Food Packaging Equipment Financing

The packaging sector in Malaysia is expected to reach 18.5 billion units by 2024 at a compound annual growth rate (CAGR) of 3.8% for the forecast period of 2019-2024, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Malaysia Packaging Industry – Trends and Opportunities’ reveals that the sector is majorly driven by growth in the paper & board packaging, which is forecast to register the fastest volume CAGR of 9.8% during 2019–2024. The category is followed by flexible packaging (a means of packaging products through the use of non-rigid materials), which is expected to record a CAGR of 2.7% during the next five years.

Anchal Bisht, Consumer Analyst at GlobalData, says: “Increasing demand for ready-to-eat foods is driving consumer preference for smaller portions with resealable options. This is driving the demand for flexible packaging material, the leading material by volume, in the Malaysian food industry. Based on the consumer survey conducted in Q1 2021, 58% of the Malaysian consumers cited “time saving” as an influential factor when deciding which products to purchase.

Food industry characterized the most use of packaging in Malaysia and accounted for 60.3% market share. It was followed by non-alcoholic beverages and ‘other industries’ with shares at 26.6% and 6.5%, respectively.

Purchasing the packaging machines / lines can be costly which can cause a huge dent in the cash flow, especially for manufacturers who are just starting their operations. With food packaging equipment financing offered by Pac Lease, these worries are taken away. Manufacturers can purchase the best equipment to operate at full potential in response to rising demand.