Malaysia Plastics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Malaysia Plastics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Malaysian plastics market recorded a volume of around 2,500 kiloton in 2021. The market is projected to register a CAGR of more than 3% during the forecast period.

The Malaysian plastics market registered growth in 2021 as governments eased the restrictions imposed during the pandemic. There was a huge demand for flexible packaging due to the growing demand for personal and healthcare products, pharmaceuticals, and packed food and beverages. According to JEITA, global electronic product manufacturing, including laptops, mobile phones, semiconductors, and other items, grew by 11% Y-o-Y to USD 3,360 billion in 2021. It is projected to reach USD 3,536 billion in 2022, which may influence the bioplastic demand.

Key Highlights

• The rising demand for plastics from the food and beverage packaging sector may drive the market in the short term.
• Potential growth in the aerospace sector, increasing usage of biodegradable plastics, and increased recycling activities are likely to act as opportunities for the market over the forecast period.

Malaysia Plastics Market TrendsRising Demand from Food and Beverage Packaging Applications

• Packaging accounts for the largest application segment in the Malaysian plastics market. The prime reasons for the growing application of plastics in the packaging segment include better wear and chemical resistance, ease of molding, recyclability, puncture resistance, and high mechanical strength.
• According to the Malaysian Reserve (local information provider owned by TMR Media Sdn Bhd), Malaysia’s annual per capita plastic packaging consumption is high among the Southeast Asian countries, at 16.78 kg/person. The total household plastic packaging consumption in the country reached 523,000 metric ton by the end of 2021.
• Other local packaging manufacturers include Malaysia Packaging Industry Bhd, Bemis Flexible Packaging Sdn Bhd, Amcor Ltd, Daibochi Plastic and Packaging Industry, and Bisson Flexipack Sdn Bhd.
• In 2020-2021, robust demand from the country’s local plastic packaging manufacturers propelled its strongest gains. For instance, Scientex Bhd, the flexible plastic manufacturer for various industrial and consumer applications, registered its highest turnover of MYR 3.7 billion for the financial year ending in July 2021, up by 3.9% compared to 2020.
• Such factors are expected to increase the demand for plastic packaging in the country during the forecast period.

Increasing Demand for Bioplastics

• Bioplastics are substances made from biological sources through different processes. They are mainly developed as alternatives to conventional plastics.
• Bioplastics have applications in flexible packaging, rigid packaging, agriculture and horticulture, consumer goods, and textiles. They are used as packaging materials for wrapping premium and branded organic food. Rigid bioplastics are used for packaging cosmetic creams and products.
• Bioplastics are mostly used in the food sector for products like food trays, yogurt cups, and cutlery. The popularity of bioplastics is increasing in the medical, agriculture, consumer electronics, sports, and automotive sectors.
• Bioplastics provide the packaging industry with a renewable, sustainable option for various uses. According to European Bioplastics data, in 2021, the global bioplastic production capacity was around 2.417 million ton.
• Such factors are expected to boost the demand for bioplastics and drive the Malaysian plastics market in the coming years.

Malaysia Plastics Market Competitive Analysis

The Malaysian plastics market is consolidated due to the limited presence of plastic resin manufacturers in the country. Most market players import raw materials from other countries, including China, Japan, and Southeast Asian countries. The major players (not in any particular order) include Toray Plastics Sdn Bhd, Lotte Chemical Titan Holding Berhad, Behn Meyer Malaysia Sdn Bhd, PolyplasticsAsia Pacific Sdn Bhd, and Malayan Electro-Chemical Industry Co. Sdn Bhd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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