Indonesia Plastic Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Indonesia Plastic Packaging Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Indonesia Plastic Packaging market is expected to register a CAGR of global 2.5 % over the forecast period (2021 - 2026). Owing to the COVID-19 outbreak, food & beverage companies are developing response actions and effective plans to help mitigate their risk and prepare for how they would deal with the effects of the coronavirus. These plans include establishing an interdisciplinary crisis response team of personnel from all aspects of the business to identify, assess, and manage the risk presented.

Key Highlights

• The increasing technological advancements and end-user industry packaging applications are the significant factors driving the growth of the market studied. In most of Indonesia, the population is growing, and the use of packaging per person is increasing. It is due to consumer behavior trends, such as the growth in the use of convenience products, and the increasing use of plastic as a substitute for other packaging materials.
• Plastic packaging has implemented new ways for the functioning of the packaging industry. Packaging solutions that are durable, lightweight, and comfortable have augmented the use of plastics as a packaging material across the region.
• The price of LDPE packaging is currently low in the region, which means that there will be minimal impact on the sellers from the additional cost of using the material. The demand for surgical masks, which are made of materials, such as polypropylene, polyisoprene, and polyurethane, has also increased.
• Plastic pollution has become a global problem. Several types of research had been stating the adverse effects of plastic on the environment. Owing to this, Indonesia also implemented regulations, to reduce the use of plastics.The Indonesia plastic packaging market is facing serious concerns, due to the plastic resin price rise. This is leading to increased lags in recovering higher costs of resin and reduced profitability among established local players.

Indonesia Plastic Packaging Market TrendsSkincare Segment is Observing a 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).
• 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.

Increase in Adoption of Light-Weight Packaging

• The lightweight properties of the material have been driving the growth of plastic in Indonesia. Glass is much heavier as compared to 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 much easier to carry.
• The demands 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 the 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 container. According to the 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.
• For Instance, Oji Holdings Corporation and PT Purinusa Ekapersada, an Asia Pulp & Paper company, have 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.

Indonesia Plastic Packaging Market Competitive Analysis

As the demand for plastic packaging has been increasing significantly in the Indonesia region, the market is mildly concentrated with the presence of major players like Amcor, Coveris Holding, Berry Global, Sealed Air Corporation, Constantia Flexibles, among others.

• March 2021- Greiner Packaging announced that it has expanded its range of sanitizer bottles to meet the increased demand. The new product range includes 16 bottles, including sanitizers, and comes in different sizes and shapes with capacities ranging between 100 and 1000 milliliters. These bottles are all produced using the ISBM process and have round bodies, which can be made from up to 100% r-PET.
• July 2021- ALPLA announced that it is consolidating its developments in relation to biodegradable packaging solutions under its new Blue Circle Packaging label. Home-compostable coffee capsules were the first product available on the market under the new label. With the TÜV certificates OK Compost HOME and OK Compost INDUSTRIAL, these products are suitable for disposal in home compost, as well as in the organic waste bin.

Additional Benefits:

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

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