Why simplify packaging SKUs in food manufacturing?
The complexity of food manufacturers’ packaging frequently increases in tandem with their growth.
An expanding variety of trays, lids, inserts, and wraps is a result of co-packing requests, retail-specific formats, seasonal promotions, and new product lines.
This flexibility may appear essential at first glance, but if unchecked, it subtly undermines cost control, speed, and efficiency.
Reducing choice is not the same as simplifying your packaging SKUs. It entails creating more intelligent systems that accomplish more with less, all while maintaining production speed, shelf presence, and protection.
Why simplify packaging SKUs in food manufacturing?
SKU creep in packaging happens slowly for many operations. Companies add a new tray to accommodate more food.
For a co-branded product, a slightly different insert might be required. In no time, the warehouse is full of dozens of parts that are similar but not the same.
The results: higher costs for materials and tools, longer setup and changeover times, and more waste from short-run or obsolete stock.
It may not be apparent on a spreadsheet, but the complexity shows up in slower fulfilment and lower margins.
But all of this can be fixed by making packaging simpler.
This doesn’t mean cutting corners; instead, it means combining different types of structures and using modular design to keep things flexible.
What does smarter standardization look like?
Brands that successfully simplify their packaging portfolios often apply a modular mindset. For example:
A single tray size might be used across multiple ready meals, differentiated by outer sleeves or printed films.
Standard lids and clamshells serve a range of SKU sizes or meal formats.
Shared inserts are designed with flexible compartments to accommodate snacks, sauces, or proteins without requiring different tooling.
This kind of design-led consolidation allows for visual variation and functional performance without the operational headache of managing too many parts.
Key factors to evaluate before reducing SKUs
Simplification should be intentional. Before consolidating, food manufacturers should review:
- Product fit: Are your products similar enough in size, weight, and handling to share packaging formats?
- Retail compliance: Will a standardized format meet the display, shelf-ready, and labelling requirements of your biggest retail partners?
- Automation: Can your filling, sealing, or sleeving equipment run the new format smoothly, or will line changes be needed?
- Brand expression: Can you maintain a distinct consumer experience using variable print or insert design?
- Sustainability goals: Will SKU consolidation reduce raw material usage, shipping weight, or waste from short production runs?
When simplification is guided by these factors, the result is packaging that works harder not just for logistics teams, but for brand managers and sustainability officers too.
The sustainability upside
Reducing packaging SKUs often leads to measurable sustainability gains. Fewer unique components means:
Less scrap and obsolescence
Fewer partial pallets or short-run overruns
More efficient nesting and stacking in transit
Easier switch to mono-material or recyclable formats
Simpler labeling and clearer disposal instructions
These results don’t just lower your carbon footprint. They also help you meet the requirements of retail sustainability scorecards or EPR.
Frequently asked questions
What is SKU rationalization in food packaging?
SKU rationalization in packaging refers to reducing the number of different packaging components (trays, lids, inserts) used across product lines, to improve efficiency and lower costs.
How does standardizing food packaging affect sustainability?
Simplified packaging systems often reduce raw material use, minimize waste from short runs, and allow for greater use of recyclable or mono-material solutions.
Can modular packaging still support strong branding?
Yes. Using sleeves, labels, and printed film on standardized structures allows for high-impact branding without the cost and complexity of multiple custom formats.
How SoGreenPack helps
We help food manufacturers rethink their packaging SKU strategies from both a design and supply chain perspective. Our team:
Designs modular formats optimized for automation and retail
Sources sustainable mono-material or compostable alternatives
Supports visual customization through sleeves, labels, or insert branding
In many cases, brands are able to reduce their packaging SKU count by 25–40% while increasing production speed and reducing lead times.
Need to simplify your food packaging line without losing brand impact or performance?
Let’s explore how fewer SKUs can deliver more value. Contact us to explore your options.