NAICS 326111 Quarterly Industry Report
Unsupported Plastics Bag Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 326111Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 326111 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the plastics bag and pouch manufacturing sector, drawing on data from the U.S. Census Bureau[5] and the Bureau of Labor Statistics[6]. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 326111 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the unsupported plastics bag manufacturing industry.
Industry Definition & Overview
Plastics Bag and Pouch Manufacturing (NAICS 326111) encompasses establishments primarily engaged in converting plastics resins into plastics bags or pouches, or forming, coating, and laminating plastics film or sheet into single-web or multiweb plastics bags or pouches. Operations range from simple T-shirt style retail bags to complex multilayer stand-up pouches with resealable closures, barrier layers, and custom printing. According to the U.S. Census Bureau[5], this classification covers both commodity bag producers serving grocery and retail channels and specialty pouch converters supplying food, medical, and industrial end markets.
Production processes include blown film extrusion, cast film extrusion, bag-making machine converting, wicketing, pouch-forming fill-and-seal lines, flexographic and rotogravure printing, and lamination of multiple film layers for barrier performance. The Bureau of Labor Statistics[6] tracks employment across extrusion operators running polyethylene and polypropylene blown film lines, bag machine operators managing high-speed converting equipment, print press operators, quality inspectors verifying seal integrity and dimensional accuracy, and maintenance technicians supporting continuous production schedules.
Per the SBA Office of Advocacy[7], resin costs account for a major share of total production expense, making bag and pouch manufacturers sensitive to petrochemical feedstock pricing and polyethylene market conditions. Growing demand for flexible packaging as a lighter-weight alternative to rigid containers continues to support pouch segment growth, while single-use plastics legislation in multiple states creates both compliance burdens and opportunities for manufacturers offering compostable or recyclable bag alternatives.
What's Included in This Industry
- Valuation multiples benchmarked to plastics bag and pouch converters
- Revenue and EBITDA trends for domestic bag manufacturing operations
- SBA lending data and financing terms for NAICS 326111 businesses
- Comparable transaction data from recent bag and pouch converter acquisitions
- Industry risk factors including resin pricing, regulatory headwinds, and retail consolidation
- Workforce composition and labor cost benchmarks for bag converting operations
- Regional market analysis covering major bag manufacturing hubs
- Capital expenditure benchmarks for blown film lines and bag-making equipment
- Raw material cost analysis for polyethylene resin procurement
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Plastics and Rubber Products Manufacturing | 326 |
| Industry Group | Plastics Product Manufacturing | 3261 |
| NAICS Industry | Plastics Packaging Materials and Unlaminated Film and Sheet Manufacturing | 32611 |
| National Industry | Plastics Bag and Pouch Manufacturing | 326111 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 326112 | Plastics Packaging Film and Sheet (including Laminated) Manufacturing | Plastics packaging film and sheet manufacturers producing the base film substrate that bag converters purchase and form into finished bags and pouches |
| 326113 | Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing | Unlaminated plastics film and sheet producers supplying nonpackaging film used in trash bag, garment bag, and agricultural film applications |
| 322220 | Paper Bag and Coated and Treated Paper Manufacturing | Paper bag and coated paper manufacturers classified separately when producing laminated combinations of plastics, foils, and paper into single or multiwall bags |
| 325211 | Plastics Material and Resin Manufacturing | Plastics material and resin producers manufacturing polyethylene and polypropylene base resins consumed as primary raw material inputs in bag extrusion |
| 326199 | All Other Plastics Product Manufacturing | All other plastics product manufacturers producing rigid packaging, containers, and closures that compete with flexible bag and pouch formats in packaging applications |
| 333248 | All Other Industrial Machinery Manufacturing | Other industrial machinery manufacturers producing blown film extruders, bag-making machines, and converting equipment used in bag production facilities |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 13.4% | 45 |
| 2 | Texas | 11.6% | 39 |
| 3 | New York | 8.0% | 27 |
| 4 | Illinois | 7.4% | 25 |
| 5 | Ohio | 6.8% | 23 |
| 6 | New Jersey | 5.7% | 19 |
| 7 | Wisconsin | 4.8% | 16 |
| 8 | Pennsylvania | 4.2% | 14 |
| 9 | Florida | 3.3% | 11 |
| 10 | Michigan | 3.0% | 10 |
% Of Establishments
0%
13%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
48
Total SBA Loans
$30.1M
Total Loan Volume
$627K
Average Loan Size
10 yrs
Average Loan Term
10.44%
Average Interest Rate
488
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Plastics bag and pouch manufacturers qualify as small businesses under the SBA size standards[8] for NAICS 326111, which set the threshold at 750 employees. The SBA 7(a) loan program[9] supports acquisitions of existing bag converting operations and working capital lines for resin inventory purchases, while the CDC/504 loan program[10] provides long-term fixed-rate financing for blown film extruders, bag-making machines, printing presses, and facility expansions. Lenders closely evaluate resin purchasing terms, customer concentration ratios, and equipment condition when underwriting bag manufacturing business loans.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | First National Bank of Pennsylvania | 16 | $23.6M | $1.5M |
| 2 | Northeast Bank | 16 | $3.2M | $200K |
| 3 | Union National Bank | 8 | $2.1M | $260K |
| 4 | Colony Bank | 8 | $1.2M | $150K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 326111?
NAICS 326111 covers businesses that convert plastics resins into bags and pouches, or form plastics film into finished bags. This includes producers of grocery bags, trash bags, zip-lock bags, stand-up pouches, wicketed bags, and industrial liners. Manufacturers may also print directly on the bags they produce. Per the U.S. Census Bureau[11], the classification specifically covers single-web and multiweb bag converting operations.
How is plastics bag manufacturing structured as an industry?
The industry operates through two main segments: commodity bag producers running high-volume blown film extrusion and converting lines for retail, trash, and industrial bags; and specialty pouch converters producing multilayer laminated pouches with barrier properties for food, medical, and personal care markets. Commodity operations compete primarily on resin efficiency and converting speed, while specialty converters differentiate through lamination technology, barrier engineering, and printing capabilities.
What is the SBA size standard for NAICS 326111?
The SBA classifies a plastics bag and pouch manufacturer as a small business if it employs fewer than 750 workers, measured as the average number of employees over the preceding 24 months. This threshold applies for eligibility under SBA lending programs and federal contracting set-asides. Per the SBA size standards table[8], this employee count includes all full-time and part-time workers at all company locations.
What NAICS codes are most closely related to 326111?
The most closely related code is 326112, covering plastics packaging film and sheet production, since film producers supply the base substrate that bag converters form into finished products. Code 326113 covers nonpackaging film production for trash bags and agricultural films. Code 322220 captures paper bag manufacturing. Producers of rigid plastics containers fall under 326199, representing competing packaging formats.
What industries interact most with plastics bag manufacturers?
Grocery and retail chains represent the largest customer segment for commodity bags. Food manufacturers drive demand for specialty pouches and packaging bags. Plastics resin producers (325211) supply polyethylene feedstock. Custom compounders (325991) provide color and additive masterbatches. Per the Bureau of Labor Statistics[6], the food packaging segment accounts for a substantial share of flexible packaging demand.
What specific activities fall under NAICS 326111?
Covered activities include blown film extrusion of polyethylene bag film, bag-making machine converting and sealing, wicketing and stacking of retail bags, stand-up pouch forming and sealing, flexographic and rotogravure printing on bag film, lamination of multiple film layers for barrier pouches, and zip-lock closure application. Per the Census Bureau[11], establishments may print on the bags or pouches they manufacture.
Are plastics bag manufacturers eligible for SBA loans?
Yes, bag manufacturers meeting the 750-employee threshold qualify for SBA financing. The SBA 7(a) program[9] covers business acquisitions and working capital, while the CDC/504 program[10] finances equipment such as blown film lines, bag machines, and printing presses. Lenders typically evaluate resin procurement contracts, customer diversification, and equipment age when structuring loans.
Where are plastics bag manufacturing operations concentrated in the U.S.?
Bag manufacturing clusters near major polyethylene production regions and population centers that drive end-use demand. Texas and the Gulf Coast corridor benefit from proximity to petrochemical resin suppliers. California, Georgia, and the Midwest host concentrations of bag converters serving regional grocery, retail, and industrial distribution networks. According to the Census Bureau[12], states with higher manufacturing employment bases generally support more bag converting establishments.
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]U.S. Census Bureau census.gov
- [12]Census Bureau data.census.gov
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