Retail gift set packaging – should you consider foam this Christmas?

If your business plans to use retail gift set packaging this Christmas or for other vital sales dates or promotions, should you consider foam?

Retail gift set packaging is any box or pack used specifically for a set of products intended as a gift. Gift set packaging typically displays products clearly in retail stores and acts as an “added value” pack suitable for giving as a gift. This type of packaging is particularly popular at Christmas.

However, due to perceptions of cost and sustainability, businesses often neglect to consider foam when creating their retail gift set packaging. But, with more eco-friendly and recycled materials becoming available, is foam packaging now a viable option?

This guide provides the following:

• An overview of the UK Christmas gift set market.
• The five main objections to using gift foam and how to overcome them.
• Seven key advantages of foam packaging inserts.
• How using foam can complement your brand and existing packaging.

With a business’ retail packaging critical during the highly competitive Christmas shopping season, any missteps can result in lost sales, harm brand equity, and even lead to consumer backlash (in extreme cases).

These risks are why many stick with the tried and trusted festive packaging formats.

But this can be an opportunity for other products and brands to do something different and stand out amidst all the noise. This differentiation could be significant in a market that is even more competitive due to decreasing consumer activity.

And whilst foam inserts can help with this, businesses typically have five main objections when considering them.

The main reasons consumers and businesses dislike foam packaging are:

• Foam is not environmentally friendly.
• Foam can’t feature branding.
• Foam packaging is expensive.
• Foam is not available in brand colours.
• The material is not suitable for specific products or markets.

However, there are strong arguments against these various issues.

There has (rightly) been an increase in consumers who are more concerned than ever regarding the sustainability of their packaging. This feeling has given rise to a backlash against Christmas packaging waste and seen an increase in solutions such as FSC® packaging options.

And it is undeniable – most foam is plastic-based and not as easy to recycle as paper-based products.

However, foam can be recycled, and specialist centres are becoming increasingly available across the UK. Foam can also help prevent damage in transit, minimising the volume of broken products sent to landfills.

It is now also possible to source recycled and recyclable foam materials for your Christmas packaging. For example, the new wood-based foam, Fibrease, is recyclable in kerbside collections alongside cardboard.

Grabbing attention is obviously hugely important in retail markets. This consideration is why Christmas gift packaging is a mixture of seasonal colours, bright hues, and eye-catching designs – something that often extends to the inserts inside the gift packs.

However, whilst many believe packaging foam is only available in black or white, Plastazote is available in many colours. And whilst it is not possible to match specific Pantone or other colour references, the foam can be layered to create eye-catching and visually unique designs.

Similarly to the above, many businesses cite the fact that foam is relatively dull in appearance, even with the excellent surface finishes it can provide.

Another criticism is that you cannot add your branding. But this is incorrect.

Using advanced laser etching techniques, your gift box foam can include logos, branding, slogans, instructions, and detailed graphics.

To be completely honest, foam is typically more expensive than card or corrugated inserts.

However, as there are no minimum order quantities (MOQs) for short runs, foam can often be the lower-cost option (as you do not need to purchase a considerable amount, only precisely what you need).

It is also ideally suited to high-end products or limited-edition gift sets that require a more luxurious feel and appearance. It can provide an air of quality and uniqueness that paper-based inserts cannot.

The final objection to foam inserts makes little sense. If your business sells anything but the most low-cost items (or those that are incredibly durable to start with), foam can be a great option for presenting them.

If you are considering festive retail packaging or offering items in a gift set, then foam is definitely a great way to present them.

You can use foam to enhance almost any gift set or promotional pack.

However, answering these five objections to foam gift pack inserts only tells part of the story. There are, in fact, several other significant advantages that you can benefit from by using Plastazote or other foam inserts for your Christmas packaging.

The benefits you can expect to see from using luxury retail foam in your festive retail gift sets include:

• Improved protection for products.
• Reducing the number of returns and associated costs.
• Inserts that are precisely tailored to your items.
• You can add foam to almost any packaging.
• It provides genuine differentiation from your competitors.
• Foam inserts add value (and lead to the retention of packs).
• Retail foam offers an excellent appearance.

The first point here is arguably the most important. Put simply, foam inserts offer the highest levels of protection for your products.

This factor includes protection from impact, vibration and mishandling on the way to the retail outlets. It extends, however, to when consumers take them home or to their family’s or friends’ houses.

Besides this, foam protects against surface marring, blemishes, and scratching. This additional protection can be significant for high-end luxury products (such as fragrances). Foam outperforms corrugated cardboard and similar materials here, which can be surprisingly abrasive (although a coating – Nomar – can somewhat alleviate this).

Besides protecting products, presentation foam also helps reduce costs for your business. You can achieve these cost savings by reducing product returns due to transit damage (even just aesthetically) during shipping.

Beyond this, minimising returns also helps foster customer loyalty (your brand is perceived as reliable and of higher quality) and can help drive repeat business (aiding future sales).

Unlike cardboard cradles and similar inserts, you can choose to have foam inserts tailored precisely to your products.

While arguably the main benefit is eliminating damage, it also ensures that your retail gift packs appear of the highest quality. Again, this can be critical for high-end and luxury brands that must convey a sense of the highest quality.

This perception of luxury is also particularly important during economic hardship. Consumers may buy fewer items but spend more on higher-quality items for the few they purchase. The “lipstick effect“—where consumers purchase small luxuries rather than big–ticket items—can also come into play.

Many of your competitors are unlikely to use foam inserts for their Christmas gift packaging. This may be because of the objections listed or simply because they aren’t aware of it.

Whatever the reason, if you are the only brand using foam packaging inserts, your gift packs instantly stand out from your competitors. This increased visual differentiation could help drive awareness and sales of your products.

Foam inserts are also versatile in that you can add them to almost any form of packaging.

Foam works well with the standard solid board and corrugated cardboard packs you are likely to see in typical retail environments. However, foam can be added to lightweight carry cases (think tools, sets of products and DIY items), clear plastic boxes, and even retail Correx® packaging.

This versatility also makes foam useful for brand consistency if, for example, you sell products in different packaging.

Foam can be added to almost any packaging, enhancing its perceived value.

Another benefit of including foam in your retail gift packaging is that it adds value to the end consumer.

Effectively, the gift recipient is much more likely to retain the packaging to store the products on an ongoing basis.

The two benefits are that first, it leads to a higher perceived value of your products—increasing the price consumers are willing to pay—and second, it provides ongoing brand awareness as your box remains in the individual’s home.

And finally, foam can provide a truly unique and high-class appearance.

The aesthetic quality of foam makes it perfect for higher-end and expensive products, but it also works well in complementing a vast range of products.

In short, it is perfect for retail gift set packaging.