Fraunhofer IML and IGEPA deploy AI to eliminate empty space in e-commerce packaging

The end of shipping air in the corrugated industry

For decades, the corrugated packaging sector has quietly profited from a logistical inefficiency: e-commerce companies ship significantly more air than actual product. However, the landscape is shifting rapidly this July 2026. The Fraunhofer Institute for Material Flow and Logistics (IML) and the IGEPA group have formalized a strategic partnership to deploy CASTN (Carton Set Optimization), an AI-powered software designed to mathematically eliminate oversized packaging from the supply chain.

Initially launched to the market in February 2026 after four years of rigorous development funded by the Fraunhofer Future Foundation, CASTN is now being rolled out at scale. IGEPA group has become the first third-party provider in Europe to offer this technology as a Software-as-a-Service (SaaS) to its clients. This move signals a fundamental transition in how packaging is procured: moving away from buying generic box sizes in bulk to a highly analytical, data-driven purchasing model.

How CASTN alters the packaging procurement model

The mechanics behind CASTN are deeply rooted in artificial intelligence and historical order data. Instead of a warehouse manager guessing which five or ten box sizes will cover their shipping needs, the software analyzes the exact dimensions, weight, and frequency of the retailer's item structure. It then calculates the optimal standard carton set that achieves the highest possible volume utilization with the fewest different box sizes.

For the corrugated converting industry, this level of precision introduces new dynamics. We are looking at a scenario where:

• Shorter, specific runs: Retailers will demand highly specific dimensions tailored to their exact product mix, potentially reducing the reliance on standard FEFCO 0201 formats.
• Reduction in void-fill: As the primary container becomes more efficient, the demand for secondary protective materials like paper void-fill or foam inserts will naturally decrease.
• Machinery integration: Packaging machinery manufacturers will need to calibrate automated erectors and sealers to handle these newly optimized, bespoke carton sets.

The regulatory hammer of the 2030 EU PPWR

While cost savings on freight and materials are strong incentives, the true catalyst for the adoption of CASTN is regulatory. The European Union's Packaging and Packaging Waste Regulation (PPWR) is no longer a distant concept. By 2030, the regulation mandates a maximum void ratio of 50 percent in all e-commerce cartons. Companies that fail to comply will face severe penalties and operational bottlenecks.

By integrating CASTN into their service portfolio now, IGEPA is positioning itself not just as a paper and packaging wholesaler, but as a compliance and efficiency partner. They are helping logistics service providers and online retailers build a solid foundation for the upcoming regulatory requirements, proving that sustainability and cost-reduction can be achieved simultaneously through intelligent software.

A strategic pivot for packaging distributors

The partnership between Fraunhofer IML and IGEPA highlights a broader trend in the packaging industry in 2026: the commoditization of the physical box and the rising value of the data surrounding it. By analyzing the actual demand for carton sizes early in the process, companies can tailor their conveyor systems and plan investments efficiently. It is a proactive approach that prevents the costly mistake of designing a warehouse around the wrong packaging formats.

The transition from selling volume to selling efficiency is a bold move for the corrugated sector, but it is the only sustainable path forward. CASTN proves that the future of packaging lies not just in the strength of the kraft liner, but in the intelligence of the algorithm that sizes it. Will traditional corrugated converters adapt their business models to support this hyper-optimized demand, or will they be left behind by tech-enabled distributors? 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