MALAYSIA PLASTIC PACKAGING MARKET

Malaysia plastic packaging market is forecast to grow at a CAGR of 4.1% during the forecast period between 2025-2032, driven by rising income and the surge in ecommerce.

Major Drivers and Emerging Trends

Malaysia plastic packaging market size growth is largely attributed to rapid urbanization and the rise in consumer income. Over 78% people in Malaysia resides in urban areas which makes it among the countries with the highest urbanization rates in Southeast Asia. The middle class in the country has also experienced growth driven by strong economic progress and improved education standards. The growth in income further improves living standards and stimulates spending on consumer goods which in turn boosts the demand for plastic packaging.

The other factor supporting Malaysia plastic packaging market growth is the growing ecommerce. Malaysia has seen a consistent rise in ecommerce users largely due to improved internet penetration and increased smartphone adoption. Internet access is available to more than 80 percent individuals in Malaysia and more than half owning smartphones which position ecommerce market for considerable growth. The surge in ecommerce is driving the increasing demand for plastic packaging as it not only protects products but also enhances customer experience and provides essential information.

Malaysia stands out in Southeast Asia with a yearly plastic packaging usage per person of 16.78 kg. Malaysia has also become an attractive manufacturing base for companies in the plastic compound and raw materials industries as more global firms choose to base their operations there. The booming domestic plastic processing sector in the country benefits from a robust petrochemical industry which provides the essential materials for plastic production.

Malaysia ranks among the leading plastic producers and suppliers of plastic bag in Asia as it exports various plastic products to markets like the European Union and China. As a developing country Malaysia appears to consume a significantly larger quantity of plastic bags daily especially for food packaging. Plastics are favored by business owners and consumers due to their key characteristics including affordable and lightweight. It is also resistant to corrosion and offers high thermal insulation.

Based on material, Polyethylene is widely utilized in the market. PE has become crucial especially in the packaging industry where it is used in bottles and plastic bags. It comes in various forms including LDPE and HDPE. The packaging sector has seen significant growth in recent years with the rising need for packaged goods which drives the need for HDPE. The growing income along with rising demand for products such as packaged foods and personal care items are further driving the rapid segment growth.

Based on product, flexible packaging holds the highest consumption rate in Malaysia. It is a popular choice in the food sector because it offers convenience and portability. Its popularity is also driven by its transportation efficiency which minimizes the carbon footprint and boosts its sustainability.

Based on application, the food & beverages segment led the market. The estimated annual consumption of food plastic packaging in Malaysia for 2020 was 148,000 metric tons. Flexible packaging dominated the food sector with dairy and noodles serving as the main end users. This growth is further propelled by a resurgence in consumer spending supported by improvements in income and employment.

Top Market Players

Several key companies in the market include Polymart Packaging, Benxon, Adventpac, Toray Plastics, among others.

Key Developments

• • In 2023, Mitsui and FP signed an agreement to acquire all shares of Lee Soon Seng Plastic Industries Malaysia from SCGM Bhd. LSSPI produces and markets food storage containers with specialized features primarily serving the Southeast Asian region.
  • In 2023, Sabic and Scientex launched first flexible packaging for food in Malaysia made from recycled plastic sourced from coastal regions. The packaging is the first of its kind in the world and launched at leading retail outlets nationwide.

Segments covered in the Report:

The Malaysia Plastic Packaging Market has been segmented on the basis of Material, Product, and Application. Based on the Material, the market is segmented into Polyethylene (PE), Polyethylene Terephthalate (PET), Polypropylene (PP), Polystyrene, Expanded Polystyrene, Polyvinyl Chloride, Bio-based Plastics, and Others. Based on the Product, the market is segmented into Rigid and Flexible. The Rigid segment is further segmented into Bottles & Jars, Cans, Trays & Containers, Caps & Closures, and Others. The Flexible segment is further segmented into Wraps & Films, Bags, Pouches, and Others. Based on the Application, the market is segmented into Food & Beverages, Industrial Packaging, Pharmaceuticals, Personal & Household Care, and Others.

Market Segmentation

Malaysia Plastic Packaging Market by Material

• • Polyethylene (PE)
  • Polyethylene Terephthalate (PET)
  • Polypropylene (PP)
  • Polystyrene
  • Expanded Polystyrene
  • Polyvinyl Chloride
  • Bio-based plastics
  • Others

Malaysia Plastic Packaging Market by Product

• • Rigid
    • Bottles & Jars
    • Cans
    • Trays & Containers
    • Caps & Closures
    • Others
  • Flexible
    • Wraps & Films
    • Bags
    • Pouches
    • Others

Malaysia Plastic Packaging Market by Application

• • Food & Beverages
  • Industrial Packaging
  • Pharmaceuticals
  • Personal & Household Care
  • Others

Malaysia Plastic Packaging Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Polymart Packaging
  • Benxon
  • Adventpac
  • Toray Plastics