Understanding The Economics Of Sustainable Packaging
The packaging that your customer receives offers more than just a protective layer for their order. It opens up an opportunity for your brand to leave a positive first impression on them.
In most cases, your packaging might be the factor that converts one-time customers into loyal consumers. In fact, studies have shown that packaging does contribute to a significant increase in sales and conversion rates.
However, there is a catch. And that quality packaging often comes at a cost.
With that being said, this is not a cause for concern. There are many cost-effective, sustainable packaging strategies that you can incorporate without having to compromise on quality. But first, let us dive into some factors behind packaging.
Considerable packaging statistics
Did you know that plastic use all around the world has reached a whopping 460 million metric tonnes (460,000 kilograms) in the past years? And approximately 31% of it comes from packaging, signalling that there is a growing market and need for sustainable solutions.
The global market for food packaging is projected to grow to approximately $478 billion in 2028 from $338 billion in 2021. However, the shift in consumerism has seen a change in landscape to an eco-friendlier mindset. The market for sustainable food packaging and other forms of green packaging is projected to grow, surpassing $169 billion by 2032.
And it is not solely about using the right materials. Brands and businesses need to look into designs that feel and look high-quality.
Cost factors in packaging
Once you have understood the contributing factors of packaging costs, you will be able to make better decisions, pursuing cost-effective strategies. With that being said, here are two fundamental cost factors in packaging.
1. Material costs
Some of the most common materials used in packaging include paper, plastic, and cupboard. Your chosen materials will contribute to the overall packaging cost. As the price of raw materials and overall manufacturing costs increase due to inflation, so will your packaging costs.
To save costs, you can explore several options, such as affordable packaging options or bulk purchases. Fortunately, SKP offers both advantages.
2. Weight and size considerations
Generally, the heavier and larger your packages are, the more materials are needed, driving up the overall packaging cost. They are also more expensive if you purchase your packaging from suppliers that charge their shipping fees based on weight.
You can avoid unnecessary expenses creeping into your profit margin by reducing the size and weight of your packaging. Right-sizing will also boost the sustainability of your packaging. In fact, SKP biodegradable packaging is known to be extremely light yet durable.
Transiting to sustainable packaging options
Sustainable packaging is made using materials that have little to no negative environmental impact throughout its process, from manufacturing to disposing of the package.
As more and more individuals are beginning to be more environmentally conscious, we have seen a rise in the number of brands and businesses making that transition to sustainable packaging options. Here are some reasons why.
1. Consumers demand for eco-friendly packaging
Consumers are beginning to take into consideration how sustainable a business is when they make a purchase. Research has found that consumers believe businesses are responsible for creating a sustainable society, with 74% stating that they are willing to spend more on eco-friendly packaging.
2. Innovations in green packaging
Another reason why businesses are making that green switch is that there have been many innovations in green packaging over the years, from edible materials to bioplastics. In fact, SKP is one of the leading sustainable packaging providers in Singapore.
Using the latest green technology, BioTransformation, we were able to create our revolutionary line of 100% biodegradable food packaging, EcoVue. Every item in that line, such as biodegradable utensils and eco-friendly disposable cups breaks down completely into organic elements without leaving behind anything. Our manufacturing facilities are also solar-powered, adding to the sustainability of our business.
Cost-effective packaging strategies
1. Leveraging simple packaging
Professional graphic designs can get rather costly. However, if your packaging design is kept simple, you are able to cut down on packaging costs effectively.
One way is utilising SKP’s custom printed services. We are able to add your logos and designs to our extensive range of eco-friendly products. One advantage of using our custom printed services is our low MOQ printing of 10 cartons, making it highly advantageous for smaller events that require a quick turnaround time or if your business is just testing the possibility of switching packing providers.
2. Right-sizing packaging
Right-sizing is utilising the most appropriate size for each packaging, reducing wasted space and minimising excess void fill. By utilising packaging that matches closely to the size of your product or food, you can reduce overall packaging material costs or the need for extra cushioning materials. SKP offers incredibly lightweight yet durable, sustainable and biodegradable packaging.
3. Bulk purchasing
Buying packaging in larger quantities can allow you to negotiate better prices, reduce your overall costs, and obtain volume discounts.
4. Partnering with a packaging expert
At the end of the day, consulting with an expert with the knowledge is vital in helping you save as much as possible. And that is where SKP comes in. We have been revolutionising the packaging industry for decades, growing into the largest supplier of packaging in Singapore.
On top of our extensive range of sustainable products, we also offer value-added solutions, such as AdsPak and AdsCuppa. We are committed to offering sustainable, innovative, and effective packaging solutions for your business needs.
Conclusion
Packaging is a vital consideration for brands and businesses. Without considering cost, you end up spending more than you actually need. Make that switch today. Achieve successful and sustainable branding today with SKP. Contact us to get started.