Packaging for Food: Standards, Sustainability, and Cost Management

Packaging costs $0.50 per unit for basic containers, $2-$5 for branded/sustainable options. Cheap packaging damages product quality and brand perception. This guide teaches you to choose packaging that protects profit while building brand.

Packaging Cost Tiers

Basic/Bulk: Generic jars, plain boxes: $0.25-$0.75/unit. No branding.

Standard Branded: Custom labels, simple graphics: $0.75-$1.50/unit

Premium/Sustainable: Glass jars, biodegradable materials, multi-color printing: $1.50-$5/unit

Luxury: Custom boxes, interior padding, branded tissue: $3-$10+/unit

Strategy: Match packaging to product positioning. Premium product deserves premium packaging. Budget item can use basic packaging.

Pricing for Packaging

Jam Pricing Example

Basic packaging: Material ($0.75) + Labor ($1.50) + Basic packaging ($0.50) = $2.75 cost → $3.85 retail

Premium packaging: Material ($0.75) + Labor ($1.50) + Premium packaging ($2.00) = $4.25 cost → $5.95 retail

Difference: +$1.50 packaging cost, but retail commands +$2.10 premium. Packaging pays for itself + profit

Insight: Customers pay 30-50% premiums for better packaging. It's worth investing.

Key Takeaways

✓ Packaging costs: $0.25-$5/unit depending on tier

✓ Match packaging to product positioning (basic/premium/luxury)

✓ Include full packaging cost in pricing formula

✓ Customers pay 30-50% premium for better packaging

✓ Branded/sustainable packaging builds brand value exceeding cost

Package Smart. Build Brand. Protect Margins.

TrueCraft tracks packaging costs and brand presentation.

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