How Tariffs Will Impact Packaging Cost in 2025
As tariffs take effect in 2025 to promote domestic sourcing, the packaging industry in the United States is set to experience notable cost changes. While the intent is to strengthen domestic production, these tariffs will impact the cost of materials, manufacturing, and logistics for packaging buyers. This blog explores how tariffs could influence packaging costs and offers neutral, practical insights for buyers to prepare.
The Connection Between Tariffs and Packaging Costs
Tariffs on imported goods are designed to encourage businesses to source materials and products domestically. While this shift can support U.S.-based manufacturing, it also leads to increased costs for certain types of packaging.
Key Cost Drivers:
- Tariff-Driven Material Costs: Materials like corrugated fiberboard, plastics, and metals often rely on global supply chains. With added tariffs, the cost of importing these materials increases significantly.
- Labor and Production Costs: Domestic manufacturing typically involves higher labor and operational costs compared to international suppliers, contributing to overall price hikes.
- Supply Chain Adjustments: Transitioning from international to domestic sources may create temporary inefficiencies as suppliers and manufacturers adjust to new demand patterns.
Impacts on Packaging Buyers
Increased Procurement Costs
Buyers will see higher costs for imported packaging materials and products. These increased expenses could stretch budgets, particularly for industries with high packaging needs, such as e-commerce, food and beverage, and retail.
Examples of Affected Packaging:
- Corrugated boxes made from imported linerboard or medium.
- Flexible plastic packaging reliant on imported polymers.
- Aluminum packaging for food and beverage containers.
Budget Reallocations
Higher packaging costs may force buyers to reconsider how they allocate their budgets. For some, this could mean reducing spending in other areas, while others may need to evaluate their product pricing to offset rising expenses.
Complex Pricing Dynamics
Suppliers may pass the increased costs of tariffs onto buyers, creating ripple effects across the supply chain. Buyers should be prepared to navigate fluctuating prices and plan for potential cost variability.
Opportunities for Cost Management
Though tariffs pose challenges, packaging buyers can adopt strategies to minimize their impact:
Collaborate with Domestic Suppliers
Establishing strong relationships with U.S.-based manufacturers can help mitigate tariff-related costs. Domestic suppliers may offer competitive pricing and eliminate the need for international shipping and customs fees.
Explore Alternative Materials
Buyers can investigate cost-effective material options, such as:
- Recycled Content: Utilizing recycled kraft paper or corrugated material.
- Mono-Material Solutions: Simplifying material types in packaging to reduce complexity and cost.
Optimize Packaging Design
Design changes can reduce material usage and lower costs. For example:
- Lightweighting to use less material without compromising functionality.
- Streamlining packaging dimensions to minimize waste and transportation expenses.
Leverage Technology and Data
Investing in tools for demand forecasting and inventory management can help buyers optimize purchasing decisions, avoiding overstock or emergency orders that may carry premium costs.
Consider Volume Discounts
For companies with high packaging needs, negotiating bulk purchase agreements can help offset higher per-unit costs.
Long-Term Outlook on Packaging Costs
While tariffs may initially drive up packaging costs, they also encourage domestic manufacturing and innovation. Over time, this could stabilize supply chains and foster advancements in cost-efficient packaging solutions.
Potential Positive Outcomes:
- Strengthened Domestic Infrastructure: Investment in U.S.-based production facilities may reduce reliance on international suppliers, leading to more stable pricing over the long term.
- Focus on Sustainable Practices: Domestic manufacturers often emphasize sustainability, potentially aligning with buyers’ eco-friendly goals.
How Packaging Buyers Can Prepare
Packaging buyers can take several steps to adapt to cost changes driven by tariffs:
- Conduct thorough cost analyses to understand the impact on your operations.
- Diversify your supplier base to include both domestic and international options.
- Plan procurement schedules strategically to avoid delays or additional costs.
By staying informed and proactive, buyers can navigate the evolving market while minimizing disruptions.
In Summary
Tariffs in 2025 are set to influence packaging costs through increased material expenses, labor costs, and supply chain adjustments. While these changes present challenges, buyers can manage the impact by adopting strategic sourcing practices, optimizing packaging designs, and collaborating with domestic suppliers. By preparing for these shifts, businesses can remain competitive in a dynamic market.
If you are interested in controlling your packaging cost or making proper preparations to your packaging for tariffs in 2025, then partner with Brown Packaging today for assistance.
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Packaging is a critical component of our daily lives, serving a dual purpose of protecting products and conveying vital information to consumers. In the wake of growing environmental concerns, the selection of packaging materials has become a focal point. In this blog, we will delve into the intricate interplay between price, sustainability, and quality in packaging. Price Price typically takes center stage for businesses when they contemplate packaging materials. It wields a direct impact on the financial bottom line and is a key determinant of profitability. Let’s dissect the pricing considerations for various packaging materials: Flexible Plastic: Flexible plastic packaging is often the most economical choice. Its production cost is low, and its lightweight nature reduces transportation expenses. It is important to recognize that generic non-flexible plastic packaging can be more expensive depending on the application. Bulk purchasing of flexible plastic packaging materials is budget-friendly. Nevertheless, a holistic cost analysis should factor in long-term expenses, including disposal and potential harm to a brand’s reputation due to environmental concerns. Corrugated: Corrugated packaging materials are generally cost-effective but may sometimes surpass flexible plastic packaging in terms of pricing. Customization or printing on corrugated packaging can incrementally raise costs. Opting for recycled corrugated materials not only contributes to cost efficiency but also promotes sustainability. Chipboard and Paperboard: Chipboard and paperboard packaging materials tend to offer an economical solution. Their competitive pricing, coupled with their adaptability and versatility, make them suitable for a wide spectrum of products. Utilizing recycled chipboard and paperboard further enhances their cost-effectiveness and sustainability. Flexible Plastic Corrugated Chipboard/Paperboard Sustainability As global environmental consciousness continues to rise, sustainability has emerged as a pivotal factor in packaging decisions. Sustainable packaging aims to minimize its ecological impact across its entire lifecycle. Here’s how different materials stack up in terms of sustainability: Plastic: Traditional plastic packaging is often criticized for being non-biodegradable and for exacerbating plastic pollution. However, innovations such as biodegradable plastics and recycled PET offer more sustainable alternatives. Corrugated: Corrugated packaging is generally regarded as a more sustainable option, especially when sourced from responsibly managed forests or containing recycled content. Its biodegradability and ease of recycling bolster its eco-friendly credentials. Chipboard and Paperboard: Chipboard and paperboard packaging materials inherently possess sustainability attributes, often originating from renewable sources like wood pulp. Their recyclability and biodegradability make them environmentally responsible choices. Quality Packaging quality plays a pivotal role in safeguarding products, preserving their integrity, and enhancing the overall customer experience. Here’s how different materials perform concerning quality: Plastic: Plastic packaging excels in protecting products from moisture and is highly resistant to breakage. However, it may not be suitable for products requiring breathability or specific temperature conditions. Corrugated: Corrugated packaging offers versatility and can be tailored to accommodate various product types. It is particularly well-suited for dry goods and provides robust protection when designed effectively. Chipboard and Paperboard: Chipboard and paperboard packaging are renowned for their adaptability and quality, making them suitable for a diverse range of products. They excel in maintaining product integrity and are an excellent choice for items sensitive to light or air. If you are looking for custom packaging solutions tailored to your needs, then partner with Brown Packaging today to get started. (714)300-0650 request@brownpackaging.com Most Recent Posts: Categories: Corrugated Ecommerce ESD Design Display Flexible Packaging Foam Folding Carton Packaging Plastic Packaging Pouch Printing Protection Retail Rigid Box Thermoform Sustainability Subscribe To Our Newsletter By submitting your information, you agree to our terms and conditions and privacy policy. Custom Packaging Facebook Twitter LinkedIn Pinterest Relevant Posts
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Not all packaging suppliers provide the same packaging products, as there are a large variety of packaging supplies in the market. Some suppliers focus on stock or standard products, others do custom packaging and some do both. Not every packaging supplier will sell the same product. For example, some packaging companies focus on POP displays, some will supply foam, others focus on corrugated or chipboard boxes. You will find that some packaging companies may only offer one product and specialize in that product, while others can offer you a wide selection of stock and custom packaging. Ultimately, depending on what packaging company you choose to question, their answer should vary from one another. It is important to keep in mind that you are looking for a packaging partner that can help you and fulfill your packaging needs. Do You Offer Any Services? Like products, services and capabilities of the packaging supplier can vary from one another. Services can be delivery, product and material sampling/testing, consulting, structural design, graphic design, fulfillment, and more. Some of these services can be offered in-house by the packaging supplier or it may be outsourced. Services are usually most required when you are purchasing a custom packaging product. Stock products generally do not require services as often. Delivery services are usually universally provided by packaging suppliers. Pick a packaging service provider that works best for you. If your supplier does not offer your desired services, then this may require you to involve another party or to find a supplier that does everything for you under them. Are You A Manufacturer or Distributor? Buying from a manufacturer versus a distributor can be completely different. Manufacturers tend to only provide only one or few products and services, while a distributor can provide you a wide variety of products and services. Purchasing from a manufacturer is best when you are buying in bulk and are only seeking one item. It is important to mention that some manufacturers only work distributors and may not supply products to you. Distributors are ideal when you are unsure about what packaging product you will need, as they can supply and recommend a variety of packaging products. If you need multiple packaging products, for example, packaging tape, boxes, edge protectors, stretch film and labels, then a distributor can help you get all that in one place. In addition, they work with a variety of manufacturers and vendors to help provide you a wide range of outsource services that you may need. Hybrid suppliers can provide some of these services in-house in addition to what a distributor can provide. What Is Your Expected Lead Time? It is important for you to meet your project deadlines, prevent shortages, and missed opportunities due to poor lead times. By asking your supplier when they expect your packaging order to be complete, should be a main focus on whether you choose that supplier. Lead times can tell you a lot about your packaging supplier such as their purchasing power in the market, relationship with other suppliers, and how attentive they are to your order. This does not mean you should create unrealistic deadlines, as packaging can be complex and take time to create, however you should see if it’s comparable to other vendors you are trying to get a quote from. In general, stock packaging products have a much lower lead time, while custom packaging products have a much longer lead time. Is There An Order Minimum? Manufacturers and distributors typically require order minimums when placing an order. This is because in order to remain profitable, competitive, and in business, they have to cover all costs of creating or supplying your packaging, while including a markup. Order minimums are subjective to suppliers, some are more efficient than others in small quantities, while others are better in medium or large quantities. This is based on machinery and company capabilities, networking (for distributors). In addition, order minimums will vary based on what materials you order. Depending on how much packaging product you will need will help influence which packaging provider will work best for you. Can You Supply Me With Samples, If Needed? Product and material sampling is key to a successful packaging transaction. Before placing such a large investment, it is recommended you sample your product
When NOCCO needed a high-end packaging solution for their influencer and investor campaign, they faced a major challenge—tight deadlines, no initial design, and the need to eliminate foam while still protecting their product. Brown Packaging stepped in, designing and delivering a custom premium rigid box with a sleek finish, innovative structural design, and secure product placement—all within just three weeks. Here’s how we made it happen. The Challenge/Problem NOCCO needed a premium packaging solution for a marketing campaign targeting social media influencers, investors, and high-value clients. However, several challenges had to be addressed: Tight Lead Time – The packaging had to be designed, tested, and produced within just three weeks. Redesign Request – The client previously had these boxes made in Europe but now needed a modified version that could hold 6 cans instead of 2—without the original basketball-themed design. Foam-Free Protection – The previous packaging relied on foam to secure the cans, but the client wanted a design that eliminated foam while still preventing damage. Impact on Their Operations Without an elevated packaging solution, the client risked missing a valuable marketing opportunity. Their standard packaging lacked the sophistication needed for this campaign, and achieving a high-end look within a short timeline was a challenge. *Images above show our clients original packaging from Europe with the foam* Solution: Brown Packaging’s Approach To meet NOCCO’s needs, Brown Packaging developed a premium custom box that improved presentation and product protection while eliminating foam inserts. The solution included:✅ Custom Structural Design – Created a two-layer shelf system that secured the cans in place while providing a tiered display.✅ Foam-Free Protection – Engineered an insert that held the cans securely, preventing movement and damage without using foam.✅ 3D Renderings & Prototypes – Provided visual concepts, plain structural samples for testing, and preliminary printed samples for approval.✅ Premium Materials & Finishes – Designed a high-end soft-touch box with Spot UV on a premium material beyond standard corrugated.✅ Custom Printed Inserts – Developed a printed insert card to enhance branding and the unboxing experience. Collaborative Process The customer sent reference samples and requested a design that held 6 cans instead of 2. Brown Packaging designed a first concept with 3D renderings, which the client approved. A structural prototype was produced and refined to eliminate foam while ensuring product protection. Artwork die lines were provided, and the client applied their graphics. Printed samples were created to verify accuracy before final production. All approvals were secured, and the final production run was completed within the three-week deadline. *Images above show a physical sample of NOCCO’s premium rigid box with a hinge and inserts* *Images above show a digital sample of NOCCO’s premium rigid box with a hinge and inserts* *Image above show NOCCO’s sent out card, which is attached to the top of the box* Implementation: Timeline & Execution Step 1: Backward planning ensured artwork deadlines aligned with production. Step 2: The Brown Packaging design team worked quickly to finalize the structure and provide die lines. Step 3: The client was highly responsive in providing artwork and approving designs, keeping the project on schedule. Challenges & Adjustments 🚧 Foam-Free Protection – The initial prototype allowed too much movement, so an additional shelf was incorporated to stabilize the cans.🚧 Box Closure Issues – Adjustments were made to ensure a clean and secure closure.🚧 Tight Timeline – Rapid approvals were required to meet the three-week deadline, but collaboration between Brown Packaging and NOCCO ensured success. Outcome: Results Premium Branding: A sleek, high-end design that enhanced NOCCO’s marketing campaign. Eliminated Foam: A sustainable and efficient structural solution without compromising product protection. On-Time Delivery: The custom packaging was designed, tested, and produced within the tight deadline. *Images above show a physical sample with print of NOCCO’s premium rigid box with a hinge and inserts* Sales Representative Contact Information Alex Vom SteegAccount Manager📧 Email: alex@brownpackaging.com📞 Phone: (714) 300-0650 Case Studies: Content Categories: Corrugated Ecommerce ESD Design Display Flexible Packaging Foam Folding Carton Packaging Plastic Packaging Pouch Printing Protection Retail Rigid Box Thermoform Sustainability Subscribe To Our Newsletter By submitting your information, you agree to our terms and conditions and privacy policy. Custom Packaging Facebook Twitter LinkedIn Pinterest Other Case Studies