Evolution of Corrugated Packaging

Packaging has evolved tremendously over the years to meet the needs of Malaysia's growing economy. During the early years of Malaysia's independence, simple packaging materials like cardboard boxes, paper bags, glass bottles and metal cans were commonly used. As consumerism began rising in the 1980s and 1990s, multi-national companies entered the market with more sophisticated packaging options. Plastic packaging like shrink wraps and bags started becoming popular for processed foods and beverages. Aluminium foils were introduced for confectionery items. Corrugated cardboard packaging gained widespread usage for protecting products during transportation and storage.

The Rise of Corrugated Packaging

Cargo container has emerged as the most widely used material in Malaysia due to its several advantages over other options. Being lightweight, strong, recyclable and affordable has made corrugated cardboard boxes the package of choice for a variety of industries. The food and beverage sector utilizes corrugated boxes extensively for shipping items like cereals, snacks, canned goods, drinks and frozen products. Electronics, home appliances and furniture companies depend on custom-made corrugated containers to protect delicate items during shipping. Other major end-use segments include automotive components, construction materials, textiles, chemicals and pharmaceuticals.

The Malaysian cargo container market was valued at RM2.39 billion in 2017 according to industry reports. Corrugated Packaging Sustained economic growth, expansion of e-commerce and rising exports have fueled demand. Total corrugated box production rose from 1.8 million tons in 2010 to over 2.3 million tons in 2020. Consumption per capita has also grown from 66kg to 78kg during this period indicating higher packaging usage. The cargo container market is projected to surpass RM2.75 billion in revenue by 2023, registering a steady CAGR of 4-5%.

Raw Material Trends

Recycled linerboard and testliner continue to be the dominant raw materials used by corrugated manufacturers in Malaysia. However, virgin kraft linerboard is gaining acceptance due to its superior print quality, brightness and strength properties required for high-end packaging applications. Total kraft pulp imports grew by 5-7% annually over the last five years to meet the raw material needs of the packaging industry. Domestic pulp producers only fulfill 30-35% of the total market demand, with the remainder fulfilled through imports from Indonesia, Brazil, Chile and Nordic countries. High quality virgin fibers from Southeast Asian plantations are boosting kraft pulp imports over recycled pulps in recent times. Rising input costs remain a challenge as manufacturers strive to maintain competitive prices.

Technology Advancements

Technology adoption has accelerated enormously within Malaysia's cargo container sector over the past decade. Fully automated corrugators capable of up to 90,000-100,000 sqm per day are replacing older semi-automated machines. State-of-the-art equipment with integrated printing, quality inspection and automation systems optimizes productivity. Computer-aided design (CAD) programs and 3D scanning tools are allowing custom designs to be created faster. Flexographic and digital printing options enable multi-color flexible designs, barcodes and serialization. Technological upgrades are key for manufacturers to meet growing volumes, comply with evolving quality standards and differentiate offerings through design innovation. Investments in Industry 4.0 concepts like IIoT, remote monitoring, predictive maintenance and cloud-based services are also underway.

Growth Opportunities

E-commerce expansion is a major factor opening up opportunities for cargo container producers in Malaysia. Online sales more than doubled during the pandemic and are forecast to grow at an annual rate of 20% or above in the coming years. This proliferation of single-item deliveries and home shopping requires innovative e-commerce packaging formats to safeguard parcels. Developing innovative solutions compliant with delivery standards will be pivotal. High exports of electronics and medical devices showcase need for advanced protective solutions. Biodegradable corrugated Made-from-Nature products are gaining traction globally for sustainable packaging. Malaysian companies can capitalize on these avenues by developing new product lines and markets abroad through strategic partnerships/acquisitions. Specialized training programs and equipment upgrades would help build sectoral competence.

Sustainability Commitments

Malaysia's transition towards a greener circular economy mandates packaging producers to adopt sustainable practices. Corrugated manufacturers are proactively supporting collection/reuse programs through partnerships with retailers, local councils and waste processors. Many facilities have transitioned to 100% renewable energy for reduced emissions. Investments in waste recovery machinery enable over 90% of cardboard residues from factories and warehouses to be recycled back into raw materials. Membership in sustainability initiatives like the Malaysia Sustainable Palm Oil certification process encourages use of renewable biomass. Advocacy events spread awareness on benefits of corrugated, which as a renewable resource can be recycled endlessly. Collaborative actions will be vital for Malaysia's corrugated sector to establish leadership in sustainable packaging worldwide.

Malaysia's cargo container industry plays a pivotal role in the manufacturing supply chain by safeguarding products effectively during domestic and export transport. Continuous technology innovations, skilled workforce development and strategic focus on new markets/offerings like e-commerce and biodegradable options provide opportunities to enhance competitiveness. Addressing rising input costs while strengthening sustainability performance will be crucial for the sector to thrive in the coming years as consumerism and trade continue expanding. Collaborative efforts between stakeholders can maintain Malaysia's prominence as a regional hub for world-class cargo container production.

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About Author:

Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.

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