Do not take my word on this. I am just repeating what I have pieced together from different sources. HotSpot JVM uses Thread Local Allocation Buffers (TLABs). TLABs can be synchronized or not. Most of the time the TLABs are not synchronized and hence a thread can allocate very quickly. There are a large number of these TLABs so that the active threads get their own TLABs. The less active threads share a synchronized TLAB. When a thread exhausts its TLAB, then it gets another TLAB from a pool. When the pool runs out of TLABs, then Young GC is triggered or needed.
When the pool runs out of TLABs, there are still going to be TLABs with space left in them. This "unused space" adds up and is significant. One can see this space because GC is triggered before the reserved heap size or the max heap size is reached. Thus, the heap is effectively 10-30% smaller. At least that is my guess from looking at heap usage graphs.
How do I tune the JVM to reduce the unused space?