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Packaging price movements and market trends are changing how Fast-Moving Consumer Goods (FMCG) procurement teams handle costs and supplier relationships. In this article, Fastmarkets’ Matt Graves, SVP, RISI indices, shares expert strategies for handling unpredictable packaging prices. He also discusses how to leverage supplier cost analysis.
Watch the full video interview for more insights and tips.
FMCG procurement teams, especially in the food and beverage(F&B) sector, face big challenges due to fluctuating packaging prices. Containerboard and recovered paper prices can be unpredictable, so keeping packaging spend in check requires sharp focus on price movements and supplier strategies. To achieve this, access to market-reflective price data and supplier cost analysis is crucial for buyers to ensure a reliable and affordable supply.
Want to learn more? Find out how we can help you manage packaging price volatility. Speak to us today for a tailored solution.
To shed light on these key issues, we spoke with Matt Graves, who leads Fastmarkets’ global price reporting team for forest products. Matt’s insights into this complex market can help procurement teams manage packaging price movements confidently and use objective data as a strategic advantage.
Q: What are the main challenges FMCG companies face regarding packaging prices?
Matt Graves: FMCG companies are dealing with high inflation and pressure on packaging prices. Consumers and stakeholders demand better cost control and transparency. This makes it harder for packaging buyers to manage costs and supplier relationships, especially with new sustainability demands at play.
At Fastmarkets, we support procurement teams with benchmark packaging prices, strong forecasts and detailed supplier cost analysis. All this allows you to budget smarter, stay ahead of trends and make informed decisions.
Want to learn more? Empower your procurement team with market reflective packaging prices and supplier cost analysis—discover our data-driven tools today. Learn more.
Q: Why is supplier cost analysis important for packaging buyers?
Matt: Understanding your suppliers’ costs is the golden rule for packaging buyers. The better you know how their costs work, the stronger your negotiating position becomes.
Accurate supplier cost analysis leads to better budgeting and more strategic conversations with suppliers. Our forecasts enhance this process, providing predictability in a volatile packaging market.
Q: How can companies improve the accuracy of their packaging prices and forecasts?
Matt: Packaging buyers should link supply contracts to independent, transparent packaging prices, like Fastmarkets’ assessments. This makes contract pricing responsive to market changes, reducing the need to renegotiate with suppliers.
Trusted third-party data creates fair supplier relationships and is key to reliable procurement strategies.
Want to learn more? Streamline your negotiations with accurate forecasts and transparent pricing—see how our independent assessments can support your strategy. Learn more.
Q: What’s the role of feedstocks like recovered paper in packaging prices, and why should buyers care?
Matt: If you buy boxes in the FMCG space, understanding the commodity markets driving your packaging prices is crucial. The feedstocks influencing paper costs also affect packaging prices. For instance, when recovered paper prices drop, it’s a chance to renegotiate with suppliers. When costs rise, it signals the need to prepare for higher pricing.
Our analysts and economists can help you interpret market trends and perform relevant supplier cost analysis, ensuring you stay informed.
Q: How does Fastmarkets help buyers manage volatile packaging prices?
Matt: Our Index Builder tool is designed for packaging buyers. It allows you to create models for what you’re buying—like corrugated boxes or cartons—linking them to Fastmarkets’ packaging prices and cost indices. This way, you can track changes over time.
This tool provides detailed supplier cost analysis, giving transparency from market movements to the underlying feedstock costs, all the way to your specific packaging costs. It’s a strategic asset for better supplier negotiations and long-term planning.
Want to learn more? Try our Index Builder tool today and optimize your procurement strategy and future-proof your contract negotiations. Learn more.
Ready to take control of your packaging procurement strategy? Explore Fastmarkets’ price data packages, forecasts and detailed supplier cost analysis for packaging buyers—your guide to smarter procurement in a changing market.
Learn how to monitor packaging prices using cost and price indices and understand the underlying cost drivers, from material cost to labor, energy and more. Examples include cartonboard, liquid container and paper bag.