Indonesia Mushroom Packaging Market Size, Share, Trends and Forecasts 2031

Key Findings

• The Indonesia Mushroom Packaging Market is expanding as industries shift toward biodegradable, compostable, and eco-friendly alternatives to plastic.

• Mushroom-based packaging is increasingly being used in Indonesia for electronics, food, cosmetics, and fragile consumer goods.

• Rising environmental concerns and regulations on single-use plastics are accelerating adoption across industries.

• Innovations in biotechnology and material science are improving the durability and scalability of mushroom packaging.

• E-commerce and retail in Indonesia are fueling demand for sustainable shipping and protective packaging solutions.

• Large corporations in Indonesia are adopting mushroom packaging as part of their sustainability commitments.

• Collaboration between startups, material innovators, and packaging companies is fostering rapid market growth.

• Mushroom packaging is being positioned as a cost-effective, natural, and scalable substitute for polystyrene and other petroleum-based foams.

Indonesia Mushroom Packaging Market Size and Forecast

The Indonesia Mushroom Packaging Market is projected to grow from USD 118 million in 2025 to USD 432 million by 2031, registering a CAGR of 24.2%. This robust growth is attributed to the increasing focus on eliminating non-biodegradable packaging waste and meeting government mandates for sustainable alternatives. In Indonesia, mushroom packaging adoption is gaining momentum in e-commerce, food service, and consumer goods industries. The unique ability of mushroom packaging to biodegrade naturally within weeks is a strong differentiator compared to plastics, which take centuries. Furthermore, rising awareness campaigns on eco-friendly packaging are boosting consumer acceptance. As costs decline with scaling production technologies, mushroom packaging is expected to move from niche applications to mainstream adoption across multiple sectors.

Introduction

Mushroom packaging is a bio-based material made from mycelium—the root structure of mushrooms—that binds agricultural waste into durable packaging products. Unlike conventional plastic foams such as Styrofoam, mushroom packaging is entirely biodegradable, compostable, and free of synthetic chemicals. In Indonesia, it is emerging as a promising solution to address environmental concerns tied to plastic waste. Mushroom packaging is lightweight, cost-competitive, and can be molded into various shapes, making it suitable for protective packaging, food containers, and retail packaging. As industries and governments push toward circular economy models, mushroom packaging is gaining recognition as an innovation that aligns with both ecological responsibility and industrial functionality. It is also finding increasing use in sustainable branding campaigns by large companies, helping them connect with eco-conscious consumers.

Future Outlook

By 2031, mushroom packaging is expected to become a mainstream sustainable alternative across multiple industries in Indonesia. The e-commerce sector will lead adoption due to its need for protective yet eco-friendly shipping solutions. Food service providers will increasingly use mushroom-based trays, containers, and cutlery as replacements for polystyrene and plastics. Advances in mycelium cultivation, molding technologies, and durability enhancements will make mushroom packaging competitive in terms of scalability and cost. Governments are also expected to create stronger incentives for industries adopting biodegradable solutions, accelerating mushroom packaging commercialization. Over time, partnerships between biotechnology companies, packaging firms, and global brands will establish mushroom packaging as a symbol of sustainable innovation in Indonesia.

Indonesia Mushroom Packaging Market Trends

• Adoption as a Substitute for Polystyrene Foam
  In Indonesia, mushroom packaging is gaining popularity as a substitute for expanded polystyrene (EPS), which has long been used for protective packaging. EPS is non-biodegradable and creates massive landfill waste, leading regulators to impose bans or restrictions. Mushroom packaging, being fully compostable, provides a natural alternative that meets both regulatory and consumer expectations. Companies are switching to mycelium-based packaging to demonstrate eco-friendly practices and improve brand image. This trend is reshaping protective packaging in electronics, fragile consumer goods, and logistics.

• Increased Usage in E-Commerce and Retail Packaging
  The rapid growth of e-commerce in Indonesia is fueling demand for sustainable packaging materials. Mushroom packaging offers the strength and cushioning needed for fragile goods while aligning with sustainability goals. Retail brands are leveraging mushroom packaging for shipping boxes, inserts, and protective molds. Consumer preference for eco-friendly packaging during online shopping is also driving adoption. As e-commerce continues to scale, mushroom packaging is expected to become a standard solution for green logistics.

• Growing Applications in Food and Beverage Industry
  Food and beverage companies in Indonesia are adopting mushroom packaging for trays, containers, and cups as alternatives to single-use plastics. Restaurants and cafes are transitioning to compostable packaging in response to plastic bans and consumer demand for sustainable options. Mushroom packaging not only ensures biodegradability but also maintains product safety and hygiene. Governments are further reinforcing this trend by encouraging eco-friendly food packaging practices. This expansion highlights the growing versatility of mushroom packaging in consumer markets.

• R&D in Durability and Material Enhancement
  Research and development efforts in Indonesia are focusing on enhancing the durability, moisture resistance, and scalability of mushroom packaging. Mycelium blends with agricultural by-products are being refined to create stronger packaging solutions that match the performance of plastics. Companies are also experimenting with surface treatments to improve shelf life and product resilience. These advancements are making mushroom packaging suitable for more demanding applications. This trend underscores the role of innovation in expanding the market’s potential.

• Partnerships Between Startups and Corporates
  In Indonesia, startups specializing in mycelium packaging are partnering with large corporations to expand adoption. These partnerships help scale production capacity and bring mushroom packaging into mainstream retail. Corporate commitments to achieve net-zero emissions and reduce plastic footprints are driving investment in sustainable alternatives. Joint R&D projects are also leading to new applications in cosmetics, pharmaceuticals, and industrial packaging. This trend illustrates the growing synergy between innovation-driven startups and established packaging giants.

Market Growth Drivers

• Stringent Environmental Regulations
  Governments in Indonesia are enforcing stricter regulations on single-use plastics, creating opportunities for mushroom packaging. Bans on EPS foam and non-recyclable plastics are pushing industries to adopt biodegradable alternatives. Mushroom packaging fits seamlessly into this regulatory environment due to its compostability. Subsidies and incentives are further encouraging businesses to transition. This driver highlights the role of policy in shaping adoption.

• Rising Consumer Awareness of Eco-Friendly Packaging
  Consumers in Indonesia are becoming increasingly conscious of the environmental footprint of the products they purchase. Sustainable packaging is now a critical factor in purchasing decisions, especially among younger demographics. Mushroom packaging resonates with eco-conscious buyers due to its natural origin and biodegradability. Companies adopting it gain competitive advantage by aligning with consumer values. This driver emphasizes consumer behavior as a decisive factor in market growth.

• Growth of E-Commerce and Shipping Demand
  E-commerce and logistics industries in Indonesia are generating unprecedented demand for protective packaging. Mushroom packaging provides a safe, sustainable alternative for shipping fragile and high-value goods. Its compostable nature ensures waste reduction while providing functionality. With continued e-commerce expansion, mushroom packaging demand will rise significantly. This driver ties packaging innovation directly to the growth of digital commerce.

• Corporate Sustainability Commitments
  Many global and regional corporations in Indonesia are pledging to achieve carbon neutrality and reduce reliance on plastics. Mushroom packaging adoption supports these commitments and enhances brand image. Companies are using it not only for packaging but also as a marketing tool to communicate sustainability efforts. This alignment with corporate goals ensures long-term growth potential. This driver highlights the link between corporate responsibility and mushroom packaging adoption.

• Advancements in Biotech and Material Science
  Innovations in mycelium cultivation, agricultural waste processing, and molding technologies are improving mushroom packaging scalability. Researchers in Indonesia are developing stronger, water-resistant, and cost-competitive versions of mushroom-based packaging. These advancements make it feasible to expand applications beyond niche industries. This driver underlines the importance of technological progress in shaping future growth.

Challenges in the Market

• High Production Costs Compared to Plastics
  Despite being sustainable, mushroom packaging currently costs more to produce than traditional plastics. In Indonesia, this price gap limits adoption, especially for cost-sensitive sectors. Achieving economies of scale and technological efficiency will be key to reducing costs. Until then, high expenses remain a major challenge for market penetration.

• Limited Infrastructure for Composting and Disposal
  While mushroom packaging is compostable, infrastructure for industrial composting in Indonesia is underdeveloped. Without proper facilities, disposal effectiveness is reduced, limiting sustainability benefits. Building a robust waste management ecosystem will be critical for scaling adoption. This challenge underscores the need for infrastructure investment.

• Scalability Issues in Production
  Mushroom packaging manufacturing is still emerging, with limited large-scale facilities in Indonesia. Scaling production to meet industrial demand requires significant capital investment and technology transfer. Startups face difficulties in ramping up capacity without corporate support. This challenge emphasizes the importance of partnerships for growth.

• Performance Limitations in Harsh Environments
  Mushroom packaging can face limitations in extreme humidity, heat, or long-term storage conditions. In Indonesia, industries requiring high moisture resistance may find current solutions inadequate. R&D is addressing these issues, but performance gaps remain. This challenge restricts usage in certain applications until technical improvements are achieved.

• Lack of Consumer and Industry Awareness
  Mushroom packaging is still relatively new, and many businesses and consumers in Indonesia are unaware of its advantages. Misconceptions about durability, safety, and scalability hinder adoption. Awareness campaigns and education initiatives are required to drive acceptance. This challenge highlights the need for knowledge dissemination alongside innovation.

Indonesia Mushroom Packaging Market Segmentation

By Material Source

• Mycelium with Agricultural Waste (Corn Stalks, Hemp, Cotton)

• Pure Mycelium-Based Packaging

• Blended Bio-Composites

By Packaging Type

• Trays and Containers

• Protective Packaging (Cushioning, Inserts, Boxes)

• Food Service Packaging

• Customized Retail Packaging

• Others

By Application

• Electronics and Consumer Goods

• Food & Beverages

• Cosmetics & Personal Care

• Industrial Packaging

• E-Commerce Shipping

• Others

By End-User

• Food Service Providers

• E-Commerce and Retailers

• Consumer Electronics Companies

• FMCG Brands

• Logistics Providers

• Others

Leading Key Players

• Ecovative Design LLC

• Sealed Air Corporation

• Dell Technologies (Packaging Division)

• Paradise Packaging Inc.

• Mushroom Packaging LLC

• MycoWorks

• Grown.bio

• Biomyc Ltd.

• Ecovio Innovations

• Mycelia Materials Inc.

Recent Developments

• Ecovative Design LLC expanded its mushroom packaging production facility in Indonesia to serve the electronics and retail industries.

• Sealed Air Corporation partnered with mycelium startups in Indonesia to develop large-scale protective packaging solutions.

• Dell Technologies introduced mushroom packaging for electronic device shipments in Indonesia as part of its sustainability goals.

• Grown.bio launched compostable retail packaging made from mushroom mycelium in Indonesia.

• MycoWorks invested in R&D to create high-strength, water-resistant mushroom packaging for food applications in Indonesia.

This Market Report Will Answer the Following Questions

1. What is the projected size and CAGR of the Indonesia Mushroom Packaging Market by 2031?

2. Which industries are leading the adoption of mushroom packaging in Indonesia?

3. How are biotechnology and material science advancements improving mushroom packaging?

4. What challenges are limiting scalability and mass adoption in Indonesia?

5. Who are the key players shaping the mushroom packaging market in Indonesia?