Recording a Y-o-Y growth of 3.5%, sales of plastic drums in Malaysia are estimated to be valued at USD 80.1 million in 2024, up from USD 77.3 million in 2023. The Malaysia industry is projected to advance at a CAGR of 2.5% during the forecast period, totaling USD 102.8 million by 2034.
Demand remains particularly high for above 210 liters plastic drums owing to the growing adoption of transportation and storage of bulk materials. The target segment is poised to dominate the Malaysia industry, accounting for a revenue share of over 88% in 2024.
More than 90% of drums are manufactured from high-density polyethylene (HDPE), attributed to excellent resistance to both high and low PH contents, sturdiness, and leakproof design. Sales of HDPE drums are anticipated to record a CAGR of 5.7% between 2024 and 2034.
HDPE is known for its exceptional tensile strength, strength-to-density ratio, impact resistance, and high melting point. As a result, this multi-featured material is preferred by companies for making packaging solutions like drums.
Plastic drums are significantly used for shipping and storing industrial chemicals. The target segment currently holds more than 42% of value share and is projected to total USD 39.5 million by 2034.
Plastic packaging solutions like drums are essential for shipping hazardous chemicals that may be harmful and need to be transported with optimum safety and security. High adoption of packaging solutions like HDPE drums across diverse industries is set to boost sales growth through 2034.
Rapid industrial expansion and surging demand for safe, durable, and corrosion-resistant packaging are key growth drivers for plastic drum sector. To capitalize on this, leading companies for plastic drum production in Malaysia are using different strategies, including new product launches.
Growing emphasis on sustainability and efficiency is triggering innovation in packaging solutions, especially drums. These latest innovations in the plastic drum industry include usage of biodegradable and recycled plastics and development of smart drums integrated with sensors.
Increasing import and export of hazardous chemicals is set to play a key role in improving Malaysia plastic drum industry size and share through 2034. To gain from this, plastic drum-producing companies in the country will need to develop robust drums that can withstand harsh environments.
Plastic containers are generally more cost-effective than alternatives like metal drums. This makes the containers an ideal choice for industries looking to cut costs. Lightweight and durability of HDPE drums are also fueling usage and demand across Malaysia.
| Attributes | Description |
|---|---|
| Estimated Malaysia Plastic Drum Industry Size (2024E) | USD 80.1 million |
| Projected Malaysia Plastic Drum Industry Value (2034F) | USD 102.8 million |
| Value-based CAGR (2024 to 2034) | 2.5% |
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Rising Need for Oleochemicals in Malaysia Boosting Plastic Drum Demand
Malaysia is currently supplying around 20% of the world's oleochemical capacity, and is a leading producer as well as user of oleochemicals. The country’s oleo chemical sector grew significantly in 2022, with exports amounting to USD 7.7 billion.
The growing usage of oleochemicals is important in several applications like cosmetics and personal care which is a key factor driving this demand spike. In order to meet this demand, oleochemical manufacturers are increasing derivative and value-added capacity, thereby gaining a bigger portion of the value chain.
As Malaysia solidifies its position as one of the world's primary oleochemical producers and exporters, the plastic packaging sector is subjected to gain benefit from the same. The need for efficient storage and transportation of oleo chemicals, coupled with the country’s significant role in this sector, is set to drive demand for HDPE and PET drums from 2024 to 2034.
Malaysia's Free Trade Agreements Opening Doors for Development
Malaysia is one of the 15 signatory nations of the Regional Comprehensive Economic Partnership (RCEP), a significant free trade agreement. In this agreement, the country holds a key position representing 30% of the global population and GDP, which is further expected to increase up to 50% by 2030.
Malaysia currently holds 16 Free Trade Agreements (FTAs), with the potential size extending up to USD 3.3 billion people. The nation has signed bilateral FTAs with key players like Japan, Pakistan, India, New Zealand, Chile, Australia, and Türkiye. These ties will flourish the trading between Malaysia and other countries, resulting in more requirements for packaging solutions like HDPE and PET drums for efficient transportation.
Industrial-grade containers like HDPE drums that are lightweight and cost-effective are being widely used for transportation and shipping of bulk materials. The drums also comply with the UN regulations for packaging hazardous materials, making these safe for shipping.
The widespread applications of PET and HDPE drums across different sectors supported by the free trade agreements are set to create opportunities for expansion. Similarly, favorable government policies will benefit the sector through 2034.
Increasing Plastic Pollution Limiting Growth
Several factors are negatively impacting the target sector. These include increasing plastic pollution levels, growing environmental concerns, and implementation of stringent regulations.
Challenges in plastic waste management impact the overall sustainability of HDPE drums. These include insufficient quality of local plastic waste, limited recycling capacity, and a lack of alternative end-of-life solutions.
The absence of macro data to monitor plastic production, consumption, waste collection, and materials recovery hampers informed decision-making and strategic planning for the industry. This can be addressed by providing fully recyclable and biodegradable drums that can fulfill these circular economy goals.
Plastic drum sales in Malaysia recorded a sluggish CAGR of 1.9% during the historical period between 2019 and 2023. The total size of the country reached around USD 77.3 million at the end of 2023.
The outbreak of the COVID-19 pandemic resulted in worldwide lockdowns and a halt in import-export activities. This, in turn, reduced the demand for packaging solutions, especially large industrial-grade drums.
The Malaysian government also implemented regulations to limit the usage of plastic products. This encouraged industries to opt for sustainable or reusable packaging alternatives like IBC tanks or metal drums.
The future plastic drum industry forecast looks bright in Malaysia. This is attributable to growing demand for safe and secure packaging solutions across several industries.
The target sector in Malaysia will have a moderate growth rate in the future. Increasing adoption of HDPE drums across industries like chemicals, pharmaceuticals, industrial chemicals, and food and beverages.
HDPE and PET drums meet the requirements of chemical and pharmaceutical manufacturers. This is due to lightweight, durable, and cost-efficient features of these rigid packaging solutions. Government norms for the adoption of biodegradable materials are anticipated to positively impact the plastic drum industry's growth.
Plastic drums are generally not reactive to the materials, such as chemicals, oils, and lubricants present inside. As a result, these are often used for storing and transporting a wide variety of chemicals and other products.
The increasing demand for packaged food will further boost growth of plastic drum sector in the country. Similarly, advances in recycling and biodegradable packaging are anticipated to benefit manufacturers.
Principal Consultant
The section below covers the future forecast for HDPE and PET drums in sub-regions of Malaysia. Information on key sub-regions of the country, including southern, northern, east, and others, is provided in this section. The central part of Malaysia leads the sector with the topmost share. Southern Peninsula is projected to witness a prominent CAGR of 3.3% through 2034.
| Sub-region | Value CAGR 2024 to 2034 |
|---|---|
| Southern Peninsula | 3.3% |
| East Coast | 2.9% |
| Northern Peninsula | 2.5% |
Southern Malaysia is becoming a manufacturing hub for plastic industry due to presence of several manufacturing companies for various products. The region has a favorable business environment for the drum industry to rise.
Increasing export of various goods, especially in packaging formats like drums, is set to boost growth. Similarly, the booming food and beverage, healthcare, and personal care industries are anticipated to create opportunities for growth.
East Coast is going through a transformation and witnessing significant industrial development. The region has the presence of petrochemical companies and refineries which is generating a substantial demand for plastic drums.
The East Coast region has several ports that are used for international trading. Plastic packaging solutions like drums are commonly used for shipping. Hence, developed ports in the region will lead to a steady demand for HDPE and PET drums.
Initiatives taken by governments, such as the formation of the East Coast Economic Region (ECER), are anticipated to create opportunities for plastic drum manufacturers. As a result, the East Coast is predicted to register a CAGR of 2.9% from 2024 to 2034.
The Northern Peninsula is poised to record a CAGR of 2.5% between 2024 and 2034. This is attributable to thriving chemical sector and growing demand for cost-effective packaging solutions.
HDPE and PET drums are widely employed for storing and transporting several chemicals, including resins, solvents, and industrial cleaners. As the demand for these chemicals continues to surge in the Northern Peninsula, so will sales of plastic drums.
The section contains information about the leading segments in Malaysia. HDPE drums currently hold 91.3% of value share in 2024, fueled by widespread adoption across diverse sectors. Plastic drums with closed ends are set to dominate the sector, accounting for a value share of 70.5% in 2024. On the other hand, demand for open-top plastic drums in Malaysia is set to increase significantly through 2034.
| Segment | HDPE (Material) |
|---|---|
| Value Share (2024) | 91.3% |
HDPE remains preferred across Malaysia for manufacturing drums. This is attributable to several excellent properties, including high strength, versatility, corrosion resistance, lightweight, and cost-effectiveness.
Sales of HDPE drums in Malaysia are projected to total USD 90.6 million in 2034, accounting for a value share of 88%. Further, a CAGR of 5.7% has been estimated for the target segment between 2024 and 2034.
HDPE drums have high molecular weight and density, which makes these suitable for transportation and shipping of various materials. The inertness and resistance to different PH levels make these suitable for a variety of hazardous and non-hazardous chemicals.
HDPE drums fulfill the regulations and standards required for shipping and warehousing. The strength and protection provided by HDPE drums are boosting adoption. Hence, the target segment will likely retain its dominance through 2034.
| Segment | Close Head (Head Type) |
|---|---|
| Value Share (2024) | 70.5% |
Closed-head plastic drums currently account for over 70.5% of value share. Over the forecast period, demand for closed-head drums is projected to increase at 3.5%, propelled by high adoption on account of advantages like leak prevention, durability, and tamper-evident nature.
Closed-head drums are without a removable lid which completely seals the drum from both openings. These drums have two designated small openings for running the liquid materials, which are secured with a stopper. This sealing helps in secured transportation and storage of liquid materials.
Closed-head drums help to easily fill and remove liquids without product spillage. Such packaging solutions work well with oil, chemicals, and beverages of large quality, leading to the segment’s dominance in Malaysia.
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The plastic drum industry in Malaysia is becoming competitive, with Tier 1 players accounting for 40% to 55% of the total share. A wide range of strategies, including new product launches and innovative facility establishments are adopted by leading producers of plastic drums in Malaysia to succeed.
With sustainability taking center stage, key manufacturers are focusing on using recycled materials in novel products to woo eco-conscious customers. Several companies are also innovating to develop drums that are more efficient, durable, or stackable.
Certain plastic drum companies in Malaysia are utilizing novel manufacturing technologies to reduce product costs and enhance quality. Implementing strategies like partnerships, mergers, acquisitions, and collaborations are also becoming common among Malaysian drum suppliers and manufacturers. Few of the leading companies are focusing on joining hands with government agencies to provide industries with sustainable drums to reduce carbon footprint.
Industry Updates
On the basis of material, the sector is segregated into HDPE and PET.
In terms of capacity, the sector is divided into up to 210 liters and above 210 liters.
Few of the important head types include open head and closed head.
By end-use, the target sector is segmented into cosmetic and perfumery, oleo chemicals, agrochemicals, industrial chemicals, pharmaceuticals, food and beverages, flavor and fragrances, petroleum and lubricants, and others (home care and personal care).
Malaysia is further categorized into Northern Peninsula, Southern Peninsula, Central, East Coast, and East Malaysia.
Sales in Malaysia are set to total USD 80.1 million in 2024.
The target industry is forecast to witness a CAGR of 2.5%.
Revenue in Malaysia is anticipated to reach USD 102.8 million by 2034.
Southern Peninsula is set to record a high CAGR of 3.3%.
Schutz Packaging Systems and TAIKO Drum Industries.
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1. Executive Summary
1.1. Global Industry Outlook
1.2. Industry Analysis
1.3. FMI Analysis and Recommendations
2. Industry Introduction
2.1. Industry Taxonomy
2.2. Industry Definition
3. Industry Trends and Success Factors
3.1. Key Trends Impacting the Industry
3.2. Product Innovation / Development Trends
3.3. Regulations/Regulatory Scenario
3.4. Product USPs / Features
4. Industry Background
4.1. Macro-economic and Industry Outlook
4.2. Industry Dynamics
4.3. Value Chain Analysis
4.4. List of Key Industry Participants (Manufacturers/Channel Partners)
4.5. Analysis of Key Industry Matrices
4.6. Industry Development Roadmap
4.7. Case-based Scenario - Impact Assessment
4.8. Supply Demand Analysis
5. Industry Demand Analysis 2019 to 2023 and Forecast 2024 to 2034
5.1. Historical Industry Volume Analysis
5.2. Future Industry Volume Projections
6. Pricing Analysis
6.1. Country Level Pricing Analysis
6.2. Regional Pricing Analysis
7. Industry Value (USD) Analysis 2019 to 2023 and Forecast 2024 to 2034
7.1. Historical Sales Analysis
7.2. Future Industry Size and Growth Projections
8. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, Material
8.1. HDPE
8.2. PET
9. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by Capacity
9.1. Up to 210 Liters
9.2. Above 210 Liters
10. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by Head Type
10.1. Open Head
10.2. Closed Head
11. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by End Use
11.1. Cosmetic and Perfumery
11.2. Oleo chemicals
11.3. Agrochemicals
11.4. Industrial Chemicals
11.5. Pharmaceuticals
11.6. Food & Beverages
11.7. Flavor & Fragrances
11.8. Petroleum & Lubricants
11.9. Others (Homecare & Personal Care)
12. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by Sub-region
12.1. Northern Peninsula
12.2. Southern Peninsula
12.3. Central
12.4. East Coast
12.5. East Malaysia
13. Northern Peninsula Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and States
14. Southern Peninsula Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and States
15. Central Malaysia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and States
16. East Coast Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and States
17. East Malaysia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and States
18. Competition Outlook, including Industry Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
19. Company Profile
19.1. Qpack Industries
19.2. Taiko Drum Industries
19.3. SCHÜTZ GmbH & Co. KGaA
19.4. Mauser Packaging Solutions
19.5. Greif Malaysia
19.6. Time Technoplast Ltd
19.7. TPL Plastech Limited
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Plastic Drum Industry Analysis in Malaysia
