increase in packaging costs

11% Packaging cost update from june 1st 2026 – what’s changing and why

We want to be open with you about a change that is affecting packaging costs across the market.

Our supplier has implemented an 11% price increase, and we know any cost movement matters. We do not take this lightly, and we understand the pressure it puts on your business.

This update explains what is driving the increase and what we are doing to support you.

What’s driving the increase

The short answer is that multiple cost pressures have all risen at the same time.

From the supplier data you’ve seen, the key drivers are:

1. Labour costs

• Increases in the National Living Wage

• Higher National Insurance contributions

These directly affect manufacturing and logistics costs.

2. Energy and fuel

• Oil prices are driving up manufacturing and transport

• Diesel prices rose sharply in March and April

• Emergency fuel surcharges are now being applied

Fuel impacts every stage, from production to final delivery

3. Raw materials

• Polymer and plastic inputs are rising rapidly

• Paper and corrugated board costs have increased by over 12% in recent data

• Stretch film raw material costs have surged significantly to over 35%

Packaging is heavily tied to oil-based materials, so when oil rises, packaging follows

4. Global supply chain pressure

• Shipping costs and insurance have increased

• Container turnaround times are slower

• Ongoing disruption is adding delays and cost

Even when markets stabilise, there is a lag before prices come down.

Why prices don’t fall quickly

A fair question we often hear is:

“Why don’t prices drop as soon as oil drops?”

There are a few reasons:

• Materials bought at high prices are still working through the system

• Manufacturers must use existing high-cost stock first

• Supply chains take time to normalise after disruption

• Many contracts update monthly or quarterly, not daily

This means reductions tend to come through more slowly than increases

What this means for you

We recognise that:

• Margins are already tight

• Cost increases are coming from multiple directions

• Predictability is more important than ever

Our aim is not just to pass on costs, but to help you manage them.

What we are doing to support you

We are actively working on several areas to reduce the impact:

1. Packaging optimisation

Many businesses are unknowingly overpaying in areas such as:

• Storage space

• Transport efficiency

• Damage rates

• Handling time

We can review your setup and identify where savings can offset cost increases.

2. Supplier leverage

Our scale gives us:

• Strong relationships with key manufacturers

• Priority access to stock

• Better negotiation position on pricing

We use this to keep increases as controlled as possible.

3. Stock planning and resilience

We are:

• Holding key materials where possible

• Planning ahead for peak periods

• Reducing exposure to short-term market spikes

4. Practical, hands-on support

We can help with:

• Packaging redesign

• Material changes

• Automation opportunities

• Damage reduction

These changes often deliver cost savings beyond the unit price of packaging.

Our commitment

We will always:

• Be transparent about cost changes

• Give as much notice as possible

• Work with you to find solutions, not just pass on increases

If you want to review your packaging costs

If you would like us to:

• Review your current packaging

• Identify savings opportunities

• Sense-check your setup

Please speak to your account manager or contact us directly. Unfortunately we have to implement this price increase from 1st June 2026