4.4

Mushroom Start-Ups: Fungi Fighting Waste and Creating Sustainable Alternatives

In this step and the following two it’s all about fungi, mushrooms, mycelium, and the Wood Wide Web, the underground network of mycorrhizal fungi that connects trees and other plants. We look at mushrooms that are used to combat waste, packaging, food, leather replacement, mushroom-based coffins, and much more.

The global mushroom market, valued at 65.62 billion USD in 2024, is projected to reach 156.26 billion USD by 2033, growing at around 10 percent per year. Growth is driven by the rising vegan population, health consciousness, and retail network expansion. Asia Pacific held the largest market share in 2024, and Shiitake was the dominant product type. The top three uses of fungi are food, cosmetics, and pharmaceuticals.

The video below explores how startups utilize mycelium, the fungal root structure, to combat global waste. Applications include creating biodegradable packaging, meat and leather substitutes, insulation from coffee grounds, and mushroom-based coffins, aiming to re-establish natural material cycles.

The video ‘Why Mushrooms are Starting to Replace Everything’ gives a similar summary of different new and experimental uses of fungi, watch here.

Further reading, learning and references

Grand View Research – Mushroom Market (2025 – 2033) https://www.grandviewresearch.com/industry-analysis/mushroom-market

Ecovative: We grow better materials https://ecovative.com/

Bolt Threads – Meet Mylo https://boltthreads.com/technology/mylo/

MyForest Foods https://myforestfoods.com/

PermaFungi https://www.permafungi.be/en/

Green Burial Council https://www.greenburialcouncil.org/

Mogu https://mogu.bio/

© Daniel Mossberg, CEMUS, Uppsala University and Sonali Phadke, studio Alternatives and Stephanie Foote