Malaysia Corrugated Packaging Market Trends

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.