Jute Market - By Product Type, Application, Distribution Channel Analysis, Share, Growth Forecast, 2025 - 2034

Jute Market Size

The global jute market size was valued at USD 2.8 billion in 2024 and is estimated to grow at a CAGR of over 5.8% from 2025 to 2034. The market is growing due to many factors including increased environmental awareness, push for sustainable alternatives avoiding plastic, and benefits of jute as a biodegradable and versatile material.
 

Globally there is growing momentum for banning single use plastic, around 85% people surveyed worldwide supported lobal ban. As per a report from the United Nations and news articles researched by Statista, 91 nations and regions in the globe have enacted a complete or partial prohibition on the use of plastic bags. This will driver demand for jute since jute can be very good alternative to plastic. Jute is a natural fiber which is 100 % biodegradable and can completely vanish in a matter of weeks to months. Furthermore, jute is a strong and tough material with multiple reuses which does not pollute its contents with harmful chemicals.
 

The relevance of jute in the fashion sector extends beyond its use as a sustainable fiber. Fashion designers are working to produce clothing even as casual as t-shirts to haute couture dresses using jute blends. Because of its sustainability, Jute also has the ability to be woven into a variety of complex designs and patterns which makes it an eco-friendly addition to the fashion industry.
 

Due to its practical use in packing, jute is becoming more popular for use in interior decoration. Jute carpets add a rustic feel to the decor of the house, which is in line with the concept of eco-friendliness. Jutes do not absorb water; because of this characteristic, they are well suited for geo-textiles. These types of textiles are used in civil construction as a more environmentally friendly substitute for artificial materials.
 

The jute goods output in India during the fiscal year 2022-23 stood at 1,246,500 metric tons, the export figure was recorded at 177,270 metric tons which is an increase of 56% when compared to the number from 2019-20. The jute industry is concentrated in West Bengal with 73% of the factories located there and the government is creating favorable conditions for the industry through incentives and other supportive policies, which driver growth for market.
 

Jute Market Trends

Use of sustainable fabric technology- There is a stepwise technological improvement with respect to jute bags. For example, innovations include combining jute with organic cotton, other sustainable fibers, or recycled fibers to create functional, beautiful wears. Brands have invested in research to increase jute's strength for greater versatility.
 

Popularity of smart designs- An outlook on jute bags suggests that the future does not have to choose either aesthetics or functionality. Designs are now more advanced and incorporate multiple pockets, detachable and adjustable shoulder straps, and even more suppliant features for gadgets. These bags can effortlessly transform from casual day-to-day use to business meetings or leisure trips.
 

Customization and personalization- The modern consumer seeks unique products. These days, individuals are able to personalize jute bags with monograms, art prints and even detachable embellishments. This trend fosters a strong sense of ownership and uniqueness among consumers.
 

Reducing environmental footprints- The renewability and biodegradability associated with jute is attracting the attention of many people. Jute, which is an eco-friendly option, is gaining popularity. Companies promoting these bags are playing a role towards alleviating the problem of plastic waste and carbon emission. A number of jute bag producers put emphasis on fair trade. This implies supporting the craftsmen and labourers who partake in the jute industry by providing appropriate remuneration and decent working conditions. Such companies strive to become leaders in social responsibility in making jute bags.
 

More and more companies are adopting the use of jute bags in their business identity. Jute bags with logos are used as environmentally friendly gifts, thus, the company embraces green marketing while reducing the use of disposable plastic bags.
 

Tarrif Impact

The U.S. reciprocal tariffs on jute and jute goods and is applied in April 2025. This might significantly increase the cost of exporting goods to the U.S. market. Such considerable price increase will inhibit the purchasing power of Americans towards goods from India. Exporters would be subject to losing a substantial number of orders which may prompt them to lose market share to competing countries that are more appealing trade countries. This impending uncertainty will take a toll on both small exporters and jute mills.
 

In the long run, these tariffs may create some difficulties for the Indian jute market. Reduced export demand could result in production capacity being underutilized, causing unemployment and value chain disintegration, as well as financial difficulties. These trade relations might dampen the incentive to invest in the sector, causing new shifts around the investments into other markets or product categories.
 

Furthermore, the shift in trade relations may put nations such as Bangladesh in a more favorable position as these countries could exploit the void left behind by Indian exporters towards the U.S. market. Through these considerations, one can tell that jute is a traditional industry highly sensitive to policy, proving the impact of geopolitical and tariff shifts.
 

Jute Market Analysis

In terms of products, the market is segmented into jute bags, jute handicrafts, jute textile, jute apparel, jute furnishings, and other. Jute bag segment dominated the market by generating USD 965.5 million revenue in 2024 and expected to reach USD 1.6 billion by 2034.
 

During this era where global citizens are environmentally conscious, sustainable fashion seems to be undergoing rapid transformation and one of the emerging stars is the woven jute bag. Besides being environmentally friendly, jute bags are set to the innovative design and trend that the future holds which will transform fashion and eco sustainability. Promotional jute bags are gaining popularity due to their eco-friendly nature and durability. As consumers become more environmentally conscious, brands are eager to align themselves with sustainable practices.
 

Jute are environmentally friendly, stylish, durable and versatile. Unlike plastic bags which takes hundreds of years to decompose, jute bags are biodegradable and decompose in as little as 6 months.
 

With respect to end-user, the jute market is segmented as residential, commercial and industrial. Industrial segment dominated the market by holding 41% share in market.  The innovation and diversification efforts of the jute industry pioneered the construction and civil engineering applications of jute composites and geo textiles. Also, governments and environmental laws are influencing the industry due to policies advocating the adoption of sustainable materials in different industrial processes. Consequently, there is growth in the industrial segment of the market as industries begin to appreciate the use of jute for their ecological and functional needs.
 

Jute, the golden fiber, meets all the standards for 'safe' packaging because of being a natural, renewable, biodegradable, and eco-friendly product. Hence is widely used in industrial segment.
 

According to the type of distribution channel, B2C segments the market with revenue share of 66.3% in 2024 dominated the sector. Legislation and social programs aimed at lessening the use of disposables, for example plastic shopping bags, driven the use of reusable bags such as jute bags. Furthermore, a number of B2C companies and brands use jute bags as promotional tools. These personalized bags are highly appreciated by customers who use them as fashion accessories or statement pieces that depict their unique style.
 

Regarding the country landscape, the U.S. jute market is anticipated to depict a CAGR of more than 6% from 2025 to 2034. The U.S. industry account for over USD 339 million worth of revenue in 2024.
 

The US, with an increase of 25.5% last year, is by far the largest import market for Indian jute products, coming close to USD 100 million. Jute industry is seeing growth in US owing to many factors including increased awareness of ecofriendly and sustainable products, increasing demand for biodegradable packaging alternative in various industries has put jute in spotlight.
 

Printed jute bags are experiencing increased demand in the USA largely due to growing concern for sustainability. U.S. government have encouraged reductions in plastic consumption, furthering the quest for alternatives, such as jute bags, that can serve eco-friendly purposes. Statistics suggest that the industry for jute goods globally is expected to increase considerably with the USA leading the charge.
 

The growth of the jute market in America comes from the need for biodegradable materials. As people become more environmentally conscious, there is a move away from using plastic-based goods which increases the need for jute bags, ropes, carpets, and packaging materials. The single use plastic regulations from the government also aids this eco-friendly movement, helping industries use jute for packaging and other purposes more readily.
 

The increase in jute use is just one example brought about from the advancements in the organic and all-natural products industry. For example, the sustainability targets set from fashion labels, grocery outlets and retailors have made it necessary to incorporate jute among the goods stocked. Additionally, the growing popularity of home furnishings and decor has boosted the demand for jute curtains, rugs, and fabrics used for upholstery.
 

Need to consume ethically has grown in the global jute market. A large segment of American consumers is willing to pay a premium for sustainably produced, fair-trade products. This, along with increasing imports from India and Bangladesh has resulted in greater jute goods integration in the United States. Jute sacks and geotextiles are employed in agriculture, logistics, and retail trade because of their strength and eco-friendly features. Due to the sustainability focus in the coming years, American market for jute is expected to increase at a steady pace.
 

Canada is also important marker for jute in North America. There has been an increased understanding of sustainable solutions and government eco-friendly policies which serves to increase the Canadian market. Because of the heightened awareness towards plastic pollution, Canadian industries as well as consumers have started to adopt the use of biodegradable jute products. This, along with the increase in retail and industrial packaging, has also been driven by the federal government’s prohibition of single-use plastic bags and straws.
 

In 2023, Canada was the world’s seventh largest importer of Jute woven fabric, bringing in USD 6.7 million worth. Canada ranked 991st in the world for the importation of Jute Woven Fabric in that same year. The country’s primary sources of import for Jute Woven Fabric are India (USD 4.89M), the United States (USD 843K), Bangladesh (USD 476K), China (USD 313K), and Sri Lanka (USD 63K).
 

In Canada jute market, the economic activity has led to an expansion in jute cultivation along with the agricultural activity. Grains, coffee, and other agricultural commodities can now be easily ferried or stored in jute bags. In construction, there have been significant advances in the use of jute geotextiles because of their eco-friendliness, great strength, and potential applications in erosion control and road construction.
 

Another factor that fuels the growth of the market is the growing preference towards purchasing fair trade and ethically produced products. Jute products from India and Bangladesh are beginning to be favored by Canadian consumers. Given the continued stringency of ecological policies coupled with the never-ending shift of public opinion towards sustainability, it is anticipated that the supply of jute goods within Canada will increase significantly in the next few years.
 

Jute Market Share

The top 5 companies in the market includes Premchand Jute & Industries, AI Champdany Industries, Bangalore Fort Farms, Budge Budge Company, and Cheviot. To gain competitive advantage manufacturers opt for various strategies like new product launch, mergers and acquisitions, capacity expansion.  
 

The Kankaria Group is one of the major manufacturers in India Jute Industry today. Their jute units alone produce nearly one hundred varieties of fabrics and yarns. The group's jute mills are known for manufacturing wide variety of jute products after undergoing quality checks at every single production stage by an in-house quality control division at every single plant. The company is first to manufacture jute bags & fabrics of food grade using RBO standards. The company also produces world’s largest rage of juts goods and is among the world's largest manufacturers of jute goods. Company is first to manufacture jute cotton fibre blended yarn in mass quantities and is also leading manufacturer of jute viscose blended yarn.
 

The Kankaria group also owns Ludlow Jute which is India based jute manufacturing factory which supplies eco-friendly jute products in USA. The company supplies wide range of jute products at wholesale price.
 

The Jute Corporation of India (JCI) reported that it is developing an e-auction platform aimed at improving the supply chain system for the eco-friendly fibre jute. The Corporation said that it was prepared for the upcoming jute season and is ready to roll out MSP (minimum support price) operations, owing to its vast network of 8 states. The corporation plans to fully operate and administer the system.
 

With an investment of around USD 206 million, the Akij Jute Mills’ textile mill located on Muksudpur upazila Gopalganj is estimated to be the world’s biggest composite jute mill. The mill accounts for 450 bighas of land, six factories with each covering 175,000 square feet, and is estimated to produce 600 tons of output per day after commercial production activity commences in December.
 

There is a mix of established and regional players in the global jute market which is well divided in terms of competition and exports. The major companies operating in the market are Premchand Jute & Industries, AI Champdany Industries, Bangalore Fort Farms, and Budge Budge Company Cheviot. These firms have a strong foothold in the led Indian and Bangladeshi jute producing regions which contribute to the worlds jute supply. These firms focus on cost, sustainability and demand efficiency when it comes to implementing their competitive strategies.
 

Premchand Jute & Industries is known as a jute goods supplier for bags and textiles as well as industrial supplies. The company has always advanced due to its traditional processing of jute having strong local and international market. AI Champdany Industries is also one of the oldest companies in the industry having done well in the market with diverse product offerings. It markets high quality jute yarn, fabric, and sacks whilst with added value jute products.
 

Bangalore Fort Farms is also well known in the industry for the exportation of jute products. The company caters to international markets by specializing in jute bags, ropes, and fabrics which are in high demand for eco-friendly packaging. At the same time, Budge Budge Company has an established manufacturing base which enables them to supply a wide variety of jute products such as sacks, ropes, and carpets. Because this company possesses large-scale production capabilities, it has become a preferred supplier for many businesses that require convenient and dependable jute products.
 

Cheviot leads the industry in the manufacturing of jute goods as they provide high grade jute fabric, yarn, in addition to a wide range of jute-based products. The company is known for its emphasis on innovative sustainability, which makes them highly sought after by industries looking for sustainable and durable jute products. Their strong foothold in the local and overseas markets maximizes their influence in the global jute industry.
 

Jute Industry News

• In September 2020, to boost international interest in jute products whose market access lags far behind that of Bangladesh, the Indian Jute Mills Association (IJMA) has built a new e-marketing platform.
   
• IJMA’s e-Jute India has four portals, jutekart, fibreofindia, juteflash, and juteindex, all of which will enable the supply chain from sourcing raw jute for the mills, fabric for jute product manufacturers to marketing jute products domestically and internationally. The complete solution will be provided by the integrated single window system.
   
•  The IJMA initiative has recruited three jute mills and 200 manufacturers onto its platform, IJMA is planning to increase this number in future. IJMA has engaged a lean management consultant who is assisting the Ministry of Textiles in transforming the state-controlled jute industry into a free market.
   

The jute market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Million) & volume (Tons) from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

Market, By Product Type

• Jute bags
• Jute handicrafts
• Jute textile
• Jute apparel
• Jute furnishings
• Other jute products

Market, By Application

• Residential
• Commercial
• Industrial

Market, By Distribution Channel

• B2B
• B2C
  • Hypermarkets and supermarkets
  • Specialty stores
  • Online
  • Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia 
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa