Indonesia Flexible Packaging Market Size (2024 - 2029)

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 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.