Indonesia Rigid Plastic Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2029) | 4.98 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Rigid Plastic Packaging Market Analysis
The Indonesia Rigid Plastic Packaging Market size in terms of shipment volume is expected to grow from 1.18 Million tonnes in 2024 to 1.51 Million tonnes by 2029, at a CAGR of 4.98% during the forecast period (2024-2029).
The Indonesian rigid plastic packaging market now operates differently as a result of the evolution and adoption of plastic packaging. Although Indonesia's downstream rigid plastic packaging market is highly developed, its reliance on imported raw materials has limited its growth potential.
- Indonesia's industrial sector has been pivotal in bolstering the nation's economic growth. Over the past few years, this sector has seen a notable uptick in both production volume and value. Key drivers of this include government incentives for investors, a business-friendly environment, technological advancements, and a skilled workforce. The rigid plastics packaging market in Indonesia is poised for continued growth in the coming years, fueled by surging consumer spending.
- Plastic packaging is more popular with consumers than other types of packaging because plastic is lightweight and easy to handle. Even large manufacturers prefer plastic packaging solutions due to their low production costs. In addition, the emergence of polymers such as polyethylene terephthalate (PET) and high-density polyethylene (HDPE) has expanded the applications of plastic packaging. The demand for PET bottles is increasing across various industries.
- Indonesia's pivotal role in Asia’s expansive consumer market is underscored by a steady influx of investments in packaging materials, aligning with the rising demand for premium packaging across the region. For instance, in January 2023, BASF expanded its production capacity for polymer dispersions at its Merak facility in Indonesia.
- In Indonesia, the demand for rigid plastic packaging is on the rise. Rigid plastic packaging is used in various sectors, including industrial, retail, and healthcare. Due to its excellent barrier qualities, lengthy shelf life, and durability, plastic packaging has seen substantial growth in the healthcare sector.
- Various manufacturers in the country prefer rigid plastic packaging as it is a cost-effective solution to protect food and beverages during delivery from farm to table and preserve food over longer durations. These packages also support innovations through different forms and shapes and are lighter in weight.
- However, changing regulatory standards, fluctuating raw material costs, increasing waste volumes, and rising environmental waste regulations are expected to hinder market growth during the forecast period. This is also expected to encourage companies to develop new products that are potentially disruptive and reduce the current risks in the market.
Indonesia Rigid Plastic Packaging Market Trends
Polyethylene Terephthalate (PET) is Expected to Witness Significant Growth
- The demand for PET from the packaging industry is increasing in Indonesia. Superior barrier properties, high tensile strength, better surface finish, and low cost allow PET to be an ideal product for numerous plastic packaging applications.
- The introduction of PET allows weight reductions of up to 90% compared to glass, enabling a more economical transportation process. PET plastic bottles are now replacing heavy and fragile glass bottles to provide reusable packaging for mineral water and other beverages.
- In the rigid plastic packaging market, PET is used to manufacture microwavable food trays and plastic bottles for soft drinks, water, juices, sports drinks, beer, mouthwash, ketchup, salad dressings, and food jars. There is a growing demand for PET bottles from various end-user industries, such as home care, beverages, and personal care. The growth can be attributed to consumer preference and the properties of PET, such as its lightweight nature and high recycling rate.
- In order to comply with requirements and establish a closed-loop recycling cycle, regional market vendors are also concentrating on making PET single-use packaging more recyclable. Growth opportunities for PET single-use packaging are anticipated due to the growing emphasis on recycling these materials.
- Driven by rising demand for milk-based drinks, manufacturers are producing lightweight and transparent plastic bottles. This not only enhances product visibility but also addresses concerns about cost-effectiveness and sustainability. Notably, PET bottles, being lightweight, cut down transportation costs and are easier for consumers to handle, making them the preferred choice for milk packaging.
- As per Statistics Indonesia data published in June 2023, in 2022, Indonesian dairy cow establishments produced nearly 130 million liters of milk, marking an increase from 2020. During the study period, Indonesia's production volume for these products remained relatively stable. Consistent milk production across the country may increase the demand for PET bottles for milk packaging in the upcoming years.
The Food Segment is Expected to Hold a Significant Market Share
- Rigid plastic packaging, including plastic bottles and containers, continues to be popular in food packaging applications. Containers are used to pack consumer goods, and HDPE and LDPE are used for the packaging.
- Indonesia's food industry employs a range of rigid plastic packaging options. Indonesians are becoming more interested in eating organic food, leading to stores stocking and exporting more organic produce. One of the primary end uses of packaging in Indonesia is food. However, Indonesia has long imported many processed and essential food components.
- Some materials used for making bottles and container products include polyethylene terephthalate (PET) and polypropylene (PP). PP is blow-molded to produce crates, bottles, and pots. PP thin-walled containers are standard across the country and used for food packaging.
- The Indonesian government introduced a new food contact packaging legislation to update the domestic packaging standards and align them with international standards, such as those used by the US FDA (Food and Drug Association) and EU food legislation. The revised regulation covers domestic and imported food packaging across five packaging categories, including rigid plastics.
- Owing to the growing opportunities in the Indonesian food industry, several international players are constantly investing in the market, creating more avenues for rigid plastic manufacturers to innovate and launch plastic food packaging options. According to the Statistics Indonesia report published in February 2024, in 2023, foreign direct investment in Indonesia's food industry reached around USD 2.26 billion, marking an increase from USD 1.59 billion in 2020.
Indonesia Rigid Plastic Packaging Industry Overview
The rigid plastic packaging market in Indonesia is fragmented. Numerous manufacturing companies operate in the country, leading to high fragmentation. Market players are trying to maintain dominance by investing in R&D, incorporating new technology into their products, and delivering improved consumer products. Strategic alliances, agreements, mergers, and partnerships are a few of the strategies employed.
- July 2024: PT ALBA Tridi, a key plastic flakes supplier, announced the establishment of a cutting-edge rPET facility, echoing the government's push to balance and champion green investments. This facility, marking Central Java's inaugural food-grade rPET producer, is poised to bolster the regional economy and uplift local micro, small, and medium enterprises.
Indonesia Rigid Plastic Packaging Market Leaders
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PT. Indorama Ventures Indonesia
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PT. Berlina Tbk
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PT Indo Tirta Abadi
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Indo Cap Closures
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PT.Solusi Prima Packaging
*Disclaimer: Major Players sorted in no particular order
Indonesia Rigid Plastic Packaging Market News
- June 2024: In collaboration with the US Agency for International Development (USAID), Prevented Ocean Plastic inaugurated a high-capacity recycled plastic collection center in Makassar, Indonesia. This center aims to establish an efficient infrastructure for managing rigid plastic packaging waste. It is expected to address the increasing regional waste volumes, generate stable income opportunities, and ensure a steady supply of certified, traceable, premium-quality recycled plastic for global markets. The center is projected to process 500 tonnes of plastic waste monthly, creating 50 direct jobs for the local community.
- June 2023: Coca-Cola Indonesia, in collaboration with Coca-Cola Europacific Partners Indonesia (CCEP Indonesia), unveiled its inaugural bottles crafted entirely from 100% rPET (excluding caps and labels) for its leading soft drink brands. Amandina Bumi Nusantara, a trailblazer in Indonesia's recycling landscape, supplied the rPET. Situated on the fringes of Jakarta, Amandina operates a state-of-the-art plastics recycling facility boasting two Starlinger recoSTAR PET HC iV+ systems, and it has the capacity to process 3,000 tons of PET bottles monthly.
Indonesia Rigid Plastic Packaging Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Value Chain Analysis
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitutes
- 4.3.5 Intensity of Competitive Rivalry
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4.4 Trade Scenario
- 4.4.1 Trade Analysis (Top 5 Import-Export Countries)
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Strong Demand From the Food and Beverage Packaging Industry
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5.2 Market Restraints
- 5.2.1 Competition From Flexible Plastic Packaging
6. MARKET SEGMENTATION
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6.1 By Resin Type
- 6.1.1 Polyethylene (PE)
- 6.1.1.1 Low-Density Polyethylene (LDPE) & Linear Low-Density Polyethylene (LLDPE)
- 6.1.1.2 High Density Polyethylene (HDPE)
- 6.1.2 Polyethylene terephthalate (PET)
- 6.1.3 Polypropylene (PP)
- 6.1.4 Polystyrene (PS) and Expanded polystyrene (EPS)
- 6.1.5 Polyvinyl chloride (PVC)
- 6.1.6 Other Resin Types
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6.2 By Product Type
- 6.2.1 Bottles and Jars
- 6.2.2 Trays and Containers
- 6.2.3 Caps and Closures
- 6.2.4 Intermediate Bulk Containers (IBCs)
- 6.2.5 Drums
- 6.2.6 Pallets
- 6.2.7 Other Product Types
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6.3 By End-use Industries
- 6.3.1 Food
- 6.3.1.1 Candy & Confectionery
- 6.3.1.2 Frozen Foods
- 6.3.1.3 Fresh Produce
- 6.3.1.4 Dairy Products
- 6.3.1.5 Dry Foods
- 6.3.1.6 Meat, Poultry, And Seafood
- 6.3.1.7 Pet Food
- 6.3.1.8 Other Food Products
- 6.3.2 Foodservice
- 6.3.3 Beverage
- 6.3.4 Healthcare
- 6.3.5 Cosmetics and Personal Care
- 6.3.6 Industrial
- 6.3.7 Building and Construction
- 6.3.8 Automotive
- 6.3.9 Other End User Industries
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 PT. Berlina Tbk
- 7.1.2 PT Indo Tirta Abadi
- 7.1.3 PT.Solusi Prima Packaging
- 7.1.4 PT. Indorama Ventures Indonesia
- 7.1.5 Indo Cap Closures
- 7.1.6 PT. Hasil Raya Industries
- 7.1.7 PT. Hokkan Deltapack Industri
- 7.1.8 PT Rheem Indonesia
- 7.1.9 PT. Neilsen
- 7.1.10 PT. Namasindo Plus
- 7.2 Heat Map Analysis
- 7.3 Competitor Analysis - Emerging vs. Established Players
8. RECYCLING & SUSTAINABILITY LANDSCAPE
9. FUTURE OUTLOOK
** Subject To AvailablityIndonesia Rigid Plastic Packaging Industry Segmentation
The study tracks the demand for rigid plastic packaging materials across various end-user industries, such as food, foodservice, beverages, healthcare, personal care, cosmetics, industrial, building and construction, and automotive. Rigid plastics can be of different grades and different material combinations based on the type of product being packed, like polyethylene, polypropylene, polyvinyl chloride, polyethylene terephthalate, and bio-plastics.
The Indonesian rigid plastic packaging market is segmented by resin type (polyethylene (PE) (low-density polyethylene (LDPE) & linear low-density polyethylene (LLDPE) and high-density polyethylene (HDPE)), polyethylene terephthalate (PET), polypropylene (PP), polystyrene (PS) and expanded polystyrene (EPS), polyvinyl chloride (PVC), and other resin types), product type (bottles and jars, trays and containers, caps and closures, intermediate bulk containers (IBCs), drums, pallets, and other product types), and end-user industry (food (candy & confectionery, frozen foods, fresh produce, dairy products, dry foods, meat, poultry, and seafood, pet food, and other food products), foodservice, beverages, healthcare, cosmetics and personal care, industrial, building and construction, automotive, and other end-user industries). The market sizes and forecasts are provided in terms of volume (tonnes) for all the above segments.
| By Resin Type | Polyethylene (PE) | Low-Density Polyethylene (LDPE) & Linear Low-Density Polyethylene (LLDPE) |
| High Density Polyethylene (HDPE) | ||
| By Resin Type | Polyethylene terephthalate (PET) | |
| Polypropylene (PP) | ||
| Polystyrene (PS) and Expanded polystyrene (EPS) | ||
| Polyvinyl chloride (PVC) | ||
| Other Resin Types | ||
| By Product Type | Bottles and Jars | |
| Trays and Containers | ||
| Caps and Closures | ||
| Intermediate Bulk Containers (IBCs) | ||
| Drums | ||
| Pallets | ||
| Other Product Types | ||
| By End-use Industries | Food | Candy & Confectionery |
| Frozen Foods | ||
| Fresh Produce | ||
| Dairy Products | ||
| Dry Foods | ||
| Meat, Poultry, And Seafood | ||
| Pet Food | ||
| Other Food Products | ||
| By End-use Industries | Foodservice | |
| Beverage | ||
| Healthcare | ||
| Cosmetics and Personal Care | ||
| Industrial | ||
| Building and Construction | ||
| Automotive | ||
| Other End User Industries |
Indonesia Rigid Plastic Packaging Market Research FAQs
How big is the Indonesia Rigid Plastic Packaging Market?
The Indonesia Rigid Plastic Packaging Market size is expected to reach 1.18 million tonnes in 2024 and grow at a CAGR of 4.98% to reach 1.51 million tonnes by 2029.
What is the current Indonesia Rigid Plastic Packaging Market size?
In 2024, the Indonesia Rigid Plastic Packaging Market size is expected to reach 1.18 million tonnes.
Who are the key players in Indonesia Rigid Plastic Packaging Market?
PT. Indorama Ventures Indonesia, PT. Berlina Tbk, PT Indo Tirta Abadi, Indo Cap Closures and PT.Solusi Prima Packaging are the major companies operating in the Indonesia Rigid Plastic Packaging Market.
What years does this Indonesia Rigid Plastic Packaging Market cover, and what was the market size in 2023?
In 2023, the Indonesia Rigid Plastic Packaging Market size was estimated at 1.12 million tonnes. The report covers the Indonesia Rigid Plastic Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Rigid Plastic Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Rigid Plastic Packaging in Indonesia Industry Report
Statistics for the 2023 Rigid Plastic Packaging in Indonesia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Rigid Plastic Packaging in Indonesia analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
