Indonesia Polypropylene Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Polypropylene Market Analysis
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.
- 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
This section covers the major market trends shaping the Indonesia Polypropylene Market according to our research experts:
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 Industry Overview
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.
Indonesia Polypropylene Market Leaders
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Exxon Mobil Corporation
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LG Chem
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BASF SE
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LyondellBasell Industries Holdings BV
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P.T. Toray International Indonesia
*Disclaimer: Major Players sorted in no particular order
Indonesia Polypropylene Market News
- In September 2022, W. R. Grace & Co., a polypropylene and polyolefin catalyst technology supplier, got a new licensee from PT Kilang Pertamina International (PT KPI) to use Grace's UNIPOL PP technology in Indonesia. This project will expand PT KPI to increase its polyolefin and refinery capacity.
- In January 2022, Indonesia's Polytama Propindo selected LyondellBasell technology for a new polypropylene plant. The process technology will be used for an additional 300,000 tons per year of polypropylene production to be built in Balongan, West Java, Indonesia, which is expected to be completed in 2024.
Indonesia Polypropylene Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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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
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4.2 Restraints
- 4.2.1 Availability of Replacement Products
- 4.2.2 Other Restraints
- 4.3 Industry Value-Chain Analysis
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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. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Homopolymer
- 5.1.2 Copolymer
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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. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%) **/Rank Analysis**
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 BASF SE
- 6.4.2 Exxon Mobil Corporation
- 6.4.3 LG Chem
- 6.4.4 LOTTE Chemical CORPORATION
- 6.4.5 LyondellBasell Industries Holdings BV
- 6.4.6 Mitsubishi Chemical Corporation
- 6.4.7 NAGA SEMUT
- 6.4.8 P.T. Toray International Indonesia
- 6.4.9 PT Chandra Asri Petrochemical
- 6.4.10 PT Polytama Propindo
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Recycled PP is likely to Function as an Opportunity in the Future.
Indonesia Polypropylene Industry Segmentation
Polypropylene (PP) is a tough, rigid, crystalline thermoplastic made by polymerizing propylene. It is made from propene (or propylene) monomer. Polypropylene is often classified as a commodity plastic because its primary use is in packaging products such as bags and bottles. The Indonesian polypropylene market is segmented by type, end-user industry, and geography. By type, the market is segmented into homopolymer and copolymer. By end-user industry, the market is segmented into food and beverages, packaging, electrical and electronics, automotive and transportation, and others. The report covers the market size and forecast for the Indonesia polypropylene market in 5 countries across Indonesia regions. For each segment, market size and forecasts have been based on volume (kilotons) and value (USD million).
| By Type | Homopolymer |
| Copolymer | |
| By End-user Industry | Food and Beverage |
| Packaging | |
| Electrical and Electronics | |
| Automotive and Transportation | |
| Other End-user Industries |
Indonesia Polypropylene Market Research FAQs
What is the current Indonesia Polypropylene Market size?
The Indonesia Polypropylene Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in Indonesia Polypropylene Market?
Exxon Mobil Corporation, LG Chem, BASF SE, LyondellBasell Industries Holdings BV and P.T. Toray International Indonesia are the major companies operating in the Indonesia Polypropylene Market.
What years does this Indonesia Polypropylene Market cover?
The report covers the Indonesia Polypropylene Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Polypropylene Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Indonesia Polypropylene Industry Report
Statistics for the 2024 Indonesia Polypropylene market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Polypropylene analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
