What's the cost of more sustainable packaging in 2023?

Author: Evelyn

Mar. 07, 2024

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Tags: Packaging & Printing

From Ikea to McDonald’s, businesses are increasingly seeking ways to switch to more sustainable packaging. But 43% of these have concerns about the costs involved in switching from traditional alternatives.

The good news is that the costs don’t have to be high, whilst the long-term gains, including reduced waste, increased customer loyalty and staying ahead of regulations far outweigh these concerns. And as more businesses switch to more sustainable packaging design, it will become increasingly affordable.

We’ve compared our most popular products to some traditional packaging so that you can see how the costs stack up.

What's the cost of more sustainable packaging?

When considering the switch to more sustainable packaging, it’s natural to think of the immediate cost implications. For example, what would it cost to order 1000 recycled mailer bags, compared to 1000 traditional poly mailer bags?

The truth is that it’s hard to say, because the answer depends on many variables. But, the key is to consider the longer-term costs and benefits as well as the off-the-shelf prices. Take Ikea, which reconfigured its packaging and now saves €1.2 million per year by eliminating empty space; proof that making your packaging more efficient (and more sustainable) can have significant financial benefits.

Sustainable packaging can mean many things, from making sure your packaging is the right size to using more environmentally friendly materials. In some cases, this may mean an initial increase in costs, but it’s the long-term benefits and cost savings that are the crucial considerations.

What packaging material is considered inexpensive and more environmentally friendly?

FSC-certified forest products (mostly paper) are the most environmentally friendly, cost-effective packaging. This is because paper is easy to produce, manufacture, transport, store and recycle and its raw materials can be regrown quickly.

More sustainable packaging that's made from paper includes corrugated shipping boxes and mailer boxes, pulp products such as cards, and gummed tape.

These products are made from natural resources which are sourced from responsibly managed forests. When they’ve reached their end-of-life stage, they are widely kerbside recyclable.

Corrugated cardboard, for example, is so easily recycled that 91% of all collected corrugated cardboard was recycled in 2021. If products are easier to recycle, they remain in circulation, avoiding waste being sent to landfill and more virgin materials being used.

As an example, a popular product at Sourceful that’s both inexpensive and more environmentally friendly is our mailer box. It can cost as little as £0.59 per unit and can reduce your carbon footprint by up to 12% compared to traditional alternatives.

Is sustainable packaging more expensive than traditional packaging?

The best way to know if switching to more environmentally friendly packaging is the right choice for your business is to consider the long-term benefits. But understanding the initial cost is still important for your budget decisions.

Below, we’ve listed some of our most popular products, their cost per item and what they’re best used for. We’ve also shown how they can help you reduce your carbon footprint compared to less sustainable alternatives.

Is switching from traditional packaging to more sustainable packaging worth the investment?

The short answer is a resounding yes — for several reasons. Packaging waste is a serious, global problem. The average European citizen creates 5 tonnes of waste per year, and most of this ends up in landfill. Here, it takes tens to hundreds of years to break down and releases toxic chemicals and greenhouse gases in the process.

In fact, we continue to face some scary numbers when it comes to packaging waste:

  • 50% of all plastic produced is single-use
  • 85% of plastic packaging still ends up in landfills
  • Plastic waste will triple by 2060 to 1,014 million tonnes. That’s over 3000 Empire State Buildings.

It’s clear that reducing every industry’s carbon footprint is paramount. But switching to more sustainable packaging isn’t only for eco-conscious brands that want to reduce their environmental impact. It can also be a smart business strategy.

1. Being climate conscious builds customer loyalty

Around the world, online searches for sustainable goods have increased by 71% in the last five years. Customers are considering the environmental impact of their decisions and want to purchase from value-aligned brands.

So, by prioritising and publicising your sustainability efforts, you’ve got a greater chance of retaining existing customers, as well as attracting new ones.

2. More sustainable packaging complies with regulations

It’s important to also think of the cost of not switching to more sustainable materials.

In response to the packaging waste problem, regulators are cracking down on packaging waste that doesn’t meet minimum environmental requirements. Regulations under the Extended Producer Responsibility policy, such as the UK’s Plastic Packaging Tax are going to become increasingly common, which could see businesses that don’t comply face hefty fines.

3. Investment will see costs decrease as demand rises

It’s true that some of the more innovative and sustainable packaging materials on the market today aren’t as convenient to produce as traditional ones such as plastic. But this shouldn’t necessarily deter you from investing in them.

Ambitious companies are using their investment to support innovation and are perceived as industry leaders as a result. As more businesses commit to more eco-friendly packaging, this will drive the costs down further.

“The more we learn and scale up, and the more demand there is from consumers and companies, the more prices will fall. Over time, we all benefit from economies of scale.” — Georg Kasperkovitz, CEO of Consumer Packaging, Mondi Group

Other ways to reduce your costs and environmental impact

Whether the initial costs of switching to more sustainable packaging are a concern for you or not, there are other ways you can save on costs, including reducing waste and increasing your packaging’s efficiency.

1. Consider changing your packaging’s design

40% of all packaging is too big for its contents, according to DHL. So, as well as evaluating your packaging materials, you could ensure you’re using the right-sized packaging. This means making sure your packaging has as little space inside as possible, without compromising its function.

Right-sized packaging reduces the amount of air you’re shipping, which then reduces the carbon footprint of your products during transit. A snug fit also means a reduced need for additional materials such as void fillers and their associated costs.

You can also consider what’s essential in your packaging design, versus the nice-to-haves. For example, you may use stickers or leaflets as part of your branding awareness strategy, but you could switch to scannable QR codes instead. Every small change can add up to significant savings for your budget and your carbon footprint.

2. Order in bulk

Ordering in bulk can drive down unit costs and, as a result, offset any increased costs generated from switching to more sustainable packaging. Take a look at the table below as an example, which shows how ordering mailer boxes in bulk can significantly reduce your long-term costs.

And you don’t need to be worried about where you’ll keep your packaging either. Warehouse services, such as the one we provide here at Sourceful, mean that ordering in bulk doesn't have to make storage complicated for you. This has the added bonus of creating a buffer stock, which can be drawn upon if there are unforeseen disruptions in your supply chain.

3. Offer reuse, before recycle

A major issue concerning the packaging life cycle is the lack of control you have over what happens to your packaging once it reaches the customer. You can help customers recycle packaging waste by using clear labelling which can reduce the amount of material sent to landfill or incinerated. Some businesses, such as Boots, are even offering loyalty points to customers in return for packaging that can’t be recycled at home.

Whilst recycling does a great job of keeping materials out of landfill, another alternative is to make the packaging reusable. For example, including an easy-open tear strip as seen on our book wrap mailers, which keeps the packaging intact for returns or other uses.

You could also consider more novel options such as plantable packaging. The longer a product can be kept in circulation, the greater its value, and the smaller the environmental cost.

Make the switch to more sustainable packaging with Sourceful

Switching to more sustainable packaging doesn’t have to be difficult or expensive. It’s better for the planet and can even have significant long-term benefits for your business.

At Sourceful we have everything you need to make the switch, from packaging for every product to on-demand experts and an easy-to-use platform. Ready to switch?

Browse all packaging

Cheap packaging is a loaded term that tends to have a negative connotation. However, it doesn’t have to be! Just because a type of packaging material doesn’t cost a lot of money doesn’t necessarily mean that it’s not worth using. 

In fact, there are several impressive packaging ideas that are as effective as they are budget-friendly. So read on to learn about how you can save a few bucks while still getting the job done when it comes to your packaging. 

Why Is Packaging Important?

Many people think that packaging is just meant to protect and ship a product. In reality, it’s much more than that! When done right, packaging can also act as a marketing tool, a branding mechanism, and a way to ensure customer satisfaction. 

Overall, it’s a way that you can set yourself apart from the rest of the field, who may just use a basic plain brown cardboard box. To set yourself apart, you have to get creative, know your brand, and embrace the design process.

Do You Have To Spend A Ton Of Money On Packaging?

All that being said, many people automatically assume that they have to spend a ton of money on packaging to set themselves apart from the rest. However, that doesn’t have to be the case. In fact, there are several different ways that you can create amazing packaging without blowing your entire budget. All it takes is knowing what to look for, where you should cut corners, and where you should splurge. 

However, if all of this is new to you, then you probably don’t know these things. Thankfully, we are here to help by telling you about nine cheap packaging ideas that are effective yet still cost-efficient. 

1. Custom Mailer Boxes

The first cheap packaging option you should consider is a custom mailer box. I know what you’re thinking—custom can’t possibly be cheap, right? Wrong! Custom mailer boxes are a great option for companies who want some extra protection for their products thanks to corrugated cardboard material and smart features like dust flaps. 

BoxGenie, for example, offers amazing custom mailer boxes that you can design yourself, choose from one of their templates, or even talk with experts about your packaging needs. At the end of the day, customers will love getting their products in a custom mailer box that has been specifically designed for your brand—so much that they will keep coming back for more! 

2. Paperboard Boxes

The second cheap packaging option you should consider is a simple paperboard box, or shipping box. Paperboard boxes aren’t as strong or durable as corrugated packaging, but they are still a great packaging option for products that don’t need as much protection during the shipping process. 

In fact, paperboard boxes are great for retail items that are going on the shelf. These boxes are easy to assemble and flexible—making them ideal for smaller items and trinkets that aren’t breakable. Since they are thinner than custom mailer boxes made out of corrugated cardboard, they are also thinner and lighter—making them easier to store and ship if needed. 

3. Poly Mailer Bags

The third cheap packaging option you should consider is a poly mailer bag. Poly mailer bags are made out of a durable and protective plastic material that’s able to completely seal and cover your products so that they can arrive at their destination safely. Unlike cardboard or paperboard packaging, poly mailer bags are weatherproof and are ideal for shipping scenarios that may encounter extreme weather. 

They are extremely cost-effective, lightweight, and thin—making them cheap and easy to store and ship. Some poly mailer bags are even reusable! Clearly, poly mailer bags are a great option if you’re looking to ship lightweight products that aren’t fragile at all—for example, things like clothing items are easily packaged within poly mailer bags. 

4. Padded Envelopes

Similar to poly mailer bags, but with a twist, padded envelopes also make a great cheap packaging option. Padded envelopes typically either have plastic or paper on the outside, with padded bubble wrap on the inside to provide an extra layer of protection and insulation. 

This is an ideal packaging option if you have small or thin, yet fragile, products that you’re trying to ship. For example, documents and books can be easily shipped in padded envelopes. Padded envelopes are still budget-friendly, although they are thicker and heavier than poly mailer bags due to the added layers of protection. 

5. Eco-Friendly Recycled Packaging

Many people assume that eco-friendly packaging comes at a premium cost—but that’s not necessarily the case! In fact, there are tons of eco-friendly recycled packaging options out there that won’t cost you an arm and a leg. For example, there are eco-friendly mailer bags that eliminate the need for single-use plastic. There are also corrugated padded envelopes that use recyclable corrugated cardboard for insulation instead of plastic bubble wrap. 

If taking care of the Earth is important to your brand and your customers, then eco-friendly packaging is definitely something that you should check out so that everyone can feel good about the products they’re consuming. 

6. Logo Stickers

We’ve talked about cheap primary packaging ideas, so now it’s time to cover secondary packaging ideas and extras. After all, there’s more to packaging than just the bag, box, or envelope. In fact, if you’re really looking to make an impression on your customers through your packaging, then you cannot forget about the extras. 

One example of a cost-effective extra is a branded logo sticker. Using a logo sticker instead of printing your own custom box can be a clever cost-cutting measure that gives you similar results at a lower cost. Just get your stickers printed, slap them on a box, and you have a cheap solution that still shows off your brand. 

7. Custom Tape

Another cheap and clever way to show off your brand within your packaging design is to use custom tape. Ordering custom tape in bulk is a great way to save some money while still getting a cool product that can help spice up your packaging. 

That being said, you don’t necessarily have to get a custom branded tape to take your packaging to the next level. Instead, you could use colored or patterned tape on the box along with another branded component—like the aforementioned sticker option. 

8. Branded Tissue Paper

Moving onto the inside of the box, using branded tissue paper is a cheap packaging solution that doesn’t just promote your brand—but it also enhances the unboxing experience and helps provide some extra protection for the products inside. Since tissue paper is relatively cheap on its own, paying for branded tissue paper won’t result in a huge price hike—and it’s definitely worth it! 

9. Note Inserts

Finally, the last cheap packaging idea that you should consider is a custom package insert. There are several different directions that you could go here. For example, you could include a simple business card that you printed in bulk. You could also include a custom discount code to entice your customer to come back for another purchase. Finally, you could write a handwritten thank-you note if you’re really looking to go the extra mile and make a positive impression on your customer. 

How To Design Cost-Effective Packaging

Perhaps one of the best ways to design cost-effective packaging is to consult the pros. BoxGenie, for example, has been doing this for almost 50 years! As a family-owned and operated company, they understand the needs and constraints of small businesses who are looking to save money while still giving their customers a positive experience and getting their brand out there. That’s why they are always around to listen to your concerns and offer real solutions to help you achieve the right packaging at the right cost. 

So before you totally give up on the idea of custom packaging due to cost concerns, simply check out BoxGenie’s online design tool to view templates, create custom designs, or get price quotes all in one place! 

Conclusion

As you can see, amazing packaging doesn’t have to be expensive! There are so many ways that you can achieve impressive branded packaging on a budget. This information is essential for small businesses just starting out and trying to get their name out there. For more tips, tricks, and guidance, be sure to reach out to the experts at BoxGenie who can help you design the perfect packaging that fits all of your needs—budgetary and otherwise. 

 

Sources:

What's the cost of more sustainable packaging in 2023?

9 Cheap Packaging Ideas You Should Consider

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