Market Size of Indonesia Polypropylene Industry
| 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 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 Size Summary
The Indonesian polypropylene market is poised for growth, driven by increasing demand in sectors such as automotive and flexible packaging. Despite a temporary setback due to the COVID-19 pandemic, which affected raw material imports and slowed down key industries, the market has rebounded with significant growth. The rising use of polypropylene in reducing vehicle weight and enhancing fuel efficiency, along with the surge in e-commerce and online food delivery services, has bolstered the demand for flexible packaging. However, the emergence of alternative materials like biopropylene resin poses a challenge to market expansion. On the other hand, the potential for recycled polypropylene presents a promising opportunity for future growth.
Polypropylene's versatility and beneficial properties make it a preferred choice in various applications, particularly in the food and beverage packaging industry, which is a significant contributor to Indonesia's GDP. The automotive sector also relies heavily on polypropylene due to its resistance to impact, heat, and moisture, making it ideal for components like bumpers and seat panels. The expansion of the automotive industry in regions like West Java is expected to further drive demand for polypropylene. The market is characterized by partial fragmentation, with major players such as Exxon Mobil Corporation and LG Chem leading the industry. Recent technological advancements and expansions, such as those by PT Kilang Pertamina International and Polytama Propindo, are set to enhance production capacities, supporting the market's growth trajectory.
Indonesia Polypropylene Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Drivers
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1.1.1 Increasing Use of Plastics to Reduce Vehicle Weight and Increase Fuel Efficiency
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1.1.2 Growing Demand for Flexible Packaging
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1.2 Restraints
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1.2.1 Availability of Replacement Products
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1.2.2 Other Restraints
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1.3 Industry Value-Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Homopolymer
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2.1.2 Copolymer
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2.2 By End-user Industry
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2.2.1 Food and Beverage
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2.2.2 Packaging
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2.2.3 Electrical and Electronics
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2.2.4 Automotive and Transportation
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2.2.5 Other End-user Industries
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Indonesia Polypropylene Market Size 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.
