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How to Start a Brown Paper Bag Business?

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How to Start a Brown Paper Bag Business?

May 20, 2021 | Blog

Every brand ranging from clothing to cosmetics, pharmaceuticals, and groceries uses brown paper bags to pack their products and to promote their brands through customized design. The increasing shift to brown paper bags has inflated their demand and given the brown paper bag business a great boost.

A step-by-step guide to set up a brown paper bag business

The thriving industry has tempted many manufacturers to invest in a bag making business and get the maximum returns out of it. But starting a paper bag making business is easier said than done. There are several things that manufacturers should look into before starting a business. 

If you, too, are thinking about stepping into the market, here is a list of things you should consider:

Find Your Niche

Paper bags are used to pack several products ranging from cosmetics to medicines and food. More risk is involved in making paper bags used for packaging food items as the chemicals used may lead to undesirable incidents. Therefore, before stepping into the market, choose for what purpose the bags will be produced. You can go for the manufacturing of:

  • Shopping bags
  • Party bags
  • Bags for food items
  • Bags for medical use
  • Bags for jewelry packaging
  • Bags for industries to pack their semi-finished goods
  • Bags for General purpose

Investment Required

Another thing you need to emphasize is the investment required. No matter what type of bag you are going to manufacture, a minimal investment will be needed to buy land, a paper bag making machine, raw materials, and meet the daily production requirements. Make sure you have enough capital to meet the fixed and variable costs involved with the production. 


Location plays a vital role in constituting the cost of production. Select a location where electricity is available at standard prices, labor is steadily available, resources are priced cheaply, and the market is not far away. This will help you lower down your entire production cost and get more profits out of your business. 

Raw Materials

Raw materials are necessary to ensure a smooth flow of production. Make sure that the raw materials required for the production are available in the right quantities, as too much will increase your warehouse expenses, and less will result in the stoppage of production. Additionally, look for vendors who are reliable and can deliver material at affordable prices.


Gone are the days when manufacturers relied on manual methods to meet bulk orders. Now, you can invest in a paper bag making machine and start with the production of hundreds of bags within minutes. Plus, the machine will produce bags that differ based on colors, designs, and sizes without compromising quality. 


Even after implementing a bag making machine in your manufacturing unit, you will still need laborers to manage the machine’s working and carry out several other tasks. The laborers need not be professionals but must have basic knowledge of the process.

You can also conduct orientation training on the first day of their job to clarify what they need to know to do their job properly. 


Without proper licensing, you cannot conduct business in society. So the next thing you need to do is applying for a trade license. After that, get your Udyog Aadhar registration completed and register for the GST number

Don’t forget to acquire a BIS certificate, which is mandatory for operating a paper bag manufacturing business. 

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