<p>The increasing demand for protective packaging, driven by the growth of e-commerce and global trade, has amplified environmental concerns related to conventional plastic materials, such as expanded polystyrene (EPS). This study assesses consumer perspectives on plastic packaging, the technical parameters and the factors influencing the transition to alternative foam packaging, such as mycelium-based bio-foam (MBF), as a sustainable solution. Employing a multi-method approach, including market analysis, semi-structured interviews, foam packaging performance evaluation, and environmental impact assessments, the findings demonstrate heightened consumer awareness of plastic pollution and a rising demand for eco-friendly packaging alternatives. Over 70% of survey respondents expressed a willingness to pay a premium for sustainable packaging. However, barriers such as higher costs, increased weight, and skepticism about greenwashing pose challenges to the widespread adoption of bio-foam packaging. This research emphasizes the need for a balanced approach that integrates consumer preferences, optimized packaging design, transparent environmental impact reporting, and regulatory support to promote the adoption of sustainable materials like MBF, reduce plastic pollution, and advance a circular economy.</p> Graphical Abstract <p></p>