The Malaysia Corrugated Packaging Market is estimated to be valued at USD 1,715.3 Mn in 2024 and is expected to reach USD 2,108.4 Mn by 2031, growing at a compound annual growth rate (CAGR) of 3.0% from 2024 to 2031.

The Malaysia corrugated packaging market is expected to witness positive growth over the forecast period, owing to rising demand from various end-use industries such as food and beverages, personal care, pharmaceuticals, and electronics.

Market Driver – Increasing Trend Towards Utilizing Lightweight Materials

The increasing trend towards utilizing lightweight materials is a major factor driving the growth of Malaysia corrugated packaging market. In recent years, there has been a significant focus on sustainability and reducing environmental impact across industries. Companies are under pressure from regulators as well as consumers to utilize materials that are lighter and produce less carbon emissions in both manufacturing and transportation.

Corrugated packaging made from materials like kraft paper provides an eco-friendly solution as it is lightweight compared to alternatives like plastic packaging. According to statistics from the United Nations Food and Agriculture Organization (FAO) from 2021, Malaysian paper production has increased over 10% since 2018 with a large percentage being kraft paper used for corrugated boards.

Manufacturers are leveraging this developmental push for sustainably sourced packaging products. The lighter weight of corrugated boxes allows for more units to be transported in a single shipment, thereby reducing overall freight charges and carbon footprint.

Market Driver – The Surge of Online Shopping and Innovations in Digital Printing Methods

The surge in online shopping over the past few years along with innovations in digital printing methods are major factors driving growth of the Malaysia corrugated packaging market. As more consumers transitioned to online channels for purchases during the pandemic, the demand for secure and sustainable packaging for delivering products safely increased exponentially. This placed packaging companies under pressure to keep up with the demand while introducing minimal environmental impact.

To address this, packagers have significantly invested in new digital printing technologies that enable customized designs, quicker turnaround times and variable short-run lots on corrugated boxes and displays. This allows e-tailers and omnichannel retailers to test promotions, launch unique designs for new products and brands, and redesign packaging based on real-time consumer feedback. According to the United Nations Department of Economic and Social Affairs, global e-commerce grew 27% in 2020 alone with predictions that one in every four Malaysian consumers will purchase goods and services online by 2023.

Market Challenge – Reusable Plastic Packaging Like Stretch and Shrink Wrap With Bulk Containers

Reusable plastic packaging such as stretch wrap, shrink wrap, and bulk containers is having a significant negative impact on the growth of Malaysia's corrugated packaging industry. As businesses and consumers become increasingly concerned about sustainability and reducing waste, many are switching to reuse-oriented plastic options for packaging and shipping goods. According to a 2021 report from the United Nations Environment Programme, reusable plastic transport packaging helped avoid over 600,000 tons of packaging waste in Malaysia that year.

Another major factor is cost savings. While corrugated packaging must be purchased new for each shipment, plastic bulk bins and stretch/shrink wrap can be reused hundreds of times with minimal additional materials. This reduces long-term packaging expenditure for companies. According to a 2020 study by Malaysia's Department of Environment, businesses reported average packaging cost reductions of 15-25% after transitioning key supply chains to reuse-oriented plastic solutions. Many companies have cited these economic benefits as a key reason for shifting away from corrugated boxes.

Market Opportunity – Increasing Emphasis on Sustainability and Eco-friendly Packaging

The growing focus on environmental protection and sustainability across Malaysia presents a major opportunity for growth in the corrugated packaging industry. Consumer awareness of environmental issues has increased substantially in recent years, driven by concerns over plastic pollution, climate change impacts and carbon emissions. According to a 2020 survey by the Department of Environment Malaysia, over 70% of Malaysians reported being willing to pay more for products with sustainable packaging. As consumer demand shifts towards eco-friendly options, corrugated packaging is well positioned to meet this demand.

Transitioning to corrugated will allow Malaysian companies to market their products as environmentally-friendly and appeal to sustainability-conscious customers. The packaging industry is also undergoing changes driven by recent regulations - in 2021, the Malaysian government announced restrictions on single-use plastic packaging to reduce plastic waste by 30% by 2025. This policy shift will create the need for alternative packaging solutions like corrugated.

Insights, By Material Type: Cost Advantage and Sustainability Initiatives

In 2024, recycled sub-segment contributes the highest market share of 76.1%, owing to cost advantage and sustainability initiatives

As the cost of virgin pulp continues to rise globally, corrugated packaging manufacturers in Malaysia are increasingly turning to recycled material to manage their input costs. Recycled pulp offers significant cost savings of up to 30% compared to virgin pulp. This makes recycled corrugated packaging highly competitive on price. Manufacturers are able to offer more affordable packaging solutions to their customers whilst still maintaining reasonable profit margins.

In addition, sustainability has become a major priority for Malaysian businesses amid the growing climate change crisis. Many companies have set environmental targets to reduce waste and carbon footprint. Using recycled corrugated packaging allows them to lower their impact on the environment. It supports the circular economy model and diverts waste from landfills. This eco-friendly perception of recycled packaging is appealing to both manufacturers and end-users.

Insights, By Board Type: Widespread Applications and Cost-Effectiveness of Single Wall Structure

In 2024, single wall sub-segment contributes the highest share of 46.7% in the Malaysia Corrugated Packaging Market, owing to its widespread applications and cost-effectiveness.

The single wall structure, also known as single faced corrugated board, is the most basic and commonly used type of corrugated board. It provides adequate strength and rigidity for many packaging applications at a competitive price. Given its widespread compatibility, single wall board satisfies a diverse range of packaging needs from small retail items to heavy industrial goods.

Being the most inexpensive option among corrugated board types, single wall offers good value for money. Its affordable price point allows manufacturers to produce bulk consumable packaging at low unit costs. This cost structure helps boost sales volumes and maximize profits. Single wall board also qualifies for the lowest freight rates since it has a lighter weight.

Moreover, single wall corrugated excels for packaging lighter and less fragile goods that do not require additional wall layers for impact protection. Its widespread applications include boxes for garments, stationery, toys, food products and more. 

The major players operating in the Malaysia corrugated packaging market include International Paper WestRock (RockTenn), Smurfit Kappa Group, Rengo, Georgia-Pacific, Mondi Group, Inland Paper, Oji, Cascades, and DS Smith.

• In March 2024, for the 18th consecutive time, International Paper was recognized by Ethisphere as one of the 2024 World's Most Ethical Companies.
• In January 2024, WestRock announced its plan to build new corrugated box plant in Wisconsin to meet growing demand from customers in the Great Lakes region.
• In February 2024, Smurfit Kappa announced €54 million investment in Spanish Bag-in-Box plant to double the capacity of their Ibi Bag-in-Box plant in Alicante and reduce the carbon footprint.
• In October 2023, Rengo subsidiary Tri-Wall acquired manufacturer of heavy duty packaging materials to meet the corrugated packaging, warehouse management and logistics services of heavy duty packaging materials.
• In February 2024, Mondi partnered with Veyzle, WEPA, and Soprema to enhance the circularity of release liner production waste through collaborative efforts. This partnership has helped to achieve hygiene paper, such as toilet paper and paper towels from Mondi's production waste.

• By Material Type
  • Virgin
  • Recycled
• By Board Type
  • Single Face
  • Single Wall
  • Double Wall
  • Triple Wall
• By Product Type
  • Boxes
  • Crates
  • Octabins
  • Pallets
  • Others
• By End Use Industry
  • Electronics and Electrical
  • Home Care Products
  • Food & Beverages
  • Personal Care Products
  • Transportation & Logistics
  • Healthcare
  • Others