The Malaysia Packaging Industry – Market Assessment, Key Trends and Opportunities to 2025 report predicts that Malaysia’s packaging market will grow from 17.6 billion units in 2020 to 20.2 billion units by 2025, showing a steady increase of 2.9% each year.
In 2020, rigid plastics and flexible packaging were the two most popular types of packaging in Malaysia. In 2021, about 18.4 billion packaging units were sold in Malaysia. The forecast suggests that the market will grow by over 3% continuously.
Among packaging materials, glass had the smallest share, while flexible packaging was the most widely used.
Flexible packaging and rigid plastics seized the lion’s share of Malaysia’s packaging industry in 2020, accounting for the largest market segments. The subsequent year witnessed a surge in packaging units sold, hitting 18.4 billion units, and poised to maintain a growth rate exceeding 3%.
Among these, flexible packaging emerged as the frontrunner, mirroring the consumer preference for convenient, on-the-go options.
Key Segments in Food Packaging: Flexible Packaging, Rigid Plastics, Rigid Metal, Paper & Board, and Glass
Flexible packaging, especially when it comes to soft drink packaging, holds its popularity mainly because of the high importance placed on convenience. Consumers prefer this packaging type due to its ease of use, portability, and practicality, matching perfectly with the on-the-go nature of soft drink consumption.
The surge in bottled water consumption bolsters the use of PET bottles, aligning with the consumer inclination towards health-centric beverages. Convenience remains the driving force behind rigid plastic usage in the food industry.
Canned food caters to the needs of busy consumers seeking portable meal options. Concerns over plastic packaging led to a resurgence in interest in metal packaging, notably in the pet food sector and fueled by e-commerce trends.
Packaging made from paper and board, celebrated for its portability and durability, finds favor due to its eco-friendliness and extended shelf life without refrigeration.
Glass packaging, witnessing substantial demand in industries like beer, cider, seasonings, dressings, sauces, and oils, is projected for significant growth in the food sector.
Attributes like portability, affordability, and durability boost the use of rigid plastics, while the sturdiness of cans and their gas-retaining abilities contribute to their rising popularity. Paper and board gain ground due to their lightweight nature, extended shelf life, and eco-friendly disposition.
Flexible packaging’s affordability and adaptability fuel its expansion, while glass packaging stands out for its preservation qualities across diverse sectors.
The future of food packaging in Malaysia will likely depend on evolving consumer preferences, technological developments, and regulatory frameworks. Key trends on the horizon include:
Leveraging IoT, smart packaging solutions could offer real-time information on product freshness and safety, offering consumers informed choices and potentially reducing waste.
The industry is anticipated to lean towards eco-friendly materials like bioplastics and recyclable options to mitigate environmental impact, in response to heightened environmental consciousness among consumers.
Expect more user-friendly packaging solutions such as easy-open features and microwave-safe options to match the growing preference on convenience.
Stricter regulations and tech-based solutions like blockchain may take center stage to bolster food safety measures amidst concerns over foodborne illnesses.
Malaysia’s position in Southeast Asia offers a chance for food packaging companies to grow beyond the borders of the country. Being part of the ASEAN Free Trade Area (AFTA) allows Malaysia to sell its products to other nearby countries, and joining trade deals like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) opens up even more opportunities for Malaysian food packaging items in the global market.
Adopting biodegradable and smart packaging technologies can enhance sustainability, reduce waste, and improve consumer convenience.
Similar to previous years, urbanization and hectic lifestyles are fueling a higher demand for packaged food, presenting a ripe opportunity for innovative packaging solutions.
The size of the world’s food packaging market is predicted to grow from US$ 353.7 billion in 2023 to US$ 592.8 billion by 2033. In 2022, the global food packaging industry was worth US$ 335.9 billion. Between 2023 and 2033, it’s estimated that sales in the global food packaging sector will increase at an annual growth rate of 5.3%.
While in Malaysia, the outlook remains positive. The coming changes in food packaging in Malaysia will blend new ideas, sustainability, and what people need. As the industry moves forward, focusing on plastics that break down naturally and are safe for food can make packaging better for the environment.
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