Indonesia Flexible Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.37 Billion |
| Market Size (2029) | USD 5.51 Billion |
| CAGR (2024 - 2029) | 4.75 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Flexible Packaging Market Analysis
The Indonesia Flexible Packaging Market size is estimated at USD 4.37 billion in 2024, and is expected to reach USD 5.51 billion by 2029, growing at a CAGR of 4.75% during the forecast period (2024-2029).
- Flexible packaging offers economical and customizable solutions for product packaging. Industries such as food and beverage, personal care, and pharmaceuticals benefit from its versatility. Its popularity stems from its efficiency and cost-effectiveness.
- In Indonesia, the flexible packaging market is driven by factors like the growing demand for lightweight packaging, heightened consumer awareness of sustainability, and technological advancements that enhance shelf life and product protection.
- The adaptability of flexible packaging to various shapes and sizes, combined with its cost-effectiveness and transport ease, fuels market growth. As Indonesian industries increasingly prioritize eco-friendly solutions and consumers demand convenience, the flexible packaging market is set for expansion.
- Indonesia's flexible packaging market is pivotal in the nation's sustainability journey, transitioning from single-layer plastics to multilayer, high-barrier, recyclable materials. The market is driven by the burgeoning population and the increasing demand for affordable packaging. It is also influenced by the local food, beverage, and pharmaceutical industries.
- Indonesia's food and beverage industry is a cornerstone of its economic growth. As reported by Permata Bank Economic Research, this industry has consistently bolstered Indonesia's manufacturing landscape. In 2023, food and beverage manufacturing capacity utilization increased to 75.0% from 74.6% the previous quarter, mirroring a rise in industrial activities. As food and beverage manufacturing ramps up, the demand for flexible packaging is also expected to increase.
- The rising demand for personal care products in Indonesia is boosting the need for flexible packaging, which enhances product aesthetics, preserves quality, and extends shelf life. Innovative flexible packaging designs attract consumers, driving up volume sales of products such as sachets and pouches.
- Indonesia's economic growth and the increased appetite for convenient, single-serve foods have spurred flexible packaging production. In response, market vendors are expanding their capacities. The rapidly growing Indonesian manufacturer, Putra Naga Indotama, is investing in cutting-edge machinery to bolster business with both existing and new clientele.
- According to the data from the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization (FAO), by 2030, per capita consumption of fresh dairy products in Indonesia will reach approximately 3.82 kilograms. While dairy is not a daily staple for many Indonesians, products like fresh milk, cheese, and yogurt are gaining popularity, especially among middle-income families. As consumption rises, the demand for flexible packaging tailored for dairy products is also expected to increase.
- Plastic packaging solutions find applications across various sectors, including manufacturing, retail, and healthcare. The healthcare sector, in particular, has embraced plastic packaging for its barrier qualities, extended shelf life, and durability. However, growing awareness of the environmental impacts of single-use plastics and unsustainable practices has led consumers to demand products with a positive ecological footprint. This shift in consumer sentiment poses a challenge to the market's growth.
- In Indonesia's evolving market, the rising emphasis on sustainability and convenience is reshaping trends in flexible packaging. Companies across the nation are channeling investments into advanced sustainable solutions, harnessing recycled materials, and adopting emission-reducing manufacturing processes, thereby unlocking avenues for market expansion.
- For instance, PT Charoen Pokphand Indonesia (CPI) Flexible Packaging, in collaboration with BOBST, has charted a growth trajectory of 10% annually since its 2019 inception. BOBST, a premier supplier in substrate processing, printing, and converting equipment, caters to diverse industries, including labels, flexible packaging, and corrugated industries. This partnership has been pivotal, with oneECG (Extended Color Gamut) technology standing out as a major driver. This technology empowers CPI to deliver high-quality, flexible packaging consistently and swiftly, all while curtailing costs and enhancing sustainability.
- PT Himalaya Wellness Company is prioritizing sustainable packaging. Committed to minimizing its packaging footprint, the company is embracing eco-friendly formats and structures through innovative materials. The company's product development process is centered on reducing carbon and environmental impact. The company has transitioned 50% of its product range from PVC to recyclable PET and aims for a complete PVC phase-out, replacing it with eco-friendly alternatives across its portfolio.
Indonesia Flexible Packaging Market Trends
Packaging Films Are Expected to Witness Significant Growth
- The market for packaging films and wraps is growing, driven by the escalating demand for high-performance films. As various end-user industries increasingly require enhanced barriers, advancements in processing technologies are poised to bolster the adoption of packaging films, ensuring both suitability for applications and cost-effective production.
- Amid a rising focus on sustainability, there is a shift from traditional rigid packaging to innovative, flexible solutions. This evolution, coupled with a heightened demand for consumer-friendly packaging and enhanced product protection, positions film and wrap packaging as a leading, cost-effective alternative in the nation.
- Indonesian consumers are increasingly favoring convenience foods and ready-to-eat meals. In response, food and beverage manufacturers are adopting thermoforming packaging films. Renowned for their exceptional barrier properties, these films are predominantly used for vacuum packaging perishables, such as meat and seafood, effectively preserving their freshness.
- Stretch films are gaining traction as the go-to solution for bundled packaging, especially for beverages, personal care items, and household products. With Indonesia's retail and e-commerce sectors on the rise, there is a heightened focus on ensuring products arrive at stores undamaged and secure. With its bundling and protective capabilities, stretch films are becoming increasingly favored. Furthermore, as shipping and logistics operations expand, the demand for efficient and cost-effective bundling solutions rises, a niche where stretch films excel.
- According to the Singapore Retailers Association, Indonesia's retail sector is rapidly growing, contributing approximately 13% to the nation's GDP. The country's vast population of over 270 million, an expanding middle-income group with enhanced purchasing power, and millennials with pronounced spending habits underscore its retail potential. Consequently, the advantages of packing films, combined with the burgeoning retail sector, are propelling the flexible packaging market's growth in Indonesia.
- Indonesia's e-commerce sector is witnessing robust and consistent growth, which signals immense potential. Stretch film plays a pivotal role in e-commerce packaging, primarily ensuring the security of shipments. It acts as a formidable barrier and prevents items from shifting during transit. This becomes especially vital for delicate or fragile products that demand heightened care to avert damage.
- As reported by The International Trade Administration, the market value of packaging films exceeded USD 52.93 billion in 2023, with forecasts suggesting a climb to over USD 86.81 billion by 2028. Thus, the benefits of packaging films such as stretch films, coupled with the expanding retail landscape, are driving the growth of the market for packaging films in Indonesia.
The Food Industry Holds a Major Market Share
- The food and beverage (F&B) industry is a hotbed of innovation and product development. The industry relies on a nimble and adaptive packaging industry. Indonesia's consumer confidence index stood at 123.8 in 2023, indicating robust spending optimism for the upcoming year. Mineral water and instant noodles emerged as top consumer favorites.
- Staple goods, alongside cooking oils, are cornerstones of the Indonesian diet. Non-staple items like packaged spices and coffee have witnessed a notable uptick in spending over the last five years. This trend toward convenient cooking and heightened productivity underscores the sustained strength of the consumption of packaged spices and coffee.
- Indonesia's preference is shifting toward flexible packaging. This type of packaging is not only economical but also customizable, catering to a diverse range of products. Industries like food and beverage and personal care, which often require versatile packaging solutions, find flexible packaging particularly advantageous. Its rising popularity can be attributed to its efficiency and cost-effectiveness.
- Millennial consumers in Indonesia favor single-serving and on-the-go food options, which primarily drive the demand for flexible packaging solutions. Such preferences make flexible packaging the go-to choice, given its portability, durability, and lightweight nature. In recent years, there has been a marked increase in consumer spending across a diverse range of food items in Indonesia. This includes bakery and cereal bars, ready meals, coffee or hot chocolate sticks and pouches, dehydrated foods, snack foods, nuts, spices, chocolates, sweets, ice-cream novelties, cookies, cakes, and chips. Such heightened demand has bolstered the popularity of flexible packaging items, particularly stand-up gussets and pillow pouches, in the food industry.
- Pillow pouches, in particular, have seen a surge in adoption, especially within the food, beverage, and dairy industries. The appeal of pouches lies in their affordability, effective sealing capabilities, and cost-efficient transportation.
- However, stricter regulations advocating for sustainable packaging alternatives, driven by environmental concerns over plastic waste, pose significant challenges to the market. Additionally, global raw material price fluctuations, especially for polyethylene and polypropylene, can reduce manufacturers' profit margins and restrain market growth. While Indonesia is making strides in promoting plastic recycling, its recycling infrastructure and public awareness still lag, complicating efficient plastic waste management and sustainable market expansion.
- Rising environmental consciousness presents an opportunity for the development of eco-friendly flexible packaging, especially those that are recyclable and biodegradable. With a burgeoning food and beverage industry, which is spurred by evolving consumer preferences and an expanding middle-income group, Indonesia presents lucrative opportunities for the flexible packaging market, especially in industries like dairy, snacks, and beverages.
- In Indonesia, businesses are rolling out a diverse array of high-quality paper bags. Crafted from durable materials, these bags feature a strong adhesive seal at the top. Tailored for the food packaging industry, these adaptable paper bags serve as an ideal choice for restaurants, hotels, cafes, and other similar venues. They are available in multiple sizes and can be tailored to meet specific needs. These bags can handle significant weight, enhancing their appeal in the food and beverage service sector. They are also lightweight and sturdy.
- Continuous advancements in plastic packaging technologies pave the way for product innovation and differentiation. For instance, smart sensors embedded in flexible packaging can relay data on temperature, humidity, and other environmental factors to a centralized system, amplifying the functionality and allure of flexible packaging.
Indonesia Flexible Packaging Industry Overview
- The flexible packaging market in Indonesia is fragmented as it has several players. The key players in the market are constantly making efforts to bring advancements. Some of the major players include PrimaJaya Eratama, PT ePac Flexibles Indonesia, PT Indonesia Toppan Group, PT Dinakara Putra, and PT Artec Package Indonesia.
- End-use consumers in Indonesia, including companies like PT Dolphin Food & Beverages, PT Aimfood Manufacturing Indonesia, and PT RBFOOD MANUFAKTUR INDONESIA, and domestic pharmaceutical giants such as PT Kalbe Farma Tbk and PT Kimia Farma Tbk, are increasingly adopting flexible packaging. This trend is significantly contributing to the growth of the market.
Indonesia Flexible Packaging Market Leaders
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PT ePac Flexibles Indonesia
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PT Indonesia Toppan Group
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PT Dinakara Putra
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PT Artec Package Indonesia
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PT. Primajaya Eratama
*Disclaimer: Major Players sorted in no particular order
Indonesia Flexible Packaging Market News
- September 2024: In a strategic move two years ago, Toyobo, a prominent Japanese textile and fiber manufacturer, announced its intent to set up a polyester packaging film factory in Indonesia. This factory, a collaborative effort between Toyobo and Indonesian filmmaker PT Trias Sentosa (Trias), will be situated at Pt Trias Toyobo Astria (TTA). The initiative was driven by the increased demand for eco-friendly film products. Toyobo invested around JPY 10 billion (USD 71 million) in the venture, with operations set to kick off in 2024. The investment is anticipated to enhance TTA's production capacity, aiming for full operational status by late 2025.
- May 2023: Lamipak, a leading packaging solutions provider, revealed its plans to invest USD 200 million in a new factory in Indonesia. Situated close to Cikande in the Serang district, this facility is expected to be Indonesia's inaugural aseptic packaging factory. Targeting an annual output of 18 billion packs, the plant's production is set to unfold in two distinct phases. The first phase began operations in the fourth quarter of 2023.
Indonesia Flexible Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute
4.3.5 Intensity of Competitive Rivalry
4.4 Industry Regulations and Recycling Policies in Indonesia
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Shift Toward Light Weight and Smaller Pack Types in the Country
5.1.2 Rising Demand for Sustainable Packaging Solutions
5.2 Market Restraints
5.2.1 Lack of a Defined Recycling Plans Coupled with Environmental Challenges
6. MARKET SEGMENTATION
7. By Material Type
7.1 Plastics
7.1.1 Polyethene (PE)
7.1.2 Bi-Orientated Polypropylene (BOPP)
7.1.3 Cast Polypropylene (CPP)
7.1.4 Ethylene Vinyl Alcohol (EVOH)
7.1.5 Polyvinyl Chloride (PVC)
7.1.6 Others Plastics Types
7.2 Paper
7.3 Metal
8. By Product Type
8.1 Bags and Pouches
8.2 Films and Wraps
8.3 Other Product Types
9. By End-user Industry
9.1 Food
9.2 Beverage
9.3 Pharmaceutical and Medical
9.4 Household and Personal Care
9.5 Other End-User Industries
10. COMPETITIVE LANDSCAPE
10.1 Company Profiles
10.1.1 PrimaJaya Eratama
10.1.2 PT ePac Flexibles Indonesia
10.1.3 PT Indonesia Toppan Group
10.1.4 PT Dinakara Putra
10.1.5 PT Artec Package Indonesia
10.1.6 Mondi Group
10.1.7 PT Trias Sentosa Tbk
10.1.8 PT Indopoly Swakarsa Industry Tbk
10.1.9 PT Argha Prima Industry
10.1.10 PT Lotte Packaging
10.1.11 PT Karuniatama Polypack
10.1.12 PT. Masplast Poly Film
10.1.13 PT Polidayaguna Perkasa
- *List Not Exhaustive
11. INVESTMENT ANALYSIS
12. FUTURE OUTLOOK OF THE MARKET
Indonesia Flexible Packaging Industry Segmentation
The report on Indonesia’s flexible packaging market examines underlying growth drivers and significant vendors, which help support market estimates and growth rates for the forecast period. The market estimates and projections are based on the base year and have been arrived at using top-down and bottom-up approaches.
The Indonesian flexible packaging market is segmented by material type (plastics (polyethylene (PE), bi-orientated polypropylene (BOPP), cast polypropylene (CPP), ethylene vinyl alcohol (EVOH), polyvinyl chloride (PVC), and other plastic types), paper, and metal), product type (bags and pouches, films and wraps, and other product types), and end-user industry (food, beverage, pharmaceutical and medical, household and personal care, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
Indonesia Flexible Packaging Market Research Faqs
How big is the Indonesia Flexible Packaging Market?
The Indonesia Flexible Packaging Market size is expected to reach USD 4.37 billion in 2024 and grow at a CAGR of 4.75% to reach USD 5.51 billion by 2029.
What is the current Indonesia Flexible Packaging Market size?
In 2024, the Indonesia Flexible Packaging Market size is expected to reach USD 4.37 billion.
Who are the key players in Indonesia Flexible Packaging Market?
PT ePac Flexibles Indonesia, PT Indonesia Toppan Group, PT Dinakara Putra, PT Artec Package Indonesia and PT. Primajaya Eratama are the major companies operating in the Indonesia Flexible Packaging Market.
What years does this Indonesia Flexible Packaging Market cover, and what was the market size in 2023?
In 2023, the Indonesia Flexible Packaging Market size was estimated at USD 4.16 billion. The report covers the Indonesia Flexible Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Flexible Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Indonesia Flexible Packaging Industry Report
The Indonesia Flexible Packaging Market is segmented by product type, including packaging films such as PE, BOPET, BOPP & CPP, and PVC, as well as pouches and bags. The market is also categorized by end-user industry, covering food, beverage, pharmaceutical & medical, and household & personal care sectors. The market size and forecasts are provided in terms of value in USD billion for all segments. This market analysis includes a forecast outlook and a historical overview.
The industry analysis reveals significant growth in the flexible packaging market, driven by increasing demand across various end-user industries. The market forecast indicates a positive outlook, with substantial market growth expected in the coming years. Industry reports highlight the market leaders and their strategies, providing valuable industry information and insights.
The industry outlook suggests that the flexible packaging market will continue to expand, supported by advancements in packaging technology and rising consumer preference for convenient and sustainable packaging solutions. Market data and industry statistics underscore the market's potential, with market predictions indicating robust growth.
Industry research and market review emphasize the importance of market segmentation in understanding the diverse needs of different end-user industries. The market value is projected to increase, reflecting the growing adoption of flexible packaging solutions. The report example and report pdf offer comprehensive insights into the market trends and industry sales.
In conclusion, the Indonesia Flexible Packaging Market is poised for significant growth, driven by favorable market conditions and increasing demand from various sectors. The market overview and industry trends provide a clear picture of the market's trajectory, making it an essential area of focus for industry stakeholders.
