Insights / News

How Packaging Can Reduce Product Costs

Glass, plastic, and metal containers from Berlin Packaging

As inflation continues to drive up the cost of goods for both consumers and manufacturers, brand owners should take a hard look at their packaging to reduce product costs without compromising quality, reports an article in Nutritional Outlook magazine.

“Using less-expensive materials, more-efficient machinery, and eliminating unnecessary components can help minimize packaging costs,” advises Moira Stein, Market Insights and Brand Strategy specialist at Berlin Packaging.

Package Size

The size of the package may have a positive influence on sales. “From a consumer perspective, we’re seeing demand for both smaller pack sizes that cost less and larger ‘value’ packs with a lower price-per-unit,” Stein explains. “A recent GlobalData study found that one in five global consumers are buying fewer products or smaller pack sizes. Conversely, one in six consumers associate ‘good value for money’ with larger product or portion sizes. And there are other things consumers consider as part of the value equation besides price, like convenience and sustainability.”

Sustainability

Sustainability can mean different things to consumers, such as the use of post-consumer resins. Or it could mean maximizing space and weight to reduce the amount of greenhouse gasses emitted during transport. It could also mean maximizing the shelf life of products through packaging material. Long shelf life offers advantages for both the manufacturer and the consumer. “It can help reduce waste, save money, maintain product quality and efficacy, and ensure product safety,” says Stein.

Convenience

Versatile, multifunctional, and accessible packaging design can be a major selling point. For example, products that are easy to open, close, and dispense are attractive to aging populations. Convenience features such as resealability are also important and don’t have to cost a lot more money for the manufacturer, says Stein.

Another trend that may help drive sales is interactive “smart” packaging. “For nutraceuticals, it can be something as simple as a QR code,” explains Stein. “This interactive element encourages consumers to learn more about the brand, product certifications, health benefits, ingredient sourcing, manufacturing methods, sustainability initiatives, and more. It provides transparency, builds trust, and allows consumers to make more informed purchase decisions.”

Contributor: Robert Swientek
Date: June 5, 2023

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