MYCROBEZ – business case
The global expanded polystyrene (EPS) market is estimated to grow from $15 billion in 2018 to over $24 billion by 2027 with a CAGR of 5.3%. The market share of EPS used for packaging is 31% (i.e. $5 billion worldwide). The foam packing industry is promoting recycling efforts and incineration of EPS after its single use in order to combat the urge of policy makers, consumers and big corporations to become more environmentally friendly. The reality is that degradation of EPS based packaging materials takes more than hundred thousand years. With a worldwide average of 95% of all waste ending up on landfills or in the environment, EPS based packaging is a significant contributor to global pollution. While recycling rates in the developed world are higher the biggest and fastest growing markets for EPS based packaging materials are in the Asia-Pacific region with a market share of over 47%.
At MYCROBEZ we developed a mycelium-based product to replace EPS in the packaging industry. This allows manufacturers to choose an environmentally friendly solution (degradable in less than 90 days), without having to compromise on the main benefits (light weight, costs, insulation and shock resistance). Unlike other alternatives such as rainforest wood chips, molded pulp or bamboo and paper-based packaging material, which compromise on some of the parameters and most importantly are significantly more expensive.
Our overarching business model is B2B since single consumers will hardly require such amounts of packaging. MYCROBEZ efforts will be focused on establishing a dominant position in the market with a key substitute for EPS. Competitive advantages are the superior material properties and positive environmental impact .
In a three phase strategy different market segments are to be target following each other as business volume surges.
In Phase I focus is laid on improving profitability and optimizing manufacturing process. Small volume customers that are willing to pay a higher price (Early Adopters) are the main target. Two pilot projects in the food and beverage production industry and one in the small scale goods distribution industry (Vent du Ciel and Lyfa) are already on board. Additionally a vineyard has been signed up as early adapter.
During Phase II target groups are as follows:
- Medium to large wineyards
- Electronics distributors and manufacturers
As for Phase III a variety of industries from caterers to Airlines etc. shall be addressed.
Got interested? Then call us for a pitch.