The Role and Importance of Custom Packaging for Businesses

By
Nick Mirev
Table of Contents
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    Virtually every product we buy comes in packaging. Furthermore, during transportation, products are protected by secondary and tertiary packaging solutions. That’s why the packaging industry is among the biggest ones worldwide. The importance of custom packaging has grown significantly in markets with large competition. Brands are looking for packaging solutions that can put them a step ahead of competitors. Furthermore, sustainable packaging is also an important trend that is here to stay. Businesses in the food and beverage industry invest in eco-friendly packaging as it is one of the main polluters worldwide. 

    What Is Custom Packaging

    Custom packaging is an alternative to traditional packaging. Its goal is not only to protect products but also to create an exceptional first impression and increase brand awareness and loyalty. Through custom packaging, clients have an improved unpackaging experience that increases the chance of buying from the same brand in the future.

    Custom packaging can also be recyclable or biodegradable. An increased percentage of consumers take the environmental footprint of products into consideration before buying. That’s why, even though biodegradable or recyclable packaging can sometimes come at higher prices, it can increase sales and lead to higher profits.

    Custom packaging often reflects a brand’s values. For example, brands in the tech niche might rely on packaging that is modern while brands that sell organic products might opt for natural packaging materials like wood and bioplastics.

    Manufacturers of custom packaging solutions also incorporate designs that make them functional. Here are some examples of functional packaging:

    1. Fresh salad packaged in a container that can be used as a lunchbox;
    2. Stackable takeout containers for easy transportation;
    3. NFC tags that offer enhanced consumer engagement;
    4. Compostable single-use coffee cups that are plantable.
    Key takeaway: Custom packaging is a way for businesses to stand out from the crowd. Most companies that rely on custom packaging also combine it with smart, active, and functional packaging.
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    The Role of Custom Packaging Design

    Design of custom packaging is done by manufacturers or designers who specialize in this field. Here are some of the important things to know about custom packaging design.

    • Packaging design should follow the trends in the field. For example, one of the popular design trends in recent years is minimalism. It’s especially common for sustainable eCommerce packaging.
    • Experimentation and innovation should be encouraged. When it comes to packaging, businesses often test different designs and experiment. For example, they might introduce a product in different packages in order to evaluate which one is optimal.
    • Packaging design should be tailored to the targeted audience. Although following packaging trends is important, the design should be done with the customer in mind.
    • Eye-catching packaging is not always optimal. Manufacturers of food and beverages often rely on eye-catching custom packaging with bright colors like red. However, that’s not the optimal approach for all industries. For example, some products might sell better if they’re packaged in transparent packaging. That showcases their qualities such as freshness.
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    Custom Packaging Size

    Businesses that benefit from the advantages of custom packaging often combine the design with functionalities. The goal usually is to make the packaging more user-friendly. Sometimes it can also help boost the value of the product by increasing its shelf life.

    Packaging size plays a big role in the switch to sustainable solutions. Products need to be packaged optimally in order to minimize the risk of damage during transportation. Furthermore, if the packaging is too big, a lot of filling material needs to be used. This leads to additional costs that should be avoided. Improper packaging size also means spending more than necessary. That’s why businesses should purchase various sizes of packaging to properly fit their needs.

    The Unboxing Experience

    It’s no surprise that you can find thousands of unboxing videos on YouTube. The unboxing experience has become a key marketing component. The satisfaction of unboxing beautiful packaging can be a reason for customers to become brand evangelists. That’s why packaging designers always take into consideration the unboxing process. It’s crucial for goods such as technology and apparel. Generally speaking, customers expect products of higher value to offer a satisfying unboxing experience.

    Opening the packaging of food and beverages is also important. That’s why manufacturers in these industries have introduced various functionalities that we use every day such as screw caps or zip locks to reseal a package. These simple additions increase the value of the product as they keep its freshness and taste, and can increase its shelf life.

    Contract Packaging for Custom Solutions

    Businesses that can’t afford to invest a lot in in-house warehouse packaging might partner with co-packing companies. They handle the packaging process and can offer extensive know-how in the field. An additional benefit of working with contract packaging companies is that they usually offer additional services as well. Thus, small businesses might prefer to reduce their profit margin but to outsource packaging, shipping, and handling to a co-packing partner who offers 3PL services.

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    Frequently Asked Questions about Custom Packaging

    Customization is undoubtedly one of the trends in the packaging sector that is here to stay. If you want to know more about the industry, make sure to check the answers to some popular questions regarding custom packaging.

    Can You Design Custom Packaging on Your Own?

    Yes. It’s possible to design packaging on your own. In fact, business owners of small eCommerce websites often do the design on their own with the help of online tools such as Canva or AI-powered solutions. However, hiring a professional packaging designer can be better in the long run. These experts know the latest trends in packaging design. Furthermore, they can consult you on various active packaging options. That’s especially important for sales, especially in oversaturated markets with a lot of competitors.

    What Are the Benefits of Custom Packaging?

    The main goal of packaging is to protect the product inside. However, there are multiple benefits to custom packaging besides product protection. Here are some of them.

    1. Better sales. Packaging plays an important role in the decision-making process of which product to buy. That’s why eye-catching and colorful packaging is so common in grocery stores. When it comes to eCommerce packaging, custom design can lead to better customer retention.
    2. Improved brand awareness. The packaging is a great place to showcase your brand. That’s especially true with smart custom packaging solutions that are interesting and improve the user experience. 
    3. Additional product protection. Innovations in the packaging industry have led to the development of custom packaging options that can offer additional protection for products. For example, they can increase shelf life or reduce transportation damage to a minimum. 

    How Much Does Custom Packaging Cost?

    One of the disadvantages of custom packaging is that it often comes at a higher price compared to generic types of packaging. That’s why some businesses that aim to reduce the cost of goods sold can purchase cheaper wholesale packaging. Some custom packaging varieties can increase the overall price of the product by only a couple of cents. However, the price of some smart packaging solutions can be as high as $10. The factors that play a role in packaging costs are size, materials, and ink coverage. Smart features on the packaging can also increase its price significantly. If businesses order packaging in large quantities, they can benefit from significant discounts.

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