Custom Paper Bags Manufacturing as a Business

A business plan for opening a paper bag manufacturing plant will help to make a minimum of mistakes when organizing a business. Let’s consider what equipment is needed, what risks may arise in the process and other information to answer the question of how to open a paper bag manufacturing line. Prices for equipment and products are relevant for 2020.

To start producing any product, you must first study the subject of production itself (in this case, paper bags), its areas of application, and production technology. Calculate approximate costs, forecast possible income, determine the likelihood of problems and production risks. And only after that can you conclude whether it is worth investing in such a business and how exactly to organize it.

Paper Bags Market Analysis

Paper bags are a universal packaging material, environmentally friendly and affordable. It is used by bakers and confectioners, grocers, textile and cloth merchants, dry cleaners, meat sellers, sellers of fruits, vegetables and sweets.

In addition, consumers are increasingly aware of the environmental hazards of plastic packaging. An environmental movement is rising around the world. Governments of some countries impose bans or restrictions on the sale of plastic bags. Consequently, environmentally friendly packaging is increasingly in demand. And in this regard, paper bags have few competitors.

In the production of paper packaging, enterprises located in regions with cheap raw materials win. For example, paper made from coniferous wood has the highest strength. And given that European reserves of coniferous wood are decreasing, and in Asia it does not grow at all, United states enterprises gain the greatest advantage in the production of this type of product. In particular, a large plant in Karelia is well known – Segezha Pulp and Paper Mill.

Business plan for the production of paper bags

The production business plan consists of two main parts: technical and financial. The technical part examines the production technology, determines the necessary raw materials and equipment for the production of paper bags. The financial part calculates the cost of production and forecasts revenue from product sales.

Production costs

The amount of expenses varies depending on the type of product. Today, there are more than a hundred types of bags. Whether you will produce bags with or without handles, with custom paper bags or rope handles, from thick paper or thin craft paper, whether you will apply images or logos to paper bags – all this determines the set and type of equipment required. And the purchase of equipment is the most expensive item of expenditure in the paper bag manufacturing business.

Equipment for the production of paper bags

The equipment purchased must be reliable. The durability of purchased machines should be checked before purchase, as the quality of the machine used determines the quality of the product produced.

It should be noted that under the same marking, and even under the same brand of the manufacturer, there may be equipment of different configurations. It is recommended to personally visit the plant before purchasing equipment for the production of bags.

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