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Indonesia Paper Packaging - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

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  • 120 Pages
  • February 2024
  • Region: Indonesia
  • Mordor Intelligence
  • ID: 5764064
The Indonesia Paper Packaging Market size is estimated at USD 14.28 billion in 2024, and is expected to reach USD 19.18 billion by 2029, growing at a CAGR of 6.07% during the forecast period (2024-2029).

Packaging materials made of paper are widely used for packaging various goods, including food, medical, and personal care items.

Key Highlights

  • Due to their eco-friendly quality, paper packaging is becoming more popular in Indonesia. Paper is used more frequently as an exterior covering to keep the products together in a multi/bundle box.
  • Additionally, the need for folding cartons is being favorably impacted by the demand of healthcare and pharmaceutical industries for simple-to-transport, biodegradable, and recyclable packaging options for medications and related items.
  • Furthermore, as environmental concerns became more prominent, the general public's emphasis on sustainability increased. People are becoming more environmentally conscious, which indicates that they are making more sustainable purchases, which has resulted in the food packaging industry experiencing a shift in consumer preferences.
  • Paper is made from newly planted forests' tree fibers or recycled paper. Deforestation and forest degradation are global issues. To begin with, approximately half of the world's forests have vanished. Every year, another 13 million hectares of trees are lost (though afforestation replaces eight). According to the World Resources Institute (WRI), around 22% of the world's old-growth forests remain intact.
  • With the outbreak of COVID-19, the demand for the transport packaging flow of necessities, such as packaging for food and other consumer products, medical and pharmaceutical products, as well as tissue and hygiene products, and the demand for paper packaging, increased significantly in the nation.

Indonesia Paper Packaging Market Trends

Corrugated Boxes Expected to Show Significant Adoption

  • Local markets in the country are witnessing tremendous industrial expansion, and businesses are forming new strategic alliances in the region, which is why the corrugated packaging market in the entire Asia-Pacific region is witnessing immense growth.
  • Other elements, such as urban populations' growing environmental consciousness, the nation's increasing demand for sustainable packaging solutions, the rise in demand for convenient packaging, and the expansion of e-commerce activity, are also accelerating the growth of the corrugated packaging market in powerful nations like Indonesia.
  • The usage of corrugated boards for packaging is increasing due to the significant demand for Fast-Moving Consumer Goods (FMCG) and branded consumer durables worldwide. Corrugated boards are widely used in the food & beverage sector to package processed foods, including bread, snacks, Ready-To-Eat (RTE) meals, meat products, fruits, durable foods, and beverages.
  • Food service establishments, for instance, use corrugated boxes for packaging pizza. The demand for catering high-quality packaging services has been driven by a shift in consumer lifestyle and the increased desire for convenience food, fueling the expansion of the corrugated board industry across the country.
  • In May 2021, SCG Packaging PCL increased its packaging investment in Indonesia by acquiring a 75% share in IntanGroup, a corrugated packaging company located in four central provinces. This development is part of the company's plan to increase its investment in the ASEAN area. The corporation believes that expanding corrugated packaging will benefit the industry.

Food and Beverage Industry Expected to Exhibit Maximum Growth

  • Paper packaging is being extensively used in the food sector. It is both environmentally beneficial and convenient for consumers. As a result, there is tremendous competition in the food & beverage industry among companies that provide high-quality products to consumers. Various packaging materials, such as cardboard and corrugated boxes, are available in the market to satisfy multiple packaging needs.
  • Moreover, the e-commerce platform has gained a lot of attraction in this region's food market. This is because it offers various food products and ensures they are delivered on time and in proper packaging. As a result of the expansion of e-commerce, food packaging demand is expected to rise. This is because good, innovative packaging preserves the product's quality and extends its shelf-life.
  • Furthermore, millennial customers in the region are primarily driving the demand for flexible paper packaging solutions, as they favor single-serving and on-the-go food and beverage products. Flexible paper packaging is a common alternative for packing these products because they are meant to be portable, sturdy, and lightweight. The need for flexible packaging from the food & beverage industry in the region is likely to be governed by the fastest-growing categories of snack foods, both in terms of fresh goods and processed foods.
  • Additionally, rising per capita income, urbanization, and a young population is expected to boost the country's packaged food and beverage (F&B) segment's rise. This will help fuel the increase in folding carton packaging in the food retail and restaurant industries. Paper packaging will benefit from growing concerns about the sustainability of plastic packaging.

Indonesia Paper Packaging Industry Overview

The paper packaging industry in Indonesia is moderately fragmented due to the presence of several major market players in the country who hold the majority share. The market players such as, PT Industri Pembungkus Internasional, PT Fajar Surya Wisesa Tbk, PT Metaform (Kompas Gramedia), AR Packaging Group AB, and Rengo Co. Ltd, are considering strategic partnerships and collaborations to expand their market share.
  • In September 2022, Rengo Co., Ltd. announced its acquisition of Marufuku, and the agreement strengthened the company's potential to expand its folding carton and flexible packaging operations further in each region.

Additional Benefits:

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

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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 Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Market Drivers
5.1.1 Increasing Demand for Eco-friendly Packaging
5.1.2 Increase in Adoption of Folding Carton by Different Industries
5.2 Market Challenges
5.2.1 Fluctuations in the Price of Raw Materials
7.1 Cartonboard
7.2 Recovered Paper
8.1 Analysis of Key Macro-economic Indicators
8.2 Regulatory and Legal Landscape
8.3 Major Industries Contributing to the Economic Growth
8.4 Key Imperatives for Foreign Companies to Establish Presence in Indonesia
10.1 By Type
10.1.1 Folding Cartons
10.1.2 Corrugated Boxes
10.1.3 Other Types (Flexible Paper Packaging, Liquid Cartons etc.)
10.2 By End-user Industry
10.2.1 Food & Beverage
10.2.2 Healthcare
10.2.3 Personal Care & Household Care
10.2.4 Industrial
10.2.5 Other End-user Industries
11.1 Company Profiles
11.1.1 PT Industri Pembungkus Internasional
11.1.2 PT Fajar Surya Wisesa Tbk
11.1.3 PT Metaform (Kompas Gramedia)
11.1.4 AR Packaging Group AB
11.1.5 Rengo Co. Ltd
11.1.6 APP (Asia Pulp & Paper)
11.1.7 PT Pabrik Kertas Indonesia (PT Pakerin)
11.1.8 International Paper Company
11.1.9 PT Asia Carton Lestari
11.1.10 Teguh Group
11.1.11 PT Pura Barutama

Companies Mentioned (Partial List)

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

  • PT Industri Pembungkus Internasional
  • PT Fajar Surya Wisesa Tbk
  • PT Metaform (Kompas Gramedia)
  • AR Packaging Group AB
  • Rengo Co. Ltd
  • APP (Asia Pulp & Paper)
  • PT Pabrik Kertas Indonesia (PT Pakerin)
  • International Paper Company
  • PT Asia Carton Lestari
  • Teguh Group
  • PT Pura Barutama