Market Trends of Indonesia Plastic Packaging Films Industry
Polyethylene Segment is Expected to Witness Significant Growth
- Growing awareness of environmental issues is leading to increased demand for sustainable packaging. Innovations in recyclable and biodegradable PE films align with these consumer and regulatory demands.
- In June 2023, Indonesia's Environment and Forestry Minister announced intentions to ban single-use plastic film products by 2029. With the phasing out of single-use plastics, the market is set to witness a surge in demand for reusable and robust packaging solutions.
- Polyethylene (PE) packaging films, prized for their durability and adaptability, are poised to emerge as a favored substitute, fueling their market demand. This shift aligns with global trends towards sustainability and environmental responsibility, further bolstering the growth prospects for PE packaging films.
- The surge in e-commerce sales leads to a higher volume of shipped products, increasing the demand for durable and protective packaging materials. Polyethylene packaging films are ideal for e-commerce packaging due to their lightweight, flexibility, and protective qualities.
- Indonesia boasts one of Southeast Asia's largest retail e-commerce markets, as highlighted by Agriculture and Agri-Food Canada. In 2021, retail e-commerce sales in Indonesia reached USD 37.34 billion, almost five times higher than in 2017. Retail e-commerce sales are anticipated to reach USD 90.47 billion by 2026.
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Food Segment to Show Significant Growth
- Innovations in packaging technology, such as multi-layer films, high-barrier films, and biodegradable films, are enhancing the functionality and sustainability of plastic packaging. These advancements cater to the specific needs of the food industry, such as extended shelf life and improved food safety.
- One of the industry insiders' critical steps was establishing the Indonesian Packaging and Recycling Association for Sustainable Environment (PRAISE). Coca-Cola Indonesia, Indian Food Sukses McMar, Nestle Indonesia, Tetra Pak Indonesia, Tirta Investama, and Unilever Indonesia Foundation founded this non-profit organization.
- In 2030, Indonesia aimed to establish a sustainable ecosystem by converting plastic packaging waste into valuable resources, fostering economic, social, and environmental advantages.
- The rising sales of processed meat, seafood, and meat alternatives indicate a growing consumer preference for convenient, ready-to-eat, and easy-to-cook food products. These products require efficient and reliable packaging solutions, driving the demand for plastic packaging films.
- According to an article published by the United States Department of Agriculture in July 2023, the significant increase in retail sales of processed meat, seafood, and alternatives to meat in Indonesia from USD 1,431.9 million in 2017 to USD 1,976.8 million in 2022 highlights a growing demand for these products.
