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

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  • 132 Pages
  • April 2023
  • Region: Indonesia
  • Mordor Intelligence
  • ID: 5530178
The Indonesian rigid plastic packaging market will register a CAGR of 4.74% over the forecast period. The Indonesian packaging business now operates differently as a result of plastic packaging. Although Indonesia's downstream rigid plastic sector is highly developed, its reliance on imported raw materials has limited its growth potential.

Key Highlights

  • Plastic packaging is more popular with consumers than other products because plastic materials are lightweight and easy to handle. Even large manufacturers prefer plastic packaging solutions due to their low production costs. In addition, the emergence of polymers such as polyethylene terephthalate (PET) and high-density polyethylene (HDPE) expanded the applications of PET bottles. The market, demand for PET bottles is increasing in various markets.
  • In Indonesia, the demand for rigid plastic packaging is still on the rise as major environmental issues are brought up. Solutions for rigid plastic packaging are used in a variety of sectors, including industrial, retail, and healthcare. Due to its excellent barrier qualities, lengthy shelf life, and durability, plastic packaging has seen substantial growth in the healthcare sector.
  • Various manufacturers prefer rigid plastic packaging in the country as it is a cost-effective solution to protect food and beverages during delivery from farm to table and preserve food over longer durations. These packages also support innovations through different forms and shapes and are lighter in weight.
  • However, changing regulatory standards, fluctuating raw material costs, increasing waste volumes, and rising environmental waste regulations have expected to hinder the market growth during the forecast period. This will enable companies operating in this market segment to develop new products that are potentially disruptive and reduce the current risks in the market.
  • The outbreak of COVID-19 led to lockdowns and closures of businesses and supplies of raw materials across the country. But the demand for medicines and other essential items were at an all-time high. The shortage of packaging materials available to pack them and their subsequent shipment caused significant disruption to the supply chain for COVID-19 patients. These included several anesthetics, antibiotics, muscle relaxants, and off-label drugs. This led to the supply of plastic bottles to pharmaceutical companies.

Indonesia Rigid Plastic Packaging Market Trends

Polyethylene Terephthalate (PET) Expected to Witness Significant Growth

  • There is an increasing demand for Polyethylene Terephthalate from the packaging industry in Indonesia. Superior barrier properties, high tensile strength, better surface finish, and low cost allows Polyethylene Terephthalate to be an ideal product for numerous plastic packaging applications.
  • The introduction of PET allows for weight reductions of up to 90% compared to glass, enabling a more economical transportation process. PET plastic bottles are now replacing heavy and fragile glass bottles to provide reusable packaging for mineral water and other beverages.
  • In the rigid packaging industry, PET is used to manufacture microwavable food trays and plastic bottles for soft drinks, water, juices, sports drinks, beer, mouthwash, ketchup, salad dressings, and food jars. There is a growing demand for PET bottles from various end-user industries, such as home care, beverages, and personal care. The growth is driven by consumer preference and its properties, such as lightweight and high recycling rate.
  • In order to comply with requirements and establish a closed-loop recycling cycle, regional market vendors are also concentrating on making PET single-use packaging more recyclable. Growth opportunities for PET single-use packaging are anticipated, due to the growing emphasis on recycling these materials.
  • For instance, in November 2021, Amcor Rigid Packaging (ARP) developed and launched a solution to the problem of small polyethylene terephthalate (PET) bottles slipping through the cracks at recycling centers. The company modified and innovated the bottle design that, in turn, maximizes the collapsed container’s width. The first application for the technology was a 50-ml PET bottle, which airlines use to serve liquor.

Food Sector Expected to Witness Significant Share

  • Rigid plastic packaging, including plastic bottles and containers, continues to be popular in industries for food packaging applications. Containers are used to pack sauces, and other consumer goods, which use HDPE and LDPE material for packaging.
  • Indonesia's food business employs a range of rigid plastic packaging options. Indonesians are becoming more interested in eating organic food, which has led to stores stocking and exporting an increasing amount of organic produce. One of the primary end uses of packaging in Indonesia is food. However, Indonesia has long imported many processed and essential food components.
  • Some materials used for making bottles and container products include Polyethylene terephthalate (PET) and polypropylene (PP), among others. PP is blow-molded to produce crates, bottles, and pots. PP thin-walled containers are standard across the country and used for food packaging.
  • Moreover, the Indonesian government has also introduced a new food contact packaging legislation to update the domestic packaging standards and bring them in line with international standards such as those used by the US FDA (Food and Drug Association) and EU food legislation. The revised regulation covers domestic and imported food packaging across the five packaging categories, including rigid plastics.
  • As a result of the regulation, major worldwide food product corporations will adhere to just one standard. However, given the nation's high poverty rates and the poor financial bases of several domestic packaging makers, it seems unlikely that the new regulation will be fully implemented and widely adopted.

Indonesia Rigid Plastic Packaging Market Competitor Analysis

The rigid plastic packaging market in Indonesia is fragmented. Further, to lower costs and enhance packaging performance, businesses are concentrating on offering lightweight and high-performance corrugated grades. Due to the presence of several major players, the market has intense competition.

In May 2022, Amcor Plc developed a bottle using the most recent PowerPostTM technology that is up to 30% lighter and 100% recyclable may be produced. The technology was created for hot-fill beverages to prevent overflow spills. PowerStrap, a vacuum-absorbing technology, is used to construct the device.

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  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of COVID-19 on the Market
5.1 Market Drivers
5.1.1 Strong Demand From the Food and Beverage Packaging Industry
5.2 Market Restraints
5.2.1 Stringent Laws & Regulations Pertaining to Plastic Industries
5.2.2 Competition From Flexible Plastic Packaging
6.1 By Material Type
6.1.1 Polypropylene (PP)
6.1.2 Polyethylene Terephthalate (PET)
6.1.3 Polyethylene (PE)
6.1.4 Polystyrene (PS) and Expanded Polystyrene (EPS)
6.1.5 Other Material Types
6.2 By Product Type
6.2.1 Bottles & Jars
6.2.2 Trays & Containers
6.2.3 Caps & Closures
6.2.4 Other Product Types
6.3 By End-user Industry
6.3.1 Food Fresh Foods Baked Food Frozen Food Other Food Types
6.3.2 Beverage Carbonated Soft Drinks (CSDs) Bottled Water Dairy Products Other Beverage Types
6.3.3 Personal Care & Household Care
6.3.4 Pharmaceuticals & Healthcare
6.3.5 Other End-user Industries
7.1 Company Profiles
7.1.1 Dynaplast
7.1.2 PT. Berlina Tbk
7.1.3 PT Indo Tirta Abadi
7.1.4 PT.Solusi Prima Packaging
7.1.5 Indo Cap Closures
7.1.6 PT. Hasil Raya Industries
7.1.7 Amcor PLC

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Dynaplast
  • PT. Berlina Tbk
  • PT Indo Tirta Abadi
  • PT.Solusi Prima Packaging
  • Indo Cap Closures
  • PT. Hasil Raya Industries
  • Amcor PLC