Indonesia Industrial Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Indonesia Industrial Packaging Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Indonesia Industrial Packaging Market size is estimated at USD 0.87 billion in 2024, and is expected to reach USD 1.20 billion by 2029, growing at a CAGR of 6.65% during the forecast period (2024-2029).

Industrial packaging refers to robust, specialized, and tailored solutions safeguarding a customer's products during transit or storage. Typically, this packaging is employed for hazardous or sensitive items and bulky components that require careful handling.

• Industries such as food and beverage, chemicals and petrochemicals, pharmaceuticals, and others utilize various industrial packaging products, such as jerry cans and rigid plastic IBCs, drums and barrels, crates and pallets, and more. The country also witnesses investments from various players interested in establishing a business in Indonesia.

• The dynamics of the industrial packaging market are closely tied to trade activities. Heavy manufacturing sectors strongly demand products like drums and pails, while logistics and short-distance transportation heavily utilize materials handling containers and intermediate bulk containers (IBCs).

• Technological advancements and the growing demand for packaging in various industries propel the market's expansion. Indonesia's population growth is paralleled by an uptick in per capita packaging usage. This surge is further fueled by shifting consumer behaviors, notably a rise in convenience product consumption and a growing preference for plastic packaging materials.

• Shipping containers play a pivotal role in Indonesia's international trade, forming the backbone of the global logistics framework. Explicitly designed for transportation, these standardized containers guarantee that goods traverse the supply chain with efficiency, reliability, security, and cost-effectiveness.

• Plastic industrial packaging, made from various polymers, is under scrutiny. Growing awareness of the environmental consequences of plastics and unsustainable practices led to demand for products with positive ecological impacts. Despite this, many companies and entrepreneurs continue to saturate the market with polluting packaging materials. The repercussions of such unsafe packaging are vast, from plastics in waterways causing flooding to detrimental effects on human health.

Indonesia Industrial Packaging Market Trends

Jerry Cans Witness Major Growth

• Indonesia's manufacturing sector has been pivotal to the country's economic trajectory. As highlighted in a Bloomberg Media article, the Indonesian government is now channeling efforts to attract foreign direct investment (FDI) into resource development and downstream processing.
• According to Statistics Indonesia, foreign direct investment in trade reached USD 943.8 million in 2023. Indonesia is one of ASEAN's largest economies, presenting foreign investors with promising growth opportunities, especially for those eyeing long-term commitments. This strategy aims to enhance the country's manufacturing prowess, solidify its regional and global trade stature, and accelerate national growth.
• To realize these ambitions, Indonesia has set a target of USD 545 billion in FDI by 2040, focusing on 21 commodities across vital sectors. The FDI influx aims to accelerate the industrial packaging sector, further accelerating the growth of primary packaging products like jerrycans.
• The chemical industry is one of the primary sectors demanding jerry cans. In this sector, jerry cans store and transport hazardous chemicals, solvents, and cleaning agents. The HDPE material, mostly preferred among end-use industries, is resistant to corrosion and chemical reactions, making jerry cans ideal for handling dangerous substances.
• Beyond the chemical industry, the fuel industry also heavily relies on jerry cans. Given their capacity to withstand pressure and endure harsh environmental conditions, jerry cans are vital for transporting fuel to remote sites, including construction zones, mining operations, and agricultural fields.

Chemicals and Petrochemicals Industry to be the Largest End User

• Indonesia, one of Southeast Asia's largest economies, has experienced steady growth in its chemical industry over the past decade. The country's strategic location, abundant natural resources, and increasing domestic demand make it an attractive destination for chemical companies seeking to expand their operations.
• The chemical industry requires specialized packaging solutions that can safely handle and transport a wide range of chemicals, including hazardous materials. This includes containers like drums, IBCs (Intermediate Bulk Containers), and jerry cans that are resistant to chemicals and designed to prevent leaks and spills. As the chemical industry expands, the demand for such specialized packaging will rise, driving growth in the industrial packaging market.
• The diversity of the chemical industry in Indonesia, encompassing basic chemicals, specialty chemicals, and agrochemicals, necessitates a wide range of packaging solutions tailored to the specific properties of different chemicals. This includes packaging that can withstand corrosive materials, maintain the stability of volatile chemicals, and ensure the safe transport of hazardous substances. The need for such specialized packaging drives innovation and growth in the industrial packaging market.
• Industrial packaging is witnessing growth across various industries, such as chemicals. as According to Statistics Indonesia, the GDP from manufacturers of chemicals, petrochemicals, and botanicals has reached IDR 366.32 trillion (0.0236 USD Trillion) in 2023.

Indonesia Industrial Packaging Industry Overview

Indonesia's industrial packaging market is fragmented as major factors governing this force are sustainable competitive advantage through innovation, levels of market penetration, barriers to exit, the power of competitive strategy, and the firm concentration ratio. Some of the players include PTT Global Chemical Public Company Limited, PT Kadujaya Perkasa, PT Rheem Indonesia, PT Novo Complast Indonesia, and PT Prajamita Internusa.

• May 2024 - PT. SCHÜTZ Container Systems Indonesia inaugurated a new extrusion blow molding line at its Karawang facility. The company produces its PE bung barrel, the F1 220 liters, utilizing a sophisticated multi-layer process. This addition seamlessly integrates with Schütz's established IBC product lineup.

• April 2024 - International technology group ANDRITZ secured an order from PT. Pabrik Kertas Indonesia (PT. Pakerin) to revamp two existing OCC (old corrugated containers) lines at its Surabaya mill in Indonesia. This modernization aims to significantly enhance pulp quality, enabling the production of more competitive products. Therefore, industrial packaging recycling and technological innovations that include trace and tracking are poised to steer industrial packaging toward a more sustainable future.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support