How to Start a Profitable Food Wrapping Paper Manufacturing Business

Food wrapping paper, also known as butter paper, is widely used not only in bakeries, food packaging but also in the arts, crafts and textile and apparel sectors. Nowadays, when you eat out at a hotel, restaurant, cafe or food court or order online. You must have noticed that the food is always wrapped in food wrapping paper or butter paper. Yes, this Food wrapping paper business market is growing steadily as most governments have banned the use of plastic in the food and restaurant sectors.

Moreover, the Indian food service packaging industry is estimated to be worth over ₹12,000 crore, and food wrapping paper is a big piece of that bag. Therefore, starting this food wrapping paper manufacturing business can be very profitable due to the increasing demand. In this situation, if you are looking for a simple yet fast-growing business idea? Then, starting a food wrapping paper manufacturing business might be your perfect move. In this article, we will take an in-depth look at how to start a profitable food wrapping paper business.

Market Demand for Food Wrapping Paper

Food wrapping paper may seem like a small product, but the demand is huge. Yes, everyone from roadside vendors to premium restaurants uses food wrapping paper in some form or another. Moreover, with the rise of sustainable packaging trends in fast food and online food delivery, Food wrapping  paper is becoming a must-have item. The food wrapping paper market size was estimated at US$384 billion in 2024 and is expected to reach US$595 billion by 2032. 

So, whether you are in a metropolitan city or a small town, this product has a year-round demand. The best part? It is not seasonal, because the more people eat food outside, the more food wrapping paper is used, so you can sell it all year round. Plus, as the government promotes eco-friendly packaging, the scope is set to grow in the coming years. So, start this business that has led you to earn lakhs of rupees every month with minimal investment.

Raw Materials for Buisness

To manufacture food wrapping paper, you need a high-quality food-grade base paper, usually with a GSM between 30 to 60 that should meet FSSAI and food safety standards for safe use in food packaging. A food-safe coating substance, such as paraffin, soy-based wax, or silicone emulsion, makes the paper greaseproof and moisture-resistant. You can also use other materials, including adhesives and printing ink for branding, as well as packaging materials for bundling the final product. Source these materials from local paper mills or wholesalers in industrial hubs like Delhi, Ahmedabad, or Hyderabad, or find them online on B2B platforms like IndiaMART, TradeIndia, or Alibaba.

Machines for Business

Now, let’s talk about machinery. In this food wrapping paper manufacturing business, the primary machine you need is a Food Grade Paper Coating Machine.  Additionally, you’ll require a Paper Slitting and Rewinding Machine to cut large rolls into smaller, usable sizes, and a Sheet Cutting Machine if you plan to sell wrapping paper in sheet form. These machines are available in semi-automatic and fully automatic variants, depending on your production scale and budget. The main advantage is that these machines can run on a single-phase connection, making it possible to operate them from home without needing a separate power connection. You can buy these machines from trusted suppliers in Delhi, Ahmedabad, Mumbai, Coimbatore or even get them online through IndiaMART, TradeIndia, and Alibaba website.

Investment for Business

Now, let us discuss the investment, the investment depends on the size and level of automation. For a small scale setup with a semi-automatic machine, you can start with an investment of around ₹4 to ₹6 lakhs. This includes the cost of raw materials and, packing materials, employee salaries, branding, electricity cost for the month. Also, if you plan to buy a fully automatic machine or produce on a large scale, the investment can go up to ₹8 to ₹15 lakhs. So, starting this business offers flexible investment options based on your budget and production capacity.

Space for Business

You don’t need a big factory to start this business. Yes, you can start in a small room in your house. 500 to 800 square feet of space is enough for basic setups including storage, production, and packing. Or a medium to large scale industrial setup requires 800 to 1500 square feet of space. Also, there should be easy access to electricity, water, and transportation facilities so that logistics are smooth. Preferably, choose a location in a small industrial area, commercial zone, or a rented shed on the outskirts of a city or town to save on costs. Most importantly, since you are dealing with food grade products, make sure that the place is clean and follows hygiene standards.

License for Business

To start this business in India, first, you need to register your business under the Small and Medium Enterprises (MSME) Registration. Next, since this product comes into direct contact with food, an FSSAI (Food Safety and Standards Authority of India) license is mandatory. Apart from that, you will need GST registration to legally sell and bill your products. Also, depending on your location, you may need a trade license and a factory license from the local municipal authority if you are operating in a large organization. Lastly, if you are printing on paper, also apply for a BIS certificate to meet industry regulations.

Food Wrapping Paper Manufacturing Process

The manufacturing process of food wrapping paper is quite simple, but technical, and once you understand the flow, it becomes quite manageable. First, the basic packaging rolls are loaded into the machine. These are usually thin, high-quality paper sheets that are cut to your desired size. Next, a layer of food-grade wax or silicone is applied evenly to the surface in the coating section. This coating makes the paper greaseproof and suitable for packaging food without absorbing oil or moisture. Then, after coating, the paper moves through a heating and drying unit. After drying there, the coated paper is sent to the cutting section, where it is cut into standard-sized sheets or rolled into long lengths as required. Finally, the paper is counted, stacked, and packaged for sale in bundles using simple packaging tools or machines.

Marketing for Food Wrapping Paper

Marketing is what will make the real difference in your business. So, start by targeting your local food vendors, bakeries, restaurants, cloud kitchens and food delivery brands. Most importantly, offer them customized wrapping papers with their logos, which adds value to them and more business for you. Then, create an Instagram page to showcase your product quality and not only that, list your business on platforms like JustDial and Google My Business. Also list your business on websites like Indiamart and Amazon to get a wider range of customers. Also, attend food fairs or packaging trade shows in your town or near you to network and build customer relationships.

Profit Potential in Business

Now the exciting part – profit. On an average, a semi-automatic machine produces an average of 200 kg by running the machine for 8 hours. Based on a profit margin of ₹120 to ₹150 per kg, the daily turnover would be ₹25,000 to ₹35,000. That is a solid profit margin of more than 100%. With regular orders, you can expect a profit of ₹2,00,000 to ₹3.5 lakhs per month after covering your production costs, however, the profit depends on the sales volume. The more you sell, the more you earn. And even more as your customer base grows. Also, since food never goes out of trend, there is no need for safe, quality packaging.