Flexible Packaging Market In Indonesia Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Indonesia Flexible Packaging Market Analysis

The Indonesia Flexible Packaging Market size is worth USD 4.58 Billion in 2025, growing at an 4.75% CAGR and is forecast to hit USD 5.77 Billion by 2030.

Indonesia's flexible packaging industry is undergoing a significant transformation as sustainability becomes a central focus, with manufacturers shifting from single-layer plastic films to advanced multilayer, high-barrier sustainable flexible packaging materials. The Indonesian government has implemented comprehensive regulations through the National Agency of Drug and Food Control (BPOM) to ensure the safety and compliance of flexible packaging materials with environmental standards. This regulatory framework has catalyzed innovation in sustainable flexible packaging solutions, with major industry players investing in research and development of eco-friendly alternatives. The government's commitment to reducing marine plastic waste by 70% and achieving pollution-free status by 2040 has created a robust framework for sustainable packaging development.

Consumer behavior in Indonesia continues to evolve, particularly in food and beverage consumption patterns. According to Statistics Indonesia, approximately 34.27% of the country's food per capita expenditure is directed toward prepared food and beverages, indicating a strong preference for packaged convenience products. This shift has prompted packaging manufacturers to develop innovative flexible packaging solutions that extend shelf life while maintaining product freshness. The trend toward smaller households and urbanization has further accelerated the demand for single-serve packaging formats, with manufacturers focusing on developing convenient, portable packaging solutions that align with modern lifestyle needs.

The manufacturing landscape is experiencing significant technological advancement, with companies investing in state-of-the-art production facilities and automation technologies. Major industry players are expanding their production capabilities through strategic investments in advanced machinery and manufacturing processes. For instance, Putra Naga Indotama's recent investment in new machinery exemplifies the industry's focus on flexible packaging technology advancement and capacity expansion. These investments are enabling manufacturers to produce higher-quality flexible packaging materials while improving operational efficiency and reducing environmental impact.

The industry's infrastructure is being strengthened through substantial investments and strategic partnerships. The Indonesian government's investment target of USD 187 billion in upstream oil and gas development is expected to stabilize raw material supplies for packaging manufacturers, particularly in producing polyethylene and other petroleum-based packaging materials. International collaborations are also shaping the industry's future, with initiatives like the Plastics Innovation Hub Indonesia project, launched through collaboration between Australia and Indonesia, focusing on developing innovative solutions for plastic waste management. These partnerships are crucial in advancing sustainable packaging technologies and establishing Indonesia as a regional hub for flexible packaging manufacturing.

Indonesia Flexible Packaging Market Trends

Shift Toward Lightweight and Smaller Pack Types to Aid the Demand for Flexible Packaging

The increasing demand for customer-friendly products that are lightweight and easily transportable has become a major catalyst for Indonesia's flexible packaging market growth. The transition is primarily driven by rising sustainability concerns, extended product shelf-life requirements, elevated hygiene standards, and growing consumer focus on convenience and ease of use. Flexible plastic packaging's superior barrier capabilities effectively protect products from moisture and oxygen, making it particularly valuable in the pharmaceutical industry where product integrity is paramount. The shift to lighter materials like flexible pouches provides substantial benefits in energy savings and CO2 reduction during manufacturing and transportation processes.

The trend is further amplified by the changing demographics and lifestyle patterns in Indonesia, particularly the growth in single-person households driving demand for smaller portion sizes and convenient packaging solutions. According to Statistics Indonesia, approximately 34.27% of the country's food per capita expenditure was directed toward prepared food and beverages, indicating a strong preference for convenient, portable packaging solutions. This demographic shift has led to increased adoption of packaging features like resealability and microwaveable capabilities, with consumers showing particular interest in single-serve options that offer better portion control and portability. The urbanization trend in Indonesia has also contributed to this shift, with urban consumers particularly focused on sustainability and convenience in packaging choices.

Packaging Films are Expected to Register Strong Growth in the Food and Pharmaceutical Sector

The food processing industry in Indonesia has emerged as one of the most dynamic sectors, driving significant demand for advanced packaging solutions. The increasing adoption of flexible film packaging is particularly evident in products requiring longer shelf life, such as frozen foods, which can now maintain quality for up to three months in home freezers before showing signs of deterioration. The evolution of barrier nano-coating technology in flexible packaging has led to a significant reduction in thickness while maintaining protective properties, resulting in decreased plastic usage while improving functionality. This technological advancement has particularly benefited categories such as dairy products, syrups, and sweeteners, which require robust barrier properties for preservation.

The pharmaceutical sector's stringent requirements for packaging integrity have further accelerated the adoption of flexible packaging solutions. Multi-layer flexible food packaging has become increasingly important for specific food categories such as frozen foods, snacks, and pre-cooked meals, where barrier properties are crucial. Recent advancements in water-based and electron beam cured inks are enabling the adoption of more environmentally friendly printing solutions, while maintaining the high bond strengths required for lamination printing. The industry has also witnessed significant innovation in seal and barrier technologies for pouches, alongside technological improvements for maintaining food freshness throughout the supply chain, addressing the growing consumer demand for fresh foods and extended shelf life while reducing packaging material wastage.

Segment Analysis: By Product Type

Pouches Segment in Indonesia Flexible Packaging Market

The flexible pouch segment continues to dominate the Indonesia flexible packaging market, holding approximately 36% market share in 2024. The significant market penetration of Ready-to-Eat (RTE) foods in the country, owing to the hectic lifestyle and large working population, remains one of the critical drivers for pouch-based flexible packaging solutions. Retort pouches have emerged as a special packaging format in which perishable food items are preserved safely. The growing adoption of stand-up pouches for beverage packaging due to their ability to extend shelf life for liquids has further strengthened this segment's position. Personal care companies extensively use flat pouch packaging as a standard format for single-use purposes through various sizes of sachets across the region. Additionally, the increasing demand for packaging that is tamperproof has driven the adoption of innovative pouch designs with enhanced barrier protection and reduced weight.

Packaging Films Segment in Indonesia Flexible Packaging Market

The flexible film packaging segment is projected to witness the highest growth rate of approximately 6% during 2024-2029. This growth is primarily driven by the increasing demand for high-barrier films in the food and pharmaceutical sectors. The segment's expansion is supported by the steep changes in supply-demand dynamics and the country's focus on developing its domestic market capabilities. Various manufacturers are introducing additional functionalities in packaging films, particularly in EVOH films, focusing on cost-effectiveness and high seal strength. The trend toward sustainability has also influenced this segment, with manufacturers developing recyclable and eco-friendly film options. The increasing adoption of modified atmosphere packaging (MAP) technology and the growing demand for extended shelf-life solutions have further accelerated the growth of this segment.

Remaining Segments in Product Type Segmentation

The flexible bag packaging and other product types segments continue to play vital roles in the Indonesian flexible packaging market. The bags segment, including gusseted and wicketed arrangements, serves various industries with moisture barrier bags, mylar bags, foil bags, and static shielding electrostatic discharge bags. The segment has seen increased demand for airtight sealing and bags with high barrier properties. Meanwhile, the other product types segment, comprising sachets, sleeves, liners, and flexible blister packages, caters to specific needs in the pharmaceutical, home care, and food and beverage industries. These segments have been particularly responsive to market demands for sustainable packaging solutions and improved convenience features.

Segment Analysis: By End-User Industry

Food Segment in Indonesia Flexible Packaging Market

The food segment continues to dominate the Indonesia flexible packaging market, holding approximately 45% market share in 2024. This significant market position is primarily driven by the increasing demand for convenient flexible packaging applications among millennial customers who prefer single-serving and on-the-go food products. The segment's growth is further supported by the rising consumption of processed foods, bakery products, snacks, and ready-to-eat meals that require specialized flexible packaging products. Advanced packaging styles such as reusable pouches, collapsible containers, and bag-in-box formats have expanded the application scope within the food sector. Additionally, the implementation of barrier nano-coating technology has enabled reduced packaging thickness while maintaining product integrity and shelf life.

Beverage Segment in Indonesia Flexible Packaging Market

The beverage segment is emerging as one of the fastest-growing sectors in the Indonesia flexible packaging market, with a projected growth rate of approximately 5.3% during 2024-2029. This robust growth is driven by the increasing adoption of stand-up pouches and spouted pouches for various beverage flexible packaging applications, including fruit juices, alcoholic beverages, and meal replacement shakes. The segment's expansion is further supported by innovations in aseptic technology, which allows beverages to be packed without preservatives while extending shelf life up to twelve months without refrigeration. The cost-effectiveness and logistical advantages of flexible packaging compared to traditional glass packaging have encouraged numerous beverage companies to transition to flexible formats, particularly for e-commerce distribution channels.

Remaining Segments in End-User Industry

The pharmaceutical and medical, household and personal care, and other end-user industries segments collectively represent significant opportunities in the Indonesia flexible packaging market. The pharmaceutical and medical segment is driven by the growing demand for sterile packaging solutions and child-resistant pouches. The household and personal care segment continues to expand through the introduction of innovative packaging solutions for toiletries, cosmetics, and cleaning products. Other end-user industries, including pet food, tobacco, and industrial applications, are witnessing increased adoption of flexible packaging solutions due to their versatility and cost-effectiveness. These segments are particularly benefiting from technological advancements in barrier properties and sustainable packaging solutions.