HENGHAO Machinery
Mickey
2025-05-29

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 can impact the final cost per label—something that can be more accurately estimated using Flexo Printing Calculators.

How to Calculate Label Manufacturing Costs

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:
$5 cm \times 5 cm = 25 cm 2$
Roll area (per 1 km length of paper):
$Area of 1 km roll = 1000 m \times 0.5 m = 500 m 2 = 500,000 cm 2$

Thus, each 1 km roll can yield:
$500,000 cm 2 \div 25 cm 2 per label = 20,000 labels per roll$

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:
$20,000 \times 0.08 = 1,600 labels lost to waste$

So, after accounting for waste, the usable labels would be:
$20,000 - 1,600 = 18,400 labels per roll$

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:
$1,000 \div 18,400 = 0.054 USD per label$

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:
$0.054 \times 100,000 = 5,400 USD$

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 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.