Total Cost of Ownership: How Smarter Packaging Choices Cut Costs and Support Sustainability Goals
When it comes to packaging, the materials you choose can do a lot more than just protect your products. The right material, used the right way, helps reduce your environmental impact and your operating costs. This post is part of our Total Cost of Ownership (TCO) series, where we look beyond the price tag to uncover the true costs and opportunities tied to packaging. Here we explore how smarter material decisions can lower expenses, reduce waste, and help your business meet its sustainability goals.
Smart Packaging Starts with the Right Fit
Packaging isn’t just one-size-fits-all. It’s about what fits your application, performance needs, and environmental goals. An example of this: Choosing between poly-based materials and fiber-based packaging materials is about much more than price or preference.
- Poly packaging (lightweight and protective): Poly film structures are lightweight, highly durable and moisture resistant. These attributes offer varying degrees of protection. When strategically selected, they can reduce waste, such as food spoilage and damage by protecting critical surfaces and avoiding the cost of rework resulting in a lower overall TCO. Plus, these materials often cost less per use when compared to alternatives.
- Paper packaging (renewable and curbside-recyclable): Fiber-based packaging materials continue to gain adoption thanks to its renewability and curbside recyclability—both appealing to consumers. Paper options have come a long way, with coatings now available for moisture and heat sealing, which enhances performance properties typically not associated with paper. While paper can cost more up front, it often aligns better with sustainability goals, growing legislation, and consumer demand—all key drivers for many businesses.
Recycled Materials Pays Off for the Planet and Your Business
Sustainable doesn’t have to mean more expensive. Thanks to improvements in recycling technology, there are now plenty of cost-effective options that strengthen customer perception.
- Lower costs: As recycling technology has advanced, there is a growing range of good, better and best solutions for your needs and budget. Ask your packaging partner about options with post-consumer or post-industrial recycled content. Reducing reliance on virgin materials can be cost-neutral depending on the application.
- Brand Boost: Utilizing recycled materials strengthens brand perception and builds trust. Not only that, consumers are willing to pay for products packaged sustainably. A recent study found packaging made with 60%+ recycled content is considered especially meaningful amongst consumers.
Less Can Be More: Downgauging and Rightsizing
Reducing the amount of material used can be just as powerful as picking the right type.
- Thinner, smarter materials: Downgauging means using less material while maintaining performance. Higher durability formulations of polyethylene packaging can often create the opportunity to use thinner inflatable air pillows, temporary protective films or poly mailers in product applications that are less susceptible to damage. Prime candidates for this are parcel shipments that are typically smaller, lighter, more durable items, or soft goods. As a result, companies can lower material expenses and reduce the weight of shipments to ultimately lower freight costs.
- Avoid over or under-packing: Overpacking wastes material, impacts freight cost, and may lead to a negative customer experience. Under-use can result in product damage, redundant costs and a negative impact on customer lifetime value. Optimizing your packaging, utilizing approaches such as rightsizing, keeps your cost position in check without sacrificing performance. It ensures you avoid product damage caused by shipping/transit, spoilage and manufacturing, and is the most responsible choice you can make–for the environment and your bottom line.
- Less material, less waste: Simplifying packaging through less material per pack or switching to alternative structures reduces both financial and environmental waste. For example, choosing temporary protective films to protect a surface can minimize the amount of protective materials, prevent damage and minimize landfill waste from rework and replacement.
The Bottom Line
Choosing the right packaging material—and using the right amount—can drive measurable value across your business. It’s not just about cost per unit; it’s about how your choices impact the full journey of a package, from shipping and labor to sustainability and customer satisfaction.
When approached strategically, material optimization lowers your total cost of ownership while supporting a healthier planet and a stronger brand.
Want to see how Pregis can help you optimize your packaging strategy? Let’s talk.