How to Calculate Label Manufacturing Costs: Material Waste & Production Breakdown
Label manufacturing is a complex process that involves several stages, from printing to die-cutting, and can be affected by various factors such as material quality, machine efficiency, and waste. In this article, we will break down how to calculate the cost of label manufacturing, specifically focusing on material usage, waste during production, and how many labels can be made from one roll of paper.
1. Understanding the Label Manufacturing Process
The process of label manufacturing involves the following key steps:
- Material Selection: Paper or film is used as the base for the labels.
- Printing: Flexographic printing is commonly used to print designs onto the paper or film.
- Die-Cutting: The printed rolls are die-cut into individual labels.
- Finishing: After die-cutting, labels are typically rolled up for shipment.
Each of these stages may result in material loss, which affects the final cost per label.

2. Material Selection and Costs
The first step in calculating label manufacturing costs is understanding the materials used. Common materials for labels include:
- Paper: Used for most standard labels, such as those for packaging.
- Film: Such as BOPP (Biaxially Oriented Polypropylene), used for durable, weather-resistant labels.
- Adhesive: The material that allows the label to stick to surfaces.
Example Material Costs (per ton)
Material | Cost per Ton (USD) |
---|---|
Paper (80 gsm) | $1,000 |
BOPP Film (60 gsm) | $1,200 |
Adhesive | $300 |
3. Calculating Label Production Output
Paper Roll Printing
Once the materials are selected, the next step is printing. Printing machines use rolls of paper or film as the base material. Let’s assume a 1-ton roll of 80 gsm paper is used for printing labels.
- Roll Width: 500 mm
- Roll Length: 1,000 meters (1 km)
- Total Weight: 1 ton (1,000 kg)
The weight of the material is important because it dictates the quantity of labels that can be produced from each roll.
Label Size
The size of each label affects how many can be produced from one roll. Let’s assume a standard label size of 5 cm x 5 cm.
-
Label area:
-
Roll area (per 1 km length of paper):
Thus, each 1 km roll can yield:
For a 1-ton roll, which is 1,000 meters of paper, you can produce approximately 20,000 labels.
4. Material Waste in Printing and Die-Cutting
It's important to factor in the material waste that occurs during the printing and die-cutting process. Waste can occur for a variety of reasons, including:
- Margins: Empty space around the design where no labels are printed.
- Trimming: Waste created when labels are cut into the desired shape.
- Printing Issues: Errors like misalignment, over-inking, or under-inking may lead to unusable areas.
Typical Waste Percentages
- Printing Waste: Approximately 2-5%
- Die-Cutting Waste: Approximately 3-5%
Total Waste Calculation
Let’s assume a combined waste of 8% (Printing 5% + Die-Cutting 3%).
From our previous example, we know that 20,000 labels are produced from a 1-ton roll.
The total waste would be:
So, after accounting for waste, the usable labels would be:
5. Cost Calculation per Label
Now that we have the total usable labels, we can calculate the cost per label, taking into account the material cost, waste, and production yield.
Example Cost Calculation for 1-Ton Roll
- Material Cost for 1-ton Roll of Paper: $1,000
- Total Usable Labels: 18,400
-
Cost per Label:
This means that, excluding labor, energy, and overhead, the material cost per label is $0.054.
6. Calculating Total Cost for Label Production
To estimate the total cost for larger production volumes, multiply the cost per label by the number of labels needed.
Example for 100,000 Labels
- Cost per Label: $0.054
-
Total Cost for 100,000 Labels:
This will give you an approximate cost for printing 100,000 labels, excluding overhead costs like labor, energy, and machinery maintenance.
Conclusion
Accurate cost calculation in label manufacturing requires a clear understanding of material usage, waste, and production efficiency. By following this breakdown from material selection to final labels, you can better estimate your production costs and optimize the process. With machines like the 9 Color Flexo Printing Machine, which ensures high efficiency with minimal waste, manufacturers can produce labels at competitive prices while maintaining quality.
Understanding the impact of waste, material costs, and production speed is key to ensuring a cost-effective label manufacturing process.