Paper bags have gained much popularity in the past few years, thanks to the increasing awareness about the harmful effects of plastic bags.

One more reason behind the increasing use of paper bags is that they are 100% biodegradable, reusable, recyclable, and, unlike plastic bags, do not question the planet’s sustainability.

As people are shifting towards using reusable bags, their demand is experiencing an inflating curve, making it a great time for manufacturers to invest in a paper bag making business.

But setting up a paper bag making machine is no play. There are different factors that an individual has to keep in mind before entering the already competitive market.

Your business’s success will significantly depend on various decisions you make initially and once your business is on the run. To help you out, here are some of the factors you should emphasize while laying the foundation for your bag making business:

The Type of Paper Bag

The foremost thing you must conclude is what type of paper bags you will manufacture. Almost every sector of society uses paper bags for different purposes.

If you opt to manufacture bags to pack medical items, the main focus will be on quality standards and hygiene. The same goes for bags made for packing food items.

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Thus, choose the right methods of production and maintain the highest quality of the bags.


Another thing you must consider is the amount of money required to start the business. As paper bag making does not require many resources, it will require less investment to buy land, labor, and machinery.

Your investment will decide the size of your business. If you have low capital investment, you can start a bag making business with a single machine.

A fully automatic bag making machine will cost around 5 – 8 lacs, depending on the number of features it offers. The automated machine will produce hundreds of pieces in minutes and help reduce the labor cost.


Choose an appropriate location to set up your manufacturing unit. Location plays a vital role in reducing the overall manufacturing costs.

Just find a place where the charges for electricity are less, labor is readily available at lower wages, the land is available at a minimal rental, and all the other facilities cost less.

The land you rent must not outweigh your profits. You can consider going for a semi-urban area to take the benefits of both urban and rural areas.

In addition to this, to lower down your transportation costs involved in delivering manufactured bags to clients, rent a place near the market.

Raw Materials

Raw materials are the major part of the paper bag manufacturing process. To stand apart from the crowd in the highly-competitive paper bag market, you must deliver the best quality paper bags to clients.

The quality of the produced bags is highly dependent on the quality of raw materials used. Also, the materials should be available in the correct quantity to ensure the consistent flow of production.

These are the raw materials required to produce the best quality paper bags:

  • Paper rolls
  • Paper sheets
  • Printing ink, chemicals, etc
  • Eyelets
  • Laces and tags
  • Polyester stereo

These are the raw materials that you should stock to ensure a smooth flow of production.

Paper Bag Making Machine

Using the manual method of bag production in a market where your competitors are using advanced technology is never a good idea. You can find several bag making machine manufacturers in the market offering machines with semi-automatic and automatic features.

Procure a machine that is reliable, worthy, and can deliver outstanding functioning for years. The quality of the machine determines the quality of the output produced. Keeping this thing in mind, invest in a machine that can deliver higher quality and productivity.


Although the requirement of labor in a paper bag making business is low, you will still need a few. No matter how many laborers you hire, ensure that they are skilled enough to handle the bag paper bag making machine and the entire production process.

You can also conduct a training program to help them learn the manufacturing process so that there is no compromise on the quality of the output produced. Also, ensure that the common standards are followed in the production unit.


To start a bag making business, you will require different licenses. You can begin by getting a trade license to operate in society. Then you can get your Udyog Aadhar registration online by visiting Udyog

Once registration is complete, register for the GST number. After that, get the BIS (Bureau of Indian standard) certificate mandatory to start a bag making business.

All these licenses and certifications will help you conduct your business without any legal issues.

Final Thoughts

People moving from the use of plastic bags to paper ones makes it a perfect time to start a paper bag making business. Keep in mind all the points mentioned above to ensure your business’s successful start and sustainability in the long run.

You can also check out this infographics for better understanding.

Paper bag types and sizes (Infographic) - An Infographic from Bagitan Packaging

Embedded from Bagitan Packaging

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