Market Trends of South East Asia Corrugated Packaging Industry
This section covers the major market trends shaping the South East Asia Corrugated Packaging Market according to our research experts:
Food and Beverage Industry Expected to Gain Maximum Traction
- The increasing demand for convenience and packaged foods, owing to urbanization, the busy lifestyle of people, and the gradual inclination towards healthy food and lifestyle. The increasing population is also driving the demand for processed food, which is convenient as well as healthy.
- Also, the fast-paced, fresh produce sector needs to keep up with the emerging market trends and industry regulations while ensuring that costs are kept at a minimum and productivity remains high. Corrugated packaging helps the market players to effectively use these packaging solutions for price-effective packaging needs as well as to cater to sustainability goals.
- Corrugated packaging helps to keep moisture away from food items while keeping them safe during long shipping and transit times. Hence, corrugated packaging is increasingly being adopted by food processing companies to offer hygienic packaged foods to customers, especially as a means of secondary or tertiary packaging.
- Corrugated board packaging for beverages serves very different purposes. Sometimes the packaging is used to protect heavy bottles from breaking, while sometimes freshness is the main objective. In some cases, it may be simply used as a barrier to protect from sunlight exposure. Corrugated boxes cost-effective feature has driven its adoption as the price pressures are forcing the brand owners aware of wastages, to streamline their expensive primary packaging.
- Countries like Thailand houses around 9,000 food processing companies. The country is a main producer and exporter of several processed foods, such as canned tuna, frozen seafood, shrimps, and chicken. Corrugated and paperboard are the most commonly used carton packaging types in the beverage segment. Due to the small size of goods, folding carton accounts for the majority of the share in comparison with corrugated packaging as the primary packaging material.
Understand The Key Trends Shaping This Market
Download Sample
Indonesia Expected to Dominate the Market
- Indonesia is expected to dominate the Southeast Asian Corrugated Packaging Market owing to the increased adoption of corrugated packaging solutions in the country. The market players in the region are also developing new products and indulging in merger and acquisition activities to expand their footprints in the corrugated packaging market. For instance, in May 2019, SCG has purchased a majority stake in Indonesian paper packaging firm Fajar Surya Wisesa for around USD 665 million.
- The acquisition of Fajar will allow SCG to enhance its ASEAN growth platform, especially in Indonesia, that provides a tremendous future growth opportunity for SCG Packaging. Recently installed capacity of 1,300,000 metric tons per year of Kraft Liner Board and Corrugated Medium Paper for carton-box packaging and Coated Duplex Board for display packaging by FajarPaper, is further expected to boost the company’s corrugated packaging capacity in the region.
- Also, in February 2020, SCG Packaging has allocated 7.6 billion baht in its 2020 budget to expand manufacturing in the Philippines, Indonesia, and Vietnam. Indonesian operations have been given 1.8 billion baht to expand the capacity of container boards to 400,000 tonnes per year.
Get Analysis on Important Geographic Markets
Download Sample
