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.