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How Much Does Packaging Cost for a Small Business?

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Packaging cost for a small food business is rarely a single, fixed figure. In food service, it scales directly with output - every box, cup, tray or bag is tied to a sale. Over time, the decisions you make about what materials you use, the volumes you purchase and how reactive you are in your buying habits will have a measurable impact on the cost per unit.

Understanding these variables, and how you can make them work in your favour is crucial for protecting your margins. Here, the food packaging experts at iKrafts analyse what affects packaging costs, and the ways you can work with a packaging supply partner to reduce them.

What actually determines packaging costs?

Overall packaging costs are shaped by several operational factors:

  • The type of packaging materials used, including cardboard, kraft board, recyclable or biodegradable options.
  • The format selected, such as boxes, tubs with lids, sandwich packaging, paper bags, cups or carry trays.
  • The level of protection required, which depends on whether you operate counter service, delivery or a combination of both.
  • The volume purchased and the pricing structure agreed with your supply partner for bulk buying.
  • The commercial impact of unsuitable packaging, where unreliable formats lead to leakage, product damage or lost sales.

For most small businesses operating in the food packaging space, packaging scales quickly. A café serving 300 takeaway meals a day will see material usage add up fast over the course of a month. That is why it pays to measure it properly. Tracking unit costs, waste levels, reorder frequency and delivery spend gives you a clearer picture of where money is going and where adjustments can be made.

On a strategic level, when you start measuring decisions like specification, scale, material usage and supplier terms, you move from reacting to prices to actively managing them.

Eliminate oversized boxes and excess material usage

Overall packaging costs are shaped by several operational factors:

  • The type of packaging materials used, including cardboard, kraft board, recyclable or biodegradable options.
  • The format selected, such as boxes, tubs with lids, sandwich packaging, paper bags, cups or carry trays.
  • The level of protection required, which depends on whether you operate counter service, delivery or a combination of both.
  • The volume purchased and the pricing structure agreed with your supply partner for bulk buying.
  • The commercial impact of unsuitable packaging, where unreliable formats lead to leakage, product damage or lost sales.

For most small businesses operating in the food packaging space, packaging scales quickly. A café serving 300 takeaway meals a day will see material usage add up fast over the course of a month. That is why it pays to measure it properly. Tracking unit costs, waste levels, reorder frequency and delivery spend gives you a clearer picture of where money is going and where adjustments can be made.

On a strategic level, when you start measuring decisions like specification, scale, material usage and supplier terms, you move from reacting to prices to actively managing them.

Material choice

Most established food businesses already have their core packaging materials in place. The real issue is whether those specifications still make sense for how the business operates today.

Corrugated cardboard is often the default for products that need stacking strength or travel through delivery networks. Kraft board can be more than adequate for counter service or lighter items. Recyclable and biodegradable options may already form part of your range, particularly where sustainability expectations are built into your brand or required by site operators.

Where costs tend to creep in is through gradual change. For example, a slightly heavier board gets introduced to solve one issue and then becomes standard. Extra reinforcement is added as a precaution. Over time, the specification drifts away from what is strictly necessary. On the other hand, trimming material too aggressively can lead to crushed corners, leakage or wasted stock.

The most cost-effective packaging material is simply the one that fits the product and the way you handle it. Reviewing board grade, durability and performance against current output levels often reveals opportunities to tighten specification without increasing risk. At iKrafts, our team will be happy to discuss your current packaging, and suggest options that could offer savings and efficiencies for your business. Call us during business hours , or fill in the form and we will get back to you within a day.

Format and sizing

Oversized boxes increase material usage and create unnecessary void space. That void can lead to product movement in transit, increasing the need for additional protective packaging. More board, more void fill and reduced pallet density all influence delivery and shipping costs.

Choosing sturdy containers that match your product dimensions reduces waste and supports more efficient stacking. Tubs with lids that fit snugly, grease-resistant trays designed for hot food and paper bags sized appropriately for meal combinations all contribute to cost-effective packaging.

For businesses operating delivery services, packaging also has to withstand handling during transit. Selecting the right packaging protects both product quality and brand perception. A collapsed box or leaking container creates a cost far beyond the packaging itself.

In practical terms, when your packaging’s format is on point, you're reducing hidden costs: less waste, fewer replacements and more predictable material usage.

Volume, bulk buying and unit pricing

Small businesses often experience higher unit costs simply because they order in smaller quantities. Retail purchasing or frequent small orders typically result in higher per-unit prices and inconsistent availability.

Where demand is stable, bulk purchasing offers a cost-effective method to reduce unit pricing. Even moderate increases in order volume can produce noticeable cost reduction over time. Bulk orders also reduce the reliance on last-minute sourcing.

At iKrafts, we offer our customers access to bulk discounts when they order in volume, and guarantee large volumes of stock held in our UK warehouse space, so you won't find yourself unable to source the same products when you come to reorder. We also offer flexible payment terms to our trade customers , to allow better control of your cashflow.

Balancing sustainability with cost

Sustainability is now a commercial factor, not simply a marketing feature. Consumers increasingly expect recyclable, biodegradable or sustainable packaging, particularly in food service.

However, switching materials should be approached with commercial discipline. Recyclable board, biodegradable containers and other eco-friendly packaging solutions vary in price depending on specification and supply conditions.

For small businesses, sustainable packaging should:

  • Meet functional requirements.
  • Support operational efficiency.
  • Align with brand positioning.
  • Remain proportionate to overall packaging spend.

With the right supplier, sustainability does not have to mean inflated prices. At iKrafts, our eco-friendly packaging range includes recyclable board options, biodegradable containers and compostable formats designed specifically for food service environments. Because these products are available at scale and supported by bulk pricing, businesses can make sustainable choices without sacrificing cost control.

Hidden costs small businesses often overlook

The direct price of packaging is easy to see on an invoice. The knock-on costs are less visible, but they add up just as quickly.

These can include:

  • Product damage during delivery.
  • Emergency reorders at higher prices.
  • Excess storage space taken up by inefficient packaging formats.
  • Customer dissatisfaction linked to poor product protection.
  • Waste disposal costs from unnecessary material usage.

Choosing sturdy, well-suited formats reduces returns, avoids preventable issues and supports a consistent brand image. Over time, that reliability often represents better value than opting for the lowest-priced option on paper.

When you look at packaging in this broader way, the overall cost becomes clearer. The cheapest box is not always the most cost-effective packaging solution once protection, waste and operational efficiency are taken into account.

Making packaging spend work harder for your business

There is no single figure that answers the question of how much packaging costs for a small business. The real answer depends on material choice, format, volume, waste levels and supplier relationships.

For food service operators, packaging should be viewed as a controllable input cost. By:

  • Matching materials to product requirements.
  • Selecting appropriately sized boxes and containers.
  • Ordering in bulk where feasible.
  • Reducing waste and inefficiency.
  • Working with a reliable supplier.

At iKrafts, we supply a wide range of food packaging solutions, including hot food boxes, tubs with lids, sandwich packaging, paper bags, cups and biodegradable options. Our focus is on providing sturdy, recyclable and cost-effective packaging supported by reliable UK service and bulk pricing.

If you are reviewing your packaging spend, speak to our team for practical advice on choosing the right packaging for your scale and operational needs.