Fraunhofer IML and IGEPA launch AI software to eliminate empty space in e-commerce boxes

The costly reality of shipping air

For decades, the corrugated packaging industry has watched e-commerce retailers ship millions of cubic meters of expensive air. The reliance on a limited, poorly optimized range of standard box sizes has led to excessive use of void fill and highly inefficient transport logistics. Now, with the European Union’s Packaging and Packaging Waste Regulation (PPWR) tightening the regulatory framework, the era of the oversized brown box is rapidly closing. In July 2026, the Fraunhofer Institute for Material Flow and Logistics (IML) and European wholesale giant IGEPA Group formalized a strategic alliance to commercialize CASTN, an AI-driven carton optimization software that fundamentally shifts how retailers procure and manage packaging.

Data-driven carton set optimization

Developed over four years and officially launched to the market in February 2026, CASTN (Carton Set Optimization) does not merely suggest using smaller boxes. The software ingests a retailer's historical item data, order profiles, and current packaging inventory to calculate the mathematical sweet spot between maximum volume utilization and the minimum number of required box formats. After a rigorous data cleansing process, the AI determines a new, highly customized standard carton set for the specific operational needs of the mail-order company.

The technology has already gained significant industry validation, winning the German Packaging Award in the digitalization category in July 2026. By analyzing the actual demand for carton sizes early in the process, companies can tailor their conveyor systems and packaging machines specifically to the optimal standard carton set, reducing bottlenecks in automated packing lines.

A paradigm shift in packaging distribution

IGEPA Group is the first third-party provider to offer CASTN as a Software-as-a-Service (SaaS) to the European market. This represents a notable pivot for a packaging wholesaler. Instead of simply pushing higher volumes of corrugated board, IGEPA is actively helping clients buy less material, but with far greater precision. Bernd Loschelder, Head of Packaging at IGEPA Group, noted that the goal is to provide a data-backed foundation for packaging strategies, supporting customers from the initial consultation through to the delivery of custom-fit packaging.

The PPWR compliance deadline

The regulatory clock is ticking loudly for the e-commerce sector. While the PPWR begins its general application in August 2026, the specific mandate capping empty space in e-commerce and transport packaging at a maximum of 50% will be fully enforced by 2030. Retailers can no longer rely on massive amounts of bubble wrap, air cushions, or crumpled kraft paper to compensate for poor box sizing.

Beyond strict regulatory compliance, the operational math is highly compelling for logistics providers. Fraunhofer IML data indicates that optimized carton sets can slash packaging and transport costs by 15% to 20%. Fewer box formats mean streamlined procurement, denser palletization, and a significant reduction in the carbon footprint associated with last-mile delivery.

The transition from selling physical board to selling dimensional intelligence is exactly the kind of maturity the corrugated sector needs right now to remain competitive and sustainable. Will the rest of the packaging distribution network follow IGEPA's lead and embrace software as a core product, or will they remain trapped in the volume-driven models of the past? Follow The Paper for daily news, market signals and key updates from the global paper, corrugated and packaging industry. — Sigue toda la actualidad del sector en www.thepaper.ai