Market Trends of Indonesia Plastic Food Tray Industry
Increasing Demand for Ready-to-eat Food and Online Food Delivery Driving the Market
- Meeting consumer demands is a significant driver for existing and new packaging technologies. The packaging industry has been experiencing fundamental shifts focused on brand experience. Demand for ready-to-eat meals is also a key driver of change. The food trays used are considerably less expensive and lighter in weight for transportation.
- According to a survey conducted by Trade and Investment with Indonesia, by 2050, Indonesia is projected to be the world's fourth-largest economy. The per capita consumption of commodities such as beef and grains is expected to be higher than in China. Indonesia is a USD 2.5 billion export market for Australian farming and fisheries, among other industries. Rising incomes and increasing urbanization drive consumer demand for more pre-packaged, ready-to-eat, and deliverable food options.
- According to Statistics Indonesia, as of March 2023, approximately 26.32% of monthly per capita expenditure on food in rural areas in Indonesia was spent on prepared food and beverages. In comparison, about 8.51% of monthly per capita expenditure on food in rural areas in Indonesia was spent on fish, shrimp, squid, or shellfish.
- Furthermore, the demand for convenient and instant food, particularly instant pasta, snacks, meat products, and rice, among others, is growing at a faster pace due to changes in social and economic patterns, increased expenditure on food and beverage, growing awareness about healthy foods, changes in meal patterns and existing food habits, the growing ex-pat settlement population around the country, and the desire to taste new products. For instance, in January 2023, Restaurant Brands Asia, the parent company of Tim Hortons, Burger King, and Firehouse Subs, among others, introduced the renowned US fried chicken brand Popeyes to Indonesia. Its subsidiary, PT Sari Chicken Indonesia (SCHI), made this move possible. Popeyes debuted in Indonesia by launching four outlets in the Jakarta metropolitan area, also known as Jabodetabek. These locations include Margo City Mall, Supermal Karawaci, Skyline, and Kelapa Gading. The brand has ambitious plans to establish a network of 300 Popeyes restaurants nationwide.
- Moreover, according to a recent survey by the Center for Indonesian Policy Studies, online grocery delivery services in Indonesia are projected to grow at an annual rate of 11.5% from 2020 to 2024. Online grocery delivery offers many Indonesians increasing choice and convenience by expanding the dining options available to consumers, including restaurants, home grocers, food courts, and food stalls. Online grocery delivery also provides employment and entrepreneurial opportunities for vendors and drivers. All these factors drive the market demand for ready-to-eat and online food delivery in the country.
Understand The Key Trends Shaping This Market
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PET Resin Type Holds a Significant Market Share
- PET has become the most widely used material for packaging food products. The material offers a high melting point, low brittleness, transparency, and high barrier. It is gaining importance due to its low cost compared to other thermoplastic materials. PET food trays have become the first preference among different product types for packaging food products. Drying PET granules before processing is necessary as they could get hydrolyzed at high temperatures due to their moisture content. One of the latest innovations in the PET food trays industry has been the introduction of high-quality lightweight PET food trays to reduce material and energy consumption.
- With the growing demand for convenience products, Indonesians are increasingly looking for quick and easy solutions that satisfy their needs without sacrificing quality or taste. This trend for convenience items is driven by more mobility and decreased time spent at home due to increasingly hectic lifestyles. Ready-to-eat food satisfies these requirements because it can be consumed quickly and easily without requiring any preparation. According to Statistics Indonesia, as of March 2023, approximately 49% of household expenditure in Indonesia was allocated for food.
- The increased consumption of packaged food products in Indonesia would significantly raise demand for PET food trays during the forecast period. This is primarily due to busier lifestyles, which contribute to a strong preference for convenience products. According to Statistics Indonesia, as of February 2024, approximately 142.18 million people were employed in Indonesia. The increasing number of office workers may create demand for ready-to-eat food, driving market growth.
- Food processors and quick-service restaurants increasingly use PET food trays to satisfy their packaging needs. However, due to new and current rules and regulations regarding plastic packaging, demand for PET food trays may decrease.
- Furthermore, demand for PET food trays is likely to rise further as new food products are introduced into the packaged food category. Because of their numerous advantages and qualities, RPET and PET plastic are among the thermoformed tray manufacturing materials with the most significant growth and implementation in the Indonesian market. In addition, Burger King (BK) Indonesia has targets to make 330 stores operational by Q1 2026. The QSR chain said this aggressive growth plan would close the gap with market leaders and penetrate through tier 1, 2, and 3 cities in Indonesia.
