The Malaysian packaging industry is projected to grow from 20.8 billion units in 2023 to 23.7 billion units by 2028, with a compound annual growth rate (CAGR) of 2.7 percent. This growth is primarily driven by increased consumption of food and beverage products. Top packaging materials used in the food and beverage industry include flexible packaging, paper and board, rigid plastics, rigid metal, and glass.

Flexible packaging is the most widely used material in the food industry, largely due to its lightweight nature and portability. Since the packaging is resealable, it can be reused and recycled several times, making it a practical option for storing and protecting food items. Paper and board packaging are also frequently used for dairy products, soy-based foods, and soft drinks. The material is eco-friendly and also offers a long shelf life without refrigeration.

Rigid plastics are another popular packaging material, especially for soft drinks and other non-alcoholic beverages, due to its cost-effectiveness and convenience. However, there are rising concerns over the material’s non-biodegradable nature, which may negatively impact its future growth in the market. Rigid metal packaging is also commonly used for soft drinks for its convenience and aesthetic design. Lastly, glass packaging is typically used for soft drinks, seasonings, sauces, and dressings. The material is recyclable, impermeable, and elevates the product’s visual appeal.

In Malaysia, consumer preferences are increasingly shifting toward recyclable and environmentally friendly packaging, driven by growing awareness of the negative environmental impact of plastic packaging. Convenience and easy-to-use packaging are also important to consumers, as they prioritize packaging that is easy to open, resealable, and portable. Additionally, sustainable and environmental packaging features influences consumers’ purchasing decisions.

Based on GlobalData’s research in 2023, consumers have shown a preference for hygienic packaging and plastic-free packaging, and they tend to be more loyal to brands that support environmental causes. However, consumers are also more likely to boycott brands that do not align with their personal beliefs and values. Besides that, older consumers will prioritise low cost over environmentally friendly packaging.

As part of the Malaysian government’s efforts to promote sustainability, the Ministry of Environment and Water introduced the Malaysia Plastics Sustainability Roadmap (2021-30). This initiative seeks to improve the sorting and recycling of post-consumer plastics. It aims to recycle 25 percent of plastic packaging by 2025, and achieving 100 percent by 2030.

References

Global Data. Opportunities in the Malaysian Packaging Industry 2025-2028.