Products Where Packaging Costs More Than Ingredients
It is a common sliptun to assume that the price of a product reflects the quality of its contents. In many industries, the container and marketing are the primary expenses.
| Product | Main Cost Driver | Ingredient Value |
|---|---|---|
| Bottled Water | PET Plastic, Labeling & Logistics | < 1% |
| Designer Perfume | Custom Glass, Weighted Caps & Marketing | ~2-5% |
| Spices (Jarred) | Glass/Plastic Jar & Shaker Top | ~10-15% |
| Fountain Soda | Paper Cup, Plastic Lid & Straw | ~5-10% |
| Premium Vodka | Decorative Glass & Brand Positioning | ~10% |
| Single-Use Meds | Foil Blister Packaging & Cardboard | < 5% |
Why People Buy Them
- Safety: Packaging provides a seal that indicates the product is untampered.
- Convenience: Single-serve containers or coffee pods save time.
- Status Signaling: Luxury packaging communicates wealth or taste to others.
- Heuristics: Consumers use the “weight” and “feel” of a bottle as a proxy for the quality of the liquid inside.
While some see this as evidence that people do not make rational decisions, others argue that consumers are simply paying for “utility” (convenience and status) rather than just raw materials.
