Indonesia Flexible Packaging Market Size (2024 - 2029)

Indonesia Flexible Packaging Market Analysis

The Indonesia Flexible Packaging Market size is estimated at USD 4.37 billion in 2024, and is expected to reach USD 5.51 billion by 2029, growing at a CAGR of 4.75% during the forecast period (2024-2029).

Flexible packaging allows more economical and customizable options for packaging products. Flexible packaging products are beneficial in industries that require versatile packaging, such as the food and beverage, personal care, and pharmaceutical industries. It has grown popular due to its high efficiency and cost-effectiveness.

• The flexible packaging industry of Indonesia plays a pivotal role as the country moves towards sustainability with a gradual shift in focus from single-layer plastic films to multilayer, high-barrier, recyclable packaging material. The industry is primarily driven by the country's increasing population and high demand for low-cost, flexible packaging.
• Demand for flexible packaging in the country has been significantly influenced by the local food, beverage, and pharmaceutical industries. Indonesia's food and beverage industry substantially contribute to its overall growth. The sector has witnessed a rapid increase in revenue which was challenged during the pandemic but is expected to recover rapidly over the forecast period maintaining the demand for flexible packaging formats from the food and beverage industry.
• Economic growth and greater demand for single-serve, on-the-go convenience foods in Indonesia have fueled an increase in flexible packaging production. In response, vendors in the market are investing in capacity expansion. The fast-growing Indonesian flexible packaging manufacturer Putra Naga Indotama is investing in new, state-of-the-art machinery as a part of a growth strategy to increase business with existing and new customers.
• Various industries use plastic packaging solutions, including manufacturing, retail, and healthcare. Due to its high barrier qualities, lengthy shelf life, and durability, plastic packaging has seen substantial growth in the healthcare sector. But the increasing awareness about the environmental effect of single-use plastic and unsustainable business practices has empowered consumers to demand a higher standard of product that has a positive impact ecologically. This is expected to hinder the market's growth.
• Indonesia is a promising e-commerce market in the Asia-Pacific, with several local and global players competing. The pervasiveness of the internet, increasing digitization, growing tourism, and the proliferation of websites are driving the growth of e-commerce. The COVID-19 pandemic further accelerated e-commerce sales in Indonesia. Moreover, flexible packaging may expect growth in the market studied with the increasing demand for medical and healthcare supplies. Over the forecast period, industrial activity is likely to improve when the global economy begins to recover from the pandemic, which is currently happening.

Indonesia Flexible Packaging Industry Segmentation

Flexible packaging is packaging or any part of a packaging whose shape can be readily changed. Some product types of flexible packaging include bags, pouches, films, wraps, etc., produced using non-rigid materials, allowing for more economical and customizable options.

The study tracks the demand for Flexible packaging products in Indonesia. The entire supply chain, from resin production to product consumption and recycling, has been studied to understand key trends, developments, the role of substitutes, etc. The critical products considered in the scope include Packaging Films (PE, BOPET, CPP & BOPP, and PVC), Bags, and Pouches, among others. The study also analyzes the significant end-users (Food, Beverage, Pharmaceutical & Medical, Household & Personal Care) of flexible packaging products in Indonesia based on the overall demand. The study further analyzes the overall impact of COVID-19 on the ecosystem. The market sizes and forecasts are provided in terms of value in USD billion for all the above segments.