Jute Bags Market Report 2025

The jute bags market size has grown rapidly in recent years. It will grow from $2.85 billion in 2024 to $3.2 billion in 2025 at a compound annual growth rate (CAGR) of 12.2%. The growth in the historic period can be attributed to environmental concerns and eco-friendly movement, government policies and subsidies, shift from plastic to natural fibers, promotion of handicrafts and artisanal products, corporate adoption of eco-friendly practices.

The jute bags market size is expected to see rapid growth in the next few years. It will grow to $5.13 billion in 2029 at a compound annual growth rate (CAGR) of 12.5%. The growth in the forecast period can be attributed to increasing environmental concerns, consumer preference for sustainability, rise in anti-plastic movements, expansion of retail and e-commerce, fashion and design innovations. Major trends in the forecast period include sustainable fashion movement, government initiatives and regulations, corporate social responsibility (CSR), shift from single-use plastics, fashion and design trends.

The jute bags market size is expected to see rapid growth in the next few years. It will grow to $4.51 billion in 2028 at a compound annual growth rate (CAGR) of 12%. The anticipated growth in the forecast period can be attributed to increasing environmental concerns, consumer preferences for sustainability, a rise in anti-plastic movements, the expansion of retail and e-commerce, and innovations in fashion and design. Major trends expected in this period include the sustainable fashion movement, government initiatives and regulations, corporate social responsibility (CSR) efforts, a shift away from single-use plastics, and evolving fashion and design trends.

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.

The rise of e-commerce, representing online buying and selling activities, is expected to fuel the growth of the jute bags market. Jute bags are utilized in e-commerce as environmentally friendly packaging solutions, aligning with sustainability practices in product delivery and reducing environmental impact. Notably, the considerable increase in U.S. retail e-commerce sales, reaching $277.6 billion in the second quarter of 2023, indicates the substantial growth potential for industries related to e-commerce packaging, such as jute bags, as eco-friendly packaging solutions gain prominence.

The bioplastic jute poly bag is a significant trend gaining traction in the jute bags market. These bags serve as a sustainable alternative to polythene bags and can be utilized for various applications, including garment packaging, as well as packaging rice, sugar, red gram, and even dairy milk, provided there is no risk of contamination or degradation in quality. For example, in June 2023, to commemorate World Environment Day, the United Nations Development Programme (UNDP), a U.S.-based international development organization, introduced eco-friendly biodegradable bags made from a jute-polymer blend in Bangladesh. Created by a Bangladeshi scientist, these Sonali Bags were distributed to UNDP staff as a sustainable option.

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 September 2022, LC Packaging, a US-based packaging solutions company, acquired Karl Weiterer GmbH for an undisclosed amount. This strategic move was aimed at expanding LC Packaging's jute bag product portfolio and extending its market reach across Europe. Karl Weiterer GmbH, based in Germany, is renowned for its expertise in the development and manufacturing of bags for handcrafted products.

Major companies operating in the jute bags market include Ludlow Jute And Specialities, B R Packaging, Gloster Limited, AI Champdany Industries Ltd, Jamia Jute Bags, Budge Budge Company Limited, Go Green International Jute Bags, Krishna Jute Bags Company, Bangla Jute Mills, Aarbur, Bangalore Fort Farms Ltd, National Jute Mills, Cheviot, Hitaishi-KK, G-BAGS (Green-O-Tech India), Premchand Jutex, Light Cees Jute Bag, Churiwal Technopack Private Limited, Ashoka Exports, Shree Jee International India Ltd., LMC Global Private Limited, Aamin International Company, Basu Jutex Private Limited, Diamond Jute Mills, Howrah Mills Co Ltd., Nuzhat Jute Bags Factory Private Limited, Goyal Jute Fabricator, Megha Jute Mills, New Central Jute Mills, Angus Jute Mills, The Hooghly Mills Company Limited.

A jute bag is defined as a bag made from the natural vegetable fiber derived from the outer stem and skin of the jute plant. These bags, crafted from natural fiber, provide environmental benefits such as excellent insulation, moderate moisture retention, and low thermal conductivity. There are two main types of jute bags: jute sack bags and jute shopping bags.

Jute bags come in two main types such as jute sack bags and jute shopping bags. Jute sack bags are sturdy and capable of carrying heavy food items, often used for packaging and transport purposes. They are available in different price ranges and are used by both retail and institutional customers.

The jute bags market size has grown rapidly in recent years. It will grow from $2.56 billion in 2023 to $2.87 billion in 2024 at a compound annual growth rate (CAGR) of 12.2%. The growth in the historic period can be attributed to environmental concerns and eco-friendly movement, government policies and subsidies, shift from plastic to natural fibers, promotion of handicrafts and artisanal products, corporate adoption of eco-friendly practices.

Asia-Pacific was the largest region in the jute bags market in 2024. The regions covered in the jute bags market report are Asia-Pacific, 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, 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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