What are the ways to start a jute bag-making business? Check out this article

By Soutrik BanerjeeFriday January 6, 2023

Our environment is facing severe hazards of pollution. From plastic to harmful emissions, we are swarmed by unhygienic surroundings. But to tackle this, one can consider the jute bag-making business. The jute is also called ‘Golden Fibre’ and is used for several shopping purposes. The material is shiny, long and also soft in nature.

Jute is also very strong and considered very reliable when it comes to the material. From an environmental perspective, it is reusable and also biodegradable. Start a jute bag-making business is very productive as this has become a style statement for the current generation.

Jute bags are of various quality that are present in the market. Reports indicate that customers are preferring to carry jute bags instead of a fancy leather bag. Also, the production of jute bags is quite simple. The jute bag making business can also be operational from home. Housewives, mothers and women should consider this venture as this is sustainable and has promising growth.

How to start the jute bag-making business?

The first thing is to be educated with the type of jute available for manufacturing in the market. You can find a diverse amount of jute bags in the market. It depends on the lamination and the lining material. Jute bags can be unlaminated, which are biodegradable, laminated that has food grade LDPE with splash resistance and can be wiped clean, and also muslin lined.

The different handles that jute bags come in include jute handles, some with flat cotton straps, others with cotton webbing stuffed with rope, cane handle jute bags, drawstrings and also rope that has eyelets.

There are various usage of jute bags that might include a bag to carry books for students going to school and colleges, a style statement used by women, to carry a box of lunch while going for work, used for purposes related to travel, used for several promotional events, can be a good gift option, also applied to be shopping bags for a lot of people and to take an item from place to some other place.

Usage of Jute-

Jute has many important features like a lower rate of thermal conductivity, brilliant insulation and an efficient moisture retention. This makes a jute bag capable of carrying a large amount of goods.

Due to rising environmental concerns, consumers are choosing jute bags, which are also biodegradable and reusable. Reports suggest that India exported a large amount of jute bags to develop nations like Europe.

Jute is produced mainly in the Micro and Small business and this has risen over the last few years. There is also positive growth in the use of jute bags in the foreign markets by replacing plastic bags.

India is also the country with the largest shares of the manufacturing of jute. This comes with added benefits like biodegradable nature of jute along with high durable properties, cost-effectiveness, more than strength and many more.

In 2020, surveys have indicated that the market value of jute bags has reached about $1.9 billion. The CAGR of jute bags is also from 11% to 18% from the year 2011 to 2018. In 2021, the jute bag market worth in the global perspective touched about $2.3 billion.

By the year 2026, the market valuation of the jute bag industry is expected to reach about $3.3 billion with a CAGR of about 9.4%.

The Business Model of the Jute Bag Industry-

There are a lot of things to consider when planning to start a business. This can include the clear realization of the progress of the business. You can be in the early stages of a business or in a seasoned place and desire further expansion. All of these require proper information.

As an entrepreneur, you should have clarity regarding where to take a business or what value can my business bring to society. A proper plan of action will give an understanding regarding the type of potential a business might have. The leader should have the means to modify the business based on the demands of the market.

The location of setting your jute bag business plays a pivotal role in the success of it. You should give careful thought regarding the matter as setting the proper budget for the location is the first thing to decide upon. It is important to check the surrounding region before buying or renting a place for the jute bag business.

You have to see if there is a monopoly in the location or you will have potential competitors to disrupt the market. The expected growth of the business depends on the location, where you wish to set up your business. It should be accessible for your customers to reach your business and should be in a good zone.

If your business is a small startup, a proprietorship model is a good option. But if your investment is large, you should consider a collaboration with a partner, LLC or INC companies. The Government of India does not require any specific license in these cases.

The National Center for Jute Diversification or NCJD and the Jute Manufacturers Development Council provides a good amount of training for making jute bags.

What are the steps in making a jute bag?

In order to manufacture jute, there is no need for heavy equipment. The first step is to buy woven rolls of jute fabric for the available wholesalers or you can also buy them directly from manufacturers.

Then you should laminae the jute rolls. But jute bags can also be sold without any lamination. After that, the jute fabric roll should be spread and fixed and then cut the rolls according to the needed size and different shapes.

This will be followed by printing the design or the logos on the jute rolls and then washing the printed rolls of jute. After that the pieces of jute rolls should be stitched with a heavy duty machine of sewing. The final steps will be to attach the handles, zips and forward them to marketing.

Countries like India and Bangladesh produce the most amount of jute material. The state of West Bengal accounts for about 50% of the total jute production of India. It is always rational to choose the jute from authentic jute mills.

Some of the raw materials needed for jute bag making are jute fabric, PVC buckles, dyes, printing gum, sewing thread like nylon, packing materials along with labels along with chemicals and some auxiliaries.

The jute bag making does not need any high-end technology and for printed jute bags, machineries needed are working table, printing table, screen printing machinery, cottage steamer, cutting machine, scissors along with measuring tape, a drum of water, regular and heavy duty sewing machine, side sealing and lockstitch machineries, nylon thread and some others.

In order to make a jute bag successful, it is very important to create good marketing campaigns. Marketing works according to the demands of the customers and shapes the business accordingly. A proper marketing strategy can enhance the jute bag making business scale. These plans may include direct marketing, promotional events, product launches in big festivals, social marketing, e-commerce collaboration and many others.

Any kind of business can be challenging as it demands a good team, an efficient leader and a stellar business plan. A jute bag making business is profitable when considering the development it offers for the sustainable future. The market for jute bags is vast as it has a greater good of protecting the environment for the ill-will of plastic.