Key Considerations for Packaging Changes

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Key Considerations for Packaging Changes

Changing packaging is a complex decision that impacts multiple aspects of a business, from cost and logistics to compliance and marketing.

Before making a switch, it’s essential to evaluate several critical factors to ensure the transition is beneficial. Here’s what to consider:

1. Existing Packaging: Your current packaging is a key influence—why change something that is already working? Stability in supply, known costs, and customer familiarity are significant advantages. If your existing packaging meets all requirements, making a change should be carefully justified.

2. Cost: The overall cost of packaging goes beyond just the piece price. It includes incoming and outbound freight costs, the cost of stock holding, and in some cases, changing packaging requires investments in machine retooling.

3. Compatibility with Existing Machines: Your machinery is tooled for packaging types. Changing packaging may require retooling or investing in new equipment.

4. Usability: Customer experience is crucial. How will end-users perceive the new packaging? If a change makes the product harder to use or less appealing, it could impact sales.

5. Transport Costs

  • Inbound Freight: The cost of bringing in packaging materials varies based on volume and efficiency. For example, empty bottles take up more space compared to compact preforms used in high-volume filling operations.
  • Outbound Freight: The cost of shipping the finished goods – small gains can be achieved through packaging design i.e. square or rectangular packaging can optimise density.
  • Regional Considerations: Transport costs depend on distances, infrastructure, and available transport methods, particularly for export markets.

6. Regulatory: Certain industries require specific packaging standards, such as UN-rated packaging for hazardous chemical products, or aseptic packaging for sterile products. Additionally, government regulations like the EU’s Extended Producer Responsibility (EPR) fees can influence packaging choices.

7. Recyclability

  • Regional Waste Management Infrastructure: Different areas have varying capabilities for recycling. Plastics for example are widely recycled – with some regions and countries focusing on bottle reuse (for example Germany’s Bottle Pfand Scheme) – but most commonly, plastics are ground and repurposed for a new recycled life.
  • Composite Materials: These typically require specialist facilities for separating and processing, as time goes on, such infrastructure will most likely increase.

8. Long-Term Viability of Packaging: Raw material availability plays a key role in the long-term viability of a packaging material. Capacity, market fluctuations, government interventions, and advancements in alternative materials could see shifts in material cost dynamics.

9. Marketing Impact: Packaging is a powerful branding tool. Shape, size, and material influence consumer perception and can impact purchasing decisions. Any change should align with branding strategy and market expectations.

Making the Right Decision

When considering packaging changes, it’s rare to find a solution that meets all criteria perfectly. There will always be trade-offs, and decisions should be based on a balanced evaluation of costs, usability (for the end user), and regulatory compliance.

Disruptors in Packaging Decisions: External interventions for example the EU’s EPR regulations, or market disruptors, can push industries toward certain packaging choices. Whilst localised disruptions may also arise from specific market or consumer trends, or supply chain challenges.

Pilot Testing: No company wants to lose customers due to a packaging change. Running a pilot batch and gathering market feedback before full implementation can help mitigate risks and ensure a smooth transition.

At the end of the day, the decision to change packaging is ultimately a commercial one, weighing multiple factors to achieve the best balance between cost-effectiveness, compliance, and customer expectations.