Am I Spending More on Packaging Than I Should?
Packaging Cost Overview Rising input costs, fragmented supply chains, and legacy packaging decisions often leave companies overspending on packaging without realising it. The good news: reducing packaging costs is usually simpler than expected and can unlock savings of 10–20% of your total packaging budget . In this user-friendly action plan, we break down the key drivers of packaging costs and show how they can be optimised. Let’s start with the basics. The Three Core Cost Components of Paperboard Packaging Any paperboard-based packaging has three primary cost elements: 1. Raw Material Costs These include paper, ink, coatings, films, foils, and adhesives. Paper is typically the largest contributor to total raw material cost. 2. Production Process Costs These are the costs associated with converting raw materials into finished packaging, usually divided into: Press (printing) Post-press (die cutting, folding, finishing) Manual work (box making, assembly) 3. Freight and Logisti...