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The Indian government, in , had declared a ban on single-use plastics that has taken effect from July 1, . This created significant new prospects for entrepreneurs to tap into a vast market that was created due to the ban. Numerous establishments, including restaurants, groceries store, and convenience stores that earlier handed out their products in plastic bags, have already embraced using biodegradable/ Compostable plastic bags. This write-up will provide comprehensive insights into setting up a Biodegradable Plastic Bag Business to help you take advantage of the prevailing market conditions and address the increasing demand for eco-friendly alternatives.
'Compostable plastic'[1] as defined in Rule 3(e) of PWM Rules, means 'plastic that undergoes degradation by biological processes during composting to yield CO2, water, inorganic compounds and biomass at a rate consistent with other known compostable materials, excluding conventional petro-based plastics, and does not leave visible, distinguishable or toxic residue.'
A combination of the below-mentioned factors has established the biodegradable plastic bag business as a highly profitable manufacturing sector.
Knowledge of designing compostable raw materials from the list of approved biodegradable materials that can give your finished product the plastic bag-like property is required while starting a biodegradable plastic bag business. Therefore, along with the technology, the standard operating procedure (SOP) released by CPCB for compostable plastic bag manufacturers and sellers must also be conformed to. There are some popular varieties of biodegradable plastic bags in demand in today's market, including.
The stages of starting the business will include the following
Compostable plastic granules are utilized as the raw material and fed into a hopper, where they are melted into a liquid form. The liquid is transformed into a film or sheet using an extrusion machine and then rolled onto a rod. A printing machine imprints the company name, logo, and other desired elements onto the plastic bag. A cutting and sealing machine are used to cut and seal the bag accordingly to achieve the desired size and design.
The verification test between Compostable Plastic bag and Conventional Plastic is as follows:
S NoExperimentObservationInference1Take Dichloromethane (DCM) in test tube and then dissolve 2×2 cm film sample or few granules in Dichloromethane (DCM)Dissolution of samplesConfirm the presence of PLA and PBAT [PE and PP will not undergo dissolution.]2Dissolve 2×2 cm film sample or few granules in boiled xyleneDissolution of samplesConfirm the presence of PE and PP [PLA and PBAT will not undergo dissolution.]3You can also immerse few granules of sample in distilled water at ambient temperatureFloat/SinkSamples made from PLA and PBAT will sink whereas samples made from PE and PP will float on water.Licenses Required to Start Biodegradable Plastic Manufacturing Business:
Note: Compostable plastic bags are required to obtain registration from SPCBs/PCCs. However, Compostable Plastic Bag manufacturer are not required to submit an action plan for collection of plastic waste as the waste will disintegrate by itself.
The biodegradable plastic bags industry is experiencing rapid growth, fuelled by stringent regulations and the ban on traditional plastic bags. The global market for biodegradable plastic bags was valued at USD 2.8 billion in and is projected to reach USD 8.6 billion by . Today these biodegradable plastic bags are used in various industries, including:
Starting a biodegradable plastic bag business can be lucrative with the increasing demand for eco-friendly products and the growing awareness of environmental sustainability. To embark on this business journey, it is crucial to have a solid business plan in place, considering factors such as manufacturing costs, raw materials, required licenses, and target markets. Collaborating with local shops, supermarkets, and other establishments can help establish a customer base. Additionally, staying updated with advancements in biodegradable plastic technology can contribute to cost efficiencies and market competitiveness. By providing a sustainable alternative to traditional plastic bags, entrepreneurs can contribute positively to the environment while running a profitable business.It is recommended to take expert advice to obtain licenses and approval for starting a Biodegradable Plastic Bag Business hassle-free way.
Toinitiate a small-scale biodegradable plastic bag manufacturing business, an approximate investment of 60 lakhs rupees is required.
Is the Biodegradable Bag Business Profitable?The biodegradable bag business is profitable due to consumers' increasing demand for eco-friendly products. This has resulted in a surge in demand, making the biodegradable bag business profitable.
How Much Does Biodegradable Plastic Cost Per kg?InIndia, biodegradable plastic costs approximately '260 per kg. With ongoing technological advancements, it is anticipated that the cost of biodegradable plastic will decrease, benefiting both manufacturers and consumers.
What is the importance of the Biodegradable Plastic Bag Business?Starting a biodegradable plastic bag business is important as it directly contributes to reducing environmental pollution caused by traditional plastic bags. Biodegradable plastic bags are designed to decompose naturally, minimizing their impact on landfills, oceans, and ecosystems. By offering an eco-friendly alternative, the business helps preserve natural resources and mitigate the harmful effects of non-biodegradable plastics on the environment.
What is the manufacturing process in Biodegradable Plastic Bag Business?Compostable plastic granules are utilized as the raw material and fed into a hopper, where they are melted into a liquid form. The liquid is transformed into a film or sheet using an extrusion machine and then rolled onto a rod. A printing machine imprints the company name, logo, and other desired elements onto the plastic bag. A cutting and sealing machine is used to cut and seal the bag to achieve the desired size and design.
Read our Article:How To Start A Biodegradable Cutlery Business Based On Rice Husk?
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Arkansas startup buys patent for U technology
An Arkansas-based startup is hoping to turn a technology that originated at the University of Minnesota into a widely accepted alternative to plastic bags.
The bags, under development by Fayetteville, Ark.-based cycleWood Solutions, would be made from a material called lignin, which cycleWood claims is biodegradable within 150 days.
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Lignin exists in all plant life and is a largely discarded waste product from the biofuels and papermaking industries. Although brittle in its raw form, cycleWood says it can be made into a material that is as thin and malleable as plastic derived from petroleum.
While taking a graduate course at the University of Arkansas, cycleWood's leaders say they stumbled upon the patent for the technology on the website for the University of Minnesota's Office for Technology Commercialization. They quickly recognized its potential to create an eco-friendly substitute for plastic.
'I don't want to say it's a Band-Aid but it's a good fix ' whether it's temporary or permanent ' because we're not asking the consumer to do anything differently,' said Nhiem Cao, cycleWood's president and chief executive officer.
Last September, Cao and his colleagues exercised an option to purchase the patent, which emerged from the work of U of M biochemist Simo Sarkanen. Sarkanen declined an interview request for this story.
The challenge now: bringing the bags to commercial-scale production and persuading retailers to use them.
Customer choice
Plastic bags were introduced in the United States in the s. In recent years, an increasing number of retailers offer discounts to customers who bring reusable bags for their purchases. Some, like Whole Foods, offer only paper bags to customers. But plastic remains prevalent at many stores.
Aaron Sorenson, a spokesman for Edina-based Lunds and Byerlys, said the company purchases 50 percent paper bags, 45 percent plastic bags and 5 percent reusable bags ' a breakdown that provides a glimpse into customers' habits.
'The customers speak loud and clear when they come into our store, and a significant percentage of them continue to choose plastic,' Sorenson said.
Statistics on plastic bag use range widely, but plastics made up 12 percent of the municipal solid- waste stream in , according to the U.S. Environmental Protection Agency. Less than 8 percent of that plastic was recycled, the agency said.
Large retailers such as Minneapolis-based Target Corp. and Arkansas-based Wal-Mart Stores Inc. have defended their use of plastic bags as a matter of consumer choice and have instead put their efforts toward recycling programs and promoting reusable bags.
'At Target, we offer our guests paper, plastic and reusable bags and empower them to make the choice that fits their lifestyle,' Shawn Gensch, the company's senior vice president of marketing, said on the company's corporate blog.
Target officials declined to say how many plastic bags they use annually or to speculate about whether they would consider using cycleWood's alternative.
Price of bags
CycleWood's leaders say they are optimistic their bags will be viable, however.
One reason is cost. CycleWood's bags are expected to cost roughly 1.5 cents per unit compared with 1.2 cents for traditional plastic bags, which could become more expensive amid rising oil prices. Other biodegradable bags ' made from corn or potatoes ' can cost as much as 10 times that amount, cycleWood's founders say.
Cao and his colleagues are still obtaining biodegradation certification and finalizing an arrangement with a manufacturer to pilot the production of the bags. A Dallas-based venture capital firm has invested in the project and retailers have expressed interest, but cycleWood declined to say which retailers have been contacted about using the bags.
CycleWood has already found success at several entrepreneurial competitions since introducing its lignin-based biodegradable bags, including the Wal-Mart Better Living Business Plan Challenge, San Diego State University's Venture Challenge and a first-place award in the Donald W. Reynolds Governor's Cup in Arkansas that earned the company $20,000.
The company was also a finalist in the Cleantech Open in the Southeast region and is now among three finalists in the material science category for a Edison Award, which is expected to be announced April 26.
Commercial production
The hope is to bring the bags to commercial scale by the end of the year and to have between 2.25 billion and 3.5 billion circulating in the United States by . In the future, cycleWood hopes to deliver the raw product to manufacturers across the country. The equipment used to make traditional plastic bags can be easily converted to make the lignin-based bags, they say.
'As we scale up we can scale up fairly quickly, and it's something that could spread across the country fairly quickly,' said Kevin Oden, cycleWood's chief operating officer.
The developments come as efforts to reduce the use of plastic bags continue to spread.
San Francisco became the first U.S. city to ban plastic bags in and recently expanded the prohibition to include not just grocery stores and chain pharmacies but restaurants, gift shops, hardware stores and boutiques.
Nearly a dozen state legislatures and a growing number of cities have considered bans or surcharges on plastic bags. Austin, Texas, is the latest example.
Italy, China and Delhi, India have also banned plastic bags, and the European Commission is considering a ban of its own.
The most recent effort to limit plastic bags in Minnesota was a bill calling for a five-cent surcharge on plastic bags that consumers could recoup if they returned them to retailers to be recycled.
Still, recycling efforts have spread across the state.
Minnesota Waste Wise, which gathers and recycles plastic bags from retailers around Minnesota, has collected more than 1 million pounds of plastic since its inception in . More than 150 stores now pay a small fee to participate in the voluntary program.
Kate Worley, Waste Wise's executive director, said the program is most beneficial to small retailers, which, given their scale, do not have enough material to sell alone on the open market.
'We provide an option for businesses that don't really have any other option available to them,' she said.
Even if more plastics are recycled, cycleWood officials say there is no way to capture all of the plastic that circulates, but they hope their product will eventually spread around the world.
'What we don't want to do is just hold onto the technology and keep it all for ourselves,' said Cao, cycleWood's president. 'We want to make sure it's used for the good of the whole planet.'
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