Demand for jute bags soaring globally – Market value to cross US$ 1,090.8 million by 2034 end
08 April 2024: Global jute bag market value surged at a rate of 1.8% between 2019 and 2023 and reached a valuation of US$ 819.3 million in 2023. The jute bag industry is poised to expand at 2.6% CAGR between 2024 and 2034. The global jute bag market is estimated to be around US$ 843.9 million in 2024 and is projected to reach US$ 1,090.8 million by 2034 as per a report by Future Market Insights, Inc.
Rising concern for wastage and environmental degradation from plastic products is the primary reason for the growing lucrativeness of the jute bag business worldwide. Moreover, as jute bags are recyclable and can be reused, they are in line with the principles of the circular economy.
Government support for jute-producing rural areas is an emerging trend in many Asian and other jute-producing regions that have improved the sourcing of raw materials. Awareness fueled by social media and government initiatives is anticipated to play a crucial role in the advancement of jute and other environment-friendly bag markets.
The total market is estimated to generate an incremental opportunity of US$ 250 million during the forecast period. In the United States, the demand for jute bags is projected to rise at a CAGR of 1.5% from 2024 to 2034. Germany is the leading supplier of jute bags in Europe and is poised to expand at a rate of 1.4% per year till 2034.
The regional market in India is expected to progress at 5.9% CAGR, accounting for over 48% in South Asia throughout the projection period. The retail sector is estimated to be the key end-user segment for jute bag sales and it is poised to account for 45.4% of the market share in 2034. Based on capacity, the 11 to 30 Kg segment is expected to contribute almost 38.4% of the market sales in 2024.
“Jute bags are sustainable and biodegradable and it fits perfectly with the worldwide trend of consumers choosing products to minimize their impact on the environment. A focus on environmentally friendly business methods by industries or enterprises has also strengthened the supply side of biodegradable packaging materials, including jute,” says Senior Consultant Ismail Sutaria in Packaging at Future Market Insights (FMI).
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