Jute Market Size & Outlook, 2025-2033

Jute Market Size

The global jute market size 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). The growth of the market is attributed to government packaging mandates sustaining domestic jute demand. 

The global jute market is experiencing a steady resurgence, driven by rising demand for biodegradable, renewable, and cost-effective natural fibers across diverse sectors such as packaging, agriculture, textiles, and home furnishings. Jute, often called the “golden fiber,” is prized for its strength, low environmental impact, and versatility. As global regulations tighten on single-use plastics and demand rises for eco-friendly materials, jute is emerging as a sustainable alternative to synthetic fibers. Beyond packaging, the market is expanding into fashion, home décor, and agriculture, with jute-blended textiles and erosion-control products gaining traction.

Key Market Indicators

• Asia Pacific dominated the jute industry and accounted for a 39.5% share in 2024.
• Based on product, the hessian jute fabric segment remains the most commercially significant product type within the global jute market, favored for its lightweight weave, versatility, and biodegradability.
• Based on application, the agricultural and packaging segment held the largest share of approximately 58.7% of the jute market in 2024, due to the fiber’s breathability, tensile strength, and biodegradability.
• Based on distribution channel, the offline segment dominates the global market, driven by bulk procurement, legacy relationships, and quality assurance protocols.
• Based on end user, the government and public sector institutions segment is the largest end-user segment in the global market, owing to policies that mandate using jute-based packaging in essential commodities.

Latest Market Trend

Fashion and Innovation Partnerships

The global jute market is undergoing a strategic shift as innovation-driven collaborations aim to expand jute’s presence in consumer-facing sectors like fashion, accessories, and lifestyle goods. This reflects a broader movement toward sustainable material sourcing and bio-based textile development, driven by regulatory momentum and shifting consumer values.

• For instance, in June 2024, the Bangladesh Jute Research Institute (BJRI) signed a five-year Memorandum of Understanding (MOU) with Mayfair Stylewear, a rising fashion startup, to promote and commercialize innovative jute-based products. Under the agreement, Mayfair will support the marketing and export of jute innovations developed by BJRI’s research teams.

As global fashion houses and eco-conscious brands seek low-impact, biodegradable materials, jute is emerging as a compelling solution. Commercial viability will increasingly depend on fiber refinement, design adaptability, and strategic partnerships across the textile value chain in this evolving landscape.

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Jute Market Growth Factor

Government Packaging Mandates Sustain Domestic Jute Demand

The reinforcement of regulatory mandates requiring jute use in commodity packaging, particularly in India, one of the largest producers and consumers of jute worldwide. These policies support millions of rural livelihoods and create predictable demand pipelines for jute mills and bag manufacturers.

• For instance, in April 2025, India’s Ministry of Textiles issued a formal notification (S.O. 1830(E) dated 22 April 2025) under the Jute Packaging Materials Act, 1987, mandating that 100% of foodgrains and 20% of sugar must be packed in jute bags through June 30, 2025, superseding an earlier order that was set to expire mid-2024. The foodgrain category includes rice, wheat, and paddy, with 10% of the procurement routed through reverse auctions on the government’s GeM platform.

The continuation and enforcement of these packaging norms ensure steady institutional demand for jute products and reduce volatility in raw jute prices. With government intervention as a stabilising force, the domestic jute industry is positioned for resilient growth in the near term.

Market Restraint

Performance Limitations and Cost Barriers

The global market faces structural limitations from the fibre's intrinsic characteristics and industry-level inefficiencies. Despite its eco-friendly profile, jute's coarseness, high moisture retention, and limited tensile strength compared to synthetic alternatives restrict its applicability in high-performance packaging, apparel, and technical textile segments.

In addition, the cost of jute processing and finished goods remains relatively high due to outdated machinery, labour-intensive production systems, and fluctuations in raw jute availability. Market competitiveness is often undercut by cheaper, synthetic substitutes, especially in export-oriented industries. Inadequate fibre standardisation, inconsistent supply chains, and a lack of advanced R&D further weaken its position in global trade, making scalability and brand adoption difficult across premium or industrial applications.

Market Opportunity

Event-Focused Sustainable Packaging Creates Premium Demand for Certified Jute Products

A growing opportunity in the jute market lies in its rising adoption for sustainable, high-visibility packaging at international conferences, exhibitions, and institutional gatherings. As environmental criteria become integral to brand identity and public-facing events, there is increasing demand for biodegradable, socially responsible alternatives to plastic-based merchandise bags and giveaways.

• For instance, in April 2024, MASK Associates, a Bangladesh-based jute manufacturer certified under ISO 9001:2015 and ISO 14001:2015, was selected as the official delegate bag sponsor for the World Cocoa Conference in Brussels. The company showcased its premium-grade, eco-designed jute bags at the event, reinforcing the value of jute not just as an agricultural commodity but as a customizable, high-quality branding material for global audiences.

While traditional jute exports have centred on bulk uses like sacks and geotextiles, the rise of event-based packaging offers a high-value growth avenue.

Regional Analysis

Asia-Pacific leads the global jute market, underpinned by its deep-rooted cultivation practices, skilled labour availability, and extensive processing infrastructure. The region is the largest producer and primary exporter of jute and jute-based goods, benefiting from a favourable agro-climatic environment and established industry clusters. With a long history of integrating jute into domestic packaging, construction, and textile applications, demand remains robust across legacy and emerging sectors. Increasing policy alignment with sustainable agriculture and bio-based materials further strengthens the region’s global leadership. Local innovation, from fine spinning to decorative jute composites, continues to elevate product sophistication and widen export opportunities, reinforcing Asia-Pacific’s foundational role in the global jute ecosystem.

• China remains a high-demand region for jute across industrial, packaging, and textile applications. Several provincial governments, including Guangdong and Jiangsu, have introduced policy subsidies for companies using biodegradable packaging, leading to increased jute sacks and liners adoption by logistics firms. In fashion, brands like Peacebird and ICICLE use jute-blend textiles in their sustainable apparel lines. With its vast manufacturing base, China has begun experimenting with domestic jute processing facilities in Hunan and Guangxi to reduce reliance on raw imports.
• India is a major producer and consumer of jute, with domestic demand surging in agro-packaging, handicrafts, and sustainable fashion. Jute mills in West Bengal, particularly along the Hooghly belt, operate near full capacity and supply gunny bags for grain procurement by the Food Corporation of India (FCI). The domestic market is also witnessing a resurgence in jute-based home décor, with D2C brands in Delhi and Bengaluru launching collections of wall hangings, table runners, and tote bags targeting millennial buyers. Moreover, exporting jute yarn and geo-textiles to the EU and Southeast Asia has seen double-digit growth, as Indian manufacturers benefit from traceability tools and eco-certifications introduced under the India-EFTA trade facilitation scheme.

North America Jute Market Trend

North America is emerging as a high-potential region in the global market, with growing interest in biodegradable and renewable materials across consumer goods, packaging, and landscaping applications. The region’s shift toward low-impact materials is supported by brand commitments to sustainability and evolving government guidelines around plastic waste. Although jute is not cultivated locally at scale, North American companies are increasingly sourcing finished jute goods and semi-processed inputs to meet eco-conscious demand. With rising acceptance of jute as a premium, responsible material, the region is gradually building a stronger presence in the global supply chain.

• The U.S. jute market is witnessing a steady rise in demand, particularly across sustainable packaging and home furnishings sectors. The U.S. Department of Agriculture’s BioPreferred Program, which incentivises bio-based product adoption, continues to drive institutional interest in biodegradable jute composites for agriculture and erosion control. While domestic production is limited, import volumes, particularly from Bangladesh and India, have increased, with port data from Houston and Los Angeles reflecting a 12–15% rise in jute imports over the past 12 months. Additionally, U.S. interior design brands are integrating jute into rugs and décor pieces, tapping into the rustic and natural aesthetic trend that gained traction on e-commerce platforms.
• Canada’s jute industry is expanding at the intersection of environmental policy and retail innovation. In June 2025, Loblaws and Metro began piloting jute packaging in their organic produce sections. Shopify-powered brands in Toronto and Vancouver increasingly use jute mailer wraps and padding for artisanal product shipments. On the agriculture side, jute geotextiles are being adopted in prairie provinces for soil stabilisation and crop support under Agriculture and Agri-Food Canada’s "Clean Technology" program. Canadian design studios push the envelope using dyed jute fabrics in upholstery and acoustic panels, especially in eco-certified building projects.

Europe Jute Market Trend

Europe is witnessing steady growth in the market as environmental policies and conscious consumer behaviour reshape material preferences across industries. The region’s strong emphasis on circular economy practices, plastic substitution, and green procurement frameworks has opened up new applications for jute, especially in interior design, horticulture, and industrial textiles. European buyers often demand high design and quality standards, pushing suppliers to deliver refined, eco-certified jute solutions. While domestic cultivation remains minimal, the region’s sophisticated import systems, value-added processing facilities, and stable regulatory landscape ensure consistent and growing demand for jute-based alternatives.

• Germany’s jute sector is accelerating due to its strong environmental legislation and demand for bio-based materials in industrial applications. German automotive companies, including suppliers to BMW and Mercedes-Benz, are using jute fibre composites in car door panels and dashboards to reduce vehicle weight and carbon footprint. The country’s design community also embraces jute in contemporary architecture, with Berlin-based studios incorporating jute canvases and weaves in eco-buildings. On the consumer front, chains like Aldi and Rewe have expanded their jute carry bags and storage baskets offerings, aligning with the EU’s Green Deal and zero-waste goals.
• France’s market is experiencing renewed momentum, particularly within fashion, agriculture, and eco-construction sectors. Luxury brands such as Hermès and Sézane have introduced limited-edition jute-based accessories, blending sustainability with artisanal craftsmanship. The agricultural sector, especially vineyards in Bordeaux and Provence, increasingly uses jute twines and coverings for soil health and weed control under organic farming mandates. France’s booming natural home décor market is also driving imports of handcrafted jute rugs and lighting fixtures from South Asia.

Product Type Insights

Hessian jute fabric remains the most commercially significant product type within the global jute market, favoured for its lightweight weave, versatility, and biodegradability. Its breathability helps prevent spoilage by allowing air circulation, crucial in hot and humid climates. With growing international pressure to phase out single-use plastics in favour of sustainable packaging materials, hessian jute bags and sacks have emerged as an eco-friendly substitute. In developing economies like Bangladesh and India, hessian fabric production supports rural employment while responding to export demand from Europe and North America, where sustainability mandates shape public procurement practices.

Application Insights

Agricultural packaging continues to dominate the application segment of the market, largely due to the fiber’s breathability, tensile strength, and biodegradability. Traditional uses such as gunny bags, twine, and sacks for grains, pulses, and potatoes remain critical to rural supply chains in South Asia and Africa. In countries like India, state-run food distribution programs rely heavily on jute sacks for storing and moving staples, which aligns with the Jute Packaging Materials Act (JPMA). Moreover, NGOs and food security agencies operating in sub-Saharan Africa have also adopted jute as a preferred material due to its compostability and alignment with environmental goals.

Distribution Channel Insights

Offline distribution continues to dominate the jute market, driven by bulk procurement, legacy relationships, and quality assurance protocols. Wholesalers, state-authorised agents, and industrial suppliers are vital in connecting jute mills with institutional buyers such as government procurement agencies, food logistics providers, and cooperatives. These intermediaries ensure compliance with quality grading systems, often inspecting batch uniformity, GSM (grams per square meter), moisture content, and stitching standards before dispatch. Furthermore, traditional offline channels are better equipped to manage variable freight logistics, regional tariffs, and seasonal demand fluctuations.

End-User Insights

Government and public sector institutions form the largest end-user segment in the global market, owing to policies that mandate using jute-based packaging in essential commodities. In India, the JPMA mandates the compulsory use of jute sacks for food grains and sugar, resulting in massive annual orders placed with domestic jute mills. These mandates support the local jute economy and align with broader environmental goals by curbing plastic use. Bangladesh’s Mandatory Packaging Act has also significantly influenced jute consumption across various sectors. Government users prioritise long-term contracts, price stability, and certified sourcing practices, making them key drivers of volume demand.

List of key players in Jute Market

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.

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Recent Developments

• 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.
• 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.
• 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.