Why Packaging Is the Most Underused Growth Lever in Business

The following is adapted from unPACKED by Alex Hunt and Matt Salem.

Packaging matters because it drives sales.

To understand why, we must take a step back and look at the broader landscape of consumer-packaged goods (CPG). In 2024, the global CPG market was valued at $2.299 trillion and is projected to grow to $3.436 trillion by 2034. In the US, the sector supports more than 22.3 million jobs.

This large industry is characterized by steady growth and tight margins. Today’s consumers are more demanding, forcing brands to rethink how they engage and sell. For a CEO, growth is always the top priority, and it is now harder to achieve than ever.

This is where packaging comes in. Unlike retail channels or product sizing, both of which involve trade-offs, design is one of the few levers brands fully control. Our studies show it can drive growth by as much as 5%, while poor packaging can drop sales by 5%. That makes it an essential, yet often underutilized, growth channel.

Packaging is also a major financial factor, accounting for around 8% of direct costs. Any misstep is expensive. When Tropicana replaced its iconic packaging, sales dropped 20%, resulting in an estimated $30 million loss. A packaging change can require factory reconfigurations and supply chain adjustments.

The Face of the Brand

Packaging is more than a protective layer. It’s the face of the brand, the first impression that shapes consumer perception.

Think of packaging like attire. If we showed up to an interview in a crisp suit, you’d have a different impression of us than if we showed up in gym gear. Packaging communicates a brand’s quality, purpose, and identity the same way.

It tells consumers what the product is, who it’s for, and how it fits into their lives. It’s the cover of the brand’s book, and we all know how quickly people judge a book by its cover. In a competitive market, the product with the more appealing package often has a leg up, even if the contents are identical.

The Experience With the Brand

Packaging can even change how consumers experience the product. In a series of global taste and quality tests run across multiple regions, bottled water brands, including higher-end names like Fiji, didn’t just underperform. They lost to tap water.

So why do we keep buying it? Packaging. That sleek, see-through bottle. The hibiscus-flower imagery. The curated typography and cool-toned palette. It’s all designed to whisper “pure” and “premium” into your subconscious. Done well, packaging convinces us a product is worth the price. Even when it’s just water.

It’s the same principle as eating with your eyes. A beautifully plated dish tastes better than a sloppy one, even with identical ingredients.

At its core, packaging decisions aren’t only about aesthetics. They are high-stakes, mission-critical choices that impact everything from sales and market share to operational efficiency and financial performance.

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For more advice on using packaging design to drive growth, you can find unPACKED on Amazon.

As CEO of Behaviorally, Alex Hunt transformed the company into a market-leading data intelligence partner for the world’s leading brands. An in-demand speaker and thought leader, he is a Market Research Society Fellow and member of the Board of Directors of the Insights Association. A native of the UK, he lives in Connecticut with his wife, Pam, and daughter, Gabriella.

Matt Salem, SVP at Behaviorally, has spent over twenty years researching how packaging influences shopper behavior. Known for turning insights into clear, actionable stories, Matt brings a natural, dynamic style to both public speaking engagements and everyday conversations. He’s a proud parent to Niessen and Nyla and resides in New Jersey.