Material Cost Breakdown
Raw material, primarily polypropylene (PP), represents 60-70% of total cost per unit and is the single largest cost driver. Material cost per unit equals part weight multiplied by PP price per kilogram plus a waste factor of 1-3%. Current food-grade PP pricing ranges from $1,100-$1,500 per metric ton depending on grade and region. For a 5-gram yogurt cup, material cost is approximately $0.006-$0.008 per unit. A 30-gram food container costs $0.036-$0.045 in material. Sauce cups at 3-4 grams cost only $0.004-$0.005 each. Wall thickness directly impacts material usage: reducing wall thickness from 0.5mm to 0.4mm on a yogurt cup can reduce part weight by 15-20%, saving $0.001-$0.002 per unit. At volumes of 10 million units per month, this translates to $10,000-$20,000 in monthly savings. HWAMDA SPV5 machines with injection speeds of 450-517mm/s enable thinner walls with complete cavity fill, maximizing material efficiency.
Key Specs
- •Raw material, primarily polypropylene (PP), represents 60-70% of total cost per unit and is the single largest cost driver.
- •Material cost per unit equals part weight multiplied by PP price per kilogram plus a waste factor of 1-3%.
- •Wall thickness directly impacts material usage: reducing wall thickness from 0.5mm to 0.4mm on a yogurt cup can reduce part weight by 15-20%, saving $0.001-$0.002 per unit.
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Machine Depreciation per Unit
Machine investment is amortized over its productive lifetime, typically 10-15 years for a well-maintained injection molding machine. Calculate depreciation per unit by dividing total machine cost by lifetime production volume. An HWAMDA SPV5 380T machine priced at approximately $80,000-$120,000, running 12-cavity molds at 4-second cycles, produces roughly 7,776,000 cups per month at 90% OEE. Over 10 years, that is approximately 933 million cups, yielding machine depreciation of $0.0001-$0.00013 per cup. For a 480T food container machine with 6-cavity mold at 6-second cycles, monthly output is approximately 2,592,000 containers. Machine depreciation per container over 10 years is $0.0004-$0.0006. Machine depreciation is typically the smallest cost component, representing less than 1% of total unit cost, which means investing in a higher-quality machine with better uptime almost always pays for itself through operational savings.
Mold Cost Amortization
Mold investment varies significantly based on cavity count and complexity. A 12-cavity yogurt cup mold costs approximately $40,000-$70,000, while an 8-cavity food container mold ranges from $50,000-$90,000. Higher cavitation molds cost more upfront but reduce per-unit mold cost. Mold lifetime for thin-wall applications in hardened P20 or H13 steel is typically 3-5 million shots. For a 12-cavity yogurt cup mold running at 4-second cycles, each shot produces 12 cups. At 5 million shot lifetime, the mold produces 60 million cups, yielding mold amortization of $0.0007-$0.0012 per cup. A 32-cavity sauce cup mold at $60,000-$100,000 produces 160 million cups over its lifetime, reducing per-unit mold cost to $0.0004-$0.0006. When evaluating mold investment, calculate per-unit amortization across the mold's full rated lifetime. HWAMDA's mold design team optimizes cavity layouts and cooling channels to maximize mold longevity.
Key Specs
- •For a 12-cavity yogurt cup mold running at 4-second cycles, each shot produces 12 cups.
SPV5 machines on the production floor
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Labor and Energy per Unit
Labor costs depend on your location and level of automation. A typical thin-wall production line requires 1-2 operators per shift. In emerging markets with labor costs of $300-$600 per month, labor cost per unit on a yogurt cup line producing 5.5 million cups monthly is approximately $0.0001-$0.0002. Energy consumption is the second-largest variable cost after material. HWAMDA SPV5 machines with servo-hydraulic systems consume approximately 15-25 kWh per hour depending on tonnage. At $0.08-$0.15 per kWh, energy cost per yogurt cup (12-cavity, 4-second cycle) is approximately $0.0002-$0.0004. For food containers on a 480T machine consuming 20-30 kWh, energy cost per container is approximately $0.001-$0.002. Combined labor and energy typically account for 3-8% of total unit cost. HWAMDA's servo pump technology reduces energy consumption by 40-60% compared to conventional fixed-pump machines, delivering measurable per-unit savings.
Packaging and Logistics
Post-production costs including stacking, counting, bagging, cartoning, and palletizing add $0.002-$0.008 per unit depending on automation level. Manual stacking and counting increases labor costs and reduces throughput. Automated stacking systems integrated into the production line reduce this cost by 30-50% while improving accuracy. For IML products like margarine containers, the finished product exits the mold already decorated, eliminating separate labeling operations that typically cost $0.01-$0.03 per unit in post-mold decoration. Logistics costs vary by distance. Domestic distribution typically adds $0.001-$0.003 per unit. Export shipping in 40-foot containers holding 200,000-500,000 thin-wall cups adds $0.003-$0.008 per unit for intercontinental shipment. Nesting and stacking efficiency directly impacts container utilization. HWAMDA designs mold cavities with optimized stacking features to maximize shipping density and reduce per-unit freight costs.
Key Specs
- •Automated stacking systems integrated into the production line reduce this cost by 30-50% while improving accuracy.
Industrial cooling system for injection molding
Profit Margin Benchmarks
Market selling prices for thin-wall packaging vary by region and product. Yogurt cups (200ml) sell at $25-$55 per 1,000 units FOB, while food containers (500-1000ml) range from $60-$120 per 1,000 units. Sauce cups command $15-$30 per 1,000 units, and IML margarine containers reach $80-$150 per 1,000 units due to their premium finish. With total production costs typically ranging from $0.008-$0.012 per yogurt cup and $0.040-$0.065 per food container, gross margins of 40-60% are achievable at scale. The key to maximizing margin is high OEE above 85%, ensuring fixed costs are spread across maximum volume. HWAMDA SPV5 machines consistently achieve 90%+ OEE in established production environments, supporting industry-leading unit economics. Run profitability sensitivity analyses on PP price, exchange rates, and utilization rates to stress-test your business model before committing to investment.
Frequently Asked Questions
Total production cost for a 200ml PP yogurt cup ranges from $0.008-$0.012 per unit, with material (PP resin at 5-6 grams per cup) accounting for 60-70% of the total. Machine depreciation, mold amortization, energy, and labor collectively add $0.002-$0.004. Production on an HWAMDA SPV5 380T with 12-cavity mold at 4-second cycles yields approximately 5.5 million cups per month, achieving economies of scale that keep per-unit costs at the lower end of this range.
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