Sat. Jun 25th, 2022
Paper Bag Making

Paper bag making business is very lucrative and moderately challenging. The industry is ecofriendly and product attract huge demand. Startup requirements include finance, labor, equipment, transportation, legal site location, and marketing.

Paper bag opportunity

There is huge business opportunity in the paper bag industry. Things to consider are type of bag produced, standardization and quality control.

There are legislature guiding the industry, insurance, labor safety, choice of raw material. It is best to specialize in bags related to specific industries.

Paper Bag Making

Types of bags

An entrepreneur needs to determine the type of bag and industry to supply. Bag designs include twisted handle bags, bags without handles, flat handle bags.

Types of paper bags are jewelry bags, food bags, grocery bags, general purpose bags. Others are shopping bags, party bags, gift bags, medical use bags, semi-finished goods bags.

  • jewelry bags
  • food bags
  • grocery bags
  • general purpose bags
  • shopping bags
  • party bags
  • gift bags
  • medical use bags
  • semi-finished goods bags

How to Start Paper Bag Business


The amount of startup funding depends on the scale of business and production capacity. The business is either small/medium or large scale. Medium to large scale enterprise require automatic bag making in-line machinery. Cost consideration involves purchase of equipment and machinery.

Others are lease of factory space, labor wages, transportation costs, cost of raw materials, business registration and marketing. To secure funds approach a commercial or trade bank for long term loans.

Other funding sources are partnership, sale of startup equity, venture capitalist, crowdfunding.

Site selection

Appropriate site selection reduces utility bills, manufacturing costs, labor, low rent and nearest to raw material or market. Locate the manufacturing company in semi-urban area close to raw material and customers.

Site selection for manufacturing unit needs large space for factory, parking, loading and warehousing.

Raw materials

Raw material for paper bag making are polyester stereo, tags, laces, eyelets. Others are different color paper roll, paper sheet, printing chemicals.

Types of paper bag machines

The type of machinery are automated, semi-automated or locally fabricated. You need bag cutting machines, creasing machine, test scale machine. Other equipment are stereo press, lace fitting, eyelet fitting. More are roll slitter, printing machine, stereo grinder.


The labor requirements depends on the production capacity. Hire qualified machine operators, factory manager, drivers and store manager. Others are receptionist, sales and marketing staff.

  • machine operators
  • factory manager
  • drivers
  • store manager
  • receptionist
  • sales and marketing staff

Steps in paper bag making

Most processes are done in-line automatic machinery. Steps in paper bag making are measuring, cutting, logo printing, folding, pasting, shearing, eyelet fitting, lace fitting. Cutting – pressing – printing – punching – handle attach – packaging.


  •  paper bag measuring
  • Cutting
  • logo printing
  • folding
  • pasting
  • shearing
  • eyelet fitting
  • lace fitting

Type of equipment

Types of machines are roll feeding machines, roll to roll paper printing machine 2, 4 or 6 color. Others are automatic paper bag handle and pasting carry bag machine.

Raw material for roll feeding machine are non-printed or printed roller paper. This machine produces bags with or without handles, Flat Handle Making Machine, twisted handle machine

Types of machines

  1. Paper carry bag machine with twisted rope handle line
  2. Automatic shopping bag machine with flat handle line
  3. V bottom food paper bag machine
  4. Square bottom paper bag machine/ window machine
  5. Die cut handle paper machine
  6. Paper bag handle pasting machine
  7. Twisted rope rewind machine
  8. Roll slitting machine
  9. Full automatic flat and satchel paper food bag making machine

License and Registration for paper bag making business

Register the business as a limited liability company and get insurance cover. Apply for trade license, network with industrial players and tax identification number. Other registration to consider are BIS certification, MSME/SSI registration, GST registration.

License and Registration

  1. Register business name
  2. Incorporate a limited liability company
  3. Insurance cover
  4. Trade license, network
  5. Tax identification number
  6. BIS certification
  7. MSME/SSI registration
  8. GST registration

Equipment and raw material contact

Contact details of raw material, automation machine supplier are found online or yellow pages. Find any raw material or machine on alibaba or indiamart.


There are many small/medium or large scale businesses that require paper bags. Make sure the bags are unique, good quality and branded. Customers include gift shops, book shops, grocery stores, bakeries.

Others are fancy shops, hardware shops, jewelry shops, meat shops, medical shops, more are sweet shops, snack shops, shopping stores.

Sell directly to wholesale, use online market or build a website. Sell on B2C websites like bigbasket, amazon, snapdeal, flipkart.

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By Femi

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