Market Trends of Indonesia Flexible Plastic Packaging Industry
Lightweight and Convenient Packaging is Expected to Aid the Demand
- Lightweight packaging provides a barrier to air and moisture and is ductile, making it suitable for closures and gaskets. Therefore, product manufacturers are moving toward the introduction of lightweight plastic packaging. Hence, the increasing popularity and demand for this lightweight packaging material will positively impact the market's growth during the forecast period.
- The players in the flexible plastic packaging market are catering to the shifting preferences of customers. The busy lives of working professionals urge them to seek convenience in their daily-use products, such as foods and beverages. They look for products that need the least effort and time to open, store, and carry around.
- Indonesia's sizable millennial population, known for its adventurous palate, increasingly opts for dining out. This shift is driven by evolving lifestyles and a preference for convenience. This shift is underscored by a notable rise in food delivery services, exemplified by Gojek/Go Food. These dynamic shifts present many opportunities for the food industry.
- According to data forecasted by the Organisation for Economic Co-operation and Development (OECD), the consumption of fresh dairy products in Indonesia in 2024 is expected to reach 4.24 kilograms from 4.03 kilograms in 2020. Dairy products like fresh milk, cheese, and yogurt have gained traction among middle-income families. As consumption rises, such trends are anticipated to positively influence the demand for flexible packaging formats to pack dairy products.
- Moreover, the country's foodservice sector stands to gain with a burgeoning middle class. Anticipated trends include a rise in protein consumption, bolstered by the robust growth of the processed meat and dairy industries. As consumers seek convenient, easy-to-use, and lightweight packaging, packaging manufacturers are developing innovative solutions to tap into the growing organized retail and processed food markets.
Understand The Key Trends Shaping This Market
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The Food Industry is Expected to Witness Robust Growth
- The food industry will likely hold a significant share among end-user industries as packaged food sales have grown substantially, and the per capita food spending on prepared food has increased exponentially. In addition, the increased spending on bakery products and snack food has risen considerably in Indonesia during the past few years.
- Amongst flexible plastic packaging product types, pouches are expected to hold a significant market share due to the country's increasing demand for ready-to-eat (RTE) foods, owing to the busy lifestyle and large working population. The trend of adopting lightweight packaging material, along with the inclination toward reducing production, shipment, and handling costs, is driving flexible plastic packaging. Furthermore, the demand is driven by the rise of e-commerce focusing on visually appealing packaging trends.
- The food industry will likely hold a significant share among end-user industries as packaged food sales have grown substantially, and the per capita food spending on prepared food has increased exponentially. In addition, the increased spending on prepared meals, bakery products, and snack food has risen considerably in Indonesia over the past few years.
- According to Statistics Indonesia, as of March 2023, urban Indonesians allocated roughly 35.35% of their monthly per capita food expenditure to prepared food and beverages, significantly higher than the 7.5% on vegetables. This further boosted the country's market for flexible plastic packaging.
- According to the US Department of Agriculture, in July 2023, in Indonesia, imported products were predominantly channeled through urban areas, primarily via supermarkets, hypermarkets, and specialty stores. This trend was especially notable for perishable items like dairy, meat, and fresh fruits. While convenience stores leverage their extensive distribution centers strategically positioned throughout Indonesia, they predominantly feature local goods. A rise in super/hypermarkets in the region would further drive the demand for flexible plastic packaging in the area.
