Whether you’re in your car, at home, or in your favorite restaurant, one thing that is always close at hand to help deal with unexpected spills, leaks, and other such accidents is the humble tissue paper.
The tissue paper industry, though, is anything but humble. Valued at over $82 billion at the end of 2022, and growing with a CAGR of 6.8%, tissue paper manufacturing is a burgeoning business that isn’t expected to run out of steam anytime soon. .
While these numbers may make setting up a tissue paper manufacturing business seem like a profitable venture, it is important to be aware of the costs involved in the process.
Here’s a quick guide to tissue paper manufacturing costs to help you get started.
Before we get into the costs, let’s dive into the process of manufacturing tissue papers.
In the initial phase, wood chips or recycled paper undergo a pulping process. This breaks down the fibers, forming a pulp that serves as the foundation for tissue paper.
The pulp is then transformed into sheets through a series of refining and pressing steps. These sheets will eventually become the tissue paper we use daily.
The sheets undergo a drying process, ensuring the removal of excess moisture and achieving the desired thickness.
Once dried, the tissue paper sheets are cut into standard sizes and packaged, ready for distribution.
It is important for anyone that is interested in setting up a tissue paper manufacturing plant to understand the factors that influence the overall cost of production.
The cornerstone of tissue paper manufacturing lies in the quality of raw materials utilized. The type and grade of raw materials, whether high-quality wood fibers or recycled paper, have a profound impact on overall costs.
While opting for premium materials may incur higher expenses, it invariably results in a superior end product. Manufacturers often navigate a delicate balance between cost and quality, recognizing that investing in top-tier raw materials contributes to the overall excellence of the final tissue paper product.
A critical factor in determining manufacturing costs is the scale of production. The concept of economies of scale comes into play, illustrating that larger production volumes often translate to lower manufacturing costs per unit. In simpler terms, as the quantity of tissue paper produced increases, the average cost per unit decreases.
This economic principle empowers manufacturers to optimize efficiency, streamline processes, and achieve cost advantages by operating on a larger scale. The ability to leverage economies of scale is a strategic advantage for industry players seeking cost-effective production solutions.
Tissue paper manufacturing involves energy-intensive processes, with the drying phase being a notable contributor to overall energy consumption. Efficient energy usage emerges as a crucial factor in mitigating manufacturing expenses.
Manufacturers keen on optimizing costs explore sustainable practices and invest in energy-efficient technologies. Implementing measures such as heat recovery systems and streamlined energy consumption protocols not only contributes to cost savings but also align with environmentally conscious manufacturing practices.
The role of technology and machinery cannot be overstated in the tissue paper manufacturing landscape. While investing in advanced machinery and cutting-edge technology may elevate initial costs, the long-term benefits often outweigh the upfront expenditure.
Advanced equipment enhances production efficiency, reduces downtime, and minimizes material wastage. Manufacturers embracing technological advancements position themselves for cost savings in the long run, creating a competitive edge in an industry where efficiency is paramount.
Labor costs are a significant component in the tissue paper manufacturing equation. Skilled labor is essential at various stages of the production process, from pulp preparation to cutting and packaging.
The expertise and efficiency of the workforce directly impact overall costs. Striking a balance between skilled labor wages and productivity is crucial for manufacturers aiming to manage expenses effectively. Investing in employee training and well-defined operational processes can contribute to enhanced efficiency and cost-effectiveness.
While the factors that affect the cost of manufacturing tissue paper may remain constant, the actual costs associated with setting up a tissue paper manufacturing business vary depending on geographical location.
This is because the cost of things like raw materials, labor, machinery, rent, and taxes vary from one place to another.
With that being said, the average cost of setting up a paper manufacturing business, including land acquisition, investment on machinery and other costs can be pegged at approximately around $4 million (USD).
Parason Machinery has been a leader in manufacturing machinery and spare parts associated with the paper industry for more than four decades. This includes the machinery your new tissue paper manufacturing business will need, such as pulping machines, paper machines and more.
All our machines and spare parts are manufactured using industry-leading technology, and have a reputation for being energy efficient as well as durable. You can rest assured that the tissue paper you manufacture will be of the highest quality and that the quantity of the output will be optimal as well.
In fact, we even have a team that specializes in turnkey projects. They will work with you on every aspect of setting up your tissue paper manufacturing plant, from helping you set up raw materials supply chains and setting up the machinery you need to ensure your manufacturing plant is completely optimized and operational.
Parason Machinery has a presence in over 77 countries, so you can depend on our support irrespective of where you are located. Contact us today, and let’s get you started on your path to setting up a profitable tissue manufacturing business.