The Cost Of Packaging And Marketing Materials
he excitement after receiving and unboxing a parcel is the real deal. As you open the parcel, you see layers of packaging as a protective film between the products. You ignore (as we all do) and discard them in the trash can.
But did you know that the piled-up packaging in the trash can come at a cost, both financially and environmentally? Financially, as per research by Ohio State University, the average package costs $1 for every $11 disbursed. If you buy a product for $121, the average packaging cost will be $11.
Purpose and Types of Packaging
Functional Needs
- Packaging keeps the product safe from extreme climatic conditions like heavy rain or direct sunlight. It prevents the accumulation of dirt or stains on the product surface. It also ensures negligible damages in transportation, regardless of its speed and efficiency. Packaging fulfills the basic requirement of a customer, i.e., safe shipment.
Product Labelling
- Packaging conveys relevant information about the product to the customer. The product labelling on packaging features details like wash instructions, certificates, material type, and product origin. It also shows the product price and any warnings. Besides branding and promotion, product labelling helps a customer differentiate one brand from another.
Sales and Marketing Needs
- Packaging increases brand sales by offering a unique unboxing experience. It encourages customers to join online communities and review the products. The unique presentation attracts customers and may include a return label, providing convenience and attention to customer needs.
Cost of Packaging and Marketing Materials
Many of us often overlook the fact that packaging does not come free, especially fancy options. While some materials act as a protective cover, others are used for branding. Estimating the environmental cost of excessive packaging requires scientific approaches, but calculating the financial cost is straightforward. Typical costs for common packaging materials are:
Printed wash label (colour vs. black & white): Tags with symbols that denote ideal washing, drying, and ironing. Average Cost: $0.05–0.20 (for both)
Carbon box in original colour: Thick, pale brown boxes used to protect goods. Cost: $1–$2 for small boxes (10x8x4 inches)
Carbon box with print: Standard boxes custom-designed with prints like a brand logo. Cost: $2–$3 for small boxes.
Sydney paper: Thin, lightweight wrapping sheets for presentation. Cost: 40 sheets for $16.99
Bubble wrap: Plastic wrapping sheet with bubbles to protect fragile items. Cost: 2-pack rolls for $13.97
Printed card: Cards with information, images, or text about the brand. Cost: $4–5 on average
Customised envelope: Thin, flat, sealable flap for mail or cards. Cost: $0.16–0.74 each
Ribbon: Fabric strips for decorating packaging. Cost: 4 rolls (100 yards) ~$8.95
Tote bag: Large cloth bag with handles. Cost: starting from ~$3.95
PVC bag: Durable, flexible plastic bags. Cost: $0.08–0.8 per piece
Drawstring bag: Bags secured with a drawstring, often made from leftover fabrics. Cost: $10.69 for a set of 2
Tag: Labels with details like name, price, barcode, etc. Cost: $11.99 for 1000 pcs
Poly-mailer: Thin, light, durable plastic mailing bag. Cost: $0.49
Note: Costs are rough estimates and may vary based on size, quantity, and quality.
Environmental Cost of Excessive Packaging
Excessive packaging harms the environment by generating waste, using resources, and emitting pollutants. Eco-friendly packaging can help by:
- Decreasing carbon footprint
- Providing more space
- Keeping packaging free from toxins and allergens
- Limiting solid waste, electricity, and water usage
- Making disposal easier
- Supporting positive branding
Conclusion
Over-packaging increases costs for consumers and creates unnecessary waste and pollution. Many packaging and marketing materials have little reuse or recycling value and are discarded immediately.
To minimize the downsides, we recommend using materials that can be reused or recycled, like drawstring bags and tote bags, which can later serve as shopping or storage bags.
