How Much Does Eco-Friendly Packaging Cost for Small Businesses?
Posted:
By:
Joe Sizeland
Posted:
If you run a takeaway, café, bakery or food-to-go brand, you’ve probably put a lot of thought into what type of packaging you can use, and whether you can switch to more sustainable options and still protect your margins.
In this guide, we’ll break down what influences packaging costs, how eco-friendly packaging compares to plastic packaging and other traditional counterparts, and where sustainable packaging can add value for small businesses without pushing costs out of control.
A few years ago, sustainable packaging could feel like a premium upgrade - expensive, inconsistent and limited in choice. That’s changed. Sustainable packaging is now widely available across the formats that most food businesses rely on every day, from bags and chip cones to plates and trays .
When small businesses switch to sustainable packaging solutions, the spend typically covers:
For many food businesses, sustainable packaging isn’t purchased to “tick a box”. It’s purchased because it improves consistency, supports brand image and helps control packaging waste that builds up quickly during busy periods.
Eco-friendly packaging costs vary because they are influenced by what you pay and what you get back in return:
Unit costs are typically lower when businesses order in consistent quantities. Small businesses that buy packaging reactively tend to pay higher costs, because they place smaller orders more frequently and often buy from multiple suppliers.
A packaging partner that supplies the same core packaging materials consistently makes it easier to plan stock, avoid emergency orders and manage packaging costs month to month.
Sustainable packaging materials rely on different raw materials compared with plastic packaging. Depending on the format, recycled materials and recyclable materials can reduce reliance on natural resources and virgin materials, but supply chain availability affects pricing.
When pricing changes in the wider market, suppliers like iKrats, with stable stock holding and predictable sourcing, work to reduce the impact of price instability on small businesses.
See our case study on how we protected an industrial bakery's margins by using our manufacturing relationships to keep material prices steady.
Better protection often means slightly higher initial costs, but it can reduce cost implications elsewhere. Packaging that holds shape, stacks properly and survives delivery reduces the chance of damaged food products, wasted packaging and customer complaints.
Packaging that comes flat packed or stacks efficiently can save space, which matters in prep areas where space is limited storage. Packaging design affects transport costs too, because bulky packaging takes up more space in deliveries, even when the unit price looks competitive.
Small businesses often increase packaging costs without meaning to do so. The causes are usually operational rather than strategic.
Common examples include:
When packaging is managed like any other operational input, it becomes easier to reduce waste, cut reordering and keep packaging costs under control without compromising on performance.
At iKrafts, we supply eco-friendly packaging and sustainable packaging materials designed for real food service environments such as bakeries and festival catering . Our customers include independent cafés, street food vendors, volume bakeries and growing food businesses that need consistent packaging that perform reliably day after day.
Join our trade hub and get access to exclusive benefits, including:
To review your current packaging setup, tighten cost control, or switch to eco-friendly options that suit your menu, speak to the iKrafts team. Call us on 0161 341 0737 or email sales@ikrafts.co.uk to apply for the iKrafts Trade Hub and discuss your packaging requirements.
