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How to Start a Paper Bag Making Business?

Paper Bag Making Business: The increase in pollution and toxicity levels in the environment has made the use of eco-friendly products the need of the hour. 

One such eco-friendly product that can help save the environment is paper bags. 

Paper bags, as the name reflects, are made out of paper. They are generally produced from the chemical pulp manufactured from the kraft process. 

As people are working towards a sustainable planet, the demand for paper bags has eventually increased. From small retailers to big brands, every business is now using paper packaging to do their part to save the environment.

Apart from this, paper bags act as a great marketing tool. They are easy to print on, making it easier for brands to voice their stories and promote products & services. 

These are the few reasons why paper bags are gaining popularity. Tempted by the inflation in the respective industry, many manufacturers are coming forward to invest in a paper bag making business. 

However, starting a business in a cut-throat marketplace is not as easy as it may seem. There is much more than investing in a paper bag machine or bag printing machine to start the business. 

But not to worry. This article will discuss everything you need to know to start a paper bag making business.

Scope Of The Business

Without a doubt, the demand for paper bags is high and will increase more in the coming time. Want to know why?

Because almost every industry has started using paper bags as their packaging option. Also, customers are more likely to purchase from brands that use eco-friendly products. 

This has boosted the demand for paper bags and directly the marketing opportunities a bag making business can get to pace up its growth.

Uses of Paper Bags

Paper bags are used almost everywhere. Be it a grocery shop or big shopping outlets; these bags have made a place for themselves. The bags are used in industries such as:

  • Food & Beverage
  • Hotel
  • Healthcare
  • Pharmacies
  • Packaging
  • Salons
  • Fashion


As now you are well-aware of the scope of the business, it’s time to finalize how much money you want to invest. Investment is generally of two types: Fixed and Variable. 

Fixed investment involves the cost of land, machinery, etc., whereas variable investment involves costs, such as wages, salary, electricity bills, and other daily expenses.

Before turning your business idea into a running business, you must have enough money to meet all expenses.

The size of your investment will also decide the scale of your business. Although as you earn profits, you can expand the business accordingly.


Another factor to consider is location. It plays a crucial role in taking up the business off the ground. It is always better to choose a location where you get labor at competitive rates, electricity at lower cost, and raw materials are easily accessible. 

Therefore, we would suggest you go for a semi-urban area to avail the perks of both rural and urban facilities. Additionally, ensure that the location is not much far away from the market. It will help you save a few bucks that otherwise be spent on transportation costs.


Gone are the days of manual production ways. The advancement in technology has introduced us to paper bag machines and bag printing machines, making production a lot easier. 

By moving onto machine production, you can reduce manufacturing costs, time, and the risk of errors. It also helps you meet bulk orders on time. The paper bag machine can produce hundreds of high-quality bags within minutes. 

You can also go for a semi-automatic machine to have a perfect manual and automated production mix.

So, invest in the right machine and get started with meeting deadlines and maximizing your revenue.

Raw Materials

You will need high-quality raw materials to produce high-quality paper bags. Customers prefer brands that offer quality products and stay with them for a lifetime. 

Therefore, by choosing the right raw materials, you can deliver quality products and make potential customers choose you over the competitors. 

Also, ensure that the required raw materials are in the right quantity. Because excess will take up extra storage space and may increase warehouse expenses, less may halt the production. Plus, choose a reliable vendor that can maintain a consistent supply of raw materials.


No matter how many paper bag making machines you incorporate in the production unit; you still need labor to load raw material and de-load finished products. Apart from this, the number of laborers required also depends on the production unit’s size. 

You don’t have to search for professional laborers. Just ensure that they are skilled enough to carry the production accurately. If they still need to learn about the production, conduct an orientation of training session on the first day of their joining. In the session, inform them about the process and all the safety instructions and standards they must follow.


Before beginning the production, there are certain licenses you will need. You can start with registering the company with the Registrar of Companies. Then, apply for a trade license from the local municipal authority that will allow you to start a business in the society. After that, apply for the GST registration to get the GST number, mandatory for all businesses. Finally, get BIS BIS (Bureau of Indian Standards) certification.

Once you get all your documentation ready, you can begin the bag making business.

Branding and Promotion of the Product

When most people think of branding, they think of big businesses like Coca-Cola or Nike. But what about small & medium businesses? Even the smallest and medium-size businesses can take advantage with the help of branding and promotion.

Branding and Promotion are most important for the paper bag making business. Without promotion and branding, no business can survive long term. There must be uniqueness in your product to attract your customers. A well-designed website with a company logo represents the image of your products and company, it is good for branding and promotion. You can hire a Website Design Company to design your company website as you want. Also, you can use social media platforms like Facebook, Instagram, Youtube, and Twitter for advertising your products.

Social Media provides the best online platform for advertising your product and reaching the customer quickly, A beautiful website that not only gains customers but also creates a brand image of your product on viewers. So if you want to start a paper bag making business in India? branding and promotion is a must for your business because, in this pandemic and digital era, online promotion will give better results. 

Summing Up

Starting a business is not easy, but with the right guidance, you can start a business and run it smoothly. 

Today, every customer demands a paper bag whenever they go out shopping or have to carry products. Keeping the current scenario in mind, the trend of paper bags will stay for a while. 

So, if you are thinking of starting a bag making business, it’s high time to get it off the ground and earn higher profits.

We hope that the article will help you get started with the business idea and do everything in the best way possible. If you still need any extra help or have any queries, do let us know in the comments. Article Ritz

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