An apparatus and a method are provided for a latex-based packaging material configured to provide a dust-free alternative to vermiculite packaging materials. The latex-based packaging material comprises a portion of a latex-based waste formulated into a recycled latex emulsion, and a portion of particulate material into which the recycled latex emulsion is mixed so as to form a latex-based pulp. In some embodiments, additional components, such as any of various plasticizers, coloring agents, or hardeners, may be included in the latex-base pulp. The latex-based pulp is dispensed and dried so as to form the latex-based packaging material in a variety of desired shapes. Drying may be accomplished by way of unaided atmospheric evaporation, or by way of various conventional drying methods. In some embodiments, the desired shape of the packaging material comprises latex-based packaging peanuts suitable for separating and cushioning forces between containers during transportation in a larger container.