Opportunity Overview
Despite legislative measures such as the Plastic Packaging Tax, effective from April 2025, impose a £223.69 per tonne tax on packaging containing less than 30% recycled plastic, and technically being technically recyclable, fewer than 2% of EPS products are recycled in the UK due to high costs and limited infrastructure. This leaves 98% of EPS waste to accumulate in landfills or be incinerated, contributing to plastic pollution and greenhouse gas emissions.
Magical Mushroom Company (MMC) is tackling this issue with a revolutionary new packaging material made from mycelium -- the root structure of fungi -- combined with UK-sourced agricultural waste. This innovative material is 100% biodegradable, home-compostable within 45 days, and delivers the same protective performance as EPS, without any petrochemical inputs.
To ensure this packaging can compete with EPS at scale, the project will introduce cutting-edge manufacturing processes, including automated systems for vibration filling and vision-based quality control. These advancements will enable MMC to produce high volumes of consistent, cost-effective packaging, making it easier for manufacturers and retailers to adopt sustainable alternatives.
The project will also involve collaborations with major UK retailers and white goods suppliers, including John Lewis, Flextronics, and Electrolux, to validate the material's effectiveness through large-scale trials. By replacing EPS with this sustainable alternative, MMC's innovation will significantly reduce plastic waste, cut carbon emissions, and support the UK's transition to a circular economy.
This initiative reinforces the UK's position as a leader in sustainable manufacturing while addressing an urgent...
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Start FreeSolicitation Details
| Issuing agency | Innovate UK |
|---|---|
| Country | United Kingdom |
| Category | Research Development |
| Estimated value | $444,224 |
| Published | May 31, 2025 |
| Procurement stage | Active solicitation |
| Response due | November 30, 2026 |
| Status | Open — accepting responses |
| Official source | View original notice |
| Last verified | August 09, 2026 |
Source: UK Research and Innovation (UKRI) — Open Government Licence v3.0.
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