Market Trends of Indonesia Folding Carton Packaging Industry
The Food and Beverages Segment Occupies the Largest Share
- Millenial customers drive the demand for folding carton food and beverage packaging solutions in Indonesia, as they prefer environment-friendly packaging and on-the-go food. As products such as on-the-go food are designed to be portable, durable, and lightweight, folding cartons are a great option to pack them. The increase in online food deliveries has been and Consumer expenditure on food are driving the growth of the folding carton market in the country, For Instance, Statistics Indonesia reported that in March 2023, around 56.4 percent of spending in rural areas in Indonesia was designated for food.
- The demand for folding cartons spans various sectors, each driven by unique consumer preferences and industry dynamics. Importing dairy ingredients to Indonesia strengthens the country's dairy industry by providing access to essential raw materials, meeting consumer demand, facilitating technology transfer, and stimulating economic activity. In the dairy sector, folding cartons serve as indispensable packaging solutions for products such as milk, yogurt, and flavored beverages. As consumer awareness regarding health and nutrition grows, the demand for dairy products packaged in convenient and environmentally friendly containers is increasing.
- The foodservice sector in Indonesia, comprising quick service restaurants, relies heavily on folding cartons for packaging takeaway and delivery orders. With the rise in on-the-go consumption habits and the growing popularity of food delivery services, the demand for packaging solutions that are functional, visually appealing, and environemntally sustainable is increasing.
- The spending on bakery and cereal bars has increased considerably in Indonesia during the past few years, driving the growth of the folding carton market in the country. With the bakery market witnessing a surge in artisanal and premium products, packaging aestheics are becoming increasingly vital in attracting consumers. Folding cartons with eye-catcing designs and sturdy construction not only showcase the artisanal nature of baked goods but also ensure their safe transportation and storage, contributing to overall customer satisfaction and brand perception.
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The Healthcare Sector will Witness Significant Growth
- The growth of Indonesia's pharmaceutical market, coupled with its burgeoning population and youthful demographic, presents a compelling investment opportunity for both global and local companies. As the largest market in Southeast Asia, Indonesia's pharmaceutical sector is poised for sustained expansion, driven by the increasing healthcare expenditure, rising prevalence of chronic diseases, and the government’s initiaves to improve access to healthcare services. Investments in this sector are expected to catalyze the demand for folding cartons, which serve as essential packaging solutions for pharmaceutical products.
- Investments in the pharmaceutical sector will lead to a proliferation of drug manufacturing and packaging facilities in Indonesia. With the production of a diverse range of pharmaceutical products, including over-the-counter medications, prescription drugs, and vitamins, there will be a heightened need for secure and compliant packaging solutions to ensure product integrity and safety. Folding cartons, with their customizable design options and ability to meet stringent regulatory requirements, will emerge as the packaging solution of choice for pharmaceutical companies looking to uphold quality standards and enhance brand perception.
- As pharmaceutical companies strive to meet the growing demand for their products, investments in advanced packaging technologies and materials, such as folding cartons with tamper-evident features, tend to become imperative to ensure product safety and compliace with regulatory standards. For instance, in April 2023, Natco Pharma Ltd announced setting up of a subsidiary in Indonesia with an investment of up to USD 3 million for selling pharmaceutical products in the country.
- Folding cartons, with their ample space for instructional leaflets, dosage information, and branding, offer a versatile platform for pharmaceutical companies to communicate with patients and differentiate their products in the market. The increased spending on the healthcare, supported by government initiatives and schemes across Indonesia, directly impacts the growth of the healthcare industry, which is expected to lead to higher usage of folding carton packaging for bulk shipping of pharmaceuticals and healthcare products.
