Starting investments for the organization of the production of blister and hard plastic packaging will amount to about 200 thousand dollars. The payback period is from two to four years.
The production of plastic packaging is considered the most promising direction - it occupies more than a third of the market, only slightly giving way to packaging from paper and cardboard. In plastic packaging, goods are better protected from damage and damage, and they look more elegant, respectively, they are easier to sell.
Hard plastic packaging is mainly bought by enterprises producing food and beverages, pharmaceuticals, hygiene products, and household chemicals. The scope of another type of packaging - blister packs - is even wider: you can pack almost anything from it, from toothbrushes and toys to automotive parts.
The profitability of the packaging business
The profitability of the packaging business rests on three pillars - this is the circulation of the ordered packaging, the cost of the mold for the blister and raw materials.
Much also depends on the efficiency of the equipment and the organization of work. Some metropolitan companies reduce production costs by placing workshops in the suburbs, where renting production facilities is 15-20% cheaper.
The only article that is difficult to save on is salary. There are few toolmakers who make molds and adjusters of molding equipment in the labor market, and to attract and retain such personnel is only possible in the only way - a good salary.
Experts believe that optimizing all costs can double production profitability - from standard 20% to 40%.
Problems of the raw material base for the packaging business
Plastic packaging is made of polystyrene, polyethylene, polypropylene, polyvinyl chloride and some other polymeric materials - thermoplastics. The basis for their production is oil, the prices of which are constantly growing, which affects the increase in the cost of polymer raw materials (granules).
Another problem is the lack of quality supplies.
For the production of blister packaging for consumer goods, this does not matter much, and so far customers are satisfied with the quality of the products, provided that the cost of our packaging does not exceed 8% of the cost of the goods that are packed in it. But packaging for medical devices requires very high quality, it requires high-quality and expensive raw materials.
Due to the poor quality of raw materials, up to 5% of the final product usually goes into marriage. Fortunately, defective products, as well as production waste, can be reused.
Packaging business: How to attract customers
Speed is one of the main factors contributing to attracting and retaining customers.
Mold making is the most difficult stage of production. It involves designers, toolmakers, who are gradually developing a new packaging model and coordinate it with the customer. For companies that produce plastic containers, bottles and jars, it usually takes 3-5 months, and such work costs $ 6000-8000. In blister production, in this regard, it is easier: here the molds are prepared on average in two months, and this costs much cheaper - in the range of $ 300-2000.
Each self-respecting "packaging" company has in reserve a set of its own solutions that can be offered to potential customers. It’s unprofitable, but it’s definitely worth doing, experts say. You need to constantly enter the market with new ready-made offers.
If a packaging company works with customers from the same industry, for example, pharmaceutical or cosmetic, it needs to have at least 15 ready-to-release options for various packaging, updating and supplementing its lineup annually. If an enterprise serves several industries at once, then in this case the assortment line of ready-made offers should be much wider.
Serious packaging companies are closely monitoring the latest packaging trends, constantly working to improve packaging quality. In addition, such progressive companies are constantly offering manufacturers of goods their new ideas and developments that can significantly improve the appearance of the product, and hence its sale.
To attract customers, packaging manufacturers are also developing all kinds of packages from additional services and bonuses - putting a logo on the packaging, labeling, etc.
Investment in the packaging business
To organize a workshop for the production of hard plastic packaging, a room with an area of at least 300 square meters is required. meters, for the production of blister packaging - at least 100 square meters. m. Packaging production is considered harmful, so it should be located away from residential areas and equipped with good exhaust ventilation.
The minimum set of equipment includes an injection molding machine, a compressor and an industrial refrigerator for water. This set costs at least $ 100 thousand. The payback period depends on the type of product - whether it will be jars of two rubles for dietary supplements or complex confectionery packaging of 10 rubles each. On average, production pays off in two to four years.
On the market today there is a wide selection of equipment of domestic, West European, South Korean or Chinese production. The most expensive is European equipment, but at the same time it is the highest quality and most reliable.
Domestic equipment is still losing to foreign cars in terms of reliability and product quality, but has its advantages. For example, new Russian-made heating and cooling systems allow more time to operate machines continuously, without stopping for technological breaks.
Profitability of a business can be significantly increased if, in addition to molding equipment, a few more auxiliary machines are purchased. It is much more advisable to invest at least $ 200 thousand in production at the initial stage and equip a normal workshop with a warehouse with a total area of 500-600 sq. M. m. to get a big return.
Revenues of the packaging business
Dollars, cf. per month
Interest, cf. per month
Gross revenue per month
- for rental premises (700 sq. Meters)
- for the purchase of raw materials (13 tons)
- for staff salaries (40 people)
- for utility bills
- for the manufacture of molds
- for advertising and marketing
- other expenses
Profit (excluding taxes)
A small enterprise that produces about one million units of hard plastic packaging per month can count on such a result. The calculation is based on surveys of entrepreneurs.
Based on materials from the magazine My Business
* The article is more than 8 years old. May contain outdated data