Market Trends of Indonesia Plastic Packaging Industry
This section covers the major market trends shaping the Indonesia Plastic Packaging Market according to our research experts:
Skincare Segment is Observing Significant Growth
- Skincare packaging uses a variety of plastic cosmetic jars to suit various packaging needs. The need for packaging for skincare products is on the rise in Indonesia. Various skincare brands in the region are facing increased competition, and packaging suppliers are offering various brands to differentiate designs with ease of use, convenience, and advanced capabilities.
- Plastic is a prominent material in skincare packaging due to its low cost, lightweight, flexibility, durability, and other factors. Additionally, it is odorless and offers a pleasant appearance. For personal care products, plastics are a material of choice for manufacturing shatterproof and "no-spill" bottles, jars, tubes, caps, and closures.
- Newer filling technologies and the development of heat-resistant PET bottles opened up new possibilities and options in the market. While PET bottles are common in multiple segments, beverages, sanitary products, cosmetics, and detergents are predominantly sold in bottles that are made up of polyethylene (PE).
- Supermarkets had been the primary distribution method for the Indonesian cosmetic sector before the COVID-19 pandemic in 2020. However, the pandemic has caused the distribution of cosmetics to move from brick-and-mortar businesses to online marketplaces. Given that customers appear to prefer the ease of having goods brought to their front door via delivery services like Gojek Instant Service, this trend is predicted to continue.
- Some brands are choosing to reduce their consumption of single-use plastic by using post-consumer recycled PET, following the suit of other industries. Aveda, for instance, is now using 100% post-consumer recycled PET in 85% of its skin care and hair styling PET bottles and jars, as well as using bioplastic from sugarcane.
Understand The Key Trends Shaping This Market
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Increase in Adoption of Lightweight Packaging
- The lightweight property of the material has been driving the growth of plastic in Indonesia. Glass is much heavier than plastic, which means more trips are required while transporting. This translates to a more significant environmental impact. Glass is also much heavier for the end consumer, whereas plastic is lightweight and easier to carry.
- The demand for aluminum beverage cans is also significant. The average weight of an empty aluminum can is 14.9 grams. Though these materials are light in weight, the probability of beverage cans being damaged during transportation is high compared to plastic bottles. Therefore, the lightweight property of plastic has driven its adoption in the manufacturing of bottles and containers.
- Moreover, out of all the types of plastic, it is anticipated that using PET will help in manufacturing the lightest bottle and containers. According to PETRA, PET is a clear, strong, and lightweight plastic that is widely used for packaging food and beverages, especially convenience-sized soft drinks, juices, and water.
- Oji Holdings Corporation and PT Purinusa Ekapersada, an Asia Pulp & Paper company, decided to form a USD 35 million joint venture to build a new converting factory in Indonesia. The new company, PT Oji Sinar Mas Packaging, would manufacture corrugated cardboard and containers to suit Indonesia's expanding domestic demand.
