Malaysia Plastic Compounding Market Size, Share & Trends Analysis Report By Product (PE, PP, TPV, TPO, PVC, PET, PBT, PA, PC, ABS), By End-Use, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The Malaysia plastic compounding market size was valued at USD 580.1 million in 2015 and is anticipated to grow at a CAGR of 6.6% over the forecast period. Growing acceptance of lightweight, energy-efficient vehicles to combat depleting fossil fuel resources has led to high industry growth in recent years.

Malaysia has witnessed significant economic growth along with a rapidly expanding manufacturing sector & favorable external trade government policies to encourage regional development. A positive economic outlook driven by high technology & capital-intensive industries in the region is expected to augment product demand as well.

Malaysia plastic compounding market by product, 2014-2025 (USD Million)

Continuous technological advancements in rubber tapping & growing demand from end-use industries such as construction, packaging, consumer goods & automotive have spurred investments from European & Chinese manufacturers in the Malaysian plastics sector.

Compounded plastics exhibit superior properties such as flexibility, low-density, light-weight, improved barrier resistance & high aesthetic appeal. These attributes allow for better steering wheels, handles & interiors in automotive applications, contributing to industry growth.

Furthermore, the Malaysian automotive sector is consuming large amounts of plastics to create safer, more fuel-efficient & inexpensive MUV/SUV models by utilizing sustainable materials. These factors are expected to create a positive outlook for new entrants with technologically advanced infrastructure and innovative products over the near future.

Increasing consumer disposable income, favorable government policies, availability of a skilled workforce, sound economic fundamentals, and well-developed infrastructural facilities are some key factors attracting major international players to invest in Malaysia. Such factors are likely to result in a vibrant economy-boosting consumer purchasing power which is anticipated to have a positive impact on compounding trends in Malaysia.

Product Insights

Polyethylene (PE) is a highly penetrated segment since it is one of the most widely used synthetic resins for food & retail packaging and automobile fuel tanks. The introduction of innovative, recycled PE has fostered a transition in the Malaysian plastics sector, with numerous useful applications being developed for such sustainable materials.

Energy-efficient vehicles (EEV) are increasingly utilizing cross-linked PE (XLPE) foams for diverse automotive applications including seatbacks, liners, air condition ducks, dashboard padding, windshields & truck liners. These factors are also contributing to segment growth in the region.

However, polyethylene terephthalate (PET) is expected to grow at the highest pace at over 9% CAGR. These compounds find application in numerous end-use industries such as automotive, packaging & labeling, textiles, stationery, medical equipment & construction. Increasing R&D activities to develop diverse PET compound grades with high rigidity & scratch resistance properties is a key factor contributing to segment growth in Malaysia.

End-Use Insights

The packaging & automotive industries dominate the plastic compounding market in Malaysia. The packaging segment accounted for 28% market share in 2015 as a result of consumers increasingly opting for pre-processed & packaged foods as a consequence of constrained meal preparation times.

Malaysia plastic compounding market share by end-use, 2015 (%)

The Malaysian government has also introduced numerous schemes to attract investments in the country’s automotive sector, such as the National Automotive Policy (NAP), and tax allowances & exemptions for promoters of ‘green technologies.’ Lightweight plastics are thus being utilized to a wider extent in the automotive sector in an attempt to lower carbon emissions & meet sustainability guidelines. The segment is anticipated to grow at over 7.3% in terms of volume.

Construction and electrical & electronics are some other relatively fast-growing applications since consumption has increased drastically following the miniaturization of components in these industries. Malaysia has witnessed an emergence of small-scale electrical components manufacturers & a versatile manufacturing landscape which in turn is projected to drive compounding activities for these applications.

Furthermore, the shift in the trend toward green buildings & sustainable infrastructure approach is also anticipated to drive bio-based plastics consumption in Malaysia. The government has launched several green movements in order to promote carbon footprint reduction & innovative bio-based technologies adoption. These factors have positively impacted high performance polymers demand in construction applications across the region.

Malaysia Automotive Plastic Compounding Market Share Insights

Key industry participants include BASF Sdn Bhd, Melchers Malaysia, Helistrom Sdn Bhd, Polyplastics Asia Pacific Sdn Bhd, The Inabata Group, CIPC Resin, Sin Yong Guan & Co., Eveready Manufacturing Pte Ltd., Compounding and Coloring Sdn Bhd & Sheng Foong Plastic Industries Sdn Bhd.

Major international players such as BASF & Melchers Group have expanded engineering & compounding facilities in Malaysia owing to the availability of a low-cost skilled workforce & steadily increasing demand for high-quality durable industrial solutions. The industry is also witnessing several innovations from global manufacturers that are attempting to enter fast-growing Southeast Asian regions.

Report Scope

Market segments covered in the report

This report forecasts volume & revenue growth and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented Malaysia plastic compounding market on the basis of product and end-use:

• Product Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • Polyethylene (PE)

  • Polypropylene (PP)

  • Thermoplastic Vulcanizates (TPV)

  • Thermoplastic Polyolefin (TPO)

  • Polyvinyl Chloride (PVC)

  • Polyethylene Terephthalate (PET)

  • Polybutylene Terephthalate (PBT)

  • Polyamides (PA)

  • Polycarbonates (PC)

  • Acrylonitrile Butadiene Styrene (ABS)

  • Others

• End-Use Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • Automotive

  • Construction

  • Electrical & Electronics

  • Packaging

  • Consumer Goods

  • Industrial Machinery

  • Medical devices

  • Aerospace

  • Others