plastic bag business

Business ideas by directions

Despite the best efforts of environmentalists, plastic bags currently remain the most common means of packaging. The variety of plastic bags, as well as the high demand for these products, determine the prospects of the business idea for the production of plastic bags at a small enterprise. It is at such enterprises that the bulk of the packaging material is produced, since consumers usually order batches of bags of tens and hundreds of thousands of pieces, which is quite reasonable. forces of a small enterprise.

The most popular plastic packages are T-shirt bags and punch-hole bags.

For the production of such products, it is quite possible to purchase the necessary set of equipment and get to work.
The main problem in the plastic bag business is the problem of marketing.
Since there is a high demand for such products, there is also high competition among manufacturers. Many firms engaged in the production and sale of food products prefer to create their own production so as not to overpay bag manufacturers. Therefore, marketing research , conducted before the start of the business idea, will help to correctly assess the demand for future products, identify the main customers and calculate production volumes.
When starting to organize an enterprise, it must be taken into account that the production of bags will require a fairly spacious room with high ceilings, ranging from 300 to 500 square meters.
The dimensions of the equipment require that the ceiling height of the room be at least 6 meters, so heated hangars are often suitable for this purpose. Since the production of polyethylene products causes some harm to the environment, such production should be located away from residential buildings, in an industrial area or outside the city. Naturally, the room must be equipped with running water and connected to electrical networks of sufficient power.
In the production of bags, the list of basic equipment includes a punching press; an extruder with which a polyethylene film is obtained from granules; cutting and soldering units, flexographic printing device.
The flexo unit is often the most expensive part of the production, but most customers usually require bags with their own logo, so this unit is unlikely to be dispensed with. The cost of equipment depends on the production capacity and the number of packages produced. Prices for commercial equipment range from 700 thousand to 5 thousand dollars.
When planning initial costs, it is necessary to take into account the costs of repairing the premises, registering an enterprise, and purchasing initial stocks of raw materials.
In the production of film for plastic bags, high or low pressure polyethylene granules are usually used. In addition, certain costs will need to be incurred for the purchase of dyes. It should also be taken into account that when cutting down the handles of plastic bags, a rather large amount of waste occurs. In principle, this is the same polyethylene that is used in the production of the film. However, to use these residues as raw materials, it is necessary to purchase special equipment, which is not cheap. Nevertheless, such costs pay off quite quickly, since the costs of recycling polyethylene and purchasing new raw materials during the year are comparable to the costs of purchasing equipment for recycling waste.
A significant part of the cost of equipping the premises will be the cost of creating a ventilation and cleaning system.
Since the production of plastic bags can be classified as harmful, it is most likely impossible to avoid inspections by environmental authorities.

In current costs, in addition to rent and utilities, the main share will be occupied by wages and the cost of purchasing raw materials. Polyethylene granules cost between $500 and $800 per ton. In principle, ready-made polyethylene film can also be used as a raw material, but in this case, the cost of production increases sharply, and profitability decreases.

In the production of bags from pellets, the profitability is about 15 — 20%. The payback period for a polyethylene film production project is from 1 to 3 years, depending on the production capacity and initial costs.

Starting a plastic bag manufacturing business requires preparing a business plan. By ordering a ready-made plan on our website , you will save your own time and avoid many mistakes that are common for novice entrepreneurs.