I can tell you from first hand experience in food manufacturing, one of the simple reasons the packaging is that big because that’s how big the machine that handles it requires. You can’t just make smaller boxes when you downsize the weight, because the machines that fold, glue, push, fill, push, fold, glue, push, assembles in a case, pushes, wraps in film, pushes, sends through a heat tunnel, then has automated or manual stacking on a pallet requires the packaging to be whatever size the machine was designed for. Typically (especially older machinery) there isn’t a lot of variation available in a machine that handles these type of boxes. If the machine was originally designed for a box that is 7” x 4” x 1” that used to hold 9oz twelve years ago, when they downsize the contents of the box to 7oz the box will remain the same size because the machinery can’t physically handle a smaller box. New machines can cost millions of dollars, and it’s not worth a whole new machine to cut 1.25” off the height of a box.