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What Factors Influence Packaging Costs, and How Can Packaging Prices Be Reduced?

 2023-07-18 10:58:28

How Can Packaging Prices Be Reduced

Packaging plays the biggest role in making your product presentation appealing. It helps present your product professionally and improves the customer experience. Product packaging can greatly impact whether or not your product gets noticed by customers. But while designing the perfect packaging box for your product, you need to be careful about the packaging cost. 

How much does packaging cost? The simple answer is that packaging prices can vary depending on various factors. Knowing how the cost is affected can help you get reduced prices. But reduced prices do not necessarily mean compromising quality. This blog will help you understand the factors affecting packaging costs and how to reduce prices.

Many factors may affect your packaging prices. These include manufacturing processes, materials, transportation modes, and others. Let’s dive deep into the individual factors that affect your packaging prices.

Effect of Material Pricing on Overall Costs:

Material costs can greatly affect your overall packaging costs. The primary reason for this is that the structure and aesthetics of your packaging mainly depend on the material you choose.

Choosing the right material can make the most difference when creating high-end packaging boxes. A good material can offer structural integrity to your box while also offering premium packaging for your products. Here are some material options and their effects on packaging costs.

  • Cardboard Or Kraft Paper:

Cardboard and kraft paper are both ecological and affordable packaging options. These options are also very famous and are readily available. You can find these options at any packaging materials business. 

Cardboard is a recyclable material that can be printed using high-end techniques with amazing graphics. The printability and cost of cardboard make it an excellent choice for packaging boxes.

Kraft, on the other hand, is popular for its sustainable nature. Kraft paper is completely biodegradable. It helps reduce your brand’s carbon footprint. Kraft also has a natural, rustic look that helps create a minimalistic packaging experience.

If we talk about the cost of these two materials, they can be found at very cheap prices. The reason is that both of these materials can be easily sourced. So this makes for an affordable packaging solution.

  • Luxury Rigid Paperboard:

Rigid paperboard is a luxury packaging option. It is popular for gift packaging boxes. Rigid stock is a thick counterpart of plain cardboard. It offers a smooth surface that provides a premium look and feel. 

The cost of rigid paperboard is higher than most other packaging options. The reason for the high packaging cost would be the manufacturing process it goes through. So while rigid paperboard might be an excellent option for luxury products, using it as a regular packaging option may cost more.

  • Paper Or Plastic Gusset Bags:

Gusset bags are the go-to packaging choice for most businesses. If you sell food items such as rice and beans, gusset bags can be the best option to package your product securely. 

These bags are mainly made of a plastic film which is a very cost-effective choice. But while it may cost less, it is not ecological. In the growing demand for sustainable options, consumers expect your brand to play a role in making ecological choices. This is why using plastic gusset bags to reduce the packaging cost might not be the right choice. 

On the other hand, paper gusset bags are an excellent way to win over more eco-friendly consumers. They may cost a bit more than plastic packaging, but they will help you get more customers. So it is still a win for your brand.


These are some of the material choices and their effect on your overall packaging prices. Use the material that fits your needs while being cost-effective.

How the Manufacturing Process Affects Cost:

Other than material, the manufacturing process is another factor that greatly affects the packaging cost. The manufacturing process includes different phases that impact your packaging prices. Here are the steps involved in the manufacturing process;

  • Printing Techniques:

Printing is the most essential aspect of the manufacturing process. This is because printing adds visual appeal to your product packaging that helps you make a sale. There are a few different printing options for your packaging. Different manufacturers may use different printing techniques to create your packaging. The two most famous printing techniques are digital and offset printing. 

Digital printing is excellent for printing smaller quantities. The results produced are excellent and visually appealing. If you need to print smaller quantities of boxes, digital printing would be the most cost-effective option. 

Offset printing also produces eye-catching results but may not be ideal for smaller quantities. This printing process creates excellent results faster and is best for larger quantities. You will get a low cost per unit with offset printing. 

Depending on the number of boxes you need, you can ask your packaging manufacturer to switch the printing technique for a lower packaging cost.

  • Customization Options:

Packaging prices may also vary depending on your required customization options. For example, a two-piece box may cost more than a box made from a single sheet of cardboard. 

Other than that, the printing features may also affect the cost. The design you wish to print can highly affect your packaging prices. If your design uses multiple colors, the manufacturer will have to make multiple plates, increasing the cost. So going with a minimal design would be a cost-effective idea.

Customization options may also include finishing features and die-cutting. Finishing features such as embossing, debossing, lamination, or foiling may also impact the prices. Along with that, die-cutting can also increase the cost.

So as many customization options you choose will affect your packaging cost significantly. Keeping your design simple can help you make some cost savings.

  • Shipping Costs:

Shipping costs are also a part of the manufacturing process and can affect your packaging prices. There are various shipping methods with different costs.

Shipping by road is a cheaper option than most. It is the best way to deliver packaging boxes for shorter distances. However, the space may impact the cost of shipping. Ground shipping may not be viable if you need longer-distance shipping services. 

Air freight may be the fastest way to ship your packaging boxes. But it is also an expensive option. Going with air freight can increase your packaging cost massively. 

If you are flexible with the delivery times, sea freight may be your perfect choice. It can carry larger weights to longer distances at a meager price. 

The best solution to reduce packaging costs is to go with a local manufacturer. Local manufacturers can ship your boxes via ground shipping. This helps you save massive amounts of money on shipping costs. Another benefit of purchasing locally is getting your packaging boxes faster.

These are some factors in the manufacturing process that impact your packaging prices.

Tips For Reducing Your Packaging Cost:

Now that you know about the factors that affect your packaging prices, let's go ahead and talk about some tips to help you reduce the cost. 

1. Find A Good Packaging Manufacturer:

The first tip for cost-effective packaging is to go with a good manufacturer. Going with a local manufacturer is best because they can offer lower prices. See what features the manufacturer provides. Do they offer free shipping? Are there any additional discounts? Check these factors before selecting your packaging manufacturer. Additionally check out our small business packaging ideas for more information about designing your packaging.

2. Order In Bulk:

Another fantastic way to save money on your packaging is by ordering in bulk. Even with small business packaging orders, buying in bulk helps you get more savings per unit. 

3. Go With A Minimal Approach:

Rather than going with an intricate design, go with a minimal approach. This will help you with cost savings and offer customers an easier understanding of your product.

These tips can help you save amazing amounts of money on your packaging. So be sure to follow our tips to reduce your packaging costs.


So this article answers your query for how much does custom packaging cost. Packaging can cost a lot of money. But if you do things right, you can have some incredible cost savings. If you still have questions, OXO Packaging is always here to help. So call us with your queries about packaging, and we will guide you. Also, we can offer custom packaging at lower prices. So no matter what requirement you have, reach out and let us help you with some amazingly low prices and highest quality custom packaging.

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