Think about the last time you made a packaging decision. Did you only look at the unit price? Most procurement teams focus on upfront costs, but that approach misses significant factors that can dramatically impact your bottom line.
At Clearly Clean, we’ve helped processors and retailers discover why understanding the complete picture of food packaging costs has become critical for protecting both profit margins and brand reputation. When you think about the last time you made a packaging decision, did you only look at the unit price?
Most procurement teams focus on upfront costs, but that approach misses significant cost factors that can dramatically impact your bottom line. According to Packaging Digest research, material costs represent only a portion of total food packaging costs. The remaining expenses come from processing inefficiencies, storage requirements, disposal fees, and compliance costs.
Many businesses overlook these major factors in food packaging costs calculations:
Processing Efficiency: Food Processing Magazine reports that thermoform trays typically run significantly faster on processing lines compared to foam alternatives. This speed advantage translates to higher throughput and lower labor costs per unit.
Additionally, PET trays nest more efficiently, reducing storage space requirements by up to a quarter. Consider a mid-sized processing facility: a modest improvement in line efficiency could increase annual output substantially. At typical throughput values, that represents considerable additional revenue potential.
Waste management costs are rapidly becoming major factors in food packaging costs calculations. Landfill disposal fees for foam packaging average significantly higher per ton and are rising annually. Many municipalities are implementing foam packaging bans, forcing businesses to find alternative disposal methods.
In contrast, PET packaging can be recycled through existing infrastructure, often generating revenue instead of disposal costs.
Consider a mid-sized processing facility: a processor switching from foam alternatives to PET alternatives discovered substantial savings across multiple categories. The efficiency improvements in line speed, storage optimization, and disposal cost reductions created significant per-unit savings that far exceeded the modest difference in material costs.
When you calculate the complete picture of food packaging costs, sustainable alternatives often deliver superior total cost of ownership while supporting your sustainability goals.
Ready to discover your complete food packaging costs picture? Contact our packaging specialists for a comprehensive cost analysis tailored to your operation.