Keeping on top of paper packaging prices is no easy feat. Prices can easily be influenced by many factors, from the supply and demand trends to the cost of producing your product.
To simplify, the cost to produce paper packaging can generally be separated into three broad categories:
- The cost of the paperboard used as the base material for the paper packaging
- The conversion process of making the paperboard into paper packaging
- Overheads, profits and other costs not included in the above
Fastmarkets’ price and cost indexing tool, index builder, can show you how your packaging price should have evolved in relation to the changes in the market price of the paper/board material using our price data (the price index), as well as the cost to produce the paperboard material based on information from our cost benchmarking tool (the cost index).
The model allows you to create custom indices for your specific packaging types in different regions, accounts for different proportions in costs and looks deeper into the different components that contribute to packaging price. The main cost drivers considered by the model include fiber, energy, labor, chemicals and others.
The examples below look at:
- Cartonboard: Tuck and tongue carton
- Liquid packaging board: Gable top carton
- Paper bag: Unbleached large carrier bag with handles
You can also find our detailed European containerboard example here.
Example 1: Cartonboard – tuck and tongue carton
In our cartonboard example, we will take a look at the cost evolution of a tuck and tongue carton in North America that uses coated recycled folding boxboard as its base material and a starting point of USD100 per 1000 pieces from 2020 to 2024.
Scroll to read the four-page data story below.
Example 2: Liquid packaging board – gable top carton
In our liquid packaging board example, we will take a look at the cost evolution of a gable top carton in Asia that uses coated ivory board as its base material and a starting point of RMB100 per 1000 pieces from 2020 to 2024.
Scroll to read the four-page data story below.
Example 3: Paper bag – unbleached large carrier bag with handles
In our paper bag example, we will take a look at the cost evolution of an unbleached large carrier bag with handles in Europe that uses unbleached sack kraft as its base material and a starting point of EUR100 per 1000 pieces from 2020 to 2024.
Scroll to read the four-page data story below.
Index your packaging prices and costs and make informed decisions
The index builder tool is linked to our asset database, which provides insight into mill operations, cost, profitability and competitive standing for 4,500+ assets across the globe. This enables you to drill down to the mill and machine level to explore the cost drivers for your products.
Take a deeper dive into index builder and see how it can bring more transparency to your supplier/buyer relationship and help you justify prices at the negotiating table.
Get in touch with our team or sign up for a demo today to learn more.
