Packaging costs vary by industry, but it’s common for packaging to represent 3% to 10% of a product’s total price. By choosing the right materials, manufacturers and vendors can increase profit margins without sacrificing product quality. What is the most cost-effective packaging material for your company?
Primary packaging options range from thermoplastic trays to glass bottles. There are also several types of secondary packaging, such as corrugated cardboard. Here are some of the most affordable options to consider.
Acrylic and ABS usually cost 50% to 90% more than LDPE. HDPE costs vary considerably by manufacturer but still come in below metal and glass containers.
Cost-effectiveness is a big reason why so many manufacturers, distributors, and retailers use cardboard for packaging. Paperboard is even less expensive, but it lacks the impact resistance and moisture resistance necessary for many goods.
Corrugated cardboard is sturdy, making it an excellent choice for warehouse storage, shipping, and other logistics. That said, as the complexity of boxes increases (e.g., rigid boxes or multilayer corrugated packaging), so does their price.
Technically, aluminum is difficult to obtain and process, but that mainly applies to new material. What makes aluminum cost-effective is how recyclable it is. Cans made with recycled aluminum are a close second behind thermoplastic bottles.
Combining aluminum and thermoplastic layers provides cost-effective packaging for food processing, beverages, and medical/pharmaceutical applications. Metalized plastics are the secret to popular moisture-resistant pouches and food-grade poly bags.
Eco-friendly packaging is usually more expensive, but including recycled materials can lower your costs. Certain types of thermoformed plastic, cardboard, and aluminum often use a percentage of recycled material.
The base material you choose isn’t the only factor that affects packaging prices.
When HDPE, ABS, or even corrugated cardboard materials rise in demand, so does their price. The opposite is also true.
Rigid boxes are more expensive because they require more material, time, and steps to create. On the other hand, thermoplastic can adopt complex forms relatively easily, which is why it’s perfect for blisters, trays, and bottles.
Size and thickness are important price factors for corrugated cardboard, thermoplastics, and metalized plastic pouches. Increased thickness offers greater durability.
HDPE and HIPS cost more than LDPE, but they also offer greater impact resistance and rigidity. It’s important to balance quality, cost-effectiveness, and strength.
With a market of more than $400 billion a year, thermoplastics are still the most cost-effective packaging material globally. Plastic is also strong, moisture-resistant, lightweight, and versatile, making it a reliable choice for protecting and displaying your products.
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