ASEAN Folding Cartons Market

The folding carton market in ASEAN countries has been steadily growing over the past decade fueled by increasing consumption of fast moving consumer goods. According to a recent report by Global Industry Analysts, the folding carton market in Southeast Asia was valued at $3.2 billion in 2018 and is projected to reach $4.5 billion by 2025, growing at a CAGR of 5.1% during the forecast period. Some of the key factors driving the growth of folding cartons in ASEAN include growing population, urbanization, rising middle-class consumers and their purchasing power.

Among ASEAN nations, Indonesia has the largest folding carton market accounting for over 25% of total regional demand. ASEAN Folding Cartonst With a population of over 260 million and consistent GDP growth rates, Indonesia provides huge market potential for consumer goods companies and by extension carton manufacturers. Thailand and Vietnam also have significant folding carton industries mainly serving their large food and beverage sectors. Carton converters in Malaysia and Philippines too have been expanding production aided by foreign investments in packaging industries.

Growth in Key End-Use Sectors

The ASEAN folding carton industry is dominated by food and beverage applications which account for more than 50% of total carton consumption. As lifestyles change and food consumption patterns evolve in ASEAN, demand for packaged processed and convenience foods has been increasing rapidly. The much larger food manufacturing companies are extending their portfolio into Southeast Asian markets either through exports or local production which creates more opportunities for regional carton players.

Healthcare and personal care sector has emerged as another major growth driver. With rising incomes, ASEAN consumers are spending more on personal grooming and wellness products. This has boosted the production volumes of companies in cosmetics, toiletries, pharmaceuticals and OTC drug segments who rely on folding cartons for primary and secondary packaging. E-commerce growth in the region is also opening up new applications for lightweight and secure carton packaging solutions.

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