What Impact Does Labeling and Packaging of Supplements Have on Revenue?
While a product’s packaging and label are the first things your prospective customer will notice, do you know that there is a 90-second timeframe in which you can appeal to your customers before they swipe left?[i]
Harvard professors, too, have weighed in with a study that reveals that 95% of purchase decisions are subconscious. When put that way, you suddenly realize the sheer value that packaging and labeling add to your products’ ability to stand out and appeal to the customer.[ii]
Supplement brand owners must give due attention to these critical aspects of their dietary supplement product so they can cash in on the “love at first sight” potential.
So, now that we have established how nutritional supplement packaging and labeling can boost or affect your revenues, it begs the question – How much? Let’s break it down into a few sizeable chunks to answer this question better.
In this article, we’ll discuss:
- Packaging factors that can influence costs and revenues
- Labeling factors that influence manufacturing costs and revenues
- How to ensure top-notch labeling and packaging for supplements
Packaging Factors That Affect Cost and Revenue
Today, supplement packaging comes in various shapes and forms – from bottles, jars, and pouches to flexible blister foils, closures, pumps, and rigid plastics.[iii] Of course, the primary determinant for what form of packaging you will need for your dietary supplements will depend on the type and properties of the product itself.
Here are a few factors that are likely to play a role in determining the cost of your product and the revenue potential it has.
Unusual Shaped Dietary Supplement Packaging
As mentioned above, supplement brand owners (and manufacturers) worldwide are constantly experimenting with custom dietary supplement packaging to find the ideal packaging for their products.
Unusually shaped supplement packaging options have their own set of pros and cons. While they are more likely to stand out on the shelf and give a unique identity to your product, unusual shapes are also more difficult to obtain, pack and carry.
Packaging Dietary Supplements in Custom Bottles
In a bid to be different or unique, custom supplement bottle packaging is all the rage in the nutraceuticals industry at the moment. The variety you will find is truly astounding, from transparent bottles to white, black, and amber-colored supplement bottles.
The higher the level of customization, the more it will cost you as a supplement brand owner. That said, it could also prove to be a winning strategy if you have done your research on audience preferences and color choices.
Latest Packaging Trends
The younger and more environmentally conscious buyers in the market demand green and sustainable packaging options. As a result, some brands are switching from plastic, glass, or metal to paper-based packaging wherever possible—although this is typically less feasible for solid dosage forms (capsules, tablets).
Customers’ preference for travel-friendly packs, single-use packs, or lightweight and resealable packaging calls for an optimized approach to custom supplement packaging.[iv] [v]
The overwhelming variety and competition within the market have also led to an influx of several counterfeit products. While the authorities are doing their best to clamp down on this menace, some supplement brands have invested in advanced anti-counterfeiting techniques like holograms, codes, or invisible inks to authenticate their products. Typically, this is more of a concern for bigger brands with products that sell exceptionally well.
While following the latest trends is a must for forward-looking supplement brands, you must also consider that opting for these functional packaging methods will cost more than the traditional techniques. But, their ROI in the long term could well be worth the investment.
Labeling Factors That Influence Costs and Revenues
We’ve already established that supplement labeling acts as a crucial factor in determining the success or failure of your product. But when you factor in this vital piece of information that customers make 40-70% of buying decisions at the point of sale (directly impacting your revenue), it goes without saying that a visually arresting label is the need of the hour.
We have spoken extensively about the importance of labeling on our blog in the past, so let’s get down to what you need to ensure your product label looks great and satisfies the FDA’s dietary supplement label requirements and guidelines.[vi]
Read this dietary supplement label checklist to understand what needs to be on a supplement label (factual information, claims, and verbiage) and how it needs to appear (formatting).
While many brand owners try to save on costs by using a supplement label design template and customize it according to their products, this may not always be the right way to go about it.
Here are a couple of the most common missteps I’ve seen brand owners make over the years with their supplement bottle label design.
Please read them carefully, and then think about your design. If it mirrors one of both of the mistakes I’ve provided, I’d strongly recommend going back to the drawing board. Or, you can consult with a professional that has experience designing FDA-compliant dietary supplement labels.
Crowded Label Design
An overcrowded label design is a strict no-no since it decreases the readability and confuses the customer (rather than informing them).
While one look at the FDA’s dietary supplement labeling guide and regulations tells you that you need to cram a LOT of data into a very small space, there are ways to accommodate it all while making it “look” good.
Unattractive Color and Font
Brand communication elements – language, logo, colors, and fonts – are the primary hooks for grabbing the prospective consumers’ attention and generating curiosity about your brand and products.
Amateur, shabby, or unoriginal design elements will drown your product in the hordes of supplements (in-store or online) or, even worse, drive your customers away.
You can steer clear of unattractive colors and not-so-premium fonts by applying design thinking, studying industry trends, and innovating by partnering with a supplement label and packaging design expert.
How Can NutraScience Labs Help?
As the global dietary supplements industry expands and charts new territories, the global supplements and nutrition packaging market, too, expects to grow at a CAGR of 4.5% from 2020 to 2028.
It is a phenomenal time for supplement brand owners who want to capitalize on this market opportunity by creating high-quality nutraceutical products and dietary supplements packaged and labeled according to best practices and industry regulations.
NutraScience Labs has been the go-to supplement manufacturer for many leading brands in the United States for two decades. Apart from being a highly experienced supplement manufacturer, we also offer award-winning labeling and packaging services and convenient order fulfillment solutions. Providing our clients with these services “under one roof” saves them time, money, and stress, allowing them to bring their products to the market faster than the competition.
Striking the perfect balance between aesthetics and regulations, our design and branding experts team ensures that you get the best of both worlds. Learn more about our packaging and labeling services derived through our 120+ years of experience to help you drive your revenues.