A paper bag is a bag made of paper, usually craft paper. Paper bags are the new fashion these days. The element that makes them trendy is their eco-friendliness. Paper baggage is a recyclable and biodegradable item. They are used almost everywhere, most popularly in schools, malls, offices, and grocery stores. This trend can be developed due to the textile sector. Famous clothes shop design their paper bags with their company or brand logo to attract customers. People wearing these exclusive bags get recognition as it gives the impression that they have a classy product. Printing a company name or logo on paper bags serves as a promotional or marketing strategy. Also, many people prefer to use paper bags as they are easier to carry than plastic bags without causing any harm to nature and can hold a lot of items.
Market Potential & Product Uses
Paper bags have several benefits, including durability, eco-friendly nature, and convenience, which lead to an increase in market demand. India’s paper bags market size reached US$650 Million in 2021. Looking forward, it is expected that the market to reach US$896.2 Million by 2027, exhibiting a growth rate (CAGR) of 5.3% during 2022-2027.
The retail segment in the end-use category is expected to contribute largely to the growth of the global market for paper bags. Factors such as a strong and growing retail sector in developed regions, rising preference for paper bags across regions, and increasing penetration of retail outlets in emerging economies are contributing to the growth of the global paper bags market.
Paper bags are very useful and trending nowadays. They can be used for general purposes to carry goods. Industries use them to pack their semi-finished goods. These are also used popularly by top clothing & jewelry brands as their responsibility towards the environment to stop plastic consumption. To carry food items, they are specifically used. Paper bags can also be used as pantry bags.
Technical Outlook
The basic raw material required for making paper bags is craft sheet, brown sheet roll, white sheet roll, Greaseproof paper, glue, ink, laces, tags, thread, eyelets, etc. To start a paper bag-making business, there is no such heavy investment in plant & machinery. A paper bag-making machine with other equipment is the only requirement.
Financial Outlook
The Paper bag-making business requires minimum investment. With an average investment of Rs. 10 Lakh to Rs. 15 Lakh, a good amount of revenue can be generated. The gross profit margin can vary from 15 to 20 percent. All such investment shall include the cost of Plant and machinery and equipment which is to be acquired for manufacturing setup. Power consumption for such machinery can range from 5 to 7 kW. The Working capital investment of around Rs. 3 Lakh to Rs. 5 Lakh will be required to take care of running expenses. The manufacturing setup calls for space for inventory, workshop or manufacturing area, space for power supply utilities, and auxiliary like generator setup. Also, some of the areas of the building are required for office staff facilities, documentation, office furniture, etc. Thus, at the initial scale, the approximate total area required for a complete industrial setup is 1500 to 2000 Sqft. Manpower is also essential input in the business. The average number of staff can range between 5 to 10 people, including skilled and unskilled staff. The benefit of subsidy under the PMEGP Scheme can also be availed if the project cost is up to Rs. 50 Lakhs under the manufacturing sector.
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