S.Lab – An Innovative, Plant-Based Packaging Solution

MakiChalle Commemorative Interview

In 2022, Makinohara City in Shizuoka Prefecture, Japan, established the Makinohara City Challenge Business Competition, “MakiChalle.” This startup contest provides a platform for aspiring entrepreneurs to present innovative ideas for utilizing the city’s local resources in industry and tourism.

In its first year, MakiChalle received applications from more than 90 companies, including ten from overseas. The MakiChalle Grand Prize went to Ukrainian startup S.Lab, which produces packaging with only two plant-based components that entirely replace foamed plastic, boost business growth, and take care of the planet.

In this article, we interviewed Julia Bialetska, CEO and co-founder of S.Lab, about their services, the problems that plant-based packaging helps to solve, and their plans for the Japanese market.

Interview with Julia Bialetska, CEO and Co-founder of S.Lab

ーThank you for your time today.

Thank you.

ーFirst, could you summarize the primary offerings of S.Lab’s products and how you have adapted them to the Japanese market’s needs?

We produce a natural replacement for foamed plastics such as polystyrene and styrofoam. Our product is made from only two plant-based components: agricultural waste and mycelium, a network of mushroom roots that hold the agricultural waste together like glue. This makes our material as solid and reliable as traditional plastics. Our packaging is waste-free and biodegrades within 30 days when thrown into the soil.

Japan is one of the most significant users of polystyrene and other plastics. Our solution can help address this issue, especially in Makinohara City, where many abandoned tea trees can be utilized to create sustainable packaging.

ーWhat kind of packaging materials do you provide? Could you give us some examples of particular use cases of your product?

We target Japan’s beauty and electronics markets, producing sustainable and reliable packaging for electronic gadgets, luxury goods, cosmetics, and home decor items. Our packaging is also suitable for food packaging since it is safe and eco-friendly and made from natural ingredients.

ーAs of today, which of these particular use cases would you say are in great demand within the Japanese market?

Currently, we are targeting the cosmetics, beauty and self-care, electronics, and beverages markets. For example, in Makinohara, a company produces green tea beverages in beautiful glass bottles. Our packaging can be a sustainable and luxurious alternative to plastic-based counterparts while providing the same protective capabilities.

ーCould you tell me about the company’s funding situation in terms of prior investments and future prospects for fund-raising?

Last autumn, we closed our first pre-seed investment round, raising around €800,000. We plan to expand our operations and are preparing for our next seed round in Q1 2025, expecting to raise around €2.5 million.

ーWhat is your sales strategy for Japan, and do you plan to take advantage of the Japanese government’s subsidies?

We plan to establish a company in Japan and build a network of agents to introduce our solution to potential partners. We aim to collaborate with local trade commissioners and leverage the support of the Mayor of Makinohara City and local entrepreneurs.

ーCould you describe your growth strategy for Japan in further detail?

We will focus on industries such as beauty, electronics, and food. We have developed a highly scalable solution with a mini production line that can be placed inside a 40-foot container. This allows us to create a network of mini-factories across Japan, utilizing local raw materials and eliminating the need for packaging transportation.

ーHow do you consider the rising situation in terms of macroeconomics and geopolitics? How do these factors affect your growth plan?

Despite the global funding winter, we raised more than expected, showing the high demand for sustainable solutions. By 2030, all packaging in the EU must be recyclable or reusable, and similar actions are being taken in the US and Asia. This shift towards sustainability drives more grants and investments in climate-tech startups.

S.Lab at The Makinohara City Challenge Business Competition (MakiChalle)

ーIs this your first time participating in a pitch competition in Japan?

Yes, it was our first time participating in a pitch competition in Japan. We participate in many challenges, awards, and accelerators in the EU.

ーWhat motivated you to participate in the Makinohara Challenge?

We are excited to expand to the Japanese market. We saw MakiChalle as an excellent opportunity to present our solution, address the issue of abandoned tea trees, and make new connections with Japanese companies.

ーWhat impact has winning MakiChalle had on your firm and your growth plans for Japan?

The prize money helped us start operations in Japan. We received positive feedback and made promising connections with local entrepreneurs willing to collaborate and invest in our business.

ーAre there any potential partnership opportunities in sales, marketing, and other business functions that S.Lab is seeking?

We have two business models: packaging as a service and mini-factories. We want to introduce these models to the Japanese market and find partners for mini-production line sales.

ーDo you have any reviews or feedback from Japanese firms or potential clients to share?

So far, we have received positive feedback from companies who saw our concept. However, potential customers need time to get used to foamed plastic substitutes and understand how to utilize them in their businesses.

ーAre you looking at various other potentials for your products within other large regions?

We are targeting Japan, focusing on industries such as cosmetics and electronics in Tokyo, Osaka, and other prominent regions. We see great potential for locally produced packaging made from agricultural waste.

We look forward to S.Lab’s continued success in the Asian market and hope their market entry strategy for Japan is a resounding success. The solutions provided by S.Lab form a cornerstone of sustainable packaging in various industries.

Company Overview

Name of company: S.Lab
URL: S.Lab
Year of establishment: 2021
Representative: Julia Bialetska
Location: Malaga, Spain

Interview Conducted by Pramod Sharma
Written by Pramod Sharma & Yahyo Kholmonov