packaging products. This may lead to a domestic surplus, potentially lowering prices but squeezing profit margins.
   

The mycelium-based packaging market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) & volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Type

• Pure mycelium packaging
• Mycelium composite packaging
• Mycelium foam packaging
• Others

Market, By Function Type

• Cushioning
• Bracing
• Void Fill

Market, By Packaging Format

• Blocks
• Sheets
• Others

Market, By End Use Industry

• Food and beverage
• Consumer goods
• Healthcare
• Construction
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa