How Much Does Product Packaging Cost? Factors, Benchmarks, and Ways to Save

Product packaging is an essential element of any business that sells physical goods. It protects products during transport, provides important information to consumers, and helps products stand out on store shelves. The true cost of product packaging is often much more than just the price of the materials used to create it. Packaging costs can add up quickly and significantly impact a company’s bottom line. 

Brands must better understand how packaging costs can impact their business and how they can reduce their costs without sacrificing quality. This infographic provides an overview of the cost of product packaging, the factors that affect packaging costs, and tips for reducing packaging costs while still making the most of your packaging.

Quick Answer: What Impacts the Cost of Product Packaging?

Product packaging costs include more than materials. Total cost is shaped by packaging type, order quantity, customization, printing, shipping and storage, regulatory requirements, and sustainability goals. Brands can often reduce packaging cost by right-sizing, simplifying print and finishes, standardizing specs, and choosing materials that balance performance and supply chain efficiency.

What Costs Are Included in Product Packaging?

Packaging cost typically includes unit cost of materials, printing and converting, freight and warehousing, and operational costs like line efficiency, damage rates, and compliance. The lowest material price is not always the lowest total cost if the packaging increases shipping weight, slows packing, or raises product damage risk.

Average Packaging Cost Ranges (Typical Estimates)

These estimates vary based on board grade, size, printing coverage, finishes, order volume, and supplier capabilities. Use them as directional benchmarks, not fixed pricing.

Packaging costs can vary widely based on factors such as the size and weight of the product, the type of packaging materials used, and the production process. Businesses need to understand the average cost of packaging to make informed decisions about their packaging solutions.

On average, packaging costs can account for at least 10% of a product’s retail price. However, the actual cost can vary widely depending on the product and its packaging requirements. The cost of packaging materials is also a major component of overall packaging costs. 

Average Packaging Cost Ranges (Directional Estimates)

• Corrugated packaging: $3–$6+ per unit (varies widely by size and board grade)
• Folding cartons: $2–$4+ per unit (print and finishes are major drivers)
• Rigid boxes: $10–$20+ per unit depending on structure and decoration
• Flexible packaging: $0.30–$1.00+ per unit depending on film and run size

It’s important to note that these are general estimates, and the actual cost of packaging can vary widely depending on the specific requirements of each product. For example, custom packaging designs, high-quality materials, or specialized packaging solutions may come at a higher cost.

In addition to the direct cost of packaging materials, there are indirect costs to consider, such as storage, transportation, and environmental impact. By understanding the average cost of packaging and its associated costs, businesses can better choose packaging solutions that meet their budget and sustainability goals.

FACTORS THAT AFFECT PACKAGING COSTS

Folding cartons and labels often shift most in price based on print complexity, coatings, and run size.

1. How do packaging materials affect cost?

Different materials have different costs associated with them, with plastic typically being less expensive than paper. Glass is also a common packaging material but can be more expensive due to its weight and fragility. Additionally, sustainable packaging materials, such as biodegradable or compostable materials, may be more expensive than traditional materials.

2. How does order quantity change packaging cost?

The quantity of packaging required is another significant factor in determining the cost of packaging. Typically, the more packaging that is needed, the higher the cost will be. However, many manufacturers offer bulk pricing discounts for larger orders, which can help to reduce the cost per unit.

3. How does custom packaging design affect pricing?

Custom-designed packaging will generally be more expensive than pre-made, off-the-shelf packaging. This is because custom packaging requires additional design work and production time. Factors that can impact the cost of customization include the complexity of the design and the level of detail required.

4. How does printing impact packaging cost?

Printing on the packaging, such as branding or product information, can add to the cost of the packaging. Factors that can impact the cost of printing include the number of colors used in the design, the size of the packaging, and the type of printing technology used.

5. How do shipping and storage affect packaging cost?

The cost of shipping the packaging materials and the finished products can significantly affect the overall packaging costs. Factors that can impact shipping costs include the weight and size of the packaging, the distance between the manufacturer and the customer, and the shipping method used.

6. How does compliance influence packaging cost?

Some products may require specific types of packaging to comply with safety or environmental regulations, which can increase the cost of the packaging. For instance, products that are considered hazardous may require special packaging materials to prevent leaks or spills during transport.

7. Does sustainable packaging cost more?

Sustainability is becoming an increasingly important factor in packaging costs. Sustainable packaging materials such as biodegradable or compostable materials, may be more expensive than traditional materials. However, sustainable packaging can also provide cost savings in other areas, such as reduced shipping costs due to lower weight.

By understanding these factors, businesses can start to identify areas where they may be able to reduce their packaging costs. They may be able to reduce the cost of printing by using simpler designs, or they may be able to reduce shipping costs by sourcing materials from a closer location.

Packaging Cost Drivers by Type

• Folding cartons: Costs often increase with higher board grades, specialty coatings, foil or embossing, large ink coverage, and structural complexity.
• Pressure sensitive labels: Cost varies based on facestock and adhesive choice, durability needs (moisture, refrigeration, abrasion), embellishments, and run length.
• Corrugated: Costs often depend on box size, board strength, print coverage, and freight efficiency.

Quick Wins to Reduce Packaging Cost Without Sacrificing Quality

• Right-size packaging to reduce freight and void fill
• Simplify finishes and reduce ink coverage where possible
• Standardize packaging sizes and specs across SKUs
• Improve pack-out efficiency to reduce labor and damage
• Evaluate material changes with real-world testing, not assumptions

5 STRATEGIES ON HOW TO REDUCE PACKAGING COSTS

Reducing packaging costs is an important goal for any business looking to improve profitability, reduce waste, and enhance sustainability. Here are some effective strategies for lowering packaging costs without sacrificing quality or effectiveness:

1. How does right-sizing reduce packaging and shipping cost?

One of the most effective ways to reduce packaging costs is to reduce the size and weight of your packaging. This can be achieved by using thinner or lighter materials or redesigning your packaging to be more compact and efficient. By reducing the size and weight of your packaging, you can save on material, shipping, and storage costs.

2. Can sustainable packaging reduce total cost over time?

Many businesses use eco-friendly and sustainable materials, such as recycled paper, biodegradable plastics, or plant-based materials to reduce packaging costs. These options are often more cost-effective than traditional materials, especially in the long run. 

3. How can logistics and pack-out efficiency lower packaging costs?

Efficient shipping and handling can significantly reduce your packaging costs. Consider using standardized packaging sizes, automating your packing and shipping processes, and working with logistics partners to optimize your shipping routes and schedules. By streamlining your shipping and handling processes, you can reduce labor, shipping, and material costs.

4. How can brands reduce printing costs without losing shelf impact?

Custom packaging design and printing can be expensive, especially for small businesses. Consider using pre-designed templates or simplifying your packaging design to reduce costs. You can also negotiate with printing vendors or consider in-house printing options to reduce costs further. 

5. How does working with a packaging partner reduce total cost?

Working closely with suppliers can allow businesses to negotiate better pricing, access bulk-purchasing discounts, improve packaging quality, and streamline their supply chain for more cost-effective packaging solutions. Consider partnering with a packaging supplier that specializes in your industry or product type and has a proven track record of providing quality services.

Businesses can significantly reduce their packaging costs while providing quality packaging that protects their products and enhances their brand image. It’s important to remember that lowering packaging costs should not come at the expense of quality or effectiveness. By finding the right balance between price and quality, businesses can achieve the optimal packaging solution that meets their needs and helps them achieve their goals.

How Can Brands Maximize the Value of Product Packaging?

While reducing packaging costs is essential, it’s also crucial to maximize the value of product packaging to achieve the best possible return on investment. Here are some effective ways to maximize the value of product packaging:

1. How Does Product Packaging Improve the Customer Experience?

Product packaging is an integral part of the customer experience. Packaging that enhances the customer experience can improve customer loyalty, increase brand recognition, and drive sales. Consider using custom packaging designs, personalized messages or branding, or unique materials that reflect your brand values and identity.

2. How Can Packaging Highlight Product Features and Benefits?

Product packaging is an excellent opportunity to highlight the features and benefits of your product. Add product information or instructions, use high-quality product images, or use color and design to emphasize key selling points. By using product packaging to showcase the product’s unique features and benefits, businesses can increase customer interest and drive sales.

3. How Does Packaging Protect Products During Shipping and Handling?

Product packaging should also prioritize product safety and protection. With high-quality materials and packaging design that effectively protects the product from damage or contamination, businesses can reduce product loss, improve customer satisfaction, and enhance brand reputation. Utilize tamper-evident seals, protective padding or inserts, or air-tight packaging for food or perishable products.

4. How Can Product Packaging Support Sustainability Goals?

Sustainability is becoming increasingly important to customers, and businesses can use packaging to demonstrate their commitment to sustainability. Using eco-friendly materials, reducing packaging waste, and using recyclable or biodegradable packaging can attract environmentally-conscious customers and improve brand image.

5. How Should Brands Measure Packaging Performance and ROI?

To maximize the value of product packaging, businesses should measure and analyze packaging performance regularly. Tracking key performance indicators such as customer feedback, sales data, and packaging costs can help identify areas for improvement and optimize packaging strategies over time.

PACKAGING THAT PAYS OFF

Product packaging costs extend beyond the direct expenses of packaging materials and production. Businesses must also consider the indirect costs, such as storage, transportation, and environmental impact. Implementing effective packaging strategies prioritizing cost savings and value maximization can help your brand achieve optimal packaging solutions that benefit your bottom line, customers, and the environment.

It’s time to optimize your product packaging and achieve cost savings while enhancing your customers’ experience. Meyers is a U.S.-based packaging manufacturer specializing in folding carton packaging and pressure sensitive label solutions for brands that need performance, consistency, and sustainability at scale.

Product Packaging Cost FAQs

Last Updated on January 30, 2026