Malaysia Corrugated Packaging Market: Malaysia’s Booming Corrugated Packaging Industry

Malaysia Corrugated Packaging Market: Malaysia’s Booming Corrugated Packaging Industry

Growth of E-Commerce Boosts Demand for Malaysia Corrugated Packaging Market

Malaysia has seen tremendous growth in its corrugated packaging industry over the past decade, driven mainly by the booming e-commerce sector. As more Malaysians shift to online shopping, there is rising demand for sturdy, cost-effective, and environmentally friendly packaging materials to ship products safely. Corrugated cardboard fits the bill perfectly, and manufacturers have ramped up production to keep up with orders.

Rise of E-Commerce Drives Packaging Needs

E-commerce penetration in Malaysia grew over 25% annually from 2015 to 2020, as internet access expanded and more Malaysians began purchasing goods online. Major e-tailers like Lazada and Shopee saw explosive growth, offering a wide range of products from clothing to electronics. This surge in online orders created a parallel need for packaging. Corrugated Packaging boxes provide robust protection during shipping at an affordable price point. Their reusable nature also aligns with sustainability priorities of both consumers and companies. With e-commerce projected to continue growing strongly, packaging suppliers are well positioned for continued expansion.

Investments in Automated Production Lines 

To meet rising volume, Malaysian corrugated manufacturers have invested heavily in automation. State-of-the-art production lines allow for high throughput while maintaining quality consistency. Fully automated plants can produce thousands of boxes per hour. Popular machinery includes cutting and creasing machines, automatic slotter/cross-cutters, board printers, and robotic bag palletizers. Automation lowers production costs and improves efficiency compared to manual processes. It also helps address shortages of labor in Malaysia's manufacturing industry. Investments totaling over $100 million since 2015 have doubled annual cardboard box output capacity in the country.

Shift to Single-Ply Materials for Malaysia Corrugated Packaging Market

Another trend seen is increasing use of single-ply instead of multi-ply corrugated boards. Single-ply provides sufficient strength for most applications while yielding lighter packaging that reduces shipping costs. This is appealing to e-tailers focused on optimizing delivery expenses. Single-ply also utilizes less raw material per box, lowering material costs for manufacturers. Major players like Ecopak and Green Packaging have seen their single-ply product lines rise to over 50% of total sales. Companies developing innovative single-ply designs with moisture-resistant or anti-static properties command higher prices. Gradually, single-ply is displacing traditional materials in certain segments.

Expanding Exports to Neighboring Markets

On the back of their automated infrastructure and competitive pricing, Malaysian carton producers have begun targeting export markets more aggressively. Major trade partners like Singapore, Indonesia, and Thailand present sizable opportunities given their developing e-commerce and manufacturing industries. Brands recognize ‘Made in Malaysia’ corrugated as offering high value at affordable rates. Exports grew over 30% in 2021, with aseptic cartons and specialty single-ply varieties in high demand. Players are marketing sustainably-sourced and FSC-certified boxes to appeal to environmentally-conscious international buyers. With only around a quarter of current production exported, there remains vast headroom for growing overseas sales in the future.

Investing in R&D of New Sustainable Materials

To keep their innovation edge, Malaysian packagers collaborate actively with academic institutions. Joint R&D centers test novel biomaterials and recycling techniques. One project developed a corrugated medium made from sugarcane bagasse with comparable performance to traditional cardboard.

In Summary, another firm commercialized a kraft liner containing 30% recycled content. Government grants support such sustainability initiatives. New eco-friendly products command premium pricing in global markets seeking carbon reductions. With strategic investments, Malaysia can emerge as a leader in sustainable corrugated technology and trade proprietary greentech with other nations. Over 10% of revenues are already channeled into R&D annually across the industry.

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