Rise of Malaysia Corrugated Packaging Market

The rapid growth of e-commerce in Malaysia has been a major driver of increased demand for corrugated packaging over the past 5 years. With more Malaysians shopping online for everything from clothes to electronics to groceries, packaging has become essential for securely delivering products to consumers. Leading online retailers like Lazada and Shopee now rely heavily on corrugated boxes, wraps and sheets to package millions of orders every year. This has created a steady stream of work for corrugated packaging manufacturers as online shopping continues expanding in Malaysia.

Investment in Malaysia Corrugated Packaging Market

To keep up with rising orders from e-commerce companies and other industries, Malaysian Corrugated Packaging  producers have been heavily investing in new converting machinery. Major players like The Unipack Group, Econpack and Maybulk have poured funds into state-of-the-art bagmaking, die-cutting and folding equipment. This allows them to produce a wider variety of corrugated products at higher speeds. It also improves automation to reduce labor costs and pass on more competitive pricing to customers. Over the past 3 years, over RM250 million has been invested in new converting lines across the country. This investment aims to upgrade Malaysian manufacturers and solidify their positions as reliable suppliers both domestically and in the export market.

Growing Export Business

With new production capabilities coming online, Malaysian corrugated packaging export volumes have increased sharply in recent times. Major export markets include Singapore, Brunei, Indonesia, Vietnam, India and China. Export success stems from competitive costs, a strategic location near key Asian economies, and reliable supply chain integration abilities. Local manufacturers can now supply international retail brands, frozen food processors and equipment makers with customized corrugated packaging solutions. Export revenue is projected to rise over 15% annually through 2025, contributing significantly to overall industry growth. Service level agreements and just-in-time delivery networks ensure customers abroad receive constant packaging supplies.

Sustainability Initiatives Gain Focus

As environmental sustainability rises up the agenda, corrugated packaging producers in Malaysia have stepped up efforts to develop and promote greener product lines. Many convert 100% of their waste material back into raw material for new boxes. Advanced designs allow easier recycling and reuse of corrugated material after delivery. Biodegradable adhesives and liners are also gaining popularity. Manufacturers implement ISO14001 environmental management systems and invest in technologies like biofuel generators. Education initiatives emphasize corrugated packaging's renewable nature compared to plastic alternatives. These sustainability initiatives aim to strengthen Malaysia's position as a responsible packaging partner both within ASEAN and on the world stage.

New Manufacturing Technologies Adopted

While traditional corrugated packaging manufacturing still accounts for the bulk of local industry output, new technologies are growing in adoption. Fully automated corrugators employ smarter control systems and servo drives for higher throughput with lower defects. Digital diecutters and flexographic/rotogravure printing lines offer ultra-precise customized designs in shorter runs. Robotics are utilized more in operations like stacking of boxes. Artificial intelligence and Internet of Things applications also enter the scene - like defect detection systems integrated with maintenance schedules. Such advanced manufacturing aids optimization of processes industry-wide. It ultimately supports the goal of remaining a competitive and innovative Packaging hub in Asia.

Growth Outlook Remains Strong

Despite short term economic headwinds from the COVID-19 pandemic, analysts project continued robust growth for Malaysia's corrugated packaging industry in the coming years. Underlying demand drivers like increasing e-commerce penetration and exports to Southeast Asia are projected to sustain mid-single digit annual volume increases. As manufacturers consolidate and upgrade facilities, conversion capacity and capabilities will expand to capture more business within and outside the country.

 In Summary, sustainability will remain a key focus area to satisfy commitments under the Paris Agreement. If innovation in products, services and technologies continue at present levels, the Malaysian corrugated packaging industry is well positioned to realize its potential as a major regional packaging powerhouse.

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