Carton Curious #2

Welcome to Carton Curious, our Newsletter in which we take a deep dive into the packaging market.

In this month's issue, we will examine unit prices, warehousing, and other factors worth considering when planning your 2025 stock. We hope this information will help you save money and manage your packaging more effectively.

When it comes to packaging, pricing isn’t a one-size-fits-all concept. The cost of creating a product’s packaging is influenced by a variety of factors that come together to form the unit price — the cost per individual packaging piece.

The factors influencing pricing include both internal and external elements, ranging from materials to logistics. In this newsletter, we’ll dive deeper into the composition of Packhelp's pricing structure. By understanding what goes into the price of your packaging, you’ll gain better insight into how to plan your orders efficiently and achieve the best value for your brand.

Basic packaging price components

1. 60% - the cost of the raw material set up based on the EUWID index (more on the topic in the video or previous issue of Carton Curious Newsletter)
2. 40% - all other costs like the energy to produce the packaging, operation costs, salaries, certificates etc.

Detailed packaging price components

Material

The cost can be significantly influenced by the type of material selected, its weight (grammage), market availability, and certifications like FSC, which typically come with additional expenses.

Design

The die-cut template should be optimised to fit as many units as possible on a single sheet, therefore reducing the glue points and other production steps and costs, and ensuring easy assembly for the end customer.

We identify opportunities to optimise your packaging design to reduce production, transportation, and storage costs. For our client Tropicfeel, we recommended switching from double-fluted to single-fluted packaging, as their products are primarily lightweight. Additionally, we advised limiting printing to the exterior of the boxes. These adjustments not only minimised resource usage but also achieved a 20% reduction in total production costs.

Printing

Another element is the printing technique. Factors like the print surface, the number of printed sides (single-sided or double-sided), and enhancements such as varnish, hot stamping, or embossing all play a role in determining the price. To help minimise costs, our team may recommend adjusting or limiting the printing surface while still ensuring your packaging looks professional and aligns with your brand vision, exactly as we did for Tropicfeel.

Order Size

A key to optimising order costs is leveraging economies of scale and determining the ideal order cycle for your business. Wondering how? Check out the next chapter of this newsletter,?“How to Take Advantage of Economies of Scale in 2025?”, where we delve into this topic in detail.

Logistics

Flat-packable designs are far more efficient for palletisation during transport compared to rigid boxes, which must be delivered pre-assembled. At Packhelp, we look for ways to optimise the logistics and shipping for our clients. For Biotika, we strategically arranged packaging into four distinct types, which enabled the brand to reduce the Biotika shipping and fixed packaging costs by 12%.

External Factors

The cost can be also influenced by external factors such as energy costs or economic changes.

Additional Requirements

Depending on the client’s needs, elements such as adding ribbons, creating a custom dieline design, addressing specific requests, or ensuring the packaging is suitable for direct food contact can also impact the final costs.

Post-Production Considerations

There are also post-production considerations to address, such as co-packing or warehousing.

In the packaging world, everything operates in cycles. For most of our customers, the average order cycle spans a few months. However, some clients prefer to order only once a year, storing their packaging in our warehouses until needed.

So, what’s the sweet spot in between?

Finding the right balance for your business depends on factors like product demand, storage space, and cash flow management. Let’s dive into what makes the most sense for your specific needs.

We will carry out an analysis on the Eco Mailer Box F56 - one of the most popular products in our shop. It is a standard mailer box that can be personalised in various ways, making it a versatile and practical choice. Let's assume that an average company needs a delivery of 20,000 boxes in a year - how to plan the packaging shopping?

See the two scenarios below.

Scenario 1 - Yearly - Predictability and preparedness

If you are buying the whole supply of boxes in a year, the cost of one box is just 0.31€, which adds up to 6200€. But the price is not all.

What are the other advantages of buying in bulk except the economies of scale?

Advantages

• Buying on yearly basic you can benefit more from seasonal promotions like Black Friday
• With your entire packaging supply in stock, you can avoid delays in production or shipping caused by waiting for new packaging to be produced.
• Having packaging ready ensures you’re prepared for sudden surges in demand, like during holidays or peak sales periods, without scrambling for supplies.
• Knowing your total packaging requirements allows you to plan storage in advance, avoiding multiple deliveries and potential inventory headaches.

Disadvantages

• A yearly purchase means higher upfront costs, which can strain cash flow, especially for smaller businesses. However, Packhelp works with partners like Tinta to enable customer’s cashflow.
• Predicting exact packaging needs for an entire year can be challenging, especially for businesses with fluctuating demand or new product launches.
• If regulations or customer preferences shift (e.g., a move toward more eco-friendly materials), you may need to scrap or modify your existing packaging.
• If your storage facilities are limited, you may need to rent additional warehouse space, which increases costs. However, with a certain critical mass it may still be more profitable option.

Scenario 2 - Quarterly - Increased flexibility

In case you buy your boxes 4 times a year the cost of box rises to 0.47€, which results in 9400€ of total costs. It’s 3200€ difference, which could be spent on optimising your warehousing space or other much needed things. What are the advantages and disadvantages?

Advantages

• Quarterly orders allow you to adjust designs, branding, or packaging specifications more frequently.
• We admit, more frequent orders are very useful for seasonal promotions, limited-edition products, or updating branding elements in response to trends or feedback.
• Shorter ordering cycles let new businesses test new packaging concepts and gather customer feedback before committing to larger quantities.
• Splitting orders across the year is also more convenient for smaller businesses with limited cash flow.
• Quarterly orders reduce the need for significant storage space.

Disadvantages

• Smaller order volumes often result in higher unit costs because you lose out on economies of scale.
• Frequent ordering requires more time and effort from your team to manage logistics, approvals, and supplier coordination.
• With quarterly orders, you’re more dependent on shorter lead times. Any disruptions in the supply chain could leave you without packaging at a critical time.
• With quarterly orders, you're more exposed to market changes like rising raw material or energy costs. Prices may increase throughout the year, affecting your margins.
• Material shortages or increased demand in your industry could make it harder to secure your preferred packaging on short notice.
• Relying on smaller quarterly orders can disrupt inventory management, requiring constant monitoring and adjustments to warehouse operations. Running out of packaging between orders becomes a higher risk if demand increases unexpectedly.

Price Analysis

We love transparency, that is why on every product page you can compare the unit price cost depending on the total order numbers.

Warehousing

With Packhelp you do not need to have additional storage space as we can take care of it for you. This service is additionally paid, however, for a certain amount of packaging it may be profitable for your business. The cost depends on 3 factors :

1. Number of pallets being stored in the warehouse and time.
2. The frequency of sending the packaging to the client
3. Shipment form - the price depends on whether you choose to ship your products on pallets or if you need them repacked into smaller packages

On top of that, we guarantee that your packaging will be sent to you in 48 hours.

While the 2024 high season is now behind us, it's worth taking a moment to reflect on the key trends we observed.

From shifts in consumer behaviour to changes in our top sellers, the high season never ceases to surprise. This year, October took the crown as our busiest month, edging out November. It’s a sign that customers are starting their holiday prep even earlier to stay ahead of the game.

• Seasonal favourites: Our?Mailer Boxes?stole the spotlight again! Their flexibility and custom options were a hit with both new and returning customers. On top of that, our?labels?category saw a massive +50% growth compared to last year—showing that more and more brands are opting for quick, impactful branding solutions.
• Why October??October gives businesses a head start on getting their packaging ready for Black Week campaigns. It’s the perfect buffer to ensure everything is good to go when the peak shopping rush hits, helping brands avoid last-minute stress.
• Time matters: Our design templates were a lifesaver for many this season. These tools made it super easy for customers to whip up festive packaging without needing a graphic designer. When deadlines are tight, having quick and reliable solutions like this makes a difference.
• Hot trends: Interior printing in mailer boxes (+30%) was a big hit this year. It’s an awesome way for brands to add that extra touch to their unboxing experience. Whether it’s a fun message, cool branding, or even artwork inside the box, it’s those little surprises that make customers smile and keep brands memorable.

In the previous issue of our newsletter, we mentioned that the heightened demand during the holiday season could affect the price of raw materials. But did that actually happen?

Let’s take a closer look at the EUWID index, which tracks how the prices of these materials fluctuate over time.

European Packaging Market Overview

• Corrugated prices across Europe fell significantly in Q4 2024 due to weak demand, oversupply, and seasonal slowdowns, with recycled grades like unlined and coated boards particularly affected. Cartonboard prices for virgin fiber (GC) remained stable, while pigment-coated recycled boards (GD/GT) faced resistance to price increases.
• In Q1 2025, corrugated markets are likely to remain under pressure, while cartonboard producers cautiously aim for price hikes, though weak demand and competition may limit their success.

Country Deep Dives

?????Germany

• Recycled corrugated prices fell in Q4 2024 due to low demand and excess supply, leading producers to reduce production during the holidays.
• In early 2025, cartonboard prices may vary, as some producers target increases for pigment-coated recycled (GD) boards amid weak demand.

?????France

• Prices for recycled corrugated grades, including unlined and coated boards, dropped in Q4 2024 due to fewer orders and pre-holiday inventory cuts.
• Producers plan to increase prices for pigment-coated recycled (GD) boards in Q1 2025, but oversupply and lower recovered paper costs could make this difficult.

?????United Kingdom

• Recycled corrugated prices fell in Q4 2024, pressured by high imports and stock levels, with only a slight improvement from Christmas demand.
• In early 2025, virgin fiber (GC) cartonboard may see selective price increases, while pigment-coated recycled (GD) boards remain under pressure from imports.

?????Italy

• Prices for recycled corrugated grades fell in Q4 2024 because of oversupply and competition from imports, prompting producers to reduce output during the holidays.
• Cartonboard producers are unlikely to achieve planned price increases for pigment-coated recycled (GD/GT) boards in early 2025 due to low demand and cheaper imports.

?????Poland

• In Q4 2024 corrugated prices for recycled grades reversed the earlier gains, due to oversupply and minimal seasonal demand.
• In Q1 2025, virgin fiber cartonboard (GC) prices are likely to stabilize, while recycled pigment-coated (GD) boards will face ongoing pressure from weak demand and imports.

If you have any packaging-related topic that is unclear to you, let us know and we'll cover it in the next issue of Carton Curious. Share your feedback in this short survey! https://forms.gle/SeinfiTJRsiyhjj68