Plant-derived materials and edible films have developed as viable substitutes for standard packaging materials, enabling sustainable and ecologically acceptable alternatives. Chitosan, a cationic carbohydrate polymer derived from animal or marine sources, as well as from agricultural waste such as mushrooms or various fungi possesses excellent properties such as film formation, mechanical strength, non-toxicity, biodegradability, edibility, UV-blocking ability, antioxidant activity, and antibacterial functionality, justifying its potential as packaging/coating material for fresh agricultural products. Chitosan is obtained through the deacetylation of chitin. The quantity of waste generated in a mushroom farm varies from 5–20 % of the total yielding quantity. Filamentous fungi's cellular structure, which is rich in chitin, provides a convenient method for chitin extraction. Fungal-derived chitosan offers the advantage of controllable physicochemical characteristics, including degree of deacetylation and molecular weight, compared to chitosan obtained from crustaceans. This versatility makes fungal chitosan suitable for various utilizations in food, pharmaceutical, and biomedical management. It can be utilised for different purposes in these fields. This review primarily emphasizes the extraction of chitin from mushrooms and various fungal sources, comparing different extraction methods and chitosan-based materials fabrication techniques. Additionally, it discusses the crucial characteristics of chitosan that make it convenient for high value-added functions in the food industry. To sum up, plant-based chitosan films have the potential to completely transform the packaging sector by providing environmentally friendly substitutes for traditional materials. Accepting these advances will help build a more resilient and sustainable earth, encourage the circular economy, and reduce the amount of plastic trash produced.
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