News - January 2018

Corrugated Box Price Increases 2018

by Admin

Corrugated Box Price Increases 2018 

What’s it all about, why are my corrugated packaging costs increasing and what will happen during 2018? 

After a challenging 18 months, which has seen the price of paper rise at an unprecedented rate, we had hoped by now that the market would see some price stability. However, the corrugated industry, is still struggling with the supply of all containerboards. 

What’s causing this? 

The UK corrugated market has seen unparalleled growth during 2017, from the uncertainty over post Brexit supply combined with the 15% fall in sterling since Brexit. This has prompted UK manufacturing, which is currently booming, to reassess their supply chain and buy more packaging from within the UK.  This upsurge in demand has impacted on the cost of the raw materials for the entire corrugated box making industry. 

Because there is currently no planned investment for new Kraft paper mills, the demand is outstripping the supply of raw materials, meaning that box making factories are being let down on material delivery and are having to pay increased prices for the paper that they can source.  Furthermore, orders are being cut short with only a percentage of requirements being fulfilled without prior notice. 

The huge growth in demand for corrugated boxes added to the peak Christmas period means that lead times are extended as you can only produce a certain amount from a machine on a daily basis. Running machines at high speeds for lengthy periods of time means they become more prone to problems and breakdowns despite a programme of planned maintenance throughout the year. 

What’s the solution?

Initially many customers looked to move to recycled papers such as TL2, but this increase in demand has also restricted the supply of such papers and has consequently led to an increase in price for these papers too.  Ultimately those seeking to buy the raw materials for the manufacture of corrugated boxes are almost powerless to negotiate on price, if they want to continue to get supply. 

Stocks of pulp and paper are very low. The usual q1 slump is not expected so we do not see any improvement in supply or pricing on the horizon.  

What changes will we see in 2018? 

There are several new recycled paper mills across Europe being commissioned during 2018 but this will only affect supply in the medium to long term. There is currently no planned growth in the production of Kraft papers anywhere. 

Consequently, we are heading for some quite substantial increases in price for corrugated boxes in early 2018. 

Whilst Packaging Supplies have made every effort to mitigate, absorb and delay this latest increase and fully appreciate the impact on your business, we must however be able to operate a sustainable business whilst maintaining security of supply. Every factory large or small has been affected by these shortages in material supply and will have no option but to review their pricing. 

We remain committed to helping our customers deliver cost take out, through product re-engineering and smart use of raw materials and are available to explore these options with you.  

Product Packaging Trends 2018

by Admin

As we know, packaging design is evolving, particularly within the retail and e-commerce sectors.  In store your product needs to stand out. It should reflect your brand personality and what better way to do this than through the product packaging.  Online retailers also now recognise the importance of good packaging design and are striving to create a striking first and a positive lasting impression with the unboxing experience.  The result in both cases is an enhanced shopping experience for the consumer, which in turn drives product sales upwards. 

With so many ways to print your product packaging, combined with a myriad of different substrates to choose from, we have delved into our archives and scoured the web for images of inspiring packaging designs that we think will be on trend for 2018

Retro Packaging 

Driven through nostalgia, old fashioned and retro packaging connects to the shopper seeking the individuality that existed in times of less competition as opposed to the mass-produced market. A product that is hand crafted becomes more authentic and hence more exclusive.  Well thought out product packaging like the below allows the shopper a refreshing feeling of integrity with their buying choices.   

Textured Packaging 

Product packaging made with textured materials will instantly add a touch of quality to the product.  Heavier materials and textured finishes increase perceived quality, even before contact is made with the packaging contents.  The sense of touch engages shoppers into a deeper connection with the product. 

Simplistic Packaging 

With so many choices to make, packaging which gives the consumer a clear and succinct message, will get the attention of shoppers looking to make quick decisions.  With less noise and excessive information on the box, buying choices are made easier and the consumer knows exactly what they are purchasing.   

Established brands that have already identified themselves within a culture and many have embraced the minimalistic look.  These brands combine a logo with an elegant classy packaging design, which is simply enough to grab the required attention.   

Eco-Friendly Packaging 

We have never lived in a more environmentally conscious time.  Eco-friendly packaging made from sustainable and recycled sources are at the forefront of everyone’s minds, and this will only increase in importance throughout 2018. 

Product packaging that depicts an environmentally friendly company will appeal to consumers. It provokes the feel-good factor and allows them to play a part in looking after our planet by purchasing from likeminded environmentally conscious sources. 

Furthermore, product packaging that doubles up to provide the consumer an additional function, like this quirky pizza box we found online, is a clever way of making the packaging work harder and leave a longer lasting impression.  

Bold & Colourful 

In stark contrast to a lot of the packaging trends above, big bold and colourful packaging is making a come-back.  This style of packaging design screams fun, individuality, creativeness and deliciousness. When a brand is prepared to shout loud and proud, this tells the customer that they are confident in their product.  Clever use of colours throughout the packaging design, particularly in the food sector, can give a sense of the food inside and in turn increase the appetite appeal to the consumer. 

Products are now judged by their packaging and the packaging design you decide upon will have an impact upon the end consumer.   

Whatever packaging design you go for, it’s all about putting your individuality and personality onto the package to make sure you stand out from the crowd.  The packaging of an online retailer must now reflect the consumer expectations of the same brand when bought in-store. 

Whichever marketing strategy you decide to go with, get in touch for advice on the best packaging materials and styles to suit and enhance your chosen image.  Packaging Supplies can produce product packaging in the form of printed sleeves, display boxes and retail ready packaging.  With extensive printing methods to suit your print design and your budget. 

Contract Packing & Custom Packaging – All in One place

by Admin

Contract Packing & Custom Packaging – All in One place 

Looking to reduce operational costs and free up valuable time and work space? 

If so, outsourcing to a contract packer or fulfilment house, could be the right decision for your business. 

Packaging is no longer seen as just having a perfunctory role. It has been recognised as being far more important and a significant component of any marketing strategy.  This has made contract packing increase in popularity, especially among small to mediums sized businesses.  Analysts at Technavio have predicted that by the year 2020 the global contract packaging market will record a CAGR close to 11%. 

The Benefits 

By outsourcing part or all your packaging processes, you can decrease your overall operational costs.  Not only will this be evident in staff wages, but other associated costs will also minimize. This includes those connected with storage and office space.  By outsourcing to a contract packer, staff facilities, equipment and materials will all be supplied.  This makes short term, seasonal packaging jobs ideally suited to contract packaging. 

Using a contract packing service, such as Packaging Supplies Ltd, will free up your valuable time and energy, enabling you to concentrate on the more core areas of your business.   

Value Added Services 

Unlike other contract packers, we are not limited to contract packaging services alone, as experts in producing custom packaging, retail packaging and shipping boxes, we are able to offer extensive advice and competitive pricing for the packaging itself. 

Having a dedicated building for contract packing and fulfilment, allows us to focus on each one of our clients' as individuals.  We aim to cultivate a relationship that enables you to use Packaging Supplies as an extension of your business. 

Being certified by BRC Global Standards for the storage and distribution of food & non-food grade packaging, means we can safely handle and store stationery items destined for restaurant groups and are certified for contract packing of food sachets into retail/wholesale packs. 

Our contract packing and fulfilment operation cover all aspects of pick, pack and despatch.  Our Co-packers are equipped to deal with large or small packaging projects and offer many supplementary services such as Collating & Mailing, Gluing & Labelling, Hand Finishing, Assembly, Shrink Wrapping, Stock Management & Storage, as well as onward delivery. 

Get in touch for a quotation on your contract packing and fulfilment requirements. 

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We are certified by BRC Global Standards for the storage of food & non-food grade packaging; the storage of stationery items destined for restaurant groups and the contract packing of singular factored ambient-stable food sachets into retail/wholesaler packs.

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