Indonesia Paper Packaging Market Size (2024 - 2029)

Indonesia Paper Packaging Market Analysis

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).

• The presence of numerous paper mills in Indonesia bolsters the availability and affordability of paper packaging materials, driving demand across diverse industries. For instance, as per Paper Desk in November 2023, Indonesia’s pulp and paper industry consisted of 112 companies with a total capacity of 11.45 million tons of pulp and 20.65 million tons of paper, contributing significantly to the country’s economy.
• Domestic industries like e-commerce and food delivery services, among others, will continue to grow over the coming years, and so will the consumption of pulp and paper products. This presents significant market entry and investment opportunities across the country.
• The increase in the paper packaging industry in Indonesia is driven by the expansion of the retail and e-commerce industries and the growing demand for eco-conscious packaging solutions in the country. According to Trading Economics, retail sales in Indonesia increased by 6.4% Y-o-Y in February 2024, sharply picking up from the 1.1% growth registered in the previous month.
• There is a growing need for affordable secondary corrugated board packaging since the logistics chain for direct-to-consumer delivery is getting more complicated. E-commerce shipments are anticipated to be handled up to 20 times or more during ordinary distribution.
• With online retailers’ growing sales, they naturally need more packing and shipping supplies. This is one of the reasons for the current and future growth of the corrugated boxes market. Corrugated boxes are becoming the material of preference for online-based delivery channels due to the rising need for sustainability.
• Paper packaging also finds extensive application in food packaging as it is environmentally sustainable and convenient for consumers. Paper packaging products such as folding cartons and corrugated boxes are ideal for food packaging, specifically for non-greasy items. These boxes are known for their sturdy structures, allowing businesses to transport food products reliably. A corrugated box stores food in a clean and sealed container to minimize spoilage risk.

Indonesia Paper Packaging Industry Segmentation

The Indonesian paper packaging market report tracks demand for the major forms of paper packaging products, such as corrugated boxes, folding cartons, and other paper packaging products. The pricing for raw materials, that is, paper and paperboard for paper products, is taken into consideration along with the consumption, import, and export trends, as well as average prices to arrive at the market revenue.

The Indonesian paper packaging market is segmented by type (corrugated boxes, folding cartons, and other types) and end-user industry (food and beverage, healthcare, personal care and household care, industrial, and other end-user industries). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.