Global Jute Bag Market Forecast: From USD 0.9 Billion in 2025 to USD 1.1 Billion by 2035 with 2.6% CAGR

The global jute bag market is entering a steady growth phase, propelled by the increasing global emphasis on sustainability, the ban on single-use plastics, and a surging preference for biodegradable packaging alternatives. With environmental consciousness becoming a key purchasing driver, jute bags are emerging as a preferred eco-friendly choice across retail, agriculture, and industrial sectors.

According to the latest market assessment, the jute bag market value is expected to rise from USD 0.9 billion in 2025 to USD 1.1 billion by 2035, registering a compound annual growth rate (CAGR) of 2.6%. This expansion is driven by strategic innovation from established and emerging manufacturers focusing on enhancing production technology, supply chain efficiency, and design versatility.

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Growing Awareness and Government Initiatives Boost Adoption

Government-backed sustainability initiatives and public awareness campaigns across key regions such as North America, Europe, and Asia-Pacific are accelerating the adoption of jute-based products. In several countries, bans on plastic bags have created fertile ground for jute bag manufacturers to expand operations and explore new export markets.

The product’s biodegradability, durability, and cost-efficiency make it an attractive alternative for both retailers and consumers. Additionally, the rise in brand-led environmental campaigns is encouraging corporate adoption of reusable jute bags for promotional and packaging purposes.

Quick Stats for Jute Bag Market

• Market Value (2025): USD 0.9 billion
• Forecast Value (2035): USD 1.1 billion
• Forecast CAGR: 2.6%
• Leading Segment (2025): Shopping Bags – 36.8%
• Key Growth Regions: North America, Asia-Pacific, Europe
• Major Players: Asia Jute, MANYAN INC., JOYTEX GMBH & CO. KG, PEMA Verpackung GmbH, Trident Jute, Zest Tex, Jute Cotton Bags, Cotheeka Jute Industry, Bombay Bags, TopTrans International

Market Segmentation Insights

The jute bag market is segmented by product type, capacity, end use, distribution channel, and region, each contributing significantly to the overall market momentum.

By Product Type: Shopping Bags Lead the Market

• Shopping bags dominate the market, accounting for 36.8% share in 2025.
• These bags are increasingly used in supermarkets, fashion outlets, and corporate gifting, thanks to their reusability, aesthetic appeal, and branding potential.
• Manufacturers are adopting printing and lamination technologies to enhance bag design and durability, with export demand from Europe and North America driving additional growth.

By Capacity: 11–30 Kg Segment Retains Leadership

• The 11–30 Kg segment holds a strong 42.5% share, ideal for both retail and industrial uses.
• Its widespread application in packaging agricultural produce, groceries, and intermediate goods makes it a reliable, versatile choice.
• Ongoing improvements in fabric strength and moisture resistance are increasing adoption in developing markets with expanding logistics sectors.

By End Use: Retail Sector Dominates

• The retail sector contributes nearly 48.6% of total market share, driven by sustainability goals and branding opportunities.
• Expanding supermarket chains, department stores, and e-commerce platforms are integrating eco-friendly packaging options to enhance brand image.
• With governments enforcing stricter plastic bans, retail adoption is expected to rise further through 2035.

Regional Outlook: Growth Fueled by Policy Support and Export Expansion

• United States: Expected to grow at 1.5% CAGR, supported by corporate sustainability initiatives.
• United Kingdom: Forecasted growth at 1.1% CAGR, as consumer awareness of environmental issues deepens.
• Germany: Anticipated growth of 1.4% CAGR, with CSR-driven adoption of reusable jute bags.
• China: Growing at 5% CAGR, driven by export-oriented production and fashion-forward designs.
• India: Projected 5.9% CAGR, fueled by government support and increasing use in agriculture and fashion industries.

Market Trends and Growth Drivers

• Sustainability-Driven Demand: Increasing bans on plastic bags and the push for biodegradable alternatives have made jute a mainstream packaging solution.
• Rise in Fashion Applications: The fusion of jute with cotton has led to stylish, soft, and durable jute handbags, appealing to eco-conscious consumers.
• Branding Opportunities: Businesses are leveraging custom-printed jute bags to promote their brands while supporting sustainability goals.
• Technological Advancements: Emerging players are focusing on soft jute fabric innovations and enhanced weaving technologies to improve aesthetics and strength.

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Competitive Landscape: Established Leaders and New Entrants Innovating for Growth

The global jute bag market remains fragmented, with numerous regional manufacturers and global players competing through product innovation, partnerships, and expansion strategies. Established companies like MANYAN INC., JOYTEX GMBH & CO. KG, and Trident Jute are scaling production capacity, while new entrants are driving market creativity with artisanal and fashion-driven designs.

Recent Developments

• May 2024 – Kandhi: Introduced handcrafted jute bags made using a non-hairy, ultra-soft jute fabric, blending traditional craftsmanship with modern sustainability.
• June 2025 – Craft Maestros: Launched a new line of artisanal jute bags promoting sustainable fashion, merging artistry and eco-consciousness.

These initiatives signal the industry’s ongoing transformation — from being purely functional to offering premium, stylish, and eco-friendly alternatives.

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Future Market Insights, Inc. (FMI) is an ESOMAR-certified, ISO 9001:2015 market research and consulting organization, trusted by Fortune 500 clients and global enterprises. With operations in the U.S., UK, India, and Dubai, FMI provides data-backed insights and strategic intelligence across 30+ industries and 1200 markets worldwide.