Rising food consumption to fuel Malaysian packaging market's growth
GlobalData PLC business development manager Paul Saruviar said cost-effectiveness, convenience, and sustainability are making flexible packaging the fastest-growing segment in the sector.
'The food industry will continue to be the growth engine, accounting for up to 60% of packaging demand. With shifting consumer preferences and regulatory pressures, flexible packaging has emerged as the go-to solution for manufacturers across food and beverage categories,' he said in a presentation at the 'Unpacking Malaysia-Thailand Trade & Packaging Opportunities Ahead of ProPak Asia 2025' event today.
At the same time, he said, sustainability has moved from optional to essential, adding that industry players are expected to comply with the Malaysian Plastic Sustainability Roadmap and future regulatory updates, particularly those expected to roll out by late 2025.
'Companies that fail to meet sustainability standards face potential fines and the risk of being cut from procurement lists,' he added.
Paul said global trade dynamics are reshaping the regional packaging landscape.
'The proposed implementation of up to 60% tariffs on Chinese goods – targeting electronics, plastics, metals, and food – has triggered a broader supply chain realignment.
'Multinational companies are increasingly looking towards Southeast Asia as part of a 'China Plus One' strategy. Malaysia, in particular, is emerging as a preferred destination for relocating packaging and manufacturing operations due to its strategic trade position and regulatory stability.'
Paul said the shift offers a major export opportunity for Malaysian converters, especially those producing plastic resins, flexible films, and paperboard packaging. 'As global brands move production closer to Malaysia or diversify out of China, demand for locally sourced packaging materials is expected to rise.'
Further, the tariff landscape also brings challenges, Paul said.
'Raw material imports from China such as polymer resins, films, and foils are expected to become more expensive, as Chinese exporters pass on costs incurred from US tariffs to other markets. This secondary impact could push local players to fast-track the use of domestic and alternative materials to maintain pricing competitiveness.'
As cost pressures mount globally, he said, Malaysia's packaging ecosystem stands to benefit, particularly converters and suppliers who can offer sustainable, high-performance solutions tailored to a changing global trade environment.
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