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Malaysia Plastic Compounding Market: Industry Analysis, Size, Share and Forecast by 2025

The Malaysia plastic compounding market is anticipated to reach USD 1.09 billion by 2025. Plastic compounds have gained wide acceptance in packaging & automotive industry owing to their advantageous characteristics such as durability and low cost.

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Malaysia offers a lucrative, cost-competitive geographic location for investors intending to set up compounding facilities in the region. Such manufacturers are likely to have the added advantage of advanced technologies as well as inexpensive raw materials for product development. Innovative compounds such as PVC based copolymers to exhibit high penetration as a result of their non-halogenic, flame retardant & extrudable properties which makes them ideal for industrial applications.

Polypropylene (PP) dominated the market with over 27% volume share in 2015. The introduction of bio-based PP polymers is also contributing significantly to sustainable growth in the industry. High flexural strength due to semi-crystalline nature has made it ideal for unique applications such as living hinges in packaging materials.

Further key findings from the study suggest:

PET is expected to emerge as the fastest growing product with over 7.4% CAGR on account of its high thermal & chemical resistance, light weight, low production cost and excellent durability.

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The emergence of a strong middle class and subsequent rise in demand for consumer goods has driven plastics consumption in the packaging sector.

Innovations focusing on closure improvement to enhance safety features in consumer packages to be a prime driver for the packaging segment.

The electrical & electronics segment is expected to exhibit steady growth rate of 5.9% as a result of numerous expansion & diversification projects in the semiconductor industry, leading to high polymer consumption in insulative devices.

Rising consumer awareness regarding the benefits of low weight & fuel efficient polymers in vehicles is also projected to positively impact growth in the automotive segment.

Global companies are increasingly investing in Malaysia by boosting their existing production capacities & introducing new products. In January 2016, Polyplastics invested in expanding their compounding capacity by nearly 35 kilo tons.

Influential companies operating in this market include Polyplastics Asia Pacific Sdn Bhd, Melchers Malaysia, BASF Sdn Bhd, The Inabata Group, Helistrom Sdn Bhd, Compounding and Coloring Sdn Bhd, Eveready Manufacturing Pte Ltd. companies among others.

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