Brussels-based start-up Permafungi has opened a new production facility dedicated to mushroom-based packaging, seeking to scale its mycelium materials beyond niche applications as policymakers prepare new support measures for biomaterials.
The company, which has spent the past decade growing edible mushrooms on coffee-ground substrates, is now manufacturing mycelium forms for items such as soap-bar wrappers at its new site. The material is grown in moulds filled with waste inputs, including sawdust, before developing into a spongy structure that is dried and delivered as protective packaging.
Founder Julien Jacquet said the production model is designed around circularity, relying on waste materials, recycled rainwater and solar-powered infrastructure. “Here, we just watch the mushrooms grow,” he said, describing the project as a local alternative to petroleum-based packaging that is frequently imported from distant markets.
Permafungi sources its mycelium from mushrooms collected in the nearby Sonian forest. The company is also expanding its customer base, with Jacquet reporting new collaborations with wineries, a watch brand and a candle maker. Permafungi aims to reach €3 million (US$3.3 million) in turnover within three years.
The expansion is supported by €2 million (US$2.2 million) in EU funding and additional regional contributions. Swiss investment fund Apres-Demain, led by Thierry Mauvernay, has committed €1 million (US$1.1 million). Fund manager Sebastien Beth said the objective is to back companies using local resources but noted that Permafungi “needs to be profitable within two to five years.”
Across Europe and the United States, mushroom-based biomaterials have been in development since the mid-2000s. However, Luc Vernet of Farm Europe cautioned that the sector continues to face challenges related to scale and cost, particularly when competing with fossil-based materials during periods of low oil prices.
The launch of the new factory comes as EU institutions prepare a bioeconomy strategy that includes support for biomaterials — a move that could benefit emerging players such as Permafungi. Packaging waste remains a structural concern, with EU data showing that each European generated nearly 190 kilograms of packaging waste in 2021; without policy changes, projections point to 209 kilograms by 2030.
Permafungi’s new facility is located near a former Audi plant that closed earlier this year, resulting in the loss of around 3,000 jobs. Jacquet said he sees the initiative as part of a broader effort to reintroduce industrial activity into urban areas.
