Trade & Business

Bangladesh Jute Market 2020: Revival of an Eco-Friendly Fiber

Bangladesh Jute Industry Overview

Bangladesh is the world's largest jute exporter, accounting for about 33% of global production and over 70% of jute exports. Jute, commonly called the Golden Fiber, is a 100% biodegradable natural fiber. In FY2020, jute and jute product exports were about USD 1.0 billion, making it one of Bangladesh's traditional export industries after ready-made garments and leather. Recently, the sector has regained attention as plastic restrictions and rising demand for sustainable packaging have expanded.

USD 1.0B
Jute Exports
FY 2020
8M tons
Production
Raw
70%+
Global Share
By export
250
Jute Mills
BJMA-registered
720k ha
Cultivation Area
National total
400,000
Employment
Direct jobs

Breakdown of Jute Exports

Bangladesh Jute Export Products (2020)
ProductExport ValueShareYoYMain Markets
Jute Sack (Hessian)USD 320M32%+5%Australia·India·United States
Raw JuteUSD 250M25%-8%India·China·Pakistan
Jute YarnUSD 150M15%+3%Turkey·Iran·China
Jute Bag (CBC)USD 120M12%+10%Africa·Middle East
Diversified Jute ProductsUSD 80M8%+25%Europe·Japan
Jute Carpet Base (CBC)USD 80M8%+8%Europe·United States

The 25% growth of Diversified Jute Products is notable. Eco-friendly shopping bags, home décor items, and jute textiles are gaining traction in European and Japanese markets, while Bangladesh's mandatory packaging legislation has also supported demand.

Raw vs. Processed Products

Raw Jute Exports
Value AddedLow (USD 500~700/ton)
Process StepsWashing and grading only
Main BuyersIndia·China
ChallengeHigh price volatility
Processed Product Exports (Diversified)
Value AddedHigh (USD 2,000~5,000/ton)
Process StepsSpinning·Weaving·Design
Main BuyersEurope·Japan·Australia
ChallengeDesign and marketing capability
01
Mandatory Packaging and Plastic Substitution
Bangladesh introduced the Mandatory Jute Packaging Act in 2010, making jute sacks mandatory for 17 items including sugar, grain, and fertilizer. In 2019, the list was expanded. The EU Single-Use Plastic Directive (2019) has also supported jute packaging demand. India has also introduced similar obligations, which benefits Bangladesh raw-jute exports.
02
COVID-19 Impact
In 2020, jute exports showed mixed effects from COVID-19. Raw jute exports fell 8% due to India's lockdown and border closure, while jute sacks (+5%) and eco-products (+25%) grew, supported by food packaging demand and the shift toward sustainable consumption. Harvest in jute-growing areas, which is labor-intensive, also faced some disruption due to distancing constraints.
03
Import Opportunities for Korean Companies
(1) Sustainable packaging: importing jute shopping bags and wrapping materials for Korean supermarkets and department stores. (2) Jute yarn: imports for carpets, wallcoverings, and interior textiles. (3) Jute composites: jute-based composites for vehicle interiors, already adopted by some European OEMs. (4) Jute nonwovens: geotextile applications in construction and landscaping. (5) Processing equipment exports: spinning, weaving, and finishing machinery from Korea to Bangladesh.
04
Market Outlook
(1) Global sustainable packaging is expected to grow 8% annually, expanding jute demand. (2) Bangladesh's 5-year jute diversification plan targets processed-product share of 40% by 2025. (3) New variety development by BJRI is expected to improve yields. (4) Wider use of Geo-Jute (geotextile) in infrastructure projects. (5) BJMC public stock stabilization to smooth raw-jute price fluctuations.

Jute Export Trend

2015
USD 850M
2016
USD 900M
2017
USD 920M
2018
USD 1.05B
2019
USD 1.02B
2020
USD 1.0B
2025 Target
USD 1.5B
Bangladesh Leather Industry 2020Traditional export sector
Bangladesh Agro-Processing 2020Agriculture-linked industries

Bangladesh's jute sector is entering a new expansion phase as the eco value of the Golden Fiber is being rediscovered. As plastic restrictions and ESG trends continue to pull demand, Korean firms can explore import opportunities in sustainable packaging, automotive composites, and geotextile applications.

JuteSustainable FiberEco-friendly2020Textiles
Bangladesh Jute Market 2020: Revival of an Eco-Friendly Fiber | Dhaka Trade Portal