18 Dec 2020
Posted in Packaging
Malaysia’s packaging market to reach 18.5 billion units at 3.8% CAGR by 2024, says GlobalData
The packaging sector in Malaysia is expected to reach 18.5 billion units by 2024 at a compound annual growth rate (CAGR) of 3.8% for the forecast period of 2019-2024, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Malaysia Packaging Industry – Trends and Opportunities’ reveals that the sector is majorly driven by growth in the paper & board packaging, which is forecast to register the fastest volume CAGR of 9.8% during 2019–2024. The category is followed by flexible packaging, which is expected to record a CAGR of 2.7% during the next five years.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Increasing demand for ready-to-eat foods is driving consumer preference for smaller portions with resealable options. This is driving the demand for flexible packaging material, the leading material by volume, in the Malaysian food industry. Meaning, the paper & board packaging demand is surging on the back of rising inclination towards eco-friendly packaging among the urban population who mostly skew towards sustainable packaging.”
Food industry characterized the most use of packaging in Malaysia and accounted for 60.3% market share. It was followed by non-alcoholic beverages and ‘other industries’ with shares at 26.6% and 6.5%, respectively.
Flexible packaging was the most consumed pack material in Malaysian packaging industry and accounted for a market share of 40.9% in 2019. It is expected to reach 38.8% by 2024. Rigid plastics and rigid metal were the other popular pack materials.
Food industry was leading in terms of usage of flexible packaging, with a share of 86.8% in 2019. It was followed by “other industries” which accounted for a share of 5.2% in the same year.
Ms Anchal concludes: “Aesthetics are gaining prominence among the growing urban Malaysian consumers with improved living standards, encouraging companies to innovate packaging to stand-out on retail aisles and foster consumer engagement. Besides, manufacturers are introducing packaging formats with claims such as recyclable and eco-friendly attributes so as to gain trust among the consumers in the backdrop of the growing concerns for environmental impact of packaging.”