Jute

Global Jute Market to Reach US$3.9 Billion by 2030

The global market for Jute estimated at US$3.0 Billion in the year 2024, is expected to reach US$3.9 Billion by 2030, growing at a CAGR of 4.5% over the analysis period 2024-2030. Jute Bags, one of the segments analyzed in the report, is expected to record a 3.5% CAGR and reach US$977.2 Million by the end of the analysis period. Growth in the Jute Handicrafts segment is estimated at 5.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$818.8 Million While China is Forecast to Grow at 7.9% CAGR

The Jute market in the U.S. is estimated at US$818.8 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$797.9 Million by the year 2030 trailing a CAGR of 7.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.9% and 3.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 2.6% CAGR.

Global Jute Market – Key Trends & Drivers Summarized

Why Is Jute Reclaiming Its Position as a Sustainable Fiber in Global Trade?

Jute, often referred to as the “golden fiber,” is undergoing a global resurgence as industries and consumers shift toward eco-friendly, biodegradable alternatives to synthetic materials. As a natural bast fiber derived primarily from Corchorus capsularis and Corchorus olitorius, jute is widely used in the production of sacks, bags, geotextiles, carpets, home furnishings, and composites. The renewed focus on sustainability, plastic reduction mandates, and the circular economy are reinforcing the global demand for jute across packaging, construction, agriculture, and textile sectors. India and Bangladesh dominate global production, accounting for over 90% of global output, while demand is rising across Asia, Europe, and North America.

One of the key trends is the transition from conventional jute products to value-added and diversified applications. The growth of jute-based composites in automotive interiors, nonwoven fabrics, and eco-friendly fashion is reshaping the perception of jute from a low-cost commodity to a versatile industrial material. Governments and environmental agencies worldwide are promoting jute as a substitute for plastic, particularly in single-use packaging. Additionally, the use of jute geotextiles in infrastructure projects such as road construction, erosion control, and riverbank stabilization is gaining momentum due to their biodegradability, moisture retention, and cost-effectiveness compared to synthetic alternatives.

How Are Innovations and Policy Support Reshaping the Jute Ecosystem?

Innovation in jute processing and treatment technologies is playing a crucial role in enhancing the quality, durability, and performance of jute products. Modern retting processes, enzyme-based treatments, and fiber blending techniques are improving texture, strength, and dyeability—opening up new market opportunities in apparel, upholstery, and technical textiles. Moreover, blended jute textiles with cotton, wool, and synthetic fibers are gaining popularity in fashion and home décor segments, offering unique textures and sustainable appeal without compromising on aesthetics or durability.

Policy support and institutional interventions are also driving market growth. Several governments are offering incentives for jute production and mandating the use of jute in packaging—such as India’s Compulsory Jute Packaging Act, which reserves a portion of grain and sugar packaging for jute materials. International trade policies promoting natural fibers under green trade frameworks are increasing export potential, particularly in environmentally conscious markets. In parallel, increased funding for jute R&D, seed improvement, and capacity building among small-scale farmers is enhancing productivity, fiber quality, and farm-level incomes. These combined forces are positioning jute as a scalable solution to global sustainability challenges.

Which End-Use Segments Are Driving the Shift Toward Jute-Based Alternatives?

The packaging industry remains the largest consumer of jute, particularly for sacks, bags, and wrappings used in agriculture, food, and industrial goods. With growing restrictions on synthetic packaging and rising environmental awareness, jute bags are replacing plastic and polypropylene in bulk grain and produce transportation across Asia and Africa. In retail, reusable jute shopping bags are being adopted by global brands as part of their sustainability initiatives, offering biodegradability, reusability, and branding potential.

Construction and agriculture are also emerging as high-growth segments. Jute-based geotextiles and agro-textiles are being used for soil erosion control, seed protection, and slope stabilization due to their ability to retain moisture and decompose naturally into the soil. Meanwhile, the furniture and automotive sectors are experimenting with jute-reinforced composites to reduce the weight and carbon footprint of finished products. The fashion industry is embracing jute for eco-conscious collections, footwear, and accessories, as the fiber gains appeal among younger, sustainability-driven consumers. These sectoral shifts are broadening the application scope of jute and increasing demand for customized, high-performance jute-based materials.

What Is Fueling the Market Growth in Sustainability-Driven Economies?

The growth in the jute market is driven by several factors closely aligned with sustainability priorities, policy mandates, and industrial diversification. The global movement against single-use plastics and synthetic fibers has significantly boosted the demand for natural, biodegradable alternatives like jute. Regulatory actions in key economies—mandating jute packaging and restricting plastic imports—are reinforcing its role in modern supply chains. Government-backed procurement programs and subsidies are further encouraging the use of jute in state-level operations, especially in food storage, distribution, and rural employment schemes.

Simultaneously, the rising demand for environmentally sustainable materials in the global textile, automotive, and construction industries is expanding the addressable market for jute. Continuous innovation in fiber treatment, composite engineering, and design aesthetics is allowing jute to enter premium and high-margin segments traditionally dominated by synthetics. Moreover, rising consumer consciousness and brand commitments to ESG (Environmental, Social, and Governance) standards are prompting global manufacturers to integrate jute into packaging, fashion, and furnishings portfolios. As these trends converge, jute is emerging as a strategic material that addresses environmental goals, supports rural economies, and aligns with evolving industrial design philosophies.

SCOPE OF STUDY:

The report analyzes the Jute market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Product Type (Jute Bags, Jute Handicrafts, Jute Textile, Jute Apparel, Jute Furnishings, Others); Application (Residential, Commercial, Industrial); Distribution Channel (B2B, B2C, Supermarkets / Hypermarkets, Specialty stores, Online, Other Distribution Channels)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 33 Featured) -

• Aarbur
• Aarong
• Agarpara Jute Mills Ltd.
• AI Champdany Industries Ltd.
• Akij Jute Mills Ltd.
• Bally Jute Company Limited
• Bangalore Fort Farms Ltd.
• Budge Budge Company Limited
• Cheviot Company Limited
• Delta Jute Mills Company Limited
• Ganges Jute Pvt Ltd.
• Gloster Limited
• Hitaishi-KK Manufacturing Company
• Howrah Mills Co. Ltd.
• Janata Jute Mills Ltd.
• Jutexpo
• Ludlow Jute & Specialities Ltd.
• Mask Associates
• Premchand Jute & Industries Pvt. Ltd.
• Shree Jee International India Ltd.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

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