[3/14, 00:50] Gaurav🙂: ☰

How to start a Paper Bag Making Business? [A Complete Guide]

OKCREDIT - 24 NOV 2021

How to start a Paper Bag Making Business? [A Complete Guide]

Table of Contents:

1. Paper Bag Manufacturing Business

2. Paper Bag Making Business: Uses

3. Future Of Paper Bag Business

4. Paper Bag Business Plan

5. Paper Bag Making Business

6. Paper Bag Manufacturing Investment

7. Mandatory Raw Materials For Paper Bag Making Business

8. Type Of Paper Bag For Manufacturing Business

9. New Technology For Paper Bag Making Business

10. Recycling In Paper Bag Manufacturing Business

1. Paper Bag Manufacturing Business

A paper bag is a carry bag made out of paper, usually produced from chemical pulp manufactured in the
kraft process. The most relatable example includes the brown paper bags that we get from any and
every retail outlet. These paper bags are made from kraft paper. Then there are the gift bags or tote-
style paper bags. These are made from a variety of papers that differ in their quality, texture, colour, and
print. They can also be made from recycled paper. Paper bags are commonly used in packaging, as sacks,
or as shopping bags. Due to its eco-friendliness, paper bags are wanted by most companies to pack their
products. The range of its use is vast-from food to medical items.

2. Paper Bag Making Business: Uses

Some of the areas where paper bags are used are:

General-purpose

Food items

Medical use

Jewellery packaging

Party bags

Shopping bags

The list is endless.

3. Future Of Paper Bag Business

Many countries have banned single-use plastic bags, naturally creating the use of paper bags as an
alternative. Some laws require them to have a minimum percentage of post-consumer recycled paper
content. The global Kraft paper market is estimated at USD 15.5 billion in 2019 and is estimated to reach
USD 18.1 billion by 2026.

All companies want to pack their goods in paper bags, due to its eco-friendliness. Paper bags are
biodegradable and recyclable. Hence, a paper bag making business is a good opportunity for business
owners to make decent profits. In this article, we will describe how to start such a business.

4. Paper Bag Business Plan

You first have to make a business plan where the entire idea like logistics, funding, and other details are
mentioned. Other information needed includes a list of employees required, location, and plant and
machinery. The marketing plan must include a demographic study and a plan on how to market the
product. Research well about your target customers. The list below can help you with this:
Bakeries

Cloth Merchants

Groceries

Jewellers

Mobile Shops

Retail Outlets

Restaurants

Sweet Shops

Try to reduce the distribution channels to keep the prices low and also increase your profit margin.

Paper Bag Manufacturing Business

5. Paper Bag Making Business

You can visit a paper bags manufacturing firm to learn more about the working of machines.

1- Money Required to Start a Paper Bag Business

Paper bag making is a small scale business and will require a minimum investment. You have to plan and
invest in land, machinery, and labor. A fully automatic paper bag making machine will cost around Rs 5
lakh-Rs 8 lakh. The price varies according to the production capacity. One fully automatic machine can
produce around 15,000 pieces per hour.

A semi-automatic machine is also available whose price is below Rs 3 lakh. However, the production
capacity is lower than the automatic one, and you will have to depend more on your labor. The Paper
bag machine price for the manual type is around Rs 50,000. With an initial investment of around Rs 50
lakhs, you can hope to make roughly 60 lakh units/year.

Also read: Paper Cup Manufacturers in India

2- License And Registration

If you want to start paper bag manufacturing business on a small scale, you can operate from your home
also. For this, you will only need a Trade Licence. But if you are planning something bigger, then you first
need to register your company with the Registrar of Companies (ROC). Then you will have to apply for
the Trade Licence with the local municipal authorities. You will also have to get your unit registered as a
Small Scale Industry (SSI). To manufacture paper bags, you will also need a Bureau of Indian Standards
(BIS) certification. You will also need some other documents for your daily business activities:

Current Account Number of the Company.

GST number.

PAN.

You have to fulfil all the above procedures and legal requirements before you can start your business.

Also read: Cardboard Box Manufacturers in India

3- Appropriate Location

Try to choose a location for your manufacturing unit should be located in such a place where you can
reduce your costs. So, you will have to find such a place where electricity charges are less, labor wages
are low, rent or the real estate costs are on the lower side, and the cost of other facilities is also less. A
semi-urban area is most suitable for this business because of lower taxes. Also, it should be near to your
market, to keep transportation costs minimum. To start a paper bag business in India, a manufacturing
space of around 2000 square feet will be sufficient.

Also read: Carry Bag Manufacturers in India

4. Machines

There are two methods for making paper bags:

Manually-It is a very time-consuming process, and the quantity produced is less. You will only need gum,
paper, a ruler, and labor to make the paper bags. Though your investment will be low, you will earn less
profits.

By machine-Automatic machines are quite easy to operate. You only have to put paper rolls in the
machine, and it starts to make the bags automatically. This machine can produce approximately 60 Kgs
of paper bags in an hour, which translates to roughly 10,000 pieces. So, in an 8-hour shift, you will be
able to produce around 480 Kgs that make a good quantity to meet your orders.
Paper Bag Business Plan

6. Paper Bag Manufacturing Investment

Types of machine required:

Without Printing- This machine can only make plain bags.

With Printing- This machine can print logos or designs. It comes in two options- two-colour or four-
colour printing.

Some of the other ancillary machines to be purchased are:

Bag cutting machine

Creezing machine

Cut handle machine

Eyelet fitting machine

Lace fitting machine

Punching machine

Roll slitter motorised machine

Stereo grinder and press

Testing scale machine

Also Read: Cloth Bag Manufacturers in India

7. Mandatory Raw Materials For Paper Bag Making Business

All raw materials should be procured in the right quantity to ensure a smooth flow of production. The
raw materials needed for the paper manufacturing business include:

Kraft Paper sheets (They are made from cellulose fibres extracted from wood).

Paper rolls in different colours including white

Printing Chemicals, Ink

Eyelets

Laces and Tags

Polyester Stereo

Glue

Handles

8. Type Of Paper Bag For Manufacturing Business

There are a lot of niche products available for various markets:

Paper bags for food items and groceries

Bags for medicines

Shopping bags

Bags for industrial use

Bags for packaging accessories and jewellery

Also read: Kraft Paper Manufacturers in India

Labour

Since paper making is a small scale business, it will not require much labor. You can run a production
unit with around 10 people. Besides, you can hire a graphic designer to do the logo work and other
designs.

9. New Technology For Paper Bag Making Business

The latest demand from various industries especially the food industry is for biodegradable packaging.
The biodegradable packaging is made with recycled paper pulp. Enzymes drawn from cotton, wheat
husk, or other organic material react with them. The paper is manufactured mostly by using carbon-
neutral methods. Poly Lactic Acid ( PLA ), a polymer produced from corn or tapioca starch, is used to
make the packaging leakproof.

While manufacturing paper bags for food items, you should be very careful. Toxic substances may end
up in undesirable incidents. So be careful.

10. Recycling In Paper Bag Manufacturing Business

Paper bags are readily recyclable. The recycling process is done by re-pulping the paper and then
pressing it into the required shapes. The waste paper is first collected, sorted by machine or hand,
washed, turned to sludge, purified, poured, flattened, dried, bleached or coloured, cut, and packaged.
But each step of the process requires intensive energy and the use of huge machines.

Most people want to use paper bags because of the environmental benefits. Besides, technical
advancements have made them easy to carry, clean, and store items for a long time. So, it makes sense
to start a paper bags business. We hope that the above article will clear all your doubts about this
venture.

We hope our article turned out to be useful for you. For more such informative content, you can visit
these linked articles as well:

How to start a Book House? How to start a Photo Studio? How to start a car Repair Shop?

How to start a Coaching centre?How to start a Consultancy Firm? How to start a Soft Toy
Business?

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Marathi & more!

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FAQs

Q. Is paper bag making business profitable?

Ans- Yes, the paper bag making business is profitable in India but in the longer run. For example, A paper
bag with 18cm x 25cm will cost around Rs 3.40 inclusive of labour and material cost. And the market
price will be 3.50 rupees, hence, the profit per paper bag in India is 0.10 Paise.

Q. How do I start a paper bag business from home?

Ans- Paper bag making is a small scale business and will require a decent amount of investment. You
have to plan and invest in land, machinery, and labour. A fully automatic paper bag making machine will
cost around Rs 5 lakh-Rs 8 lakh. With an initial investment of around Rs 50 lakhs, you can hope to make
roughly 60 lakh units/year.

Q. How can I start paper bag business in India?

Ans- These are the definitive steps or things to keep in mind before starting a paper bag making
business:

Step 1- Create a Business Plan Checklist

Step 2- Pick your Niche, Location, Raw Material, Labour, Funding Procurement, Equipment + Training,
and Register your Business

Step 3- Get Proper Assistance to Set up the Business

Q. How do I start my own paper bag business?

Ans- Money Required to Start a Paper Bag Business: You have to plan and invest in land, machinery, and
labour. A fully automatic paper bag making machine will cost around Rs 5 lakh-Rs 8 lakh. The price varies
according to the production capacity. One fully automatic machine can produce around 15,000 pieces
per hour.

Q. What are the raw materials required for paper industry?

Ans- The method of papermaking uses raw materials that include:

Wood Chips that contain Cellulose (naturally existent fibre component of wood).

Chemicals

Energy

Water

Q. How much investment is required to start making paper bags in India?

Ans- In India, the price of one fully automatic paper bag making machine is around Rs. 5 to 9 Lakhs. This
price varies on the production capacity of the machine. A standard full automatic paper bag
manufacturing can create 15,000 in just an hour.

Q. Is paper bag better than plastic?

Ans- Yes, Paper bags are better than plastic due to being eco-friendly and sustainable. Being a
biodegradable substance it's easier to recycle and can also be used for composting purposes.

Q. What are the disadvantages of paper bags?

Ans- Some common disadvantages of paper bags are:

Paper bags take up more storage area than plastic bags and are heavier.

Paper bags are more costly than plastic bags.

Unlike their polyethene equivalents, paper bags are not waterproof.

Q. What type of paper is used for paper bags?

Ans- Kraft paper is used for making paper bags. Its made of softwood sulphate which is generally a
yellowish-brown, thick light-brown, white or cream paper-making material that weighs between 80 and
120 grams. The Kraft papers' tensile strength is very high.

Q. How do I sell paper bags at home?

Ans- Here are some of the best tips to sell your handmade paper bags from home:

Use Whatsapp for marketing

Facebook Marketplace for local outreach

Instagram Ads for target audience approach

Approaching local neighbourhood stores

Become a part of exhibitions, trade shows, arts & crafts fairs

Create your website or sell via eCommerce sites

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[3/14, 15:54] Gaurav🙂: Pros & Cons of Paper Bags

When looking at purchasing paper bags, it is important to look at the pros and cons of these bags. After
all, this is a business decision. So it is smart to consider all aspects. Here are the pros and cons of using
these bags.

Pros of Using Paper Bags

Reusable and 100% biodegradable, which makes them safe for recycling.
Most can withstand more pressure/weight than their plastic counterparts.

When left around the house, they present less of a suffocation risk to young children or animals.

So these are pretty straightforward benefits when it comes to using paper bags. We have a great
selection of paper shopping bags. Please check them out! See what we have in stock. Our selection of
paper bags are perfect for all sorts of retailers.

Cons of Using Paper Bags

Not waterproof. So in the rain they become less reliable.

More expensive than using plastic bags.

Paper bags take up more storage space than plastic bags.

Considerably heavier than plastic bags.

As expected, there are some notable cons when using paper bags. So it depends on exactly how you
want this done. New York State has mandated the use of paper bags at many stores and retail outlets.
And for those wanting to use plastic bags comes a tax. We do have a selection of plastic bags for sale for
those who still need them. Plastic bags are becoming more obsolete, since they are not recyclable and
bad for the environment.

Great Selection of Paper Bags

As you can see, there are both benefits and drawbacks to using paper bags. When choosing bags for
your business or retail outlet, it is important to have enough knowledge and make an educated choice
on the best bag type for you. For those looking for a classic feel and look, then paper bags are the way to
go. They are a great choice for restaurants, schools, grocery stores, delis, supermarkets and catering
companies.

We have a great selection of paper bags, which includes the following:

Paper shop bags

Paper gift bags

Grocery paper bags

Kraft paper shopping bags

When you choose the bag that works for you, you can take advantage of our wholesale shipping
options.
Contact Us Today

For more information about our wholesale bags for sale, please contact us today. We will happily
answer any questions or concerns you may have about our wholesale bags. Check out our selection of
shopping bags to see what catches your eye! You can also give our office a call by dialing 718-589-4000.
When you call, we can discuss our various pricing options available to you. We can also discuss our our
retail store supplies, since we offer many great products. Perfect for all types of retailers. Stock up
today!