25 Jun 2021
Posted in Packaging
Growing urbanization to drive Malaysia’s packaging market at 2.5% CAGR through 2025, reveals GlobalData
The Malaysian packaging industry is forecast to grow at a compound annual growth rate (CAGR) of 2.5% from 17.6 billion units in 2020 to 20.2 billion units in 2025 due to growing urbanization and hectic lifestyles of consumers, reveals GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Malaysia Packaging Industry – Market Assessment, Key Trends and Opportunities to 2025’, reveals that the industry will be driven by growth in rigid plastics which is forecast to register the fastest volume CAGR of 4% during 2020-2025. It will be followed by flexible packaging, which is projected to record a CAGR of 2.5% during the same period. Flexible packaging was the most used pack material in the Malaysian packaging industry in 2020 and accounted for a market share of 38% in 2020.
Monika Bargla, Consumer Analyst at GlobalData, says: “With growing urbanization and hectic lifestyles of consumers, there has been an increase in demand for smaller and convenient pack sizes. This is substantiated by GlobalData’s Q1 2021 consumer survey, where 58% of the Malaysian consumers cited ‘time-saving’ as an influential factor when deciding which products to purchase. Consequently, manufacturers are launching products in lightweight and on-the go packaging with emphasis on convenience features such closures & dispensing systems for reseal.”
The packaging industry in Malaysia is characterized by its strong use in the food industry, accounting for a 65.8% volume share in 2020. Within the food industry, flexible packaging was the most used pack material, followed by rigid plastics. The non-alcoholic beverages industry, with 23.5% share, was the second-largest end-use market of pack materials in 2020. In non-alcoholic beverages, rigid plastics was the most used pack material with 42.5% share in 2020.
Food industry was leading in terms of usage of flexible packaging, with a share of 87.5% in 2020.
Ms Bargla concludes: “Empowered with a wealth of knowledge from numerous avenues including social media, consumers in Malaysia are increasingly embracing ethical and eco-friendly lifestyles. This is forcing manufacturers to launch packaging formats with claims such as recyclable and eco-friendly credentials to appeal to these eco-conscious consumers. For instance, Milott Laboratories Co. Ltd. recently launched a laundry detergent under the Seventh Generation brand in a 1L plastic bottle, which is claimed to be made from 100% post-consumer recycled plastic.”