Malaysia Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Malaysia Plastics Market is segmented by Type (Traditional Plastics, Engineering Plastics, and Bioplastics), Technology (Blow Molding, Extrusion, Injection Molding, and Other Technologies), Application (Packaging, Electrical and Electronics, Building and Construction, Automotive and Transportation, Housewares, Furniture and Bedding, and Other Applications).

Market Snapshot

Malaysia Plastics Market Overview
Study Period: 2016 - 2026
Base Year: 2020
CAGR: >3 %

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Market Overview

The Malaysian plastics market was valued at USD 3,243 million in 2020, and the market is projected to register a CAGR of around 3% during the forecast period (2021-2026).

COVID-19 has negatively affected the economic growth of the country. Due to the COVID-19 outbreak, the area that is likely to be the hardest hit is the construction industry of the country. Due to the increasing cases of COVID-19 cases in Malaysia, the Malaysian Prime Minister in March 2020 imposed the restriction of movement order. This has impacted the growth of the plastics market in various end-user industries in the country.

  • Over the shorter period, the major factor driving the growth of the market studied is the rising demand from food and beverage packaging.
  • On the flip side, environmental restrictions and unfavorable conditions arising due to the COVID-19 outbreak are expected to hinder the growth of the market studied.
  • Rising usage of biodegradable plastics and potential growth in the aerospace sector are expected to offer various opportunities for the growth of the market.

Scope of the Report

Plastics are organic materials, just like wood, paper, or wool. The raw materials used to produce plastics are natural products such as cellulose, coal, natural gas, salt, and, of course, crude oil. Malaysia's plastics market is segmented by type, technology, and application. By type, the market is segmented into traditional plastics, engineering plastics, and bioplastics. By technology, the market is segmented into blow molding, extrusion, injection molding, and other technologies. By application, the market is segmented into packaging, electrical and electronics, building and construction, automotive and transportation, housewares, furniture and bedding, and other applications. For each segment, the market sizing and forecasts have been done on the basis of value (USD million).

Type
Traditional Plastics
Engineering Plastics
Bioplastics
Technology
Blow Molding
Extrusion
Injection Molding
Other Technologies
Application
Packaging
Electrical and Electronics
Building and Construction
Automotive and Transportation
Housewares
Furniture and Bedding
Other Applications

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Key Market Trends

Traditional Plastics to Dominate the Market

  • Traditional plastics made from petroleum-based raw materials include polyethylene, polypropylene, polystyrene, and polyvinyl chloride.
  • Polyethylene is an organic polymer with a variable crystalline structure, made of several monomer subunits called ethylene molecules. It is a thermoplastic, which can be heated to its melting point, cooled, and reheated again without any significant degradation.
  • Polyethylene can be processed into all kinds of articles owing to its compatible properties, such as good insulation, strength (unbreakable), resistance toward caustic materials, lightweight, and environment-friendly nature. It is recyclable and can be shaped and molded easily after heating. It can be processed into soft and flexible as well as hard, tough, and strong products.
  • Based on the density and molecular weight distribution, the polyethylene compounds are categorized into low-density polyethylene and high-density polyethylene. Polyethylene is one of the most popular plastics in the world, and it is used in everyday appliances, packaging, pipes, toys, medical, and other consumer goods.
  • In Malaysia, polyethylene is used as a raw material in the manufacturing of various goods, such as plastic pipes, wires and cable insulation, films, vehicles, construction products, and other goods.
  • Some of the manufacturers of polyethylene in the country include BP Plastics Holding Bhd, Commercial Plastic Industries(CPI), and Lotte Chemical Titan Holding Berhad, among others.
  • Polypropylene is a thermoplastic polymer made up of a combination of propylene monomers through the polymerization of propylene. It is produced through the distillation of hydrocarbon fuels into lighter groups, known as “fractions,” which are combined with other catalysts to produce plastics.
  • Polypropylene can be manufactured into a living hinge, i.e., thin plastics that can bend without breaking. These can also be easily copolymerized with other polymers, such as polyethylene. This allows the application of propylene in the production of trays, cups, dish wash-safe plates, toys, opaque to-go containers, and other products.
  • Owing to the properties of polypropylene, such as toughness, high heat and chemical resistance, translucence, insulation, integral hinge property, and semi-rigidity, it has found its application in the production of various products (such as carpets, containers, bailing twine, clothing, biaxial oriented film, low-density packaging, washing machine drums, bottle caps, medical components, textiles, and sailing dinghies).
  • PVC is strong and lightweight, durable to weathering, rotting, chemical corrosion, and abrasion, versatile, and easy to use, as it can be cut, shaped, welded, and joined in any style. Such characteristics make it an ideal option for many applications, such as pipes, windows, flooring, and roofing.
  • Therefore, these traditional plastics are widely used in automotive, packaging, and construction. In Malaysia, construction activity has been increasing and is the largest contributor to the country's GDP. This is expected to drive the country's demand for plastics.
Malaysia Plastics Market Latest Trends

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Increasing Demand from the Packaging Industry

  • 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.
  • Most commonly used plastics in the packaging industry include:
  • High-Density Polyethylene (HDPE): It is the most common type of plastic used in the manufacturing of bottles and containers. HDPE provides excellent chemical resistance. Thus, it is also used in the packaging of many household and industrial chemicals, including detergents and bleach.
  • Low-Density Polyethylene (LDPE): It is used for packaging applications due to its toughness, flexibility, and relative transparency. Its applications include flexible lids, bottles, and other wire and cable applications.
  • Polyethylene Terephthalate (PET): It is clear and tough and possesses good gas and moisture barrier properties. It is most commonly used in beverage bottles and other injection molded consumer product containers.
  • Polypropylene (PP): It has characteristics such as excellent chemical resistance and a high melting point, making it a reliable choice for hot-fill liquids. It is used for flexible and rigid packaging applications and other large molded parts required for automotive and consumer products.
  • Polystyrene (PS): It is a versatile plastic that can be both rigid and foamed. Its typical application includes protective packaging, foodservice packaging, bottles, and food containers.
  • According to Malaysian Reserve (local information provider owned by TMR Media Sdn Bhd), Malaysia’s annual per capita plastic packaging consumption is high among all the Southeast Asian countries at 16.78 kg/person. The total household plastic packaging consumption in the country is estimated at 523,000 metric ton in 2020. This consumption is mainly driven by private households, small businesses, and other end users, such as schools, hospitals, and government buildings.
  • Also, the packaging industry has gained momentum after the COVID-19 outbreak, with the government advising the people in the country to take all the necessary hygiene protection. Moreover, e-commerce has also augmented the demand for plastic packaging in the country due to the COVID-19 outbreak, as online delivery is rapidly rising with people avoiding public gatherings.
  • Such factors are expected to increase the demand for plastic packaging in the country during the forecast period.
Malaysia Plastics Market Growth Rate By Region

Competitive Landscape

The Malaysian plastics market is consolidated in nature due to the limited presence of plastic resin manufacturers in the country. Most market players in the market import raw materials from other countries, including China, Japan, and countries in Southeast Asian countries. The major players in the market 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.

Recent Developments

  • In February 2019, Scientex announced its plans to expand its sustainable packaging operation. For this, Scientex acquired the 42.4% stake in Daibochi for MYR 221.1 million. The company plans to produce more recyclable products and increase its portfolio offerings to meet the market demand for sustainable products.
  • In December 2018, Toray Industries Inc. announced its decision to increase the production capacity of ABS resin TOYOLAC, which is manufactured by Toray Plastics (Malaysia) Sdn Bhd. The company announced to add a production facility of 75,000 metric ton annually to expand the sales of high-performance varieties, such as transparent grade.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Rising Demand from the Food and Beverage Packaging

      2. 4.1.2 Growing Applications in the Construction Industry

    2. 4.2 Restraints

      1. 4.2.1 Environmental Concerns

      2. 4.2.2 Unfavorable Conditions Arising due to the COVID-19 Outbreak

      3. 4.2.3 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Raw Material Analysis

    6. 4.6 Price Trend Analysis

    7. 4.7 Imports and Exports

  5. 5. MARKET SEGMENTATION (Market Size by Value)

    1. 5.1 Type

      1. 5.1.1 Traditional Plastics

      2. 5.1.2 Engineering Plastics

      3. 5.1.3 Bioplastics

    2. 5.2 Technology

      1. 5.2.1 Blow Molding

      2. 5.2.2 Extrusion

      3. 5.2.3 Injection Molding

      4. 5.2.4 Other Technologies

    3. 5.3 Application

      1. 5.3.1 Packaging

      2. 5.3.2 Electrical and Electronics

      3. 5.3.3 Building and Construction

      4. 5.3.4 Automotive and Transportation

      5. 5.3.5 Housewares

      6. 5.3.6 Furniture and Bedding

      7. 5.3.7 Other Applications

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Behn Meyer Polymers Sdn Bhd

      2. 6.4.2 BP Plastics Holding Bhd

      3. 6.4.3 Commercial Plastic Industries

      4. 6.4.4 CYL Corporation Bhd

      5. 6.4.5 EE-LIAN Enterprise M Sdn Bhd

      6. 6.4.6 Fu Fong Plastic Industries Sdn Bhd

      7. 6.4.7 Guppy Plastic Industries Sdn Bhd

      8. 6.4.8 Hicom-Teck See Manufacturing Malaysia Sdn Bhd

      9. 6.4.9 Lam Seng Plastics Industries Sdn Bhd

      10. 6.4.10 Lotte Chemical Titan Holding Berhad

      11. 6.4.11 Malayan Electro-Chemical Industry Co. Sdn Bhd

      12. 6.4.12 Meditop Corp Sdn Bhd

      13. 6.4.13 Metro Plastic Manufacturer Sdn Bhd

      14. 6.4.14 Polyplastics Asia Pacific Sdn Bhd

      15. 6.4.15 Sanko Plastics (Malaysia) Sdn Bhd

      16. 6.4.16 Scientex

      17. 6.4.17 Teck See Plastic Sdn Bhd

      18. 6.4.18 Toray Plastics Sdn Bhd

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Potential Growth in the Aerospace Sector

    2. 7.2 Increasing Usage of Bio-degradable Plastics

**Subject to Availability

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Frequently Asked Questions

The Malaysia Plastics Market market is studied from 2016 - 2026.

The Malaysia Plastics Market is growing at a CAGR of >3% over the next 5 years.

The Malaysia Plastics Market is valued at 3243 Million USD in 2016.

Toray Plastics Sdn Bhd, Polyplastics Asia-Pacific Sdn Bhd, Behn Meyer Polymers Sdn Bhd, LOTTE CHEMICAL TITAN HOLDING BERHAD are the major companies operating in Malaysia Plastics Market.

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