How to reduce packaging waste
The world produces 141 million tonnes of plastic packaging every year. 13 million tonnes of this is used for protective applications such as bubble wrap (LDPE). That’s a lot of bubble wrap that ends up in a landfill or, worse, the ocean. It’s used for just a few days, and then it's a problem for hundreds of years.
We think that’s a terrible trade-off.
We’ve built our entire business around finding better ways to pack and ship things. We use waste wool instead of plastic and design everything reusable or recyclable. Packaging doesn’t need to pollute to do its job.
In this guide, we share what we’ve learned — from reducing waste in our operations to smart ideas we’ve seen elsewhere. We offer real-world solutions, not fluffy promises. Let’s make packaging better.
How packaging waste is harming the environment
Packaging waste is doing more damage than it needs to. It pollutes, burns through natural resources, and contributes to greenhouse gas (GHG) emissions, only to become trash after just one use.
The single-use mindset is especially problematic when it comes to plastic packaging. Around 36% of all plastic is used to make packaging, 85% of which ends up in landfills. If it’s lucky, it gets collected for recycling — but only a fraction of the collected plastic actually gets recycled. The rest leaks into the environment, polluting soil, water, and air with microplastics. Spoiler: It’s bad for everyone — animals and people included.
This isn’t news. But somehow it’s still happening. The good news? It’s fixable. Smarter packaging design and better materials — ones that are renewable, biodegradable, or recyclable — can replace plastic. Even some of the largest companies in the world like LVMH Moët Hennessy Louis Vuitton are getting rid of plastic in their supply chains.
Sadly, many companies are also pushing back their sustainable packaging goals. For example, L’Oréal Groupe failed to meet several of its sustainability targets for 2024, missing its 100% recyclable, reusable, refillable, or compostable plastic packaging goal by 47% (having produced 50,462 tonnes of non-recycled waste).
Changing an entire industry isn’t an easy feat, especially because companies and consumers are stuck in the single-use packaging mindset.
But we believe where there’s a will, there’s a way. With many innovative companies focusing on sustainable materials, products, and systems that truly reduce waste, a serious change is not only possible but inevitable.
It’s not perfect, but better. One glass bottle, Wool Envelope, or recycled box at a time.
8 Ways you can reduce packaging waste
At Woola, we know the packaging waste problem won’t solve itself. Besides dedicating our entire business to reducing the use of plastic, we’ve also invested a lot of time into reducing the packaging waste we create. Below, we share our waste reduction tactics — from ditching plastic bubble wrap to setting up a packaging return system.
We also include case studies from other companies that are doing it right. The more examples we have, the easier it is to stop doing things the old way.
1. Conduct a packaging audit
If you want to cut packaging waste, start by figuring out where the waste is coming from.
A packaging audit is a full breakdown of what you’re using, how you’re using it, and where it’s all going. Materials, design, supply chain — the whole thing. It’s not thrilling, but necessary.
Woola's founding story is rooted in a realisation of how much packaging waste an e-commerce business generates.
Our founders, Anna-Liisa and Jevgeni, were running an online shop and wanted to find better solutions for their packaging waste.
They noticed there aren’t many sustainable alternatives to plastic bubble wrap, and they were inspired to take matters into their own hands.
Performing a packaging audit at your company can help kickstart your waste reduction journey, too.
Case study: IKEA
IKEA is also doing the work. They’re aiming to eliminate plastic packaging for all consumer products by 2028. And they’re not just talking about it — in FY2023, they cut plastic use in product packaging by 47% compared to FY2021. They’re moving fast, and it’s working.
2. Adopt minimalist packaging
Minimalist packaging isn’t only an aesthetic decision — it’s about using only as much as you need. Fewer materials mean less waste and easier recyclability. And guess what? Customers actually prefer it. There are no fiddly layers, no plastic sleeves that serve no purpose, and just a smart, straightforward design that does the job.
Woola’s packaging design has a clear goal: protect the product using as little material as possible. Everything unnecessary gets cut. What’s left is functional, durable, and easy to reuse or recycle. Our packaging solutions respect your product and the planet.
Case study:
Tesco and ASDA stripped pointless plastic film from their packaging. The result? Less waste, lower costs, and a better fit with customers who care about reducing packaging waste.
3. Utilise sustainable materials
Switching to lower-impact materials makes a big difference. Better packaging materials can be renewed, reused, or recycled and degrade in a matter of months (as opposed to decades or centuries like plastic). We’re not punting sustainable materials to create a trend — we firmly believe it’s the future of packaging if we’re serious about reversing climate change.
That’s why we use waste wool. It’s regenerative, compostable, and does the job better than plastic. Turning a leftover material into protective packaging isn’t just good for the planet — it also means we’re not creating something new just to throw it away later.
Case study:
Mademoiselle bio is a French sustainable cosmetics brand that’s been around for almost a decade.
While their hair and skincare products have grown in popularity (bringing in $11.8 million in revenue in 2024), they weren’t satisfied with using plastic packaging for shipping.
They also recognised that plastic wrapping spoiled the unboxing experience for their customers, who are invested because they want to support a sustainable brand. Mademoiselle bio replaced their plastic packaging envelopes with Wool Envelopes that provide sustainable packaging with a luxury feel.
4. Optimise packaging design
Packaging that actually fits the product? It’s not exactly revolutionary, but it's rarer than you think. In a random sample of 42 parcels, we found that half had wrong-sized packaging. Right-sizing packaging saves materials, lowers shipping costs, and reduces the chance of items breaking in transit.
Less space in your packaging means fewer fillers, smaller boxes, and fewer trucks hauling air.
At Woola, we design our packaging to match the product as closely as possible. We’re not interested in oversized boxes or overengineered padding. Our wool-based packaging protects fragile items with the least material and without compromising safety.
Case study:
DHL ran its own numbers. Using its OptiCarton analysis, it cut packaging volume by 5%. That’s less material used, more boxes per shipment, and fewer emissions per delivery.
5. Implement circular packaging systems
Getting suppliers and consumers on board with reusable packaging is one of those long-term wins that pays off twice: less waste and lower costs. Keeping any material or product already produced in the loop is nearly always better than producing more.
We’ve built our wool packaging to last through more than one journey. We also run a retrieval system that encourages customers to return used packaging to us. If it’s still in good shape, we reuse it. If not, we recycle it into new products. Simple, circular, no waste.
Refilling and reusing isn’t groundbreaking — it’s just smart. The more companies build circular packaging systems into their value chain, the more normal it becomes.
6. Educate consumers on recycling
Most customers want to do the right thing. They just need to know how. Clear instructions on what to do with used packaging can turn a one-time shipment into part of a bigger sustainability loop.
At Woola, we’ve made sure the end-of-use instructions are easily available on all our packaging. As wool is a naturally high-tech material, we encourage people to reuse or return the packaging. As a last resort, they can recycle our wool packaging.
7. Collaborate with suppliers
Sustainable packaging doesn’t start at the warehouse but at the source. Working with suppliers who share your values is one of the most effective ways to reduce waste.
We source our wool directly from local small-scale sheep farmers in Estonia. This wool would otherwise be discarded, and by working closely with our suppliers, we ensure it’s collected responsibly and fairly.
Keeping your supply chain short, sustainable, and traceable is a great way to reduce waste.
8. Use technology for efficiency
Automation can increase your speed and precision. Smarter packaging tech helps businesses use exactly what they need (and not a gram more), which means less waste and more efficient operations.
We use a proprietary manufacturing method to shape wool into protective, scalable, and low-waste packaging. Tech helps us do this consistently without over-engineering.
Plenty of companies are taking this approach. From custom-fit packaging machines to AI-designed materials, technology is driving a new wave of sustainable alternatives that work at scale and don’t rely on plastic for their success.
5 Alternative packaging ideas
Innovation in packaging doesn’t mean reinventing the box — it means finding materials that don’t wreck the planet. The goal? It has the same function, way less environmental baggage. Here are a few materials we’re keeping our eye on (and one we already use):
1. Fibre-based packaging
Plastic shrink wrap? Not ideal. Companies like WestRock and Atlantic Packaging are moving to fibre-based multipack alternatives — like Canopy — which are part of a bigger shift toward paper-based, curbside-recyclable solutions. Less plastic, more common sense.
2. Seaweed-derived materials
Fast-growing, naturally compostable, and now — packaging. Seaweed is being turned into flexible, plastic-like materials without the microplastic aftermath. Companies like Notpla and Sway are already offering seaweed packaging at scale.
3. Wool-based protective packaging (that’s us)
Sheep must be sheared for their well-being, but waste wool doesn’t meet the standards for making clothes. Shepherds prefer to burn or compost their waste wool because it’s not valued appropriately in the marketplace.
At Woola, we support local farmers and turn waste wool into packaging that protects fragile products in transit.
Wool is a wonder material that holds benefits at each stage of its lifecycle:
Not reliant on fossil fuels, unlike plastic.
Lightweight and compostable.
Water-resistant and fire-retardant.
Easily adjustable for different shapes and sizes.
Luxury look and feel.
Durable and reusable.
Bonus: Woola packaging gives a new life to something that would otherwise be thrown away.
4. Mushroom packaging
Mycelium — the root system of mushrooms — is being grown into packaging that can replace Styrofoam. It’s sturdy and biodegradable, and once you’re done with it, it returns to the soil. Like nature intended.
5. Leaf-based packaging
Paper is biodegradable, but it requires massive amounts of energy to cut down trees (which isn’t sustainable at the current rate), transport wood, and produce pulp. It takes decades for full-grown trees to be replaced, and we need them to clean our air and regulate the climate. Plus, paper is often chemically treated, which isn’t good for the environment.
ReLeaf is founded on sustainable paper packaging made from fallen leaves — a natural resource that would otherwise be burned or composted. Their bags can also be recycled over and over, successfully creating a circular economy.
Time to win the waste game
Reducing your company’s packaging waste probably seems like a big task. Our last bit of advice is to start small with reducing packaging waste — but don’t stay there.
The more you learn about materials and what happens to them after use, the more you’ll grow in your sustainability journey. Once you’ve performed your packaging audit, you should be able to clearly distinguish areas where you can take immediate action. For example, by replacing all the bubble wrap you use for product packaging.
Don’t wait until you have it all figured out. Start today. Check out our customisable packaging solutions and order your free Woola samples.
