How to Reduce Packaging Material Costs: Practical Strategies for Bakeries
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Joe Sizeland
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For industrial and wholesale bakeries supplying contract clients, packaging costs scale directly with output. Even marginal increases in corrugated cardboard, boards or transit packaging can materially affect profit margins. Small inefficiencies in material usage, structural fit or stock holding compound across tens of thousands of units.
You can reduce packaging material cost by engineering efficiency into your packaging design, refining your packing process and aligning with a packaging supplier who understands the realities of large-scale bakery production. Below, we outline practical strategies that deliver measurable packaging cost reductions without affecting presentation, compliance or client confidence.
One of the most overlooked packaging cost reduction ideas is format rationalisation. As bakeries expand product ranges, packaging formats often multiply. Slight variations in cake diameter, height or finish can result in multiple box dimensions, separate inserts and duplicated secondary packaging.
Each additional SKU reduces order volume per format, pushing up unit costs. It also increases warehouse space requirements and stock holding complexity. When stock levels are spread thinly across numerous box sizes, reordering runs the risk of becoming reactive rather than strategic.
Reducing packaging costs at scale often begins with standardising dimensions across product lines where feasible. Aligning cake boards , corrugated cake boxes and outer cartons to shared footprints improves pallet efficiency and increases order volumes per SKU. When you have a trade relationship with your supplier, larger runs will secure stronger pricing and reduce overall packaging costs.
Oversized boxes are a common driver of avoidable packaging expenses. Excess internal space leads to increased material usage, additional void fill and reduced pallet density. The result is higher shipping costs and unnecessary corrugated cardboard consumption.
If your current packaging includes oversized boxes, excess bubble wrap or high volumes of void fill, the cost of your packaging is likely higher than necessary. Lightweight packaging that matches product dimensions more precisely reduces both material weight and transport inefficiency.
Right-sizing is one of the most direct ways to reduce packaging material cost. By limiting excess board, eliminating void fill and improving pallet configuration, bakeries can achieve significant savings without impacting product safety.
Transit damage inflates overall packaging costs far beyond the price of corrugated board. Damaged cakes, collapsed boxes or crushed edges lead to product loss, rework, replacement shipments and dissatisfied customers. In high-volume contract supply, these hidden costs erode profit margins quickly.
Protective packaging needs to suit product weight, moisture content and stacking requirements. Transit packaging should maintain rigidity without excessive board grade. Significant savings don't have to come from cutting material quality - rather, they are the result of refining fit and structural integrity.
At iKrafts, we created custom-designed boxes for La Crème Patisserie , built around the exact measurements of their products. This led to reduced loss in transit, and lower overall costs for a business that shipped pallet loads of bakery items to over 20 venues every day.
A frequent source of unnecessary costs is over-specification. Selecting heavier corrugated cardboard than required, or using premium finishes where structural strength is sufficient, increases packaging spend without operational benefit.
The most cost-effective packaging material is the one that meets product protection requirements without exceeding them. Matching board grade to product weight and stacking load is critical. In many cases, kraft board is structurally adequate.
Sustainable packaging materials must also be assessed pragmatically. Biodegradable or recyclable options can reduce plastic waste and environmental impact, but they should still align with packaging needs and cost-effective delivery requirements.
Material usage is only one part of packaging cost reduction. Labour costs tied to the packing process also affect overall costs.
Complex secondary packaging, excessive taping or inefficient sealing methods increase packing times. Where volume justifies it, automated packaging solutions or sealing machines can significantly reduce labour input per unit, which can quickly lead to savings.
Even without automation, reviewing packing materials and workflow can deliver improvements. Simplifying box construction, reducing unnecessary secondary packaging and aligning packaging design with operational efficiency shortens packing times and reduces manual handling.
Labour efficiency is often overlooked when evaluating ways to reduce packaging. In industrial bakeries, incremental improvements in packing process design can significantly reduce operational cost over time.
Reactive purchasing increases packaging expenses. Emergency restocks often come at higher unit costs and create supply chain vulnerability during peak periods such as Christmas or the wedding season.
Reducing packaging costs requires forward planning. Forecasting demand based on production cycles and securing bulk pricing in advance protects against material cost spikes. A stable packaging supplier with strong stock holding capacity reduces risk and supports consistent production schedules.
Red Rose Bakery benefited from iKrafts’ UK warehouse stock buffering during periods of raw material volatility. By securing supply and stabilising pricing, the bakery avoided reactive buying and maintained a competitive advantage in its contract markets. Take a look at the case study where we detail how we were able to protect this B2B bakery's margins with predictable pricing.
To identify ways to reduce material costs, bakeries should conduct periodic reviews of packaging spend. This should include:
Analysing these metrics can reveal hidden costs and opportunities for material efficiency. Even small adjustments in material usage, stacking configuration or specification have the potential to make a significant difference at scale.
If you are reviewing how to reduce packaging material cost within your operation, contact our team for a free packaging MOT (material optimisation test) . We will discuss your current packaging, and identify areas where you could reduce costs and improve product safety in transit.
At iKrafts, we supply packaging for industrial and wholesale bakeries . Our approach is to focus on material efficiency, structural integrity and supply continuity.
We work with clients to:
Our same day dispatch for orders received before 1pm, UK warehouse stock and 30-day trade terms support bakeries operating at scale. To benefit, sign up for a trade account at iKrafts today.
