South East Asia Corrugated Packaging Market – Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

Corrugated packaging is made from a combination of sheets of paper called liner and flutes. Corrugated boxes protects the products due to its cushioning qualities, rigidity, bursting strength, puncture resistance, and edge crush resistance, which enables them to bear impact through movement and transportation. They are light in weight, which makes them easy to handle and increases the weight of transported goods reducing the transportation expense. The production cost of corrugated boxes is very low, as the raw materials required for production are available in large quantity and are inexpensive. They can work well with printing techniques such as digital, screen, and litho printing, so that companies can print their product information, logos, brand promotion, and contact address. They are available in various sizes, colors, and design, which makes them suitable for a variety of products. They are ecofriendly and can be reused and recycled.

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The growing use of this economical, ecofriendly, and light weight packaging by various end users such as electronics, automotive, pharmaceuticals, healthcare, and food and beverages is the major growth driver for corrugated packaging market. Advancement in e-commerce sector is augmenting corrugated packaging market. The durability of corrugated packaging and its inability to withstand harsh outdoor and indoor conditions are the major challenges faced by corrugated packaging market. Developments in corrugated packaging include improved water resistance, corrosion resistance, decreasing the corrugated board weight, cooler corrugating, zero defect technology, and exploring new fields such as microencapsulation and nanotechnology. 

There is a lucrative demand for corrugated packaging material in food and beverages industries, as they are mainly used in packaging of processed food. The use of corrugated boxes in fresh food packaging is fueling the growth of corrugated packaging market.  

South East Asia Corrugated Packaging – Market Outlook

The corrugated packaging market started in South East Asia after Second World War, owing to high demand of corrugated packaging for trade.

Indonesia has lucrative market for corrugated packaging. The rapid growth in industrial and agricultural sector followed by fast expansion of shopping malls and supermarkets is fueling the growth of Indonesian corrugated packaging market.

Vietnam has a rapidly increasing consumer goods market where consumers prefer purchasing food and beverages through box which will drive the corrugated packaging market.

The corrugated packaging industry in Thailand has been stimulated due to growing consumer expectations, increase in purchasing power of consumers, and changing lifestyle and preferences.

Singapore has a requirement of high quality corrugated boxes for good quality printing that catches consumer attention. In January 2017, the National Environment Agency of Singapore announced to introduce increased sustainability packaging regulation, which will affect corrugated packaging market in this region.

In Malaysia and Philippines, the changing industrial structure and economic growth respectively will augment the market for corrugated packaging.

Rest of South East Asia will have a significant demand for corrugated packaging, owing to increasing demand by various end-use industries.

The companies are adopting various organic and inorganic growth strategies to retain their market position. For instance, Thai Containers Group Co., Ltd, which is a joint venture between SCG Packaging Public Company Limited has acquired 80% stake in PT Indocorr Packaging Cikarang in April 2017. Key market players operating corrugated packing in the South East Asia corrugated packaging include Perhimpunan Industry Corrugated Cardboard Indonesia, PT. IPI (International Packaging Industries Ltd.), The Box Company, Acter Carton Sdn Bhd,   FinePac Industries Sdn Bhd, Stanpack Industries Pte Ltd., Tat Seng Packaging Group Ltd,   Cheng Heng Paper Product Co. Pte Ltd., and  Binh Minh Packaging.

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