Disposable Garbage Bag Manufacturing Plant Project Report 2025

Rapid urbanisation is a primary driver of increased waste generation, which has consequently driven the demand for disposable garbage bags. As more people migrate to urban areas, the amount of municipal solid waste (MSW) produced rises significantly. In 2024, municipal solid waste (MSW) generation is projected to reach approximately 2.1 billion tons. According to the Global Waste Management Outlook 2024 produced by the United Nations Environment Programme (UNEP), this figure is anticipated to escalate to 3.8 billion tons by 2050 if current waste management practices remain unchanged. This represents a staggering increase of nearly 2 billion tons over the next 30 years, highlighting the urgent need for improved waste management strategies to address this growing challenge.

The report also indicated that high-income nations are expected to see a 19% increase in daily per capita waste generation, while low- and middle-income countries could experience an increase of 40% or more. Furthermore, if waste management issues are not addressed promptly, the economic costs associated with poor waste disposal practices could nearly triple by 2050, soaring to an estimated USD 640.3 billion annually. This surge necessitates the use of efficient waste management solutions, like disposable garbage bags.

Another factor propelling the market growth is the increase in demand for disposable garbage bags in healthcare settings, commercial spaces, and residential areas where need for cleanliness is paramount. The healthcare sector, with over 14,000 urgent care centers in the USA, is expected to grow at a rate of 7%. In the commercial construction sector, residential building construction is set to rebound with an estimated growth of 12%, while non-residential construction is expected to increase by 8%.  As these facilities increase in number, the demand for waste disposal solutions will rise, particularly for medical waste bags and general waste management products. The growing preference for hassle-free products has also resulted in a steady increase in the popularity of disposable bags across homes and offices.

Other elements to consider while establishing a disposable garbage bag plant include raw material sourcing, workforce planning, and packaging. The production of disposable garbage bags relies on primarily polyethylene pellets, which are sourced from petrochemical processes. These pellets are processed through extrusion to create the plastic film used in garbage bags. In addition to polyethylene, additives are often included to enhance properties such as durability and resistance to tearing and leaking. 

Moreover, to help stakeholders determine the economics of a disposable garbage bag plant, project funding, capital investments, and operating expenses are analyzed. Projections for income and expenditure, along with a detailed breakdown of fixed and variable costs, direct and indirect expenses, and profit and loss analysis, enable stakeholders to comprehend the financial health and sustainability of a business. These projections serve as a strategic tool for evaluating future profitability, assessing cash flow needs, and identifying potential financial risks.

About Disposable Garbage Bag

Disposable garbage bags, primarily made from polyethylene, are essential for waste management and hygiene. They allow for easy collection and disposal of trash, helping to keep environments clean. The first disposable garbage bag was invented in 1950 by Canadian inventors Harry Wasylyk and Larry Hansen, initially designed for commercial use at the Winnipeg General Hospital. By the late 1960s, the first household garbage bags were marketed under the "Glad" brand, quickly gaining popularity. Today, biodegradable garbage bags are emerging in response to environmental concerns and rising focus on waste management practices.

Properties of Disposable Garbage Bag

Disposable garbage bags are primarily made from low-density polyethylene (LDPE) or high-density polyethylene (HDPE), known for their strength and flexibility. Physical properties include a typical thickness ranging from 0.5 to 2 mils, with colours often being black, white, or clear, depending on the intended use. They are lightweight, with a density of about 0.91 to 0.94 g/cm³ for LDPE and 0.94 to 0.97 g/cm³ for HDPE. Moreover, these bags are resistant to moisture and many chemicals, making them suitable for containing wet or messy waste. They also exhibit puncture and tear resistance, ensuring durability during handling and disposal.

Manufacturing Process of Disposable Garbage Bag

The production of disposable garbage bags primarily involves the blown film extrusion process, starting with the procurement of raw materials, mainly low-density polyethylene (LDPE) or high-density polyethylene (HDPE) pellets. These pellets are fed into an extruder, where they are melted at approximately 200°C. The molten plastic is then pushed through a circular die to form a continuous tube. Air is introduced to inflate this tube, creating a bubble that is adjusted to the desired diameter. As the bubble cools, it solidifies into a thin film, which is subsequently flattened and rolled into large rolls.

The film is then fed into a bag-making machine, where it is cut, sealed, and printed according to specifications. Quality control measures are implemented throughout the process to test for strength and thickness (typically ranging from 0.5 to 2 mils). Finally, the finished bags are folded, stacked, and packed for distribution.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Applications and Drivers of Disposable Garbage Bag

Growth of the disposable garbage bag market is driven by various applications across residential, commercial, and industrial sectors, where they play a crucial role in waste management. With global municipal solid waste generation reaching approximately 292.4 million tons annually in the U.S. alone, the demand for effective waste containment solutions is significant. The residential sector accounts for a substantial portion of garbage bag demand consumption, as households increasingly prioritise hygiene and convenience. Additionally, the average household size has decreased, leading to a greater need for compact waste solutions; smaller garbage bags, particularly those in the 3-13 gallon range, accounted for about 53.05% of revenue in 2023 due to their versatility for kitchen and cleaning use. 

Government initiatives promoting cleanliness and sustainability also bolster the disposable garbage bag market as many cities are implementing zero-waste policies and encouraging sales for biodegradable products. For example, Los Angeles has set a goal of zero waste to landfill by 2025, focusing on sustainable practices in product creation and disposal. In Austin, Texas, the city’s Zero Waste Strategic Plan targets diverting 90% of waste from landfills by 2040. Additionally, states like California and Vermont have enacted laws banning single-use plastics, further driving demand for eco-friendly garbage bags. Moreover, in 2022, the U.S. Department of Energy invested USD 13.4 million to develop next-generation plastics technologies, aiming to reduce plastic waste. This has resulted in demand for disposable and green garbage bags.

Key Features of the Disposable Garbage Bag Production Cost Report:

A detailed overview of production cost analysis that evaluates the manufacturing process of disposable garbage bag is crucial for stakeholders considering entry into this sector. Furthermore, stakeholders can make informed decisions based on the latest economic data, technological innovations, production process, requirements of raw materials, utility and operating costs, capital investments by major players, pricing strategies, and profit margins. For instance, the rise of e-commerce has significantly contributed to an increase in packaging waste, driving demand for effective waste management solutions like disposable garbage bags. In the second quarter of 2024, U.S. e-commerce sales reached an all-time high of USD 291.6 billion, marking a 6.7% year-on-year increase. 

Projections indicate that online shopping will grow by 8.6% in 2025 as 2.77 billion people are expected to shop online. This surge in online shoppers is anticipated to result in 21% of retail purchases occurring online in the same year, further amplifying the volume of packaging waste generated from e-commerce transactions. As the demand for online shopping continues to rise, so does the necessity for disposable garbage bags to handle the increasing amounts of packaging materials produced.

Below are the sections that further detail the comprehensive scope of the prefeasibility report for a disposable garbage bag production plant:

Market Dynamics and Trends: Factors such as rising disposable incomes and improved living standards are significantly affecting market conditions in the disposable garbage bag sector. According to the U.S. Bureau of Economic Analysis, the disposable personal income per capita reached approximately USD 64,668 in July 2024, marking an all-time high. This increase in disposable income allows consumers to buy products like trash bags. As households gain more purchasing power, they are more likely to invest in higher-quality garbage bags that offer convenience and reliability in waste management. Understanding these demands and trends helps businesses align their production plans in the disposable garbage bag market.

Profiling of Key Industry Players: Leading manufacturers included in the disposable garbage bag report are Berry Global Inc., Hefty (Reynolds Consumer Products LLC), Glad (The Clorox Company), and Terdex GmbH. These companies are known for their significant market presence and contributions to the industry. Other notable players include Novolex Holdings LLC, Poly-America, L.P., and MirPack, which reflects the competitive landscape of the disposable garbage bag market.

Economic Analysis: Capital expenditure (CAPEX) analysis provides stakeholders the knowledge about required investments in advanced technologies, efficient machinery, and necessary infrastructure. Investing in high-capacity mixing equipment, such as a continuous mixer or high-shear mixer, can improve production efficiency by 20-30%. Investing in energy-efficient systems, such as combined heat and power (CHP) systems could reduce energy consumption by up to 30%, as these systems use waste heat from production processes to generate electricity and provide heating. 

Historical, Current, and Forecasted Price Trends

Fluctuations in the prices of disposable garbage bags are significantly influenced by raw material costs, particularly the price of polyethylene. These prices can vary based on market demand and availability, which in turn affects production expenses. Additionally, the rising costs associated with waste management have contributed to an increase in the price of disposable garbage bags.

A recent example of this trend is seen in Kingston, Ontario, where city officials have announced a doubling of garbage bag tag prices from USD 2 to USD 4. This decision has sparked frustration among residents, especially those with limited incomes. City officials have defended the increase as a necessary measure to cover escalating waste management costs and to encourage recycling efforts within the community.

Financial Investment Overview for Disposable Garbage Bag Manufacturing Facility

Establishing a disposable garbage bag manufacturing facility requires a comprehensive financial investment that encompasses various elements critical to the project's success. The following sections detail these components:

• Labour: Personnel costs must be factored in, covering wages for skilled and unskilled workers involved in production and administration.
• Packaging: Expenses related to packaging materials and processes are crucial, as they ensure the product is safely transported and presented to customers.
• Utilities: Key utilities needed to produce disposable garbage bag, such as electricity, steam, and process water along with their cost assessments help investors to develop more accurate financial models and budget forecasts, ultimately enhancing profitability. In disposable garbage bag market, energy costs are significant, typically representing around 10-15% of operating expenses. This includes electricity and water necessary for the manufacturing processes.
• Transportation: Costs analysis associated with the logistics of delivering raw materials to the facility and distributing finished products to markets enable investors to select suitable location for manufacturing facilities, improve supply chain strategies, and negotiate better terms with suppliers and distributors.
• Land Acquisition: The purchase or lease of land for the facility is a substantial upfront investment as it aids stakeholders identify areas with lower land acquisition costs and favourable zoning regulations, ultimately reducing initial capital expenditures.
• Construction: Building the manufacturing plant involves significant capital expenditure, including site preparation, construction materials, and labour.
• Machinery: Investment in specialized machinery for mixing, foaming, and curing processes is essential for efficient production.

Profit Margins and Pricing Strategies

Projected profit margins and effective product pricing strategies improve overall profitability. Manufacturers might target a profit margin of around 20-30%, achieved through strategic pricing based on raw material costs and prevailing market demand. Effective pricing strategies should consider fluctuations in raw material prices and competitive positioning within the market.

Regulatory Frameworks and Environmental Considerations

Establishing a manufacturing facility for disposable garbage bags requires adherence to various regulatory frameworks that govern production standards. In California, manufacturers of plastic trash bags must follow the Recycled Content Trash Bag Law, which mandates that plastic trash bags intended for sale contain at least 10% Actual Postconsumer Material (APCM) by weight. In addition, manufacturers are obligated to submit an annual Manufacturer Certification Form by March 1, 2025. This form includes essential information such as company details, the quantity of regulated plastic trash bags sold, and the quantity of recycled materials used in production. 

Facilities also must implement strict procurement protocols for raw materials to ensure they meet established quality requirements. Furthermore, testing for strength and density during production is necessary to guarantee the durability of the bags. Environmental regulations are another critical consideration. In India, for example, the Plastic Waste Management Amendment Rules, 2022 have introduced stricter regulations on plastic carry bags. These rules prohibit the manufacture and use of carry bags thinner than 120 microns. Compliance with these regulations not only reduces littering but also promote sustainable waste management practices.

Key Questions Addressed:

• What are the detailed unit operations for disposable garbage bag production?
• Who are major technology licensors with their process evaluation?
• How are raw materials or catchem procured and what are their cost implications?
• What utilities are essential for production and what will they cost?
• What are the labour requirements and how does this affect operational costs?
• What packaging solutions are optimal for cost and efficiency?
• What logistical arrangements are necessary for efficient product distribution?
• What are the estimated land and construction costs for a new disposable garbage bag plant?
• How can profitability be maximised in the disposable garbage bag market?
• What pricing strategy should be adopted for disposable garbage bag to remain competitive?

This prefeasibility report aims to equip potential investors and existing manufacturers with crucial insights to make informed decisions in the disposable garbage bag industry.