How Can Packaging Influence The Profitability Of A Product?


Contrary to popular belief, the packaging is not just a covering that protects the product from wear and tear. It is the primary focus point where the company interacts with its consumers and also subtly maneuvers them into choosing their product.

Successful implementation of packaging has multiple benefits. Not only does it outshine its competitors on the shelves, but it also works as an indirect sales initiative. Product packaging is also the first touchpoint between the company and its stakeholders, and thus, the offering from the company's end has to be top-notch.

The packaging of the product conveys the notions for which the brand stands for, and thus, it has a psychological impact on the decision-making tendencies of the consumer. A consumer always trusts a brand that agrees with their ideology, and hence the message must be conveyed loud and clear.


Product Packaging and buying decisions

Marketers around the world pay special attention to the study of consumer behavior because it has the tendency to make or break an offering. To get into the minds of the consumer by putting on their shoes is a prerequisite to a successful product.

As briefly mentioned above, a consumer tries to find his ideals in the product they choose. They would always prefer a brand that complements their lifestyle. Therefore the first impression which a brand makes can either win them a customer for life or make them lose a fortune of sales.

Every brand has a minuscule amount of time to make that impression on the consumer because of the competition, which stands tall in the market. If a brand fails to replicate its ideals on the outer covering of the product, the excellence of the product which is inside might go in vain.


Quality and Premium Packaging

The other aspect which drives the consumer to purchase a product is the quality of the packaging. A consumer is almost always willing to pay a few extra cents if the packaging can derive him an additional benefit. For example, People prefer to buy glass containers of coffee rather than pouches because it saves them the trouble of storing it externally.

It was also observed that premium packaging is a major deal-breaker. A premium packaging gives the first-hand impression of a premium product, and that ignites the customer's purchasing power. Premium packaging has also resulted in making customers feel good after their purchase.




Using the right color palette for your product has a direct influence on the consumer's behavioral tendencies. A study from researchers at the University of Twente in the Netherlands had people choose dairy products that had the same nutritional value.

It was observed that the color packaging played a very important role in decision making. Vegan customers preferred green packaging just because green color connotes the same ideals.

Another study published in the frontiers of technology said that kids preferred to buy the snacks which had their favorite cartoon characters printed on the box. The role of aesthetics and preferences hereby proves to be a very important point while brainstorming.


Benefits of Packaging on the product it contains

You have read about how the product packaging acts as a sales agent to drive sales, but it still has some more primary duties to perform.



All kinds of products are manufactured in the market, but all of them have distinct characteristics. Some products are long-lasting and can be preserved, while some of them are perishables that are manufactured with the intention of immediate consumption.

The packaging is designed uniquely for all these products to give them an all weathered safety. The products go through a supply chain where the tenderness in handling is not guaranteed. As a result, the packaging is built in a sturdy fashion to give the perfect offering.



Some of the items have important nutrients and information which the consumer must know. Packaging helps to keep the consumer safe by highlighting all the details. With the products that have very sensitive attributes, multi-layered packaging with filters is used.

The safety which the packaging provides is also used by marketers as the unique selling proposition for the product. For example, Tropicana's six-layer tetra pack packaging and Cheetos' zip lock packaging.



Another important aspect that increases the profitability of a particular product is the versatility of its packaging. Some products are bought solely because of the innovativeness in their packaging design.

Reusable and Recyclable packaging options have attained the limelight lately. They show the company's responsibility towards society and pass on a good message, which upgrades the goodwill.


Packaging for Experience

There is a very famous quote by Kevin Johnson (CEO, Starbucks), "We do not sell coffee, we sell an experience." Looking at the dominating market share of Starbucks, it becomes very apparent that the experience of the customer becomes very crucial to a brand's profitability.

The journey which the customer endures is a multi-step process and thus should be taken into consideration before launching the product. The sleek packaging of an iPhone magnifies the satisfaction level of the customer, so much so that it has become a constituent of the product itself. Therefore, it is very important to build an overall experience that should start from the very first touchpoint.


Final words

All the points that are mentioned above are evidence enough to believe that the way a product is packaged is as important as the product itself. The quest to stand out amongst the hundreds of competitors is based majorly on attractive packaging.

There are millions of examples when companies have made more profits just by changing their packaging. They understood that demographic and cultural analysis is important to thrive in certain areas, and to incorporate those changes is the only way forward.

To control the customer's psychological preferences is not entirely possible, but if a long-lasting impact can be created with the product's packaging, it must be done.

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