Permafungi’s growth plan includes collaborations with two wineries, a watch brand, and a candle maker, with a revenue target of 3 million euros within three years.

Local impact: Permafungi sits near a former factory site in Brussels, highlighting efforts to reindustrialize urban areas affected by closures and job losses.

Permafungi has secured about €2 million in EU and regional subsidies plus €1 million from private investor Après-Demain, with a goal of €3 million in revenue within three years and profitability in 2–5 years.

The Brussels plant’s location near a former Audi plant underscores urban industrial revitalization and a regional push toward circular economy initiatives.

Founder Jacques describes the process: waste materials like sawdust are inoculated with mycelium, which grows into a spongey, tofu-textured mass that is dried and shipped.

Permafungi, a Brussels-based startup, is developing fully biodegradable myco-materials as a sustainable alternative to petroleum-based packaging, beginning with custom packaging for premium soap makers and expanding into broader markets.

Experts note that while mushroom-based and biobased projects exist, scaling and cost are the main hurdles, though policy support and growing demand could accelerate adoption.

The company has opened Europe’s first mycomaterials plant to produce biodegradable packaging from fungi, targeting high-end hotels, soap brands, wineries, and other luxury labels as initial partners.

The company emphasizes an eco-friendly, local-sourcing model, using mushrooms from the Sonian forest, recycled rainwater, solar panels, and a timber bicycle shed at its new facility to reduce environmental impact.

The new facility marks a scale-up from a niche venture that previously produced edible mushrooms from coffee grounds, as Permafungi moves into conventional packaging and forms partnerships with vineyards, watch brands, and candle retailers.

The company aims to scale for broader packaging markets, leveraging EU and Swiss fund support, targeting profitability within 2–5 years amid competition and fossil-based substitute pressures.

The venture faces challenges such as cost, scaling, and competition from fossil-based plastics, but aligns with EU aims to make all packaging recyclable by 2030 and to promote bioeconomy strategies.

Policy context: the EU is pursuing a bioeconomy strategy to support biomaterials, with upcoming 2030 packaging recyclability mandates and rising packaging waste concerns in Europe.