Jute Bags Global Market Report 2024

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 12.0%. 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 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 various factors, including increasing environmental concerns and the global eco-friendly movement. Government policies and subsidies have incentivized businesses and consumers to adopt more sustainable practices. There has been a notable shift from plastic to natural fibers in packaging materials, driven by a desire to reduce environmental impact. The promotion of handicrafts and artisanal products has also contributed to this growth, as consumers seek unique and sustainable alternatives. Many corporations have adopted eco-friendly practices as part of their corporate social responsibility initiatives, further driving the demand for eco-friendly products and solutions.

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 12.0%. 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 environmentally friendly products are driving the expansion of the jute bags market. Eco-friendly packaging solutions are being developed on a large scale in response to shifts in consumer behavior and attitudes. Businesses worldwide are prioritizing eco-friendly packaging due to its cost-saving benefits, positive impact on brand image, recyclability, and sustainability. For instance, a 2021 survey by the U.S. Cotton Trust Protocol found that 61% of brands and companies reported a rise in demand for environmentally friendly goods. As a result, the growing preference for environmentally friendly products is expected to fuel the jute bags market's growth in the years ahead.

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 emergence of bioplastic jute poly bags represents a significant trend in the jute bags market, offering a sustainable alternative to traditional polythene bags. These innovative bags have versatile applications, serving as packaging solutions for various purposes such as garments, rice, sugar, red gram, and even dairy milk, provided there's no risk of contamination or compromise in quality. In 2021, a Bangladeshi scientist successfully developed a bioplastic jute poly bag using jute polymer. This bag not only matches the quality of conventional polythene bags but also stands out for its eco-friendliness, reusability, and biodegradability. Remarkably, these bags are entirely environmentally friendly and can seamlessly integrate with the soil within 3 to 4 months, contributing to a sustainable and eco-conscious packaging solution.

Major companies in the jute bags industry are increasingly making investments to capitalize on development opportunities and address the shortage of jute. Investment involves allocating funds or resources to a project, venture, or asset with the expectation of generating income, profit, or future value appreciation. For example, in September 2021, Gloster Ltd., an India-based manufacturer of jute and jute-based products, signed a Memorandum of Understanding (MoU) with the Telangana government to establish a ₹3.3 billion ($0.04 billion) jute and jute-based products manufacturing unit in Warangal, India. This strategic move aims to alleviate the shortage of gunny bags in Telangana, especially with the region experiencing a surge in paddy output. The new facility is projected to produce 50 million jute bags annually and create direct employment opportunities for over 2,500 rural youth.

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 report are 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 (Greenotechindia), 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. Asia-Pacific was the largest region in the jute bags market in 2023. The regions covered in the jute bags market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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.

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.