In 2025, FMCG procurement teams face unprecedented pressure. Packaging accounts for 10 - 40% of the product selling price, while raw material, energy and labor costs continue to rise. With the PPWR coming into force in August 2026, additional compliance and documentation costs are inevitable. For companies managing 1,000+ packaging SKUs, strategic cost optimisation is no longer optional, it's essential for long-term competitiveness.
The impact is clear: if packaging represents 15% of a product’s selling price and costs increase by 20%, the margin drops by three percentage points, often the line between profit and loss.
The Five Hidden Cost Drivers in FMCG Packaging
- Setup and changeover costs: Machine downtime, waste and minimum order quantities significantly inflate unit costs.
- Volatile material and compliance costs: Price fluctuations for paper, plastics and aluminium, plus future recyclate and recyclability obligations.
- Supplier inefficiencies: Excel-based communication leads to delays, errors and high administrative overhead.
- Incomplete specifications: Outdated data and missing certificates cause rework, claims and production stoppages.
- Fragmented portfolios: Too many formats dilute volume leverage and drive up inventory costs.
Strategic Levers for Procurement Managers
- Spend aggregation: Consolidate similar packaging types to strengthen negotiation power and unlock scale effects.
- Supplier evaluation via TCO: Go beyond unit price, include quality, setup costs, logistics and PPWR-readiness.
- Improve demand forecasting: Reduce rush orders, excess stock and avoidable costs.
- Digitalise packaging data: A central, clean data foundation for specifications, certificates and pricing eliminates errors and creates transparency.
Your 2026 Roadmap
- Create a baseline: Map all packaging items, costs, suppliers and compliance status.
- Prioritise high-impact categories: Focus on large-volume, high-cost packaging first.
- Run TCO-based sourcing: Use data-driven tenders instead of unit-price-only negotiations.
- Integrate PPWR early: Secure recyclate targets, conformity documents and digital labelling requirements in all briefs and contracts.
- Monitor KPIs: Cost per unit, supplier performance, setup cost reduction and forecast accuracy.
Companies that invest in digital data, clear KPIs and strategic supplier partnerships in 2025 won’t just reduce costs, they’ll build PPWR readiness as a competitive edge.
Discover how Packa reduces costs and automates PPWR compliance
Packa gives you full visibility into packaging costs, optimisation potential and compliance risks: data-driven, scalable and in real time.
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