The hidden cost driver in every case.

For most beverage brands, packaging is the single largest COGS line item after the liquid itself — and for some categories, it exceeds the cost of the liquid entirely. Yet packaging decisions are often made based on aesthetics or convention rather than economics. Understanding packaging costs at a granular level is essential for setting an FOB price that protects your margins.

Packaging as a COGS component

Packaging typically represents 20–30% of total COGS for beverage products, though this range varies significantly by format, volume, and category. For premium spirits in custom glass, packaging can exceed 40% of COGS; for canned seltzer at scale, it may fall below 15%.

The total packaging cost per unit includes several layers that are easy to overlook:

• Primary container — The can, bottle, or carton that holds the liquid.
• Closure — Crown caps, screw caps, corks, pull tabs (often included in can cost).
• Label or decoration — Pressure-sensitive labels, shrink sleeves, direct print, or screen printing.
• Secondary packaging — Carriers, trays, boxes, and case packaging.
• Palletization — Stretch wrap, corner boards, pallet sheets.

When calculating your variable costs, make sure every one of these layers is accounted for. Missing even one component can throw off your per-unit cost by $0.10–$0.50, which compounds across an entire production run.

Format comparison: cans, bottles & cartons

The choice between primary packaging formats is one of the most consequential decisions a beverage brand makes. It affects COGS, shelf presentation, consumer perception, distribution logistics, and sustainability credentials.

Hidden costs by format

The per-unit container cost tells only part of the story. Each format carries hidden costs that affect your total landed cost:

• Cans require end-filling equipment (seaming) or mobile canning services ($0.15–$0.25/can for mobile canning). Shrink-sleeve labels add $0.03–$0.08 per unit.
• Glass bottles have breakage rates of 1–3% during production and transit, plus they weigh 10–15x more than cans, significantly increasing freight costs.
• Custom molds for proprietary bottle shapes cost $15,000–$50,000+ and require 6–12 month lead times. This is an upfront investment that only makes sense at significant volume.

MOQs and scale economics

Minimum order quantities (MOQs) are one of the biggest challenges for early-stage beverage brands. Packaging suppliers set MOQs based on production efficiency — printing plates, die cuts, and production line changeovers have fixed costs that need to be amortized across a sufficient run.

How MOQs affect per-unit cost

Secondary packaging costs

Secondary packaging — the carriers, trays, and cases that hold your individual units — is often overlooked in cost modeling but can add $0.50–$2.00+ per case to your COGS.

Common secondary formats

• Hi-cone rings — The cheapest option ($0.02–$0.04/unit) but increasingly unpopular due to environmental concerns.
• Paperboard carriers — Standard 4-pack and 6-pack carriers cost $0.12–$0.25 each with full-color printing.
• Shrink-wrap trays — Cost-effective for variety packs at $0.08–$0.15 per unit, but limited branding surface.
• Custom boxes — Premium presentation for gift packs or spirits at $0.50–$3.00+ depending on materials and printing.
• Corrugated shippers — The outer case for distribution, typically $0.80–$1.50 per case for standard RSC boxes.

The choice of secondary packaging directly affects your case weight, pallet configuration, and ultimately your landed cost. A heavier or bulkier secondary package means fewer cases per pallet, which increases per-unit freight costs.

Freight and weight implications

Packaging format has a direct and often underestimated impact on freight costs. The weight differential between formats compounds across every case, pallet, and truckload.

This means a full truckload of canned product delivers roughly 57% more cases than the same truck of glass. For brands shipping long distances, the freight savings of cans vs. glass can be $0.50–$1.50 per case — a significant factor in your FOB pricing. For more on freight economics, see our guide to freight and logistics costs.

Reducing packaging costs

There are several proven strategies for reducing packaging spend without compromising brand quality or shelf appeal.

1. Consolidate suppliers

Using a single packaging supplier for cans, labels, and carriers can unlock volume discounts of 5–15% across all components. Many converters offer bundled pricing for brands that commit to annual volume contracts.

2. Standardize formats

Every unique SKU format (different can size, bottle shape, or carrier configuration) adds cost through separate production runs, inventory management, and reduced bargaining power. Standardizing on fewer formats concentrates your volume and drives per-unit costs down.

3. Consider brite stock

Ordering blank (brite) cans with pressure-sensitive labels is significantly cheaper at low volumes than printed cans with custom artwork. The per-unit cost premium of labels vs. print may be $0.03–$0.08, but the MOQ flexibility (you can order labels in quantities of 1,000 vs. 100,000 for printed cans) makes this the right choice for many emerging brands.

4. Optimize for the pallet

Design your case configuration to maximize pallet utilization. A case that wastes 10% of pallet space means 10% more freight cost per unit. Work backwards from standard 40”×48” pallet dimensions when choosing case sizes.