Global Mushroom Packaging Market Size, Forecast and Trend Highlights Over 2025-2037
Mushroom Packaging Market size was valued at USD 90.45 million in 2024 and is expected to cross USD 183.67 million by the end of 2037, expanding at more than 5.6% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of the mushroom packaging is evaluated at 90.52 million.
The growth of the mushroom packaging market can be attributed to the rising efforts to curb the usage of Styrofoam. According to data from the World Economic Forum, Styrofoam is worse than plastic, as plastic shopping bags take 20 years to break down, while Styrofoam coffee cups take 50 years to degrade. Mushroom packaging is becoming popular amongst market players as an eco-friendly substitute for packaging. The mushroom packaging is made up of mycelium, which makes it a biodegradable solution and usable across numerous industries.
Additionally, the mushroom packaging market growth can also be attributed to the surge in awareness amongst consumers for sustainable packaging. According to Pet Food Processing in March 2024, 79% of the consumers said that they are willing to pay more for eco-friendly packaging. Unlike conventional plastic packaging, which takes centuries to decompose, mushroom packaging is completely compostable, leaving no harmful residue.
Mushroom Packaging Sector: Growth Drivers and Challenges
Growth Drivers
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Expanding food industry: As the food industry rises, there is a surge in concern about the mushrooming use of plastic. According to the Food and Agriculture Organization, in December 2021, almost 37.3 million tons of plastic were used only in food packaging. The excessive use of plastic is concerning, as once it is used, it converts into microplastic and gets shed into the water supply. Mushrooming packaging is an emerging solution for the problem. The packets comprise mycelium and are fully home-compostable within 45 days.
- Rising adoption from the cosmetic and personal care sector: Usually, industries involved in the cosmetic sector use polystyrene plastic for the packaging. However, mushroom packaging market players are willing to adopt eco-friendly practices as consumers are giving more preference to the brands that give importance to the environment. Mycelium-based materials have been used for the substitution in makeup wedges, sheet masks, and eye masks. On the back of this, the global mushroom packaging market is projected to witness remarkable growth.
- Adoption in the electronics sector: Mushroom mycelium is a vegetative component and is proving to be a friendly substitute for plastic. Mushroom-manufactured containers are made in customized shapes to fit almost any type of goods, from a little electronic device to huge electronic appliances. According to The Observatory of Economic Complexity in 2023, global trade of electrical machinery and electronics reached USD 3.35 trillion. The burgeoning electronics sector is propelling the adoption of mushroom packaging as a way to deal with alarming plastic pollution.
Challenges
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Limitation of the raw material: The lack of raw material causes issues in scaling the production, making the production challenging. There is limited availability of raw materials, infrastructure, and manufacturing capacity.
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Lesser durability: The durability of the mushroom packaging containers is less in comparison to the plastic packaging. Also, the mushroom packaging can only be used for packing dry products; otherwise, the material tends to lose its rigidity when exposed to moisture.
Mushroom Packaging: Key Insights
| Report Attribute | Details |
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.6% |
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Base Year Market Size (2024) |
USD 90.45 million |
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Forecast Year Market Size (2037) |
USD 183.67 million |
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Regional Scope |
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Mushroom Packaging Segmentation
End Use Industry (Electronic, Furniture, Wine Shipper, Glassware, Automotive, Food Packaging)
The food packaging segment in mushroom packaging market is anticipated to grow significantly due to rising concerns about plastic packaging. Plastic in food packaging migrates into the food and exposes the consumer to contaminants. According to the Geneva Environment Network, health effects include changes in hormone activity and the occurrence of cancer. Also, plastic releases lethal chemicals like phthalates and Bisphenol A into the food and the environment. To avoid this, market players are adopting sustainable options such as mushroom packaging, which generates minimal waste, greenhouse gas emissions, and energy use. According to data published by the United Nations Environment Program, currently 36% of all plastic produced is utilized in packaging, including single-use plastic products for food and beverage containers. As there is a rising emphasis on curbing plastic usage for packing food and beverages, the global mushroom packaging market is anticipated to witness significant growth.
Sales Channel (Commercial, Retail, Household)
The retail segment is gaining traction in the mushroom packaging market due to the rising number of middle-class consumers all across the world. The burgeoning demands, better disposable income, and enhanced infrastructure have rendered the retail industry a space to flourish. The consumers can get a myriad of variety of products at affordable prices. Various market players are selling mushroom packaging as cardboard trays, folding boxes, pulp trays, and fiber trays, through retail channels.
Our in-depth analysis of the mushroom packaging includes the following segments:
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End use |
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Sales Channel |
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Application |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Mushroom Packaging Industry - Regional Scope
Asia Pacific Market Analysis
The Asia Pacific region is anticipated to witness remarkable growth due to the presence of a large consumer base in the region. According to the United Nations Population Fund, Asia and the Pacific region are home to 60% of the world’s population. Also, in China, there is a rising awareness about environmental issues and a surge in demand for sustainable packaging solutions. According to the National Institute of Health in 2023, agricultural plastic films contribute 20% to plastics to Chinese water bodies. The government is compelling market players to take adequate actions to eradicate plastic from the environment. Mushroom packaging, being compostable and biodegradable, aligns well with the goal of sustainability of numerous brands. In India, policies are being made on banning single-use plastic and also giving incentives to those adopting sustainable packaging solutions. These factors are augmenting the mushroom packaging market growth during the coming decade.
North America Market Forecast
The North America is projected to account for the staggering growth due to rising consumer preference for natural packaging methods. There has been a heightened focus on eco-friendly packaging, presenting significant opportunities for the mushroom packaging. According to data published by Delaware Currents in September 2022, the Delaware River is the largest source of plastic pollution in North America. In the quest to eliminate single-use plastic from the environment, various states in the U.S. are witnessing a complete ban. In January 2024, the World Economic Forum stated that 12 states, California, Colorado, Connecticut, Delaware, Hawaii, Maine, New Jersey, New York, Oregon, Rhode Island, Vermont, and Washington, have a single-use plastic ban. These stringent steps taken by the government are acting as a catalyst for the growth of the mushroom packaging market.
Companies Dominating the Mushroom Packaging Landscape
- Ecovative Design LLC
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Sealed Air Corporation
- Magical Mushroom Company
- Interpack
- Merck Forest
- Costa Group
- CMP Mushroom
- Shroom Labs
- Paradise Packaging Company
- Steelcase
- Stanhope Seta
Companies Dominating the Mushroom Packaging Landscape
The competitive landscape of the mushroom packaging market is rapidly evolving as established key players, food giants, and new entrants are investing in sustainable technologies. Key players in the market are focused on developing new technologies and products that cater to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global market:
Recent Developments
- In July 2024, Ecovotive partnered with AGI Denim to transform post-consumer waste denim into sustainable design material. The aim of both companies is to show a scalable approach to sustainability in which recycled content can be adapted to meet various needs.
- In June 2022, Magical Mushroom Company raised USD 3 million for its plant-based, sustainable packaging. The setup is aiming to tackle the growing plastic problem through nature-based substitutes and provide biodegradable packaging solutions.
Author Credits: Abhishek Bhardwaj
- Report ID: 1052
- Published Date: May 12, 2025
- Report Format: PDF, PPT
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