| Mycelium packaging is a fully biodegradable material made from agricultural waste — primarily hemp fibres — bound together by mycelium, the underground root network of fungi. It is manufactured by growing the mycelium into a precise shape over five days. It is used by brands across electronics, beauty, food, and e-commerce. Unlike polystyrene foam, it decomposes completely in 30 to 45 days, uses no chemicals, and is 3x stronger. |
Every year, an estimated 400 million tonnes of plastic waste is generated globally. A significant share comes from single-use protective packaging — the foam inserts, plastic corners, and expanded polystyrene blocks that ship products safely but persist in landfills for up to 500 years.
Mycelium packaging offers a commercially viable alternative that does not ask brands to trade performance for sustainability. It is stronger than foam, compostable at home, free of synthetic chemicals, and manufacturable at industrial scale. This guide covers everything you need to know: what it is, how it’s made, how it compares to conventional materials, which industries are adopting it, and how to order it.
Who this guide is for: Packaging buyers, sustainability managers, product designers, and brand leaders evaluating alternatives to EPS foam or pulp packaging.
What Is Mycelium Packaging?
Mycelium packaging is a biological composite material. The two ingredients are agricultural waste — typically the fibrous stems left over after hemp, linen, or other plant crops are harvested — and mycelium, the thread-like underground network that makes up the root system of fungi. The mycelium acts as a fully natural binder, threading through the agricultural substrate and fusing it into a solid, structured form.
The result is a material that is lightweight, rigid, shock-absorbent, and completely plant-based. Once it has served its purpose, it breaks down in soil or home compost within 30 to 45 days, leaving no microplastic residue and actually enriching the soil as it decomposes.
How Mycelium Grows Into a Mould
Unlike conventional packaging materials that are pressed, moulded, or extruded using heavy industrial tooling, mycelium packaging grows into shape. At S.Lab, a specially designed robot forms the precise geometry of each packaging piece — no metal or plastic moulds are required at any stage. Agricultural waste is introduced into that form, mycelium is cultivated through S.Lab’s proprietary process, and the two are combined. The mycelium then grows through the substrate over approximately five days, binding it into a solid structure that exactly matches the product it will protect. The piece is then dried and ready to ship.
This mould-free approach is protected by five patents and enables any shape or size — a square insert for a mobile phone, an oval cradle for a wine bottle, or a custom-contoured case for a precision instrument.
Key Properties: Strength, Weight & Compostability
Mycelium packaging is significantly stronger than both pulp and polystyrene foam — benchmarked at three times the strength of EPS. Its surface is smooth and white, giving it a premium aesthetic. It is lightweight. It passes fire safety standards at two classes above polystyrene. And it carries TUV Austria OK Home Compost certification, meaning it can be composted in a standard home compost bin — not only in industrial facilities.
How Is Mycelium Packaging Made?
The production of mycelium-based packaging combines biological precision with industrial automation. S.Lab’s process is designed for scalability — from small batches for independent brands to high-volume runs for large corporations.
Step-by-Step: From Agricultural Waste to Finished Part
Step 1: Agricultural waste is sourced and sterilised. S.Lab primarily uses hemp stems from farmers in Spain and Portugal — hemp has among the strongest natural fibres available. Linen and tea tree by-products are also used depending on the application.
Step 2: Mycelium is cultivated through S.Lab’s own proprietary biological process.
Step 3: The sterilised agricultural waste and cultivated mycelium are combined.
Step 4: The mixture is placed into the form created by S.Lab’s shaping robot. The mycelium grows through the substrate over approximately five days, filling the geometry exactly.
Step 5: The packaging is dried, halting biological activity. It is now rigid, stable, and ready to ship.
Inside S.Lab’s Production Process
S.Lab was established in Ukraine and currently produces in Spain, with a model built for decentralised, localised manufacturing. The process uses a closed-loop water system: although mycelium packaging requires 2 litres of water per kilogram of production, 95% of that water is recaptured and reused — reducing net consumption to just 0.1 litre per kg. This compares to 10-300 litres per kg for pulp packaging and 12 litres per kg for polystyrene, with no equivalent water recovery.
The business model supports circular economy principles at the input side: by purchasing agricultural waste from local farmers — material that would otherwise go unused — S.Lab creates a secondary revenue stream for growers while eliminating the need for virgin raw materials.
Mycelium Packaging vs. EPS Foam & Other Alternatives
Performance comparisons are the most common question from packaging buyers evaluating a switch. The tables below are drawn from S.Lab’s own material data and R&D benchmarking.
Mycelium Packaging vs. Polystyrene (EPS Foam)
| Polystyrene (EPS) | S.Lab Mycelium Packaging | |
| Material | Fossil fuels, chemicals, and blowing agents | Hemp agricultural waste + mycelium — zero chemicals |
| Decomposition | Non-biodegradable — up to 500 years | Fully biodegradable — 30 to 45 days in soil |
| End of life | Consumes 30% of worldwide landfill space | Enriches soil — will never end up in landfill |
| Strength | Baseline | 3x stronger than polystyrene |
| Fire safety | Standard rating | 2 fire retardant classes above polystyrene |
| Water use | 14 litres per kg | 2 litres net per kg (95% recirculated) |
| Shaping | Requires moulds — expensive, environmentally harmful | Shaping robot — any size or form, no mould costs |
| Health impact | Seeps into the food chain when degraded in seawater | Safe for people and ecosystems |
Mycelium Packaging vs. Pulp
| Pulp Packaging | S.Lab Mycelium Packaging | |
| Material | Natural fibres — trees or recycled paper | Hemp agricultural waste and mycelium |
| Chemicals | Relies on chlorine dioxide, polyethylene coatings, formaldehyde-based wet strength additives | Zero chemicals — two plant-based components only |
| Water use | 10 to 300 litres per kg | 2 litres net per kg (95% recirculated) |
| Shaping | Requires custom metal and plastic moulds | No moulds required — any shape or size |
| Strength | Low product protection — varies with additives | Significantly stronger — exceptional durability |
| Surface quality | Fragile, unpleasant texture, cellulose particles peel off | Smooth white surface — premium feel and appearance |
Cost Breakdown: Mycelium vs. Plastic vs. Pulp
The cost of mycelium packaging varies with design complexity, dimensions, order volume, and delivery timeline. At volume, it is competitive with premium pulp and, when mould tooling fees and waste disposal costs are included, often undercuts EPS foam on total cost. S.Lab works to find the most cost-effective solution for each client’s specific requirements. The absence of mould tooling costs is a notable structural advantage — traditional pulp and EPS suppliers charge significant upfront fees for custom shapes that mycelium manufacturing eliminates entirely.
| Request a Quote — See How We Compare Get a detailed cost comparison for your specific product. |
Benefits of Mycelium Packaging
Environmental Impact (with Data)
The environmental case for mycelium packaging rests on verified data, not broad claims.
- Decomposition: 30-45 days in home compost or soil, vs. up to 500 years for polystyrene
- Water consumption: 0.1 litre net per kg produced, vs. 10-300 litres for pulp and 12 litres for polystyrene
- Raw materials: 100% agricultural by-products that would otherwise be discarded
- Chemicals: zero synthetic chemicals used at any stage of production
- End of life: actively enriches soil — releases no microplastics, no toxic residue
- Landfill: will never contribute to the 30% of worldwide landfill space currently occupied by polystyrene
S.Lab’s packaging holds TUV Austria OK Home Compost certification — one of the most rigorous biodegradability standards in Europe. This is verifiable, third-party proof of compostability, not a marketing claim. The EU Packaging and Packaging Waste Regulation (PPWR) is progressively restricting single-use plastics and mandating compostability — mycelium packaging is already compliant.
Brand & Regulatory Benefits
- Premium unboxing experience: smooth white surface and organic texture signal quality to customers in a way that foam and pulp cannot
- Regulatory readiness: compliant with EU PPWR requirements being phased in through 2026 and beyond
- Supply chain story: agricultural sourcing from local Spanish and Portuguese farmers gives brands an authentic, traceable narrative for sustainability reporting
- Trusted at scale: customers include Nespresso, L’Oreal, Kingspan, and JTI
- Institutional credibility: S.Lab is a WEF, Techstars, and Google portfolio company
Industries Using Mycelium Packaging
Mycelium packaging is suitable for any product that currently uses EPS foam, pulp, or plastic protective inserts. S.Lab currently serves customers across six primary industries.
Electronics
Consumer electronics are among the heaviest users of EPS foam — dense protective inserts for laptops, speakers, cameras, and devices. Mycelium packaging matches EPS on shock absorption and exceeds it on strength, eliminating the contrast between sustainable brand values and petroleum-based packaging. Custom-moulded inserts can be designed around any device geometry.
Beauty & Self-Care
Premium beauty brands face significant pressure from consumers and regulators to reduce plastic packaging. Mycelium’s smooth surface and natural aesthetic are a natural fit for high-end beauty packaging — protective inserts, gift set structures, and bottle holders. L’Oreal is among S.Lab’s existing partners in this space.
Food & Beverage
Mycelium packaging offers thermal insulation and cushioning for fragile food and beverage products — wine bottles, gourmet produce, specialty foods, and pharmaceutical-adjacent items requiring temperature-controlled shipping. Nespresso is an existing S.Lab customer in this category.
E-Commerce & Retail
High-volume e-commerce packaging is the largest growth opportunity for mycelium materials. Custom fit reduces box size and void fill; compostability reduces customer waste guilt; and the premium unboxing experience is a competitive differentiator for direct-to-consumer brands.
Fashion & Decor
High-value fashion items, homeware, and decorative objects require packaging that protects without compromising the premium experience. Mycelium’s structural integrity and natural appearance make it well-suited to protective inserts, display packaging, and gift structures.
Pharmaceuticals
For pharmaceutical products requiring controlled-condition shipping, mycelium packaging’s chemical-free composition and structural reliability make it a credible option under tightening regulatory requirements.
How to Order Custom Mycelium Packaging
S.Lab designs packaging specifically for each product it protects. The process follows three steps:
1. Scan and measure: Every dimension and contour of the product is captured — S.Lab scans every nook and cranny to ensure an exact fit.
2. Create the form: A precise packaging master form is designed by S.Lab’s team and executed by the shaping robot.
3. Grow the packaging: The mycelium packaging grows to fit the product exactly — ready in approximately five days from production start.
S.Lab scales from SMB volumes to large corporation quantities. Pricing varies by design complexity, dimensions, volume, and delivery timeline.
| Request a Quote | Get a Sample TUV Austria OK Home Compost Certified |
FAQ — Mycelium Packaging
Answers to the most common questions from packaging buyers, sustainability teams, and consumers.
What is mycelium packaging made of?
Mycelium packaging is made from two plant-based components: agricultural waste (primarily hemp fibres sourced from farmers in Spain and Portugal) and mycelium — the underground root network of fungi. No synthetic chemicals are used at any stage of production.
How long does mycelium packaging take to decompose?
Mycelium packaging decomposes fully in 30 to 45 days in soil or home compost. It leaves no microplastic residue and enriches the soil as it breaks down. By comparison, polystyrene foam takes up to 500 years to decompose.
Is mycelium packaging stronger than EPS foam?
Yes. S.Lab’s mycelium packaging is three times stronger than polystyrene foam. It also surpasses polystyrene by two fire retardant classes, and is significantly stronger than pulp packaging.
Does mycelium packaging use chemicals?
No. S.Lab’s mycelium packaging uses zero synthetic chemicals — only two plant-based components. This contrasts with pulp packaging, which typically relies on chlorine dioxide bleaching, polyethylene coatings, and formaldehyde-based wet strength additives.
Is mycelium packaging waterproof?
Mycelium packaging has good moisture resistance for standard shipping and storage conditions. For applications requiring extended water exposure, contact S.Lab’s team to discuss specific requirements.
How much does mycelium packaging cost?
Cost varies with design complexity, dimensions, order volume, and delivery timeline. At volume, mycelium packaging is competitive with premium pulp and, when mould tooling fees and waste disposal costs are factored in, often undercuts EPS foam on total cost. Request a quote at slab.com/contact for a product-specific assessment.
What companies use mycelium packaging?
S.Lab’s customers include Nespresso, L’Oreal, Kingspan, JTI, and Resens, among others. The technology is used across electronics, beauty, food, pharmaceutical, fashion, and e-commerce sectors.
Can mycelium packaging be home composted?
Yes. S.Lab’s mycelium packaging holds TUV Austria OK Home Compost certification. It can be placed in a standard home compost bin and will fully decompose within 30 to 45 days.
How is mycelium packaging manufactured?
Agricultural waste is sterilised and combined with cultivated mycelium. A shaping robot forms the precise geometry of the packaging without moulds. The mycelium grows through the substrate over approximately five days, then the piece is dried. The process is protected by five patents and can produce any shape or size.
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