Jute Bags Market Report 2026

The jute bags market size has grown strongly in recent years. It will grow from $2.68 billion in 2025 to $2.95 billion in 2026 at a compound annual growth rate (CAGR) of 9.8%. The growth in the historic period can be attributed to rising awareness of plastic pollution, availability of raw jute fiber, expansion of retail packaging needs, growth of export-oriented jute manufacturing, government support for natural fiber industries.

The jute bags market size is expected to see strong growth in the next few years. It will grow to $4.25 billion in 2030 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to increasing bans on single-use plastics, rising consumer preference for sustainable products, expansion of branded jute packaging, growth of institutional eco-packaging demand, increasing innovation in natural fiber processing. Major trends in the forecast period include growing demand for eco-friendly packaging alternatives, rising adoption of reusable shopping bags, expansion of designer and promotional jute bags, increasing focus on durable natural fiber products, improved jute weaving and printing techniques.

The increasing popularity and demand for eco-friendly products are driving the growth of the jute bags market. The production of eco-friendly packaging products is expanding significantly due to shifts in consumer behavior and attitudes. Companies worldwide are focusing on sustainable packaging as it lowers shipping costs, enhances brand reputation, and offers recyclable and sustainable options. For example, in April 2024, a survey conducted by TheRoundup, a U.S.-based platform dedicated to promoting environmental awareness and sustainability, revealed that among 2,414 U.S. adults surveyed in 2023, 62% frequently look for environmentally sustainable products, up from 27% in 2021. Additionally, 82% consider sustainability when purchasing mattresses, although 52% express concerns about cost. Thus, the rising demand for environmentally friendly products is expected to significantly boost the growth of the jute bags market in the coming years.

Leading companies in the jute bags sector are increasingly investing to capitalize on development opportunities and tackle the jute shortage. Investment involves allocating funds or resources to a project, venture, or asset with the expectation of generating income, profit, or future value appreciation. For instance, in March 2024, the Bangladesh government announced a 100-crore taka investment aimed at enhancing the production of Sonali Bags, eco-friendly biodegradable bags made from jute fibers. This initiative is part of a broader effort to reduce dependence on conventional polythene and promote sustainable alternatives. The investment includes the establishment of a high-capacity facility anticipated to produce up to 1 million bags daily, positioning Bangladesh as a leader in eco-friendly packaging solutions.

In November 2024, Panchjanya Distributors Private Limited, an India-based manufacturing and distribution company, acquired Ludlow Jute & Specialities Limited for approximately $10.8 million (INR 800 million). Through this acquisition, Panchjanya Distributors seeks to strengthen its capabilities and expand its market presence in the jute and diversified textile products segment by leveraging Ludlow’s well-established product portfolio and manufacturing base. Ludlow Jute & Specialities Limited is an India-based manufacturer specializing in the production and sale of a broad range of jute products, including jute bags, hessian cloth, jute yarn, geotextiles, and other value-added jute goods.

Major companies operating in the jute bags market are Ludlow Jute And Specialities, Gloster Limited, AI Champdany Industries Ltd, Budge Budge Company Limited, National Jute Mills, Cheviot Company, Diamond Jute Mills, Howrah Mills Co Ltd, Angus Jute Mills, The Hooghly Mills Company Limited, Megha Jute Mills, New Central Jute Mills, Jamia Jute Bags, Go Green International Jute Bags, Krishna Jute Bags Company, Premchand Jutex, Light Cees Jute Bag, Basu Jutex Private Limited, Nuzhat Jute Bags Factory Private Limited, Goyal Jute Fabricator, Ashoka Exports.

Asia-Pacific was the largest region in the jute bags market in 2025. The regions covered in the jute bags market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the jute bags market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The jute bag market consists of sales of jute lunch bags, jute laptop bags, jute carry bags, grocery bags, and office-purpose bags. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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