NAICS 322220 Quarterly Industry Report
Paper Bag and Coated and Treated Paper Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 322220Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 322220 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the paper bag and coated paper manufacturing sector, drawing on data from the U.S. Census Bureau[5] and Bureau of Labor Statistics[6] employment records. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 322220 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the paper bag and coated and treated paper manufacturing industry.
Industry Definition & Overview
Paper Bag and Coated and Treated Paper Manufacturing (NAICS 322220) encompasses establishments primarily engaged in coating, laminating, and converting purchased paper and paperboard into bags, sacks, multiwall shipping bags, coated papers, treated papers, and laminated foil products. Manufacturing activities include surface coating with wax, plastics, or metallic films; laminating paper to foil or plastic substrates; and cutting and forming bags from coated or uncoated stock. According to the U.S. Census Bureau[5], approximately 530 establishments employ over 55,000 workers in this diversified sector, generating annual revenues exceeding $20 billion.
Products manufactured in this sector serve food packaging, industrial shipping, medical sterilization wrap, release liner, and specialty coating applications. The Bureau of Labor Statistics[6] reports production roles including coating machine operators controlling thickness and adhesion of surface treatments, laminating machine tenders bonding multiple substrate layers, bag machine operators converting coated stock into finished bags, and quality inspectors testing barrier properties and seal strength.
Market demand is driven by food industry packaging requirements, grocery retailer paper bag adoption replacing single-use plastic bags, and industrial multiwall bag consumption for cement, animal feed, and chemical products. Per the SBA Office of Advocacy[7], the industry includes both large coating and laminating specialists and smaller regional bag manufacturers serving local grocery, food service, and industrial markets with customized products.
What's Included in This Industry
- Valuation multiples benchmarked to paper bag and coated paper manufacturers
- Revenue and EBITDA trends for domestic coating, laminating, and bag operations
- SBA lending data and financing terms for NAICS 322220
- Comparable transaction data from recent paper converting acquisitions
- Industry risk factors including raw material costs and plastic bag ban impacts
- Workforce composition and labor cost benchmarks for coating and converting operations
- Regional market analysis covering paper bag and coated paper production centers
- Capital expenditure benchmarks for coating, laminating, and bag-making equipment
- Growth projections tied to plastic bag bans and sustainable packaging demand
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Paper Manufacturing | 322 |
| Industry Group | Converted Paper Product Manufacturing | 3222 |
| NAICS Industry | Paper Bag and Coated and Treated Paper Manufacturing | 32222 |
| National Industry | Paper Bag and Coated and Treated Paper Manufacturing | 322220 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 322120 | Paper Mills | Paper mills producing the base paper and paperboard stock that coated paper manufacturers purchase for surface treatment and lamination processes |
| 322130 | Paperboard Mills | Paperboard mills manufacturing board grades consumed as substrates for coating, laminating, and bag-making operations across food and industrial markets |
| 322211 | Corrugated and Solid Fiber Box Manufacturing | Corrugated box manufacturers producing shipping containers frequently lined with coated paper products for moisture protection and barrier performance |
| 326111 | Plastics Bag and Pouch Manufacturing | Plastics bag and pouch manufacturers producing competing flexible packaging products as the market shifts between plastic and paper bag alternatives |
| 325520 | Adhesive Manufacturing | Adhesive manufacturers producing laminating adhesives, hot-melt compounds, and coating chemicals consumed in paper converting and laminating operations |
| 311513 | Cheese Manufacturing | Cheese manufacturers and food processors purchasing coated and treated paper wraps for product packaging, food contact barriers, and moisture protection |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 7.7% | 53 |
| 2 | Ohio | 7.4% | 51 |
| 3 | Illinois | 7.4% | 51 |
| 4 | Wisconsin | 6.8% | 47 |
| 5 | Pennsylvania | 6.5% | 45 |
| 6 | Texas | 5.3% | 37 |
| 7 | New Jersey | 4.9% | 34 |
| 8 | New York | 4.3% | 30 |
| 9 | North Carolina | 4.3% | 30 |
| 10 | Massachusetts | 4.0% | 28 |
% Of Establishments
0%
8%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
40
Total SBA Loans
$14.8M
Total Loan Volume
$370K
Average Loan Size
12 yrs
Average Loan Term
8.99%
Average Interest Rate
184
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Paper bag and coated paper manufacturers seeking SBA financing typically qualify under the SBA size standards[8] for NAICS 322220, which set the threshold at 750 employees for small business classification. The SBA 7(a) loan program[9] provides up to $5 million for business acquisitions, coating line upgrades, and working capital for paper and chemical inventory management. Industry CDC/504 loan program[10] offers long-term fixed-rate financing for laminating equipment, bag-making machinery, and facility expansion projects. Lenders evaluate customer diversification across food, industrial, and medical packaging segments when underwriting paper converting transactions.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Consumers National Bank | 16 | $6.1M | $379K |
| 2 | Gulf Coast Bank and Trust Company | 8 | $5.1M | $641K |
| 3 | TD Bank, National Association | 8 | $2.0M | $250K |
| 4 | U.S. Bank, National Association | 8 | $1.6M | $200K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a paper bag or coated paper manufacturer?
Paper bag and coated paper manufacturers typically trade at 5x to 8x EBITDA, with higher multiples for operations with specialized coating capabilities, diverse end markets, and strong customer retention. Per U.S. Census Bureau[5] data, companies with food-grade certifications and barrier coating technology command premium valuations.
What SBA loan options are available for paper converting businesses?
The SBA 7(a) loan program[9] provides up to $5 million for acquisitions and equipment upgrades, while the CDC/504 program[10] finances coating lines, laminating equipment, and facility improvements. Paper converting operations with diversified customer portfolios and stable supply agreements typically receive favorable lending terms.
How are plastic bag bans affecting the paper bag manufacturing segment?
Municipal and state plastic bag bans are driving substantial growth in paper grocery bag production as retailers transition to paper alternatives. Per EPA[11] waste management data, paper bags maintain high recycling rates exceeding 50 percent, supporting their positioning as a more sustainable checkout packaging option compared to single-use plastic bags.
What coating technologies are most important in this industry?
Extrusion coating with polyethylene, wax coating for moisture barriers, and water-based coating for food contact applications represent the primary coating technologies. Per FDA[12] regulations governing food contact substances, all coatings applied to food packaging must comply with approved formulations and migration limits for direct and indirect food contact.
What raw materials drive costs for coated paper manufacturers?
Base paper and paperboard represent 30 to 45 percent of total costs, with coating chemicals, polyethylene resins, waxes, and adhesives adding another 15 to 25 percent. Per Bureau of Labor Statistics[6] producer price index data, raw material cost volatility in both paper and petrochemical markets requires flexible pricing structures in customer contracts.
What is the SBA size standard for paper bag and coated paper manufacturers?
The SBA[8] classifies businesses with up to 750 employees as small for NAICS 322220 paper bag and coated and treated paper manufacturing. This threshold allows many independent converters and regional bag manufacturers to qualify for SBA lending programs and government contracting set-aside opportunities.
What food safety certifications are required for food packaging paper converters?
Food contact paper and paperboard products must comply with FDA[12] 21 CFR Parts 176 and 182 governing food contact substances and coatings. Many food brand customers require SQF, BRC, or GFSI-benchmarked certifications for their packaging suppliers, verifying clean manufacturing environments and controlled coating processes.
What are key factors in evaluating a paper converting acquisition?
Critical evaluation factors include coating line technology and capacity, customer concentration, food-contact certifications, and product mix balance between bags, coated papers, and laminated products. Per U.S. Census Bureau[5] industry data, buyers assess geographic market coverage, equipment vintage, and the proportion of proprietary versus commodity products.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]SBA size standards sba.gov
- [9]SBA 7(a) loan program sba.gov
- [10]CDC/504 loan program sba.gov
- [11]EPA epa.gov
- [12]FDA fda.gov
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