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The impact of Covid-19 to the packaging industry

August 30, 2021Admin KYM

The demand for corrugated packaging material has grown steadily since 2018, rising by more than 3.6% annually. In the medium term it will likely to show slightly better growth. Up to 2025, we can expect to see the market to increase by more than 4.1% per annum to reach nearly 200 million tonnes.

The COVID-19 pandemic has enormously expanded the interest for e-commerce packaging and delivery solutions in certain sectors and regions, especially those worst affected by the virus.Global e-commerce deals are expected to surpass US$5.52 trillion in the next three years. This development will enormously influence the interest for corrugated boxes, which represents 81.5% of the demand for packaging in e-commerce.

The global online purchase market will continue to be on an upward trend which will drive the demand for specific type of packaging and packaging materials.

The e-commerce market in Malaysia is going from strength to strength and is forecast to grow at a compound annual growth rate of 24 percent a year1.The market is expected to reach MYR51.6bn (US$12.6bn) by 2024.Malaysia is among the fastest-growing e-commerce markets in Southeast Asia, driven by rising Internet and smartphone penetration, growing middle class population and tech-savvy millennials.The fear of virus spreading through cash handling and visiting physical stores amid COVID-19 outbreak has further accelerate this growth.

Some significant trends in the improvement of corrugated packaging industry

Beginning of this year, there is a huge demand for corrugated packaging. This is due to the fact that e-commerce is rising and large amount of items needed to be packed for delivery. Arising patterns including sustainable packaging and customized bundling will keep on advancing the advancement of the corrugated packaging industry.

Sustainable packaging:
Recycling and sustainability will remain a key concern for converters and brand owners.Progressively, the shift towards sustainable and environmentally friendly packaging options has presented completely recyclable bundling and stand-up packs of different shapes and designs.

Corrugated packaging is made of 100% recyclable materials and it is easyto recycle.Hence, there has been a rise in popularity of corrugated protective formats over polymer based alternatives, such as expanded polystyrene (EPS) foams.

While lightweighting of board has long been affecting the corrugated industry, rightweighting, and rightsizing are playing an increasingly important role in this market, not only in response to consumer demand for efficient packaging, but also in response to the logistics chain’s adoption of dimensional weight (DIM) pricing. In some instances substituting to a heavier board grade can have a beneficial impact overall as it allows for the elimination of additional protective elements.

Companies will address sustainability issues alongside an increase of flexible packaging which is driven by demand for more light weight, convenient light and portable products.

Aesthetic Packaging :
Aesthetics are used in the packaging design creation process because an attractive design complements the usability and enhances functionality. An aesthetic packaging design incorporates many different creative aspects from color and shape to texture and balance.Packaging designs with appealing aesthetic and impressive functionality are the ones that stand out from the competition.

Many brands now require the secondary pack to carry their image into the home thereby increasing the need for converters to produce high-quality graphic designs on the corrugated box themselves.

Cost Effective Packaging :
The increasingly complex logistics chain for direct to consumer delivery e-commerce packages are expected to be handled up to 20 times or more during standard distribution – means there is new demand for cost-effective secondary corrugated board packaging.

Packaging Technology:
Considering the unique and growing demand of e-commerce brands like Shopee or Lazada, fit-to-product (FtP) and box-on-demand (BoD) system platform have become the most talked topics in discussions.
This technology permits the production of customised corrugated boxes that meet the specific sizeof the item including odd shape products. Box-on-demand system not just to ensure the product remains intactduring assembling, transportation, and last conveyance to customers, but also to reduce the need to keep an enormous number of standard packaging containers and numerous kinds of fillers.

As for smarter packaging, from QR codes and temperature sensors to image recognition and augmented reality, connected packaging will be the forefront of changes in the packaging industry this year and beyond.

The corrugated cardboard packaging market is constantly changing and with demand continuing to rise, kindly contact us at, kindly contact us at packtalk@kym.com.my.


  1. J.P. Morgan 2019 Payments Trends – Global Insights Report
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