Fiberdom secures €3.5M to scale its plastic-free packaging

Finnish material startup Fiberdom, which specialises in sustainable plastic substitutes, has secured €3.5M to accelerate product development and commercialisation.

Fiberdom’s "supermaterial" is made from FSC-certified wood fibers and designed as a sustainable alternative to plastic in a variety of applications.

The funding round was led by long-term investor Heino Group alongside Nordic Foodtech VC, Holdix Oy, and a €0.6M grant from Business Finland.

The investment underscores the growing interest in sustainable materials capable of replacing plastic in high-demand applications across multiple industries.

Fiberdom’s patented technology transforms market pulp and paperboard into a novel material that is 100 percent plastic-free, recyclable, home-compostable, and formable, while maintaining durability and strength. The company's flagship product, a line of plastic-free cutlery, has achieved commercial success.

Fiberdom’s General Manager, Tomi Järvenpää, said that the funding marks a pivotal moment in scaling the technology. “This investment reflects the confidence our investors have in Fiberdom’s team and capabilities,” Järvenpää said. “The commitment from both long-term and new investors underscores the value of what we’re building—a future driven by smarter materials that deliver durability and high performance without plastic.”

Consumer demand for sustainable alternatives is at an all-time high. The global fiber-based packaging market alone is expected to grow from $407B in 2025 to $567B by 2034, driven by increasing regulatory pressure to phase out plastic and rising consumer awareness of environmental issues. 

The company’s technology has been lauded for its ability to deliver on four critical criteria: functionality, scalability, sustainability, and recyclability. According to Pekka Siivonen-Uotila, a partner at Nordic Foodtech VC, Fiberdom’s product addresses a key challenge in the food system. “Replacing single-use plastics in food packaging and in serving and eating on-the-go food is one of the key pain points in the food system, both for the industry and for the consumers.” Siivonen-Uotila remarked.

The company is particularly focused on advancing its offerings for packaging, interior design, and durable goods, industries in need of sustainable alternatives to plastic.