Packaging is the physical container or wrapping around a product or service that houses, identifies, describes, and displays it to consumers.
Packaging informs prospects and customers about the contents of your products and services and also protects your items during shipping and transportation. Proper packaging considers the item inside, as well. Over-the-counter medication, for instance, should be designed to prevent tampering. A bag of chips, however, should be easy to open and reclose. Mood Coffee, for example, packages its coffee in cardboard-looking containers with whimsical eye illustrations, all distinctive and instantly appealing vs. other competitor brands.
Packaging can separate your products and services from competitors on the shelf. Impactful, intuitive packaging can compel a prospect to choose your business over another simply by being sustainably sourced, more durable, more informative, more artistic, or more clearly branded.
References
https://99designs.com/blog/tips/ultimate-guide-to-product-packaging-design/