The renowned German research institute Fraunhofer IML has developed AI-based software that helps e-commerce and logistics companies identify the most efficient combination of shipping-box sizes. The technology could assist European businesses in reducing material use and preparing for new EU packaging requirements.
The Fraunhofer Institute for Material Flow and Logistics, known as Fraunhofer IML, has entered a strategic partnership with European wholesale group IGEPA. The collaboration will make the CASTN, or Carton Set Optimisation, software available to companies in Germany and other European markets.
According to the partners, IGEPA will become the first independent third-party provider to offer CASTN as a commercial service. It will support customers from the initial analysis through to the selection and delivery of appropriately sized transport packaging.
Fraunhofer IML is part of Germany’s Fraunhofer organisation, one of Europe’s best-known applied research networks. The Dortmund-based institute specialises in logistics, material flows, warehousing, digitalisation and automated transport systems.
CASTN was developed over four years and launched in February 2026. It is aimed at online retailers, logistics providers and suppliers of warehouse automation, conveyor systems and packaging machinery.
Calculates which box sizes are actually needed
Many companies use a large number of box formats without knowing whether the combination is efficient. This can result in oversized packaging, excessive filling material and shipments in which a substantial proportion of the transported volume consists of air.
CASTN analyses a company’s shipments and calculates which standard box sizes best match its products and order combinations. The objective is to maximise volume utilisation while keeping the number of different box formats as low as possible.
The software does not design the appearance or graphics of individual consumer packages. Instead, it optimises a company’s complete range of shipping boxes and identifies the dimensions required for practical operations.
An online retailer may, for example, discover that several nearly identical box sizes can be replaced by a smaller, standardised range. Other businesses may need to introduce smaller formats to avoid shipping compact products in unnecessarily large boxes.
Using fewer formats can simplify procurement, storage and automated packing. Reducing empty space can also lower the use of paper, air cushions, bubble wrap and other protective materials.
– CASTN gives our customers an intelligent way to systematically align their packaging strategies with efficiency and sustainability objectives, said Bernd Loschelder, head of IGEPA Group’s packaging division.
According to Loschelder, the data analysis will be combined with IGEPA’s practical packaging expertise. The company will then support implementation and supply boxes matching the recommended structure.
EU to restrict empty space in shipping boxes
The software is becoming increasingly relevant because of the EU Packaging and Packaging Waste Regulation, PPWR. The regulation began applying generally in August 2026, although several requirements will be introduced in stages.
Filling materials such as paper, air cushions, bubble wrap and foam are counted as empty space. Companies will therefore not be able to comply simply by putting more protective material into oversized boxes. The volume of the packaging itself must be better matched to its contents.
The final calculation methodology will be established through supplementary EU rules. Companies will consequently need to follow the regulatory process and determine whether any exemptions apply to their operations.
For European online retailers, fulfilment centres and third-party logistics providers, the requirements mean that box ranges should be analysed well before the deadline. Businesses handling thousands of product combinations may otherwise find it difficult to check empty-space ratios manually.
Fraunhofer says CASTN can produce a transparent calculation base for internal investment decisions and preparations for PPWR compliance. The software does not, however, replace a company’s legal responsibility to ensure that its packaging meets regulatory requirements.
Could influence warehouse automation investment
Box dimensions also affect the design of conveyor systems, case erectors, packing stations, automated warehouses and sorting equipment. An unsuitable range of boxes can create unnecessary costs or restrict the capacity of an automated facility.
If packaging requirements are analysed before a new warehouse is built, machinery and handling equipment can be designed around a more efficient set of standard formats. This may reduce the risk of investing in equipment that must accommodate an unnecessarily large number of box sizes.
– The partnership with IGEPA is an important step in making CASTN accessible to a broader group of users without requiring extensive preparations on their part, said Lukas Lehmann, project manager at Fraunhofer IML.
The benefits will depend on the quality of companies’ product and order data and on how well the analysis accounts for fragile goods, combined shipments and the risk of transport damage. The smallest possible box is not always the safest choice when a product requires cushioning or special protection.
The technology nevertheless illustrates how packaging development is becoming increasingly connected with data analysis and logistics planning. Instead of selecting boxes based primarily on established practice, companies can calculate which formats provide the best balance between material use, product protection, transport capacity and cost.
Sources: Fraunhofer IML, IGEPA Group and the EU Packaging and Packaging Waste Regulation.
