Why are pizzas served in square boxes, what a waste of cardboard paper! right?
There would be the same amount of wasted paper, assuming everything is recycled. The problem is that there has to be a use for the punched out remains from the sheet of cardboard used to make the round boxes. The exact same issue is when bottlecaps are made (they are round initially, then crimped to stay on the bottle. They are punched from a sheet of tin, which winds up looking like a long flat swiss cheese. So do you know what they use them for? Furnace filters. Look at what holds the filters together; its what is left from a bottlecap production run.