Global Jute Market Grows at a Staggering CAGR of 5.9%

Introduction

The global jute market is witnessing a consistent revival, propelled by increasing demand for biodegradable, renewable, and economical natural fibers in various sectors like packaging, agriculture, textiles, and home furnishings. Jute, frequently called the "golden fiber," is esteemed for its durability, minimal environmental footprint, and adaptability. With the intensification of worldwide rules on single-use plastics and the increasing demand for environmentally friendly materials, jute is emerging as a viable sustainable alternative to synthetic fibers. The market is diversifying beyond packaging into fashion, home décor, and agricultural, with jute-blended fabrics and erosion-control goods gaining prominence.

Market Dynamics

Government packaging regulations drive market growth

The enhancement of legal requirements mandating the use of jute in commodity packaging, especially in India, a leading producer and user of jute globally. These measures bolster millions of rural livelihoods and establish reliable demand channels for jute mills and bag producers.

• In April 2025, India’s Ministry of Textiles released a formal notification (S.O. 1830(E) dated 22 April 2025) under the Jute Packaging Materials Act of 1987, stipulating that all foodgrains and 20% of sugar must be packaged in jute bags until June 30, 2025, thereby overriding a previous directive scheduled to conclude in mid-2024. The foodgrain category comprises rice, wheat, and paddy, with 10% of procurement conducted via reverse auctions on the government's GeM platform.

The persistence and implementation of these packaging standards guarantee consistent institutional demand for jute goods and mitigate fluctuations in raw jute costs. The domestic jute industry is poised for robust expansion in the short term, supported by government intervention as a stabilising influence.

Event-driven sustainable packaging creates tremendous opportunities for certified jute products

An expanding opportunity in the jute industry is its increasing utilisation for sustainable, high-visibility packaging at international conferences, exhibits, and institutional events. As environmental standards become essential to company identity and public events, there is a growing demand for biodegradable, socially responsible substitutes for plastic grocery bags and handouts.

• In April 2024, MASK Associates, a jute manufacturer from Bangladesh accredited under ISO 9001:2015 and ISO 14001:2015, was appointed the official delegate bag sponsor for the World Cocoa Conference in Brussels. The company presented its premium eco-designed jute bags during the event, emphasising the significance of jute not only as an agricultural product but also as a customisable, high-quality branding medium for international markets.

Although conventional jute exports have focused on mass applications such as sacks and geotextiles, the emergence of event-oriented packaging presents a lucrative development opportunity.

Regional Analysis

The Asia-Pacific region dominates the worldwide jute market, supported by established farming methods, a competent labour force, and comprehensive processing facilities. The area is the foremost producer and principal exporter of jute and jute-derived products, benefiting from a conducive agro-climatic environment and developed industrial clusters. Demand for jute persists strongly across both traditional and growing sectors, owing to its extensive integration history into domestic packaging, construction, and textile applications. Enhancing policy coherence with sustainable agriculture and bio-based materials bolsters the region's worldwide leadership. Local innovation, ranging from fine spinning to decorative jute composites, enhances product sophistication and expands export options, strengthening the Asia-Pacific's fundamental role in the global jute ecosystem.

Key Highlights

• The global jute market was valued at USD 2.8 billion in 2024 and is projected to grow from USD 2.97 billion in 2025 to USD 5.18 billion by 2033, reflecting a CAGR of 5.9% during the forecast period (2025–2033).
• By Product Type, the market is segmented into hessian jute fabric, sacking jute, and others. Hessian jute fabric leads the segment due to its lightweight weave, breathability, and eco-friendliness.
• By Application, the market is segmented into agricultural packaging, industrial packaging, home textiles, and others. Agricultural packaging dominates this segment, owing to jute’s natural breathability, tensile strength, and compliance with food safety and biodegradability standards, especially in South Asia and Africa.
• By Distribution Channel, the market is segmented into offline and online channels. Offline distribution remains dominant due to strong institutional procurement networks, quality certification needs, and logistics management in bulk supply systems, particularly in India and Bangladesh.
• By End User, the market is segmented into government & public sector, agriculture sector, industrial manufacturers, and households. Government and public sector institutions held the largest share, supported by packaging mandates like India’s JPMA and Bangladesh’s jute packaging regulations, which drive consistent bulk demand.
• Based on region, the global market is segmented into Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa. Asia-Pacific currently leads the global market, with India and Bangladesh being the top producers and exporters, bolstered by policy support, low-cost labour, and increasing global awareness around sustainable alternatives.

Competitive Players

1. Cheviot Company Ltd.
2. Gloster Limited
3. Bangladesh Jute Mills Corporation (BJMC)
4. Ludlow Jute and Specialities Ltd.
5. Eco Jute Pvt. Ltd.
6. AI Champdany Industries Ltd.
7. Barisal Jute Industries Ltd.
8. Hannan Jute Mills Ltd.
9. Raghunath Exports
10. Tossa Jute Industries Ltd.
11. Shree Jee International (India)
12. Janata Jute Mills Ltd.
13. Kasim Textile Mills (Bangladesh)
14. Ganges Jute Pvt. Ltd.
15. Kejriwal Jute Mills Pvt. Ltd.

Recent Developments

• In March 2025, The Multipurpose Jute Product Fair–2025, organised by Bangladesh’s Jute Diversification Promotion Centre (JDPC) in Monipuripara, Dhaka, marked National Jute Day and featured around 40 stalls showcasing eco-friendly jute products from bags and footwear to home décor and fashion accessories.
• In July 2025, the National Jute Board (NJB) initiated the formation of a Public-Private Partnership (PPP)-mode export body aimed at promoting and managing exports of Jute Diversified Products (JDPs) from India. This entity will aggregate supplier capacity, standardise product offerings, and oversee global marketing and logistics through a unified Enterprise Resource Planning (ERP) system.
• In January 2025, India approved a significant increase in the Minimum Support Price (MSP) for raw jute to improve farmer income and ensure a steady input supply for manufacturers. This policy boost will strengthen raw material availability and support industry resilience. The MSP was raised by 6% to ₹5,650 per quintal for the 2025–26 marketing season, reflecting the government’s commitment to supporting jute cultivators.

Segmentation

1. By Product Type
   1. Raw Jute (White Jute, Tossa Jute)
   2. Hessian jute fabric
   3. Jute Yarn and Twine
   4. Jute Sacks and Bags (Hessian, Gunny, Food-grade)
   5. Jute Geo-textiles
   6. Jute Ropes and Mats
   7. Jute-Based Composites and Blended Textiles
2. By Application
   1. Agriculture and Horticulture (Soil Saver, Nursery Sheets)
   2. Packaging (Food Grains, Industrial Goods)
   3. Home Furnishing (Curtains, Carpets, Upholstery)
   4. Construction and Infrastructure (Erosion Control, Geo-Grids)
   5. Fashion and Lifestyle (Handicrafts, Footwear, Apparel)
   6. Automotive Interiors (Panels, Soundproof Liners)
3. By Distribution Channel
   1. Direct B2B (Exporters, Mills, Bulk Buyers)
   2. Government Procurement and Supply Boards
   3. Retail Stores (Textile and Handicraft Outlets)
   4. Online Platforms (DTC Jute Brands, E-commerce)
   5. Wholesalers and Distributors
4. By End-User
   1. Agriculture and Allied Sectors
   2. Packaging and Logistics Companies
   3. Home and Interior Decor Brands
   4. Construction and Civil Engineering Firms
   5. Fashion and Apparel Manufacturers
   6. Government and Defence Procurement
5. By Region
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa