Indonesia Plastic Packaging Market Analysis - Size and Forecast 2024-2028

Plastic Packaging Market in Indonesia Size 2024-2028

The plastic packaging market in Indonesia size is forecast to increase by USD 1.03 billion at a CAGR of 2.5% between 2023 and 2028.

• The plastic packaging market is experiencing significant growth, driven by innovations in packaging technology such as active and modified atmosphere packaging. These advanced packaging solutions enhance product preservation and extend shelf life. Additionally, the preference for lightweight and convenient packaging options is on the rise, leading to increased demand.
• Furthermore, the availability of alternatives like aluminum, tin, paper & paperboard, and biodegradable plastics poses a challenge to traditional plastic packaging. The environmental concerns surrounding plastic pollution have led to a focus on sustainable solutions, including bioplastic packaging made from renewable resources. The market is witnessing a shift towards recycled and biobased plastics as viable alternatives to virgin plastics. This transition is essential for reducing the environmental impact of plastic packaging while maintaining functionality and affordability.

What will be the Size of the Market During the Forecast Period?

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• The plastic packaging market is a significant sector in the global consumer goods industry. Plastic packaging is widely used in various end-use applications, including personal care, household care, and the e-retail sector. In the US market, the demand for plastic packaging continues to grow due to its numerous advantages over other packaging materials. Rigid plastic packaging, such as bottles and jars, is extensively used in the beverage industry. Beverage bottles, including PE bottles, are popular choices due to their durability, lightweight, and transparency. These bottles are used for various beverages, including carbonated drinks, water, and juice. The pet bottles segment is expected to dominate the market due to the increasing consumption of bottled water and carbonated soft drinks. Flexible plastic packaging, on the other hand, is used for various applications, including food packaging and industrial applications. The lightweight nature of flexible packaging makes it an attractive option for e-retailers, as it reduces shipping costs and increases efficiency.
• Furthermore, transparent packaging is also gaining popularity in the market due to its ability to showcase the product inside. Plastic materials, including rigid plastics, are widely used in the production of packaging products. The use of plastic materials in packaging is driven by their cost-effectiveness, durability, and ease of processing. However, the environmental impact of plastic waste is a growing concern, leading to the adoption of bioplastics. Bioplastics are a sustainable alternative to traditional plastic packaging. These materials are derived from renewable resources and have a lower carbon footprint than traditional plastic packaging. The use of bioplastics is expected to increase in the coming years as consumers become more environmentally conscious and governments implement regulations to reduce plastic waste. Plastic recycling is another trend in the plastic packaging market. The recycling of PET bottles and plastic bags is becoming increasingly common in the US. Recycling plastic materials reduces the amount of waste that ends up in landfills and reduces the need for new raw materials.
• In conclusion, the plastic packaging market in the US is expected to grow due to the increasing demand for plastic packaging in various end-use applications. The use of rigid and flexible plastic packaging, bioplastics, and plastic recycling are key trends in the market. The environmental impact of plastic waste and the adoption of sustainable packaging solutions are important considerations for manufacturers and consumers alike.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Product
  • Rigid
  • Flexible
• Application
  • Food and beverages
  • Industrial
  • Pharmaceuticals
  • Personal and household care
  • Others
• Geography
  • Indonesia

By Product Insights

• The rigid segment is estimated to witness significant growth during the forecast period.

Rigid plastics, a type of highly durable plastic, are extensively utilized in various industries for packaging bulk and individual items. The production of these packaging products is accomplished through processes such as injection molding technology and blow molding. Rigid plastic containers, trays, and PET bottles are commonly used in sectors like food and beverage, healthcare, and consumer goods due to their characteristics, including strength, longevity, and ease of transportation. These packaging solutions offer cost-effective production and a wide range of applications.

In the food and beverage industry, PET bottles and polyethylene (PE) bottles are popular choices for packaging liquids. The agricultural & chemical industry and pet care industry also rely on rigid plastic packaging for storing and transporting their products. Barrier films are another type of rigid plastic packaging that protects the contents from external elements. Recycling PET bottles is an essential practice to minimize waste and reduce environmental impact. Rigid plastic packaging's versatility and cost-effectiveness make it an indispensable component in numerous industries.

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The rigid segment was valued at USD 3.98 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Plastic Packaging Market in Indonesia?

Innovations in packaging to improve convenience are the key drivers of the market.

• In the Indonesian plastic packaging market, there is a growing emphasis on convenience for consumers, particularly in the sectors of personal care and household care. Companies are investing in innovative packaging designs to cater to the demands of the millennial population, who value time-saving solutions for their busy lifestyles. This demographic primarily seeks convenience in everyday items such as food, beverages, and personal care products. Packaging designs, including pouches, offer several features that cater to this demand. For instance, zipper reclosures, tear notches, peel-off lids, and hang hole features facilitate easy disposal and portability. Moreover, microwavable pouches cater to the need for quick meal preparation.
• Furthermore, these designs are gaining popularity due to their ability to minimize the time and effort required for opening, carrying, and storing products. Flexible packaging, such as pouches, is increasingly preferred over traditional rigid packaging like glass and metal due to its lightweight nature and ease of use. Engineered plastics are also gaining traction due to their ability to maintain product integrity under extreme temperatures. As consumers continue to seek convenient and functional packaging solutions, the market is expected to grow significantly.

What are the market trends shaping the Plastic Packaging Market in Indonesia?

The growing popularity of lightweight packaging is the upcoming trend in the market.

• The packaging industry is witnessing significant advancements with a focus on creating lightweight and high-performance solutions to minimize wastage and boost user convenience. Traditional heavy packaging options, such as glass, present challenges in terms of transportation and production costs. In response, companies are introducing lighter alternatives, including active packaging, modified atmosphere packaging, and edible packaging, to reduce material consumption and enhance functionality.
• Additionally, the market is witnessing a shift towards sustainable packaging solutions, such as bioplastic packaging made from recycled, biobased, or biodegradable materials. This transition not only helps in reducing environmental impact but also aligns with increasing consumer preferences for eco-friendly alternatives. Furthermore, the adoption of lightweight packaging contributes to cost savings through lower material usage during manufacturing and improved shipping efficiency.

What challenges does Plastic Packaging Market in Indonesia face during the growth?

Availability of substitutes for packaging is a key challenge affecting the market growth.

• Plastic packaging continues to dominate various consumer applications, particularly in the cosmetics industry, due to its excellent printability and versatility. Extrusion technology plays a significant role in the production of plastic packaging, enabling the creation of wraps & films, pouches, and plastic packaging bags. However, the use of plastic packaging is subject to changing lifestyles and economical activities, with organized retail and urban populations increasingly seeking sustainable alternatives. The e-commerce sector's growth further fuels the demand for innovative packaging solutions.
• While plastic offers numerous benefits, such as lightweight and cost-effective production, it faces challenges from environmental concerns and health awareness. Substitutes like glass, board, and paper, including metal packaging, offer portability and durability, making them attractive alternatives for certain applications. Metal packaging, for instance, is valued for its ability to keep beverages fresh and prevent spoilage through sunlight blockage. The market's growth is influenced by various factors, including consumer preferences, environmental concerns, and technological advancements.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Amcor Plc
• Berry Global Inc.
• Constantia Flexibles Group GmbH
• Coveris Management GmbH
• Frina Lestari Nusantara
• Hasil Raya Industries
• National Flexible
• Plasindo Lestari
• PT Indo Tirta Abadi
• PT Panca Budi Tbk
• PT. Berlina Tbk
• PT. Solusi Prima Packaging
• Sealed Air Corp.
• Silgan Holdings Inc.
• Sonoco Products Co.
• Tetra Laval SA
• Wipak Group

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

Plastic packaging plays a significant role in various consumer applications, particularly in personal care and household care sectors. Rigid packaging, such as bottles and jars, and flexible packaging, like wraps and films, pouches, and plastic bags, are widely used due to their lightweight nature, excellent printability, and transparency. The e-retail and organized retail sectors have driven the demand for plastic packaging, with urban populations and changing lifestyles contributing to increased economic activities. Innovative packaging solutions, including active and modified atmosphere packaging, edible packaging, and bioplastic packaging, are gaining popularity due to sustainability awareness and the need to reduce plastic pollution.

Furthermore, engineered plastics, such as polyethylene (PE), polyethylene terephthalate (PET), polypropylene (PP), polystyrene (PS), expanded polystyrene (EPS), and polyvinyl chloride (PVC), are commonly used in plastic packaging. Extreme temperatures and the integrity of products are crucial factors in the choice of packaging materials, with glass, metal, and paper & paperboard also used in certain applications. The beverage industry, agricultural & chemical industry, pet care industry, and packaging products sector are significant consumers of plastic containers, bottles, cans, trays, and containers. The recycling of plastic waste, including PE, PET, PP, and PVC, is essential in reducing the environmental impact of plastic packaging. The use of biobased plastics, biodegradable plastics, and recycled plastics is increasing as a sustainable alternative to virgin plastics.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across Indonesia
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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