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5 Ways To Reduce Consumer Packaged Goods Prices

By: Dan Coconate


Back side of form fill and seal machine for packaging products at package exhibition, trade show. Manufacturing, industry and automated technology equipment concept

Inflationary times have pounded small consumer packaged goods (CPG) companies and consumers alike. Prices for raw materials and transportation have forced producers to raise prices. The result can be price-sensitive consumers shifting to cheap alternatives provided by competitors. Learn ways to cut costs and reduce consumer packaged goods prices to stay competitive, even during inflationary times.

Impact of Price Increases on Consumers

During periods of high inflation, consumers become increasingly price-sensitive. They carefully scrutinize the cost of products and are more likely to choose inexpensive alternatives. They might even stop buying some products altogether if they think prices are unreasonably high. As a small CPG manufacturer, you should stay ahead of the game and implement cost-cutting measures to keep your prices competitive while maintaining product quality.

Ways Manufacturers Can Reduce Packaged Goods Prices

While it can be painful, cost cutting can also introduce innovations to your business processes that offer long term benefits.

More Efficient Packaging and In-House HFFS Machines

Revamping your packaging to use fewer materials can result in significant cost savings. Additionally, investing in an HFFS (horizontal form fill and seal) machine for in-house packaging can pay dividends in the long run. The cost savings associated with HFFS machines can be significant. They give you the flexibility to adapt to market trends and implement changes effectively.


Cross-docking occurs when products are unloaded directly from the supplier’s vehicle and loaded onto the outbound vehicle. This eliminates the need for warehousing and results in substantial savings in storage and labor costs. Implementing cross-docking in your supply chain can improve efficiency and reduce storage costs.

Consolidate Freight

By consolidating multiple shipments into a single transport vehicle, you can save a lot in freight costs. Collaborating with fellow small CPG companies or partnering with a third-party logistics provider can help you take advantage of volume discounts for transportation services.

Reduce Waste

Cutting down on material and product waste can result in great cost savings. Implementing lean manufacturing principles like continuous improvement, waste reduction, and just-in-time production can reduce your packaged goods prices in the end.

Sell Sustainability

Sustainable practices are cost-effective and appeal to environmentally conscious consumers. By using eco-friendly materials, reducing packaging materials, and sourcing raw materials from sustainable suppliers, you’re demonstrating your commitment to protecting the environment.

Passing Savings to Consumers

It’s essential to strike the right balance when passing cost savings on to your customers. Reducing prices too much can dilute your brand and damage your reputation for quality. The key is finding the sweet spot – offering competitive pricing without sacrificing your product’s perceived value or your profits.

Small CPG manufacturers must evolve to stay competitive during inflationary times. Implementing ways to cut costs to lower consumer prices can help you appeal to cost-conscious consumers while maintaining an edge over your competitors.

Published: October 4, 2023

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