Mycelium-based Building Materials Market (2025 - 2033) Size, Share & Trends Analysis Report By Product (Mycelium Insulation Panels, Mycelium Bricks & Blocks, Mycelium Acoustic Panels, Mycelium Composites), By Application, By Region, And Segment Forecasts

Mycelium-based Building Materials Market Summary

Mycelium, the root-like structure of fungi, offers a renewable, biodegradable, and carbon-negative solution, making it an attractive substitute for traditional materials like concrete, plastic, and insulation foam. Its ability to grow using agricultural waste further enhances its sustainability credentials, aligning with the global push for circular economy practices and green building certifications.

Technological advancements in biotechnology and material science are further accelerating the adoption of mycelium-based building materials. Continuous innovations in cultivation processes, composite formulation, and fabrication techniques have improved the strength, durability, and scalability of mycelium-based products. Companies and research institutions are developing engineered mycelium composites suitable for structural and non-structural applications such as panels, insulation, and acoustic materials. These technological improvements are enabling the material to meet international building standards, encouraging broader use across the construction industry and driving market growth.

The market is also fueled by rising investments and collaborations among biotechnology firms, construction material manufacturers, and research organizations. Governments and private investors are increasingly funding sustainable material development projects to support low-carbon infrastructure goals. Initiatives promoting the use of bio-based materials in public buildings and infrastructure projects have created new growth avenues. Furthermore, the entry of innovative startups and partnerships with established construction firms are enhancing the commercialization of mycelium-based materials, making them more accessible and cost-competitive in global markets.

Market Concentration & Characteristics

The industry is characterized by a high degree of innovation and strong research-driven development. The sector remains in an early but rapidly evolving stage, with companies focusing on optimizing growth conditions, improving material performance, and achieving scalability for commercial use. Innovation is particularly evident in product engineering, where advancements in composite strengthening and fabrication techniques are enabling mycelium-based materials to compete with conventional insulation, paneling, and structural products. Although the market is still fragmented, collaborations between biotechnology firms, construction companies, and academic institutions are becoming increasingly common, fostering joint product development and accelerating commercialization. Mergers and strategic partnerships are moderate but growing, as both established material manufacturers and startups seek to strengthen their sustainable product portfolios.

Regulatory frameworks and environmental standards play a pivotal role in shaping the market dynamics. Supportive policies encouraging the use of bio-based and low-carbon materials, along with green building certification programs such as LEED and BREEAM, are driving adoption across developed and emerging regions. However, the market faces limited direct substitutes, as few materials offer the same combination of biodegradability, insulation capability, and negative carbon footprint. While competition from other sustainable materials like hempcrete or bamboo composites exists, mycelium’s unique regenerative characteristics set it apart. End-user concentration is relatively diverse, encompassing sustainable construction firms, eco-design studios, and green architecture projects, though demand is concentrated among environmentally conscious developers and institutions prioritizing carbon-neutral construction practices.

Product Insights

Mycelium insulation panels led the market and accounted for the largest revenue share of 37.1% in 2024, driven by the increasing emphasis on sustainable and energy-efficient building materials. As construction industries worldwide adopt green building standards, mycelium-based insulation offers a renewable, biodegradable, and low-carbon alternative to conventional synthetic insulators. Its natural thermal resistance and fire-retardant properties make it suitable for residential and commercial structures seeking eco-friendly solutions.

The mycelium acoustic panels segment is expected to grow at the fastest CAGR of 12.8% over the forecast period, driven by the rising need for sustainable noise reduction and sound management systems. These panels combine effective acoustic performance with environmental benefits, appealing to architects, interior designers, and green construction projects. Their ability to absorb sound efficiently while maintaining a low environmental footprint positions them as a viable replacement for synthetic foams and composites. In addition, the expanding demand for sound-optimized spaces-such as offices, recording studios, and auditoriums-is propelling the segment forward.

Application Insights

The roofing & insulation segment dominated the market and accounted for the largest revenue share of 31.7% in 2024, driven by the increasing preference for lightweight, durable, and biodegradable roofing materials. Mycelium composites provide natural resistance to moisture and temperature fluctuations, enhancing building performance while reducing environmental impact. The shift toward circular economy practices in construction is encouraging builders to integrate renewable materials such as mycelium for roofing and insulation purposes.

The acoustic & aesthetic applications segment is expected to grow at the fastest CAGR of 12.8% over the forecast period. Mycelium-based panels and decorative elements offer unique textures, natural finishes, and customizable designs suitable for modern architectural aesthetics. Their sustainable composition supports green certification goals while contributing to healthier indoor environments. This convergence of acoustic performance, aesthetic versatility, and environmental responsibility is driving the growing adoption of mycelium-based materials in interior design and decorative architecture.

Regional Insights

The Asia Pacific held the largest revenue market share of 44.6% in 2024, primarily driven by rapid urbanization and rising environmental concerns associated with conventional construction materials. Countries such as Japan, South Korea, and Australia are witnessing increasing investments in sustainable housing and infrastructure, supported by government-led green building programs. Mycelium-based materials are gaining traction as affordable, renewable alternatives to plastics and concrete, especially in regions focusing on low-energy and climate-resilient construction. Continuous advancements in biotechnology and material science across Asia are enhancing local production capabilities. The region’s growing awareness of eco-conscious design and support for circular economy initiatives further drives the adoption of mycelium-based products.

China’s market is driven by a strong government focus on sustainable urban development and carbon neutrality goals under its “Green Building Action Plan.” Rapid construction activity and industrial innovation have led to increased exploration of biodegradable and low-emission materials. Research collaborations between universities, biotech firms, and construction companies are improving the structural properties and scalability of mycelium composites. Mycelium’s ability to utilize agricultural waste aligns well with China’s sustainability objectives, offering a cost-effective waste valorization pathway. Additionally, growing domestic demand for environmentally friendly insulation and decorative materials in urban projects is supporting long-term market growth.

North America Mycelium-based Building Materials Market Trends

The mycelium-based building materials market in North America is driven by the strong emphasis on sustainable construction practices and stringent environmental regulations aimed at reducing carbon emissions. The U.S. and Canada are witnessing a rise in green building certifications such as LEED and WELL, which promote the use of renewable and biodegradable materials. Increasing corporate commitments toward carbon neutrality and the circular economy are further supporting the adoption of mycelium-based composites in insulation, wall panels, and furniture. Significant R&D activities by startups and academic institutions have enhanced the scalability and performance of mycelium materials. Government incentives for low-carbon infrastructure and growing consumer awareness of eco-friendly living spaces are further strengthening market expansion across the region.

The mycelium-based building materials market in the United States is fueled by rapid innovation in biofabrication technologies and strong policy support for sustainable construction. The U.S. Department of Energy and environmental agencies are funding research initiatives focused on developing energy-efficient, biodegradable materials. Construction firms are increasingly integrating mycelium-based panels and insulation materials into eco-friendly building projects, driven by rising demand for healthier, non-toxic interiors. The growing influence of sustainable design movements, along with collaboration between biotechnology startups and architecture firms, is also stimulating adoption. Additionally, the presence of leading green construction companies and advanced production capabilities is positioning the U.S. as a major hub for mycelium-based material innovation.

Europe Mycelium-based Building Materials Market Trends

The mycelium-based building materials market in Europe is driven by progressive environmental policies and the European Union’s focus on achieving net-zero emissions by 2050. Countries such as the Netherlands, Denmark, and the UK are leading in bio-based construction innovation, with significant R&D investments in mycelium-based materials. Supportive funding programs under the European Green Deal and Horizon Europe are accelerating commercialization and large-scale applications. The strong presence of sustainable architecture movements and eco-conscious consumers further bolsters adoption. Moreover, collaboration between construction companies and biotech firms is fostering the development of standardized, high-performance mycelium-based building solutions.

Germany mycelium-based building materials market is propelled by the country’s strong engineering base and commitment to sustainable construction. German universities and startups are at the forefront of developing high-strength mycelium composites for panels, insulation, and modular components. Government-backed sustainability initiatives and energy-efficient building standards are promoting the integration of bio-based materials into construction projects. The country’s preference for recyclable and low-carbon materials is driving the replacement of synthetic insulation and plastics. Additionally, Germany’s robust R&D ecosystem and growing green construction industry make it a key player in advancing the European mycelium materials market.

Central & South America Mycelium-based Building Materials Market Trends

The mycelium-based building materials market in Central & South America is growing steadily due to increasing awareness of sustainable architecture and eco-friendly housing solutions. Countries like Brazil, Mexico, and Chile are witnessing efforts to reduce deforestation and environmental pollution, encouraging the use of renewable materials. Mycelium-based composites are being explored as affordable and locally sourced alternatives to traditional building materials. Support from international environmental organizations and academic collaborations is fostering knowledge transfer and innovation. Rising urbanization and interest in cost-effective green construction are expected to further accelerate market growth across the region.

Middle East & Africa Mycelium-based Building Materials Market Trends

The mycelium-based building materials market in the Middle East & Africa is driven by the growing emphasis on sustainability in construction and the transition toward green building standards. Nations such as the UAE, Saudi Arabia, and South Africa are incorporating bio-based and energy-efficient materials into large-scale infrastructure and residential projects. Mycelium-based materials offer advantages such as thermal insulation and reduced embodied carbon, aligning with regional goals for energy conservation and environmental protection. Government-led smart city initiatives and sustainability visions, including Saudi Vision 2030, are fostering the adoption of alternative construction materials. Furthermore, increasing collaboration with international biotech firms is enhancing local availability and awareness of mycelium-based building materials.

Key Mycelium-based Building Materials Companies Insights

Key players operating in the mycelium-based building materials market are undertaking various initiatives to strengthen their presence and increase the reach of their products and services. Strategies such as expansion activities and partnerships are key in propelling the market growth. Some of the key players operating in the industry include Myconom Bio Materials, MIMBIOSIS.   

• Myconom, based in Istanbul, designs and produces mycelium-based acoustic panels and other composites for construction and interior applications. Their offerings include acoustic wall panels made from fungal mycelium and agricultural/textile waste, positioned as a petrochemical-free alternative to typical sponge or fiberglass materials.

• MIMBIOSIS, a German startup, transforms textile waste and mycelium into carbon-negative biomaterials, offering panels for interior surfaces such as retail spaces and offices. Their panels focus on low-carbon biocomposites by combining mycelium with textile residuals and targeting aesthetic as well as functional applications in commercial build-outs.

Mykor, Mogu Srl are some of the emerging market participants in the mycelium-based building materials market.  

• Mykor, a UK/Portugal-based company, develops mycelium-based insulation and structural panels for building applications. Their core product, MykoFoam (or MykoSlab), is an acoustic and thermal insulation sheet made from mycelium and industrial waste, with fire resistance and low embodied carbon.

• Mogu, based in Italy, manufactures mycelium-derived interior finishing materials, including acoustic panels, wall coverings, and flooring tiles. Their product lines such as Acoustic and PLUMA use fungal mycelium grown on up-cycled textile residues and are marketed as 100 % biobased and circular.

Global Mycelium-based Building Materials Market Report Scope

Global Mycelium-based Building Materials Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global mycelium-based building materials market report based on product, application, and region:

• Product Outlook (Revenue, USD Million, 2021 - 2033)

  • Mycelium Insulation Panels

  • Mycelium Bricks & Blocks

  • Mycelium Acoustic Panels

  • Mycelium Composites

  • Others

• Application Outlook (Revenue, USD Million, 2021 - 2033)

  • Walls & Partitions

  • Roofing & Insulation

  • Flooring & Underlayment

  • Acoustic & Aesthetic Applications

  • Others

• Regional Outlook (Revenue, USD Million, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

  • Middle East & Africa