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Indonesia Polypropylene Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 80 Pages
  • April 2023
  • Region: Indonesia
  • Mordor Intelligence
  • ID: 5764539
The Indonesian polypropylene market is expected to register a CAGR of over 3% during the forecast period. The COVID-19 pandemic has caused a slight decrease in polypropylene demand. A drastic slowdown was witnessed in the construction and automotive sectors, where polypropylene is in high demand. The import of raw materials has been largely affected during the COVID-19 pandemic, as the Indonesian market mostly relies on imported raw materials for polypropylene production. However, polypropylene production operations were resumed in 2021-2022 and the market has been growing significantly since then.

Key Highlights

  • Over the short term, the major factors augmenting the market are the increasing use of plastics to reduce vehicle weight and enhance fuel economy and the rising demand for flexible packaging. With the growing demand for convenient packaging, there is a rise in e-commerce business along with increasing online food delivery with product packaging in different sizes and quantities are key attributes that have fueled the growth of the flexible packaging industry, thus, in turn, increasing the demand for Indonesia polypropylene during the forecast period.
  • However, the availability of replacement products such as biopropylene resin is likely to hinder the expansion of the studied market.
  • Nevertheless, recycled polypropylene is likely to act as an opportunity for the studied market over the forecast period.

Indonesia Polypropylene Market Trends

The Packaging Industry Promotes the Demand for Polypropylene

  • Polypropylene is a food-grade plastic ideal for manufacturing processes that require high heat. It can be used in a wide range of packaging applications. Food products that use polypropylene for packaging include yogurt, cream cheese/sour cream, ready meals, and vacuum skin packaging (VSP) containers. Due to its high melting point, polypropylene is a popular container for microwave use.
  • Recent concerns and pressures to develop sustainable and recyclable food packaging, as well as health and safety concerns related to the use of polystyrene (PS) in food packaging, have led to the use of polypropylene materials in various food packaging and processing applications.
  • Indonesia's packaging industry plays a vital role across all industries and companies. Packaging has become one of the factors that determine the competitiveness of domestic industrial products.
  • In recent years, the packaging industry has grown at a rate of 6-7% (Year over Year), with a value of IDR 104,728 billion (USD 6.72 billion) in 2021. The packaging industry was not impacted during the COVID-19 pandemic.
  • The beneficial properties of polypropylene plastics enable the production of various types of food and beverage packaging, from foils to jars, tubs, bottles, bottle caps, lids, and labels. Due to the diversification of packaging types and increasing competition in production and processing costs, polypropylene is now the primary packaging material for many individual items in the consumer's daily diet.
  • The outlook for the food and beverage (F&B) industry remains optimistic and is expected to grow by 7% in 2022, according to the director general of agribusiness at the Ministry of Industry.
  • The F&B sector contributed 38.38% to Indonesia's GDP, making it Indonesia's largest sub-sector contributing to GDP.
  • All the aforementioned factors are expected to drive the packaging industry, which may also impact the demand for the Indonesian polypropylene market during the forecast period.

Automotive Industry is Expected to hold a major share

  • The automotive industry in Indonesia plays an important role in the country's economic growth, contributing 10.16% of the GDP. Exports of automotive products from Indonesia are currently worth more than their imports.
  • Polypropylene is the most commonly used plastic in automobile manufacturing. According to the Plastics Trade Association, in 2022, among the various types of plastics used in the production of cars, the highest share is held by polypropylene, accounting for 32% due to its properties, such as resistance to impact, heat and moisture. Moreover, it finds application in bumpers, canisters, and seat panels.
  • Polypropylene is a thermoplastic polymer used in a wide variety of applications. A saturated addition polymer made from propylene monomer is robust and unusually resistant to many chemical solvents, bases, and acids.
  • Polypropylene is also used in car bumpers and wheel covers. It is also used in chemical tanks, cable insulation, and carpet fibers.
  • The expansion of the automotive industry corridor from East Jakarta to Subang in West Java will contribute to production efficiency and thus support the polypropylene market.
  • Therefore, all the factors mentioned above are likely to provide the increasing demand for the Indonesian polypropylene market during the forecast period.

Indonesia Polypropylene Market Competitor Analysis

The Indonesian polypropylene market is partially fragmented in nature. The major manufacturers in the market include Exxon Mobil Corporation, LG Chem, BASF SE, LyondellBasell Industries Holdings BV, PT Toray International Indonesia, and others.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study



4.1 Drivers
4.1.1 Increasing Use of Plastics to Reduce Vehicle Weight and Increase Fuel Efficiency
4.1.2 Growing Demand for Flexible Packaging
4.2 Restraints
4.2.1 Availability of Replacement Products
4.2.2 Other Restraints
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition

5.1 By Type
5.1.1 Homopolymer
5.1.2 Copolymer
5.2 By End-user Industry
5.2.1 Food and Beverage
5.2.2 Packaging
5.2.3 Electrical and Electronics
5.2.4 Automotive and Transportation
5.2.5 Other End-user Industries

6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%) **/Rank Analysis**
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BASF SE
6.4.2 Exxon Mobil Corporation
6.4.3 LG Chem
6.4.5 LyondellBasell Industries Holdings BV
6.4.6 Mitsubishi Chemical Corporation
6.4.8 P.T. Toray International Indonesia
6.4.9 PT Chandra Asri Petrochemical
6.4.10 PT Polytama Propindo

7.1 Recycled PP is likely to Function as an Opportunity in the Future.

Companies Mentioned (Partial List)

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

  • Exxon Mobil Corporation
  • LG Chem
  • LyondellBasell Industries Holdings BV
  • Mitsubishi Chemical Corporation
  • P.T. Toray International Indonesia
  • PT Chandra Asri Petrochemical
  • PT Polytama Propindo