How to Reduce Packaging Waste in Your Manufacturing Operation

You reduce packaging waste in a factory on two fronts: the pack itself (less material, easier recovery, reuse where it fits) and the line that fills it (less overfill, fewer rejected packs, less spilled product). Most businesses start with the first and forget the second. The filling line is where a lot of avoidable waste, and avoidable cost, sits. This guide covers both, with the Australian rules and tools that apply.
TL;DR
Start with a packaging audit: weigh and list every component, then ask what job each one does. Remove or shrink anything without a function.
Use the Sustainable Packaging Guidelines’ ten principles as your checklist, and check recyclability before you shrink anything. Lighter is not always better.
Overfill is waste too. Control your fill mean against the legal limit and you cut giveaway and rejected packs at the same time.
Know your obligations: the Australian Packaging Covenant, state stewardship rules and national trade measurement law.
Track tonnes, composition and giveaway each year so you can show savings, not just claim them.
Table of Contents
Where packaging waste really comes from on a production line
When people search for ways to cut packaging waste, they usually get advice about boxes, bubble wrap and bale-and-recycle routines. That advice is fine, but a manufacturer has more sources to look at:
Design waste. Oversized cartons, thick walls, extra labels, mixed materials that cannot be recovered.
Process waste. Containers scrapped because they were overfilled, underfilled, dripped on or contaminated.
Product waste. Product given away in every pack above the declared quantity, or lost to foaming, splashing and line changeovers.
Supply chain waste. Damaged goods, returned pallets, wrapped loads that did not need to be wrapped.
The first and fourth are packaging decisions. The second and third are equipment and control decisions. A food or chemical producer who only works on design leaves half the opportunity untouched.
Step 1: Audit what you use today
You cannot reduce what you have not measured. The Australian Packaging Covenant Organisation (APCO) suggests collating annual packaging data, including tonnes and composition, and tracking progress with tools such as PREP or a packaging footprint calculator.
A simple audit for one product looks like this:
Component | Material | Weight per unit | Units per year | Annual tonnes | Function |
Bottle | Rigid plastic | Record it | Record it | Calculate | Contains product |
Cap and seal | Mixed | Record it | Record it | Calculate | Closure, tamper evidence |
Label | Film or paper | Record it | Record it | Calculate | Information, branding |
Carton | Cardboard | Record it | Record it | Calculate | Protection, handling |
Pallet wrap | Film | Record it | Record it | Calculate | Load stability |
Add two more columns once the basics are in: the rejected or scrapped packs per month, and the product lost to those rejects. Those are the figures that connect your packaging audit to your filling costs.
Step 2: Remove what does not earn its place
Bunnings’ packaging guidelines for suppliers recommend that you assess each packaging component for a functional purpose and minimise materials while still protecting the product. It is a good rule for any manufacturer, whether or not you supply a major retailer.
Ask of each component:
Does it protect the product, inform the customer, or enable handling and storage?
Could it be thinner, smaller or combined with another part?
Does it carry inks, adhesives or fittings that stop the pack being recycled? APCO notes that small details such as inks and adhesives can affect recyclability, and its PREP tool assesses these factors.
Can the shipper be sized to the product, so you are not paying to move empty space?
Test protection before you cut material
Thinner packaging that fails in transit creates more waste, not less. The APCO guidelines frame the goal as optimising material efficiency without increasing product damage or waste in the supply chain. McKinsey notes that finite-element analysis can simulate drop tests so you can compare pack configurations before building physical prototypes, and that redesign involves trade-offs across functions, such as protection against standardisation.
Lighter is not always better
It is tempting to chase grams. Plastic IQ points out that a heavier, recyclable rigid plastic can be more circular than a lighter, non-recyclable multi-material format. If a thinner pack drops out of the recycling stream, you have saved material on paper and lost it in practice. Check recoverability alongside weight.

Step 3: Look at reuse and recyclability
The Australian Government says that after avoiding or reducing packaging, reuse is the next best way to achieve environmental benefits. APCO publishes a resource on business models for reusable packaging.
For manufacturers, reuse often looks like:
Bulk containers instead of many small ones. Moving high-volume customers to returnable IBCs, drums or refill formats cuts single-use packs. Our guide to choosing an IBC filling machine covers what to check when you move to bulk.
Refill and return systems for trade customers.
Reusable transit packaging for repeat delivery routes.
Recycled content and design changes also matter. The 2024 APCO Awards include case studies where replacing polystyrene with polypropylene reduced on-site waste and increased recycled content. The lesson is that a material change, done properly, can help on several fronts at once.
Step 4: Cut overfill, the waste nobody sees
Every pack that holds more than the label says gives product away. It is small per pack and large across a year. An Australian industry article on statistical quality control explains that accurate filling reduces costs by minimising product giveaway while helping you meet net-content legislation.
The same article describes how production mean values and tolerance-limit data help control fill quantities. In plain terms, if your filler scatters widely, you must aim high to be sure no pack falls short. Tighten the scatter and you can safely aim lower, closer to the declared quantity.
A worked example of the logic
This is an illustration of the principle, not a client result. Say you fill a 1 litre product and, because your filler’s results vary, you set it to deliver a little over the declared amount on average. If you tighten the variation, you can lower that safety margin. Multiply the margin you recover by the packs you fill each year and by your product cost per litre. For a high-value sauce, flavour concentrate or specialty chemical, that margin often pays for a lot of improvement work. Use your own numbers: scatter, target, volume and cost per litre.

Know the legal floor
In Australia you cannot simply fill less. The National Measurement Institute explains that under the Average Quantity System, the average content of a sample cannot be less than the stated quantity, and no pack can fall short by more than 5% of it. Alternative approaches exist: the wine industry’s guidelines note that fill volume must conform to the labelled volume under national trade measurement law, using either the Minimum Fill System or the Average Quantity System. Check which system applies to your product and packaging before you adjust any target.
Choose how you will check weights
The process article compares two approaches. You can use random sampling with static scales, or 100% inspection with dynamic checkweighers. The right choice depends on filler scatter, throughput, and the trade-off between sampling speed and measurement precision.
Method | Best when | Watch for |
Static scale, random sampling | Lower speeds, stable process, fast feedback wanted | Misses packs that are not sampled |
Dynamic checkweigher, 100% inspection | High throughput, tight tolerance, need to reject out-of-spec packs | Setup and calibration at line speed |
Whichever you choose, feed the results back into the filler. Data that is only filed away does not reduce waste.
Step 5: Choose a filler that matches the product
The machine matters because many packaging rejects start at the filling head. Thin liquids splash, viscous sauces string and drip, foaming products overflow, products with particulates block nozzles, and flammable chemicals need appropriate construction. A filler that was not selected for the product wastes both product and containers.
Things to match when you choose equipment:
Viscosity and flow. A thick sauce and a water-thin cleaner need different filling technology. Our explainer on volumetric filling and when to use it is a good starting point.
Foaming and particulates. These call for particular nozzle and fill-method choices.
Container size and range. Bulk containers suit weight-controlled filling, which we cover on our IBC, drum and jerrycan filling machines page.
Hygiene. In food, beverage and wine production, clean, sterile equipment is a prerequisite. The wine packaging guideline says supply lines, filtration and fillers should be comprehensively cleaned and sanitised before bottling to prevent spoilage. Spoiled batches are packaging waste as well as product waste.
Growth path. A modular design lets you add capacity without replacing the line.
For wider context on the operational side, see our pieces on the benefits of liquid filling machines and boosting efficiency with a liquid filling machine.
Step 6: Meet the Australian rules
Packaging obligations depend on who you are and where you operate, so confirm the details with the relevant body.
Australian Packaging Covenant. The NSW EPA says eligible brand owners in NSW must meet packaging stewardship obligations or comply with the Covenant. Members work towards the 2025 targets.
National targets. The Australian Government lists goals including 100% of packaging reusable, recyclable or compostable, and 50% average recycled content. The same targets include phasing out problematic and unnecessary single-use plastic packaging.
Design standards on the way. APCO reported that Environment Ministers announced they would pursue mandatory packaging design standards and targets. Check APCO and the Department of Climate Change, Energy, the Environment and Water for the current status.
Stewardship in general. Product stewardship schemes support shared responsibility, including designing for easier recycling and using more recycled material.
Trade measurement. Fill quantities must comply with the National Measurement Institute’s rules, as covered above.
The APCO Sustainable Packaging Guidelines give you a practical structure. They set out ten principles, including optimising material efficiency, designing for recovery and reducing product waste. Use them as your internal review checklist.
Step 7: Measure and track savings
Choose a few numbers and record them the same way every month.
Packaging tonnes by material. From your audit, updated annually.
Recyclability assessment. PREP is an online tool for assessing packaging performance in Australian and New Zealand recovery systems.
Average fill versus declared quantity. The gap is your giveaway.
Rejected packs per thousand. Split by cause: underfill, overfill, leak, contamination, label or cap fault.
Product lost per changeover. Track flush and purge volumes, especially where you run many SKUs.
Footprint. A packaging footprint calculator, as used by one 2024 APCO Award winner, helps compare packaging options.
Savings in filling costs come from watching your production mean move closer to the declared quantity while staying within legal tolerance limits. Report that alongside tonnes of packaging avoided.
Perspective: why filling accuracy belongs in your waste plan
We talk to production managers every week, and the pattern is consistent. The packaging conversation starts with cartons and film, and the filling line gets treated as a fixed cost. It should not be. A filler that is matched to the product, whether that is a viscous sauce, a foaming cleaner or a flammable solvent, wastes less product and fewer containers. That is why we build around the product: customisable filling technology, advanced controls, hygienic construction and a modular design that can grow with the line. For bulk, weight-controlled filling suits IBCs, drums and jerrycans, which also fits the move to larger, reusable formats. Our advice is to treat packaging reduction and fill accuracy as one project. Audit the pack, then audit the fill. Set targets for both, and choose equipment that lets you hit them without constant operator adjustment. Our Australian technical support is there for the ongoing part, because a good setup still needs tuning as products and volumes change. Sandeep
Match the machine to your stage
Our range is built for different scales of operation.
Starting out or running smaller batches. Our semi-automatic liquid filling machines give a growing business controlled, repeatable fills without a full production line.
Higher volumes and continuous running. Our fully automatic liquid filling machines are designed for production lines that need steady throughput.
Bulk. Our IBC, drum and jerrycan filling machines use weight-controlled filling for large containers.
Food producers can also read our overview of top liquid filling machines for food manufacturing, and our note on user-friendly filling solutions.
Ready to cut waste at the filling head?
If you are reviewing packaging and suspect your line is giving product away or scrapping containers, tell us what you fill, at what viscosity and in what container sizes. We will help you work out which configuration suits your product. See our full liquid filling machines range or contact us through Liquidfill.

A 90-day plan to get started
You do not need a large project to begin. A realistic first quarter looks like this:
Weeks 1 to 3: Run the audit for your top three products by volume. Record component weights, annual units and rejects.
Weeks 4 to 6: Review each component against the ten principles. Shortlist changes that remove material without raising damage risk, and check recyclability of each option.
Weeks 7 to 9: Measure fill performance. Pull production mean values, scatter and reject causes. Compare the mean with your declared quantity and the legal limits.
Weeks 10 to 13: Decide. Some gains need only adjustment or better checkweighing. Others, such as unsuitable filling technology for a viscous or foaming product, need a different machine. Cost the change against the giveaway and reject figures you now have.
This order matters. Packaging changes without fill data can hide a bigger loss, and equipment decisions without an audit can be made on guesswork.
FAQ
What are some ways to reduce packaging waste in manufacturing?
Start with an audit of every component, then remove or shrink what has no function. Check recyclability, consider reuse and bulk formats, and review your filling line for overfill and rejected packs. The APCO Sustainable Packaging Guidelines give ten principles to structure the review.
How does accurate filling reduce packaging waste and costs?
Accurate filling reduces giveaway, because you can aim closer to the declared quantity, and it cuts rejected containers from underfill, overflow and spills. You must still meet the National Measurement Institute’s rules, so set targets using your measured scatter and the applicable system.
Is lighter packaging always better?
No. A lighter pack that cannot be recovered, or that breaks in transit, can create more waste than a heavier recyclable one. Compare weight, damage rates and recyclability together, and use a tool such as PREP to assess the options.
Do Australian manufacturers have to follow packaging targets?
It depends on your business and state. In NSW, eligible brand owners must meet stewardship obligations or comply with the Australian Packaging Covenant. National targets exist, and mandatory design standards have been announced as a direction, so check APCO and your state EPA for current requirements.
What should I look for in a liquid filling machine to cut waste?
Match the machine to your product’s viscosity, foaming, particulates and container size. Look for accurate, controllable filling, hygienic construction and room to scale. For bulk containers, consider weight-controlled filling.
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