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Mushroom Based Packaging Market

The market for Mushroom Based Packaging was estimated at $67.5 million in 2025; it is anticipated to increase to $96.0 million by 2030, with projections indicating growth to around $137 million by 2035.

Report ID:DS1303003
Author:Vineet Pandey - Business Consultant
Published Date:
Datatree
Chemicals & Materials
Packaging
Mushroom Based Packaging
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Report Summary
Market Data
Methodology
Table of Contents

Global Mushroom Based Packaging Market Outlook

Revenue, 2025

$67.5M

Forecast, 2035

$136M

CAGR, 2026 - 2035

7.3%

The Mushroom Based Packaging industry revenue is expected to be around $67.5 million in 2026 and expected to showcase growth with 7.3% CAGR between 2026 and 2035. The Mushroom Based Packaging market has evolved from its experimental beginnings to become a major commercial sector of sustainable packaging because of increasing regulations against single use plastics and corporate sustainability and ESG requirements and consumer interest in environmentally friendly packaging solutions. The current market demand for food and electronics packaging applications reaches 66.9% because these products need materials which provide both performance and safety and brand differentiation in high volume protective packaging applications. The Mushroom Based Packaging industry generated 31.52 million in sales during 2025 through its Mycelium Composite which proves its position as a dependable plastic substitute for biodegradable packaging solutions and circular economy packaging systems. The packaging industry uses mycelium based materials which grow on agricultural waste to develop lightweight packaging solutions that provide durable fully compostable products which offer natural shock absorption and temperature regulation and aesthetic design options for protecting food items and electronic devices and other delicate products. The growing adoption of Mushroom Based Packaging occurs because it contains non toxic materials which can be composted at home and in industries and it works with existing automated packaging systems. The e commerce packaging and premium consumer goods industries adopt Mushroom Based Packaging because of its non toxic nature and home and industrial compostability and its ability to work with automated packing lines. The market shows ongoing interest in Mushroom Based Packaging because of new production methods for mycelium packaging and reduced cultivation times and better material quality and business alliances between creative companies and worldwide corporations.

Mushroom Based Packaging market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Mushroom Based Packaging Market Outlook

Market Key Insights

  • The Mushroom Based Packaging market will expand from $67.5 million in 2025 to reach $137 million by 2035. The market shows a 7.3% annual growth rate because customers increasingly want products from Food Packaging and Electronics Packaging and Consumer Goods segments.

  • The market leaders Ecovative Design and MycoWorks and Sealed Air determine the competitive dynamics of this industry.

  • The Mushroom Based Packaging market shows its highest demand in the United States and Canada which will experience 4.7% to 7.0% annual growth rates from 2025 to 2030.

  • Our analysis predicts that India, Brazil and Australia will experience the most significant growth among emerging markets at a combined annual rate of 8.4% to 10.1%.

  • The Green Packaging Transition will generate $8 million in additional market expansion for Mushroom Based Packaging throughout the next ten years.

  • The Mushroom Based Packaging market will experience a $69.1 million growth span from 2025 to 2035 while manufacturers focus on specific market segments which will lead to increased market dominance.

  • The Mushroom Based Packaging market will experience a 102% growth from 2025 to 2035 because of its biodegradable properties and its renewable source origin.

mushroom based packaging market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Mushroom Based Packaging - Country Share Analysis

Opportunities in the Mushroom Based Packaging

The Asia Pacific region requires Mushroom Based Packaging solutions which protect perishable items while minimizing plastic usage to access new market potential for mycelium based foam liners and panels. The market value of Mycelium based Foam stands at USD 12.42 million during 2025 but experts predict it will also expand to 16.94 million by 2030 for chilled food applications. The implementation of mycelium packaging requires validation through partnerships with cold chain logistics providers and regional food retailers to establish performance standards which will support biodegradable materials strategies for temperature sensitive e commerce fulfillment.

Growth Opportunities in North America and Europe

The North American market shows the fastest adoption of Mushroom Based Packaging which finds its main use in electronics and personal care & cosmetics applications. The market demands sustainable packaging with high performance capabilities which must be compostable to fulfill both retailer standards and e commerce drop test requirements. The main business opportunities exist in the replacement of foam and plastic protective inserts which serve consumer electronics and premium beauty products and direct to consumer subscription boxes through the use of environmentally friendly materials that utilize local agricultural waste for mycelium cultivation at affordable costs. The market competition between specialty fiber packaging converters and bio based materials start ups and large packaging conglomerates who test biodegradable packaging lines has become more competitive thus enabling businesses to establish themselves through protected intellectual property and automated molding systems and large scale contract production capabilities. The main factors which drive the market in different regions stem from two sources: states with extended producer responsibility laws and corporate net zero targets and consumer demand for circular economy products and major technology and beauty companies that enter long term purchase agreements for Mushroom Based Packaging facilities.
The European market shows the highest interest in Mushroom Based Packaging for food products and premium personal care items because these sectors need environmentally friendly packaging solutions that meet strict regulations and retailer sustainability standards for their secondary and tertiary packaging needs. The market offers four main business opportunities which include fresh produce trays and specialty food gift boxes and artisanal beverage shippers and high end cosmetics gift sets that mycelium based designs can use to replace polystyrene and laminated corrugate while following organic and eco label standards for sustainable packaging. The competitive environment exists because multiple circular economy companies and fiber and paper packaging businesses and local agricultural cooperatives work together to develop mycelium molding techniques at their facilities which forces new market participants to create unique products through fast design changes and exact mold production and environmentally friendly packaging materials. The region offers favorable investment conditions because it has strict EU packaging waste regulations and national plastic taxes and retailer requirements for biodegradable packaging and high consumer demand for sustainable products. The region provides excellent opportunities for decentralized production facilities to locate near agricultural residue sources and major FMCG and cosmetics manufacturing facilities.

Market Dynamics and Supply Chain

01

Driver: Biodegradability, and Reduced Carbon Footprint

Using packaging made from mushrooms helps in the natural decomposition process which ultimately leads to a decrease, in waste and pollution. Manufacturing consumes low energy levels than plastics production does also and helps reduce greenhouse gas emissions.
Crafted from mycelium, and utilizing agricultural waste as its substrate to promote sustainability.
02

Restraint: Production Costs

Adoption of packaging materials is restricted due, to the high costs of production compared to traditional options.
03

Opportunity: Rising adoption of Mushroom Based Packaging for direct-to-consumer electronics fulfillment across North America and Premium natural cosmetics brands in Western Europe shifting to Mushroom Based Packaging for gift sets

North American direct to consumer electronics brands need Mushroom Based Packaging solutions which combine durability with affordable prices and environmental friendliness to enable the development of mycelium composite mailers and inserts. The market for Mycelium Composite protective packaging of small devices and accessories will continue to grow because it already generates USD 31.52 million worldwide in 2025 and experts predict it will reach 48.72 million by 2030. The combination of fulfillment platforms with 3PLs and mycelium technology startups enables design standardization which produces environmentally friendly packaging solutions that can scale up for use in sustainable green supply chains.
Premium skincare and fragrance brands in Western Europe now use tactile bio based gift packaging to create market differentiation which makes Pure Mycelium Mushroom Based Packaging an attractive high margin niche opportunity. The market research shows Pure Mycelium will reach USD 23.56 million in 2025 before it expands to USD 30.35 million during 2030 for applications with biodegradable material based molded trays and caps and box inlays. Luxury houses and design studios should participate in co development programs to create compostable packaging which matches circular economy objectives while building stronger customer relationships with environmentally friendly packaging solutions.
04

Challenge: Durability Limitations

Mycelium infused packaging might not possess the lasting resilience required for uses.

Supply Chain Landscape

1

Mycelium Cultivation

Ecovative DesignMycoWorks
2

Biomaterial Processing

Ecovative DesignMycoComposite
3

Mushroom Based Packaging

Sealed AirParadise Packaging
4

End-Use Applications

Electronics packagingfood & beverage packagingcosmetics packaging
Mushroom Based Packaging - Supply Chain

Use Cases of Mushroom Based Packaging in Food & Electronics

Food Packaging : In the food industry today more and more companies are turning to mushroom based packaging as an option for containers and trays that are eco friendly and biodegradable to store both fresh and packaged foods effectively and responsibly in a natural way. Ecovative Design is one of the pioneers, in creating mycelium based packaging solutions specifically designed for perishable items.
Electronics Packaging : In the field of electronics industry, mushroom derived packaging materials are utilized to safeguard objects from damage during transportation operations. Companies like Dell and Sealed Air utilize these as they seek to lessen their reliance upon plastic in packaging their goods for delivery to customers.
Consumer Goods : In a variety of consumer products like cosmetics and appliances that require eco friendly packaging solutions are now utilizing mushroom based packaging materials for their needs to enhance strength and sustainability aspects. Brands like IKEA and MycoWorks are pushing forward with the use of mycelium, in packaging designs.
Industrial Packaging : Businesses are looking into using packaging made from mushrooms as ecofriendly void fill and protective material for large shipments instead of traditional foam and plastic alternatives with companies such as MycoComposite and Paradise Packaging leading the way in this innovative approach to sustainability.

Recent Developments

In the mushroom packaging industry sector there have been collaborations and expansions involving companies such as Ecovative Design and Dell. These partnerships are showcasing a commitment to innovation and growth in order to fulfill the increasing need, for eco-friendly packaging options.

October 2023 : Ecovative Design enlarged its manufacturing plant to keep pace with the increasing need for mycelium packaging, in the food sector.
July 2023 : Dell joined hands with MycoWorks to launch packaging made from mycelium, for electronic products.
May 2023 : IKEA dropped a collection of mycelium packaging for their products to support their sustainability objectives.

Impact of Industry Transitions on the Mushroom Based Packaging Market

As a core segment of the Packaging industry, the Mushroom Based Packaging market develops in line with broader industry shifts. Over recent years, transitions such as Green Packaging Transition and Regulatory Pressure have redefined priorities across the Packaging sector, influencing how the Mushroom Based Packaging market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Green Packaging Transition

Major brands now use mushroom based materials for their eco friendly packaging because these materials serve as sustainable compostable solutions which match the values of environmentally focused consumers.
02

Regulatory Pressure

The increasing government control over single use plastics has forced businesses to adopt environmentally friendly packaging solutions.