Paper Bag Business Profit 2025 - Practical Guide
Synopsis:
Introduction: Paper Bag Business Profit
To understand the potential of paper bag business profit, it is essential to identify the types of paper bags required by retailers and consumers. There is a wide variety of paper bags available in the market, each catering to different needs. As an aspiring entrepreneur looking to enter the paper bag making business, knowing the right paper bag manufacturing company is crucial before starting your venture. This knowledge will guide your decisions and increase your chances of success in the competitive market.
How to Start Paper Bag Making Business
Starting a paper bag making business involves producing various types of bags, from medicine paper covers to large V bottom paper covers used in textile shops. While medicine paper covers have been in use for over five decades, the current opportunity lies in sectors that have emerged post-single-use plastic bans. Focus on the demand in bakeries and retail shops that utilize both V bottom paper covers and square bottom paper bags. If you’ve decided to embark on this profitable venture, markets including,
- Bakeries,
- Restaurants,
- Textile shops,
- Fancy stores,
- Stationery shops,
- Supermarkets etc.,
Are ideal to target for your paper bag business.
Profit in Paper Bag Business: V Bottom Paper Cover Manufacturing
Five years ago, V bottom paper cover manufacturing was a common starting point for many aspiring entrepreneurs in the paper bag business. However, perceptions have shifted as the market has evolved significantly. With the introduction of square bottom paper covers, also known as SOS paper covers, the profit margin on V bottom paper covers has become increasingly competitive. Currently, profit can range from ₹7.00 to ₹10.00 per kg, prompting a target sales volume of 500 kg per day for minimal profit in the paper bag business. The table below outlines the costing and profit margins associated with V bottom paper cover manufacturing, highlighting the changes in profitability within the industry.
| Model | Paper Cover (18*26 cms) | Paper Cover (22*37 cms) | Unit |
|---|---|---|---|
| Paper width | 18 | 22 | cms |
| Paper length | 26 | 37 | cms |
| Side gusset | - | - | cms |
| Gsm | 80 | 80 | - |
| No. of covers/bags | 120 | 70 | nos |
| Cover/bag weight | 1008 | 1004.64 | grams |
| Paper cost/kg | ₹ 39.00 | ₹ 39.00 | - |
| Cover 1hr production capacity | 8000 | 6000 | - |
| 1 hr production capacity in kg | 67.2 | 86.11 | - |
| 8 hr production capacity in KG | 537.6 | 688.9 | - |
| Costing Per Day | |||
| Paper cost per day | ₹ 20,966.40 | ₹ 26,866.94 | - |
| Labour cost/day | ₹ 850.00 | ₹ 850.00 | - |
| Rental cost/day | ₹ 385.00 | ₹ 385.00 | - |
| Power cost/day | ₹ 200.00 | ₹ 200.00 | - |
| Gumming cost /day | ₹ 150.00 | ₹ 160.00 | - |
| Machine EMI & Interest/day | ₹ 500.00 | ₹ 500.00 | - |
| Wastage 2% | ₹ 419.33 | ₹ 537.34 | - |
| Printing charges | - | - | - |
| Cost of goods | ₹ 23,470.73 | ₹ 29,499.28 | - |
| Production cost per kg | ₹ 43.66 | ₹ 42.82 | - |
| Market Price And Profit Calculation | |||
| Selling cost for 1000 paper cover | ₹ 55.00 | ₹ 55.00 | - |
| Gross profit per kg | ₹ 11.34 | ₹ 12.18 | - |
| Daily revenue | ₹ 29,568.00 | ₹ 37,889.28 | - |
| Net profit/day | ₹ 6,097.27 | ₹ 8,390.00 | - |
Paper Bag Manufacturing Business Profit - V Bottom and Square Bottom Combo Making
As an aspiring entrepreneur, focusing on the paper bag manufacturing business profit is essential. It is advisable to begin by producing both V bottom paper covers and square bottom paper bags. This approach allows you to effectively market within a 200 square kilometer radius. During your field marketing efforts, you will notice that bustling business areas—such as bakeries, sweet shops, mobile shops, textile shops, supermarkets, and grocery stores—are prime for taking orders. For example, bakeries might require V bottom paper covers, while mobile shops may prefer square bottom paper bags. Understanding these dynamics will help maximize your paper bag business profit. Below, a table outlines the paper bag business profit using our FTC paper cover making machine combo, which enables the production of both bag types efficiently.
| Bag | SOS Paper Cover (W7.5" *G3.5" *H10") (1/4 kg sweet box bag / restaurant) | Paper Bag (W10" *G7.5" *H10") (1 kg sweet box bag) | Unit |
|---|---|---|---|
| Length of a bag | 29 | 37 | cms |
| Width of a bag | 17 | 25 | cms |
| Gusset of a bag | 9 | 18 | cms |
| Gsm | 80 | 80 | 24 bf |
| Width of a roll | 55 | 89 | cms |
| Weight of a bag | 12.76 | 26.34 | - |
| Price of paper/kg | ₹ 50.00 | ₹ 50.00 | - |
| Super Deluxe Paper Cover Machine Combo / Roll To Tube Making Machine | |||
| No. of bags/shift | 14000 | 14000 | bags |
| Paper cost per day | ₹ 8,932.00 | ₹ 18,440.80 | ₹ 1.32 |
| Labour cost per day | ₹ 500.00 | ₹ 500.00 | 1 labour |
| Glue cost for side pasting | ₹ 850.00 | ₹ 1,400.00 | - |
| Power cost | ₹ 212.50 | ₹ 212.50 | - |
| Total cost | ₹ 10,494.50 | ₹ 20,553.30 | - |
| Manual Square Bottom Folding And Pasting | |||
| No. of bags/shift | 14000 | 14000 | - |
| Bottom creasing | ₹ 2,100.00 | ₹ 2,100.00 | - |
| Labour cost per day | ₹ 5,600.00 | ₹ 5,600.00 | - |
| Glue cost | ₹ 1,000.00 | ₹ 1,000.00 | - |
| Total cost | ₹ 8,700.00 | ₹ 8,700.00 | - |
| Handle Pasting | |||
| No. of bags/shift | 0 | 14000 | - |
| Paper handle cost per day | - | ₹ 14,000.00 | - |
| Labour cost per day | - | ₹ 2,500.00 | 5 labour |
| Glue cost for handle pasting | - | ₹ 1,400.00 | - |
| Power cost | - | ₹ 85.00 | - |
| Total cost | - | ₹ 17,985.00 | - |
| Overall Cost Per Day | |||
| Overall cost per day | ₹ 19,194.50 | ₹ 47,238.30 | - |
| Cost of making a paper bag as per today's price | ₹ 1.37 | ₹ 3.37 | per bag |
| Selling price of a pape bag | ₹ 2.25 | ₹ 5.00 | per bag |
| Gross profit of a paper bag | ₹ 0.88 | ₹ 1.63 | per bag |
| Gross profit per day | ₹ 12,305.50 | ₹ 22,761.70 | per day |
Paper Bag Business Profit: Focusing on Square Bottom Paper Bags
Many aspiring entrepreneurs have conducted extensive research on the paper bag business and are eager to begin square bottom paper bag manufacturing. Their expectation often centers on using fully automatic machines, which can produce 500 bags per minute and promise to reduce production costs by over 50%. However, it is crucial to consider the marketing costs associated with selling 240,000 bags per day. The reality is that the paper bag business profit does not solely stem from mass production; rather, it hinges on addressing specific customer needs. For example, fulfilling a mobile shop’s order for 5,000 paper bags in board material may not be feasible with a fully automatic process. Similarly, restaurants or textile shops requiring multiple sizes or colors in smaller quantities cannot efficiently utilize such automation.
| Bag | SOS Paper Cover (W7.5" *G3.5" *H10") (1/4 kg sweet box bag / restaurant) | Paper Bag (W10" *G7.5" *H10") (1 kg sweet box bag) | Unit |
|---|---|---|---|
| Length of a bag | 29 | 37 | cms |
| Width of a bag | 17 | 25 | cms |
| Gusset of a bag | 9 | 18 | cms |
| Gsm | 80 | 80 | 24 bf |
| Width of a roll | 55 | 89 | cms |
| Weight of a bag | 12.76 | 26.34 | - |
| Price of paper/kg | ₹ 50.00 | ₹ 50.00 | - |
| Super Deluxe Paper Cover Machine Combo / Roll To Tube Making Machine | |||
| No. of bags/shift | 14000 | 14000 | bags |
| Paper cost per day | ₹ 8,932.00 | ₹ 18,440.80 | ₹ 1.32 |
| Labour cost per day | ₹ 500.00 | ₹ 500.00 | 1 labour |
| Glue cost for side pasting | ₹ 850.00 | ₹ 1,400.00 | - |
| Power cost | ₹ 212.50 | ₹ 212.50 | - |
| Total cost | ₹ 10,494.50 | ₹ 20,553.30 | - |
| Manual Square Bottom Folding And Pasting | |||
| No. of bags/shift | 14000 | 14000 | - |
| Labour cost per day | ₹ 3,500.00 | ₹ 3,500.00 | - |
| Glue cost | ₹ 1,000.00 | ₹ 1,000.00 | - |
| Total cost | ₹ 4,500.00 | ₹ 4,500.00 | - |
| Sheet Feeding Machine For Bottom Pasting | |||
| No. of bags/shift | 14000 | 14000 | - |
| Labour cost per day | ₹ 500.00 | ₹ 500.00 | - |
| Glue cost | ₹ 750.00 | ₹ 750.00 | - |
| Power cost | ₹ 212.50 | ₹ 212.50 | - |
| Total cost | ₹ 1,462.50 | ₹ 1,462.50 | - |
| Handle Pasting | |||
| No. of bags/shift | 0 | 14000 | - |
| Paper handle cost per day | - | ₹ 14,000.00 | - |
| Labour cost per day | - | ₹ 2,500.00 | 5 labour |
| Glue cost for handle pasting | - | ₹ 1,400.00 | - |
| Power cost | - | ₹ 85.00 | - |
| Total cost | - | ₹ 17,985.00 | - |
| Overall Cost Per Day | |||
| Overall cost per day | ₹ 16,457.00 | ₹ 43,038.30 | - |
| Cost of making a paper bag as per today's price | ₹ 1.18 | ₹ 3.07 | per bag |
| Selling price of a pape bag | ₹ 1.50 | ₹ 5.00 | per bag |
| Gross profit of a paper bag | ₹ 0.32 | ₹ 1.93 | per bag |
| Gross profit per day | ₹ 4,543.00 | ₹ 26,961.70 | per day |
| Selling price per kg | ₹ 117.55 | - | - |
To maximize paper bag business profit, it may be more strategic to adopt a semi-automatic process. While agreements with large corporations like Max or Lulu can justify the use of fully automatic machines, competition remains fierce, even among those utilizing the latest technology. Production capabilities may restrict the ability to cater to smaller orders, which is vital in a market where customization is increasingly demanded. Below, we have tabulated our manufacturing costs for both sheet to square bottom paper bag making and roll to square bottom paper bag making to help you better understand the cost dynamics in the square bottom paper bag manufacturing sector.
