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CHOOSE FOLDING CARTONS<br />
CARTON &<br />
BOARD MAKING<br />
IS PACKAGING EXPENSIVE?<br />
The cost of packaging is only a small proportion of the price of a packed product. The golden rule is: <strong>Packaging</strong> should<br />
always save more than it costs.<br />
PACKAGING<br />
AND SOCIETY<br />
<strong>Carton</strong>s, in particular, contribute a very small percentage of the price paid by the consumer at the point of purchase -<br />
2-4% for most products <strong>and</strong> for some products, such as medicines, less than 0.1%.<br />
Depending on the value of the packed product, the costs of packaging adds typically a low single digit percentage to the<br />
cost of goods sold. The value of protecting the product <strong>and</strong> prolonging shelf life of the product exceeds the costs<br />
of packaging.<br />
The social costs of packaging also include the environmental impact of the packaging. <strong>Carton</strong>board is produced from<br />
renewable resources <strong>and</strong> is fully recyclable <strong>and</strong> biodegradable. Fibres can be recycled more than 25 times <strong>and</strong> will create<br />
the base for new packaging that is derived from recovered material.<br />
DOES PACKAGING ADD TO CURRENT INFLATION?<br />
<strong>Pro</strong>duction of packaging material requires raw materials which are traded at fully transparent market prices. <strong>Carton</strong>board<br />
producers source the raw material from sustainably managed local forests with short transportation distances for<br />
raw materials.<br />
Without the benefits of modern packaging, supermarkets could not h<strong>and</strong>le, store <strong>and</strong> display the range of products they<br />
now offer. Without packaging, the cost of transportation, storage <strong>and</strong> h<strong>and</strong>ling at the point of sale would inevitably rise.<br />
Without protection from packaging the amount of product waste may rise <strong>and</strong> this would result in higher prices.<br />
So packaging helps to mitigate the impact of inflation.<br />
WHAT ARE THE COSTS OF PACKAGING?<br />
The principle for specifying packaging today is that it should be the minimal amount commensurate with providing<br />
adequate protection for the product <strong>and</strong> also for the materials used to be fully recyclable.<br />
The total packaging costs are much more than the cost of the primary pack h<strong>and</strong>led by the consumer. In addition to the<br />
cost of the primary pack, the total packaging cost must also include the secondary <strong>and</strong> tertiary packaging, the storage <strong>and</strong><br />
transportation costs <strong>and</strong> the production cost of the packaging operation. The way in which these different components<br />
interact determines the overall cost of packaging.<br />
THE CARTON PACKAGING FACT FILE<br />
All contents copyright © BPIF 2017.