Consumer Packaging Industry Analysis in Indonesia

Indonesia Consumer Packaging Industry Outlook from 2024 to 2034

Indonesia consumer packaging industry is estimated to be valued at USD 10.6 billion in 2024 and is forecast to reach USD 18.2 billion by 2034. Sales revenue of consumer packaging in Indonesia is projected to expand at a CAGR of 5.5% between 2024 and 2034. The revenue generated by consumer packaging in 2023 was USD 10 billion and is anticipated to exhibit Y-o-Y growth of 5.3% in 2024.

A significant portion of this growth is driven by flexible packaging, which is set to dominate the market with a 68.4% share in 2024. The demand for flexible packaging is expected to grow at a rate of 5.1% over the next decade. This popularity stems from its numerous advantages: it is lightweight, highly customizable, boasts superior packaging ratios, and offers easy adjustability.

Moreover, flexible packaging requires less material and generates 75% fewer greenhouse emissions compared to traditional packaging, making it an increasingly attractive option in a world that is progressively prioritizing sustainability.

Plastic remains the predominant material in the consumer packaging industry, capturing around 50% of the market share. By 2034, the value of plastic packaging is expected to reach USD 9.6 billion. Plastic’s dominance is largely due to its visual appeal, which enhances the brand image and attracts consumers.

Additionally, plastic packaging maintains the hygiene and freshness of products, providing reassurance to end-users. Its cost-effectiveness further cements its status as the preferred choice for many businesses, driving its widespread adoption across various sectors.

The food industry stands out as the leading end user of consumer packaging solutions, projected to account for a 49.8% market share by 2034. The consistent demand for consumer-packaged food items, which are consumed daily, underpins this significant market share.

Rising consumption of pet food, dry food, confectionery, frozen food, and ready-to-eat meals is translating into a robust demand for consumer packaging in Indonesia. This trend reflects broader changes in consumer behavior, where convenience and hygiene are becoming increasingly important, further bolstering the growth of the consumer packaging industry in the region.

Indonesia’s Consumer Packaging Industry Forecast

Attributes	Key Insights
Historical Indonesia Consumer Packaging Revenue (2023)	USD 10 billion
Estimated Indonesia Consumer Packaging Industry Size (2024E)	USD 10.6 billion
Projected Indonesia Consumer Packaging Demand Outlook (2034F)	USD 18.2 billion
Value-based CAGR (2024 to 2034)	5.5%

Key Industry Highlights

Rise in Consumption of Packaged Foods and Beverages is Fueling the Indonesia Consumer Packaging Industry

The transition in lifestyle and preferences of Indonesian consumers is supplementing the demand for packaged foods. Consumers are more inclined towards convenient and ready-to-consume food, including snacks, bakery products, frozen food, and ready-to-eat meals which is contributing to the demand growth.

The presence of multinational businesses such as Nestle, Danone, Indofood, etc., in Indonesia is shaping the consumer packaging industry. The current dominance of traditional grocery stores and the ongoing expansion of supermarkets, hypermarkets, and convenience stores in Indonesia are increasing the sales of food and beverage products.

Rising income, population, and economic development in Indonesia also boost the consumption of packaged food and beverages in the country. Indonesia is one of the top producers of products like fish, palm oil, cocoa and coffee, which is mostly exported to other countries.

Furthermore, the country also heavily relies on imports of certain food items such as wheat, dairy, or processed food products. The demand for these products will generate the growth opportunity for the business in Indonesia during the upcoming period.

The rise in consumption of alcoholic beverages is propelling the demand for consumer packaging solutions. As per the study of the International Journal of Current Science Research and Review, the sales of alcoholic beverages in Indonesia contributed 60.5% in terms of value and 30.4% in volume share in 2021. It is further estimated that per capita expenditure will increase to USD 2.6 in 2026.

Health-conscious consumers are choosing packaged fruit juices, soft drinks, and ready-to-drink protein shakes, which is increasing demand for portable, lightweight, and convenient packaging solutions.

Factors like concerns over food safety, increased awareness of healthy lifestyles, and the growing penetration of modern retail stores in Indonesia are expected to drive the demand for consumer packaging solutions.

Development in the Manufacturing Sector in Indonesia

The manufacturing sector is on the rise due to innovation for consumer packaging and huge demand for several end-use industries. With the support of favorable government policies and the availability of the labor force in Indonesia, the manufacturing sector is expanding across various industries.

Production activities are rising in sectors like automotive, electronics, textile, pharmaceuticals, industrial components, and chemicals. There has been a need for efficient packaging solutions for the storage and transportation of goods at domestic and international levels.

As packaging becomes a crucial part of the manufacturing process, the consumer packaging industry in Indonesia is expected to boost over the forecast period.

Expanding Need for Medical Devices and Pharmaceuticals in Indonesia

Indonesia is still exporting 90% of medical devices and pharmaceuticals from other countries. The number of medical device companies in Indonesia has increased to 800. The Indonesian government has also passed a new health act medical devices sector that will boost the demand for consumer packaging solutions in the country.

Over Dependency on Imported Raw Materials

The Indonesian packaging industry procures its significant raw material plastic from neighboring countries China and Thailand. Sometimes adverse situations arise due to trade disputes, natural disasters, or transportation challenges and this leads to disruption in the supply chains. Non-resilience of the supply chain will cause a shortage of raw material and in turn, shoot up the price of packaging solutions.

2019 to 2023 Indonesia Consumer Packaging Sales Outlook Compared to Demand Forecast from 2024 to 2034

The consumer packaging industry in Indonesia has recorded a CAGR of 3.5% during the historic period with a revenue of USD 10 billion in 2023 with an increment from USD 8.9 billion in 2019.

Businesses need to ensure that consumer goods are delivered in their original condition without any damage or harm. It is boosting the demand for protective packaging such as boxes, cartons, and folding boxes.

The awareness regarding sustainability and eco-friendly packaging in Indonesia is driving the demand for safe and eco-friendly consumer packaging solutions. It is generating the demand for alternative packaging solutions made of aluminium, tin, paper, and bioplastics that are recyclable and biodegradable.

Sustainability concerns have further enhanced the use of recycled materials such as rPET and recycled paper to reduce the environmental harm caused by packaging waste. Packaging materials that are recyclable and degradable are creating traction in the industry across Indonesia.

Manufacturers are emphasizing research and development to bring innovation among packaging types and usage of these materials considering their environmental impact and level of sustainability. Stringent regulations over the use of non-biodegradable materials are also contributing to the growth of the industry.

Businesses in Indonesia are also contributing to this trend. For instance, Aqua which is a bottled water company in Indonesia, launched the bottles with 100% recyclable materials, especially for convenience stores and food and beverage brands. Additionally, companies like Fiesta are introducing stores like Indomart, Familymart, and Lawson along with launching their ready-to-meal products.

The pharmaceutical industry in Indonesia is opening an ocean of opportunities for consumer packaging. Indonesia's pharmaceutical industry is one of the topmost growing countries in Southeast Asia. The government of Indonesia has allocated 9.4% of its total budget to improving healthcare access for its citizens.

Indonesia is experiencing increasing demand for medical devices and pharmaceutical drugs, which will influence consumer packaging. Rising sales via over-the-counter and eCommerce are likely to boost the demand for effective consumer packaging in Indonesia.

Comparative View of Adjacent Industries

The section below compares two industries in the packaging division, namely, Europe consumer electronics packaging industry and China consumer packaging industry. The table offers growth factors, CAGR through 2034, and key trends driving these related industries.

Europe Consumer Electronics Packaging Industry Assessment:

The increase in production and sales of electronic devices such as mobile and laptops will propel the industry. Subsequently, increasing cross-border trade and a shift in packaging manufacturers over the production of sustainable packaging to fulfill the demand for eco-friendly packaging will boost consumer electronic packaging across Europe.

Attributes	Description
Related Industry	Europe Consumer Electronics Packaging Industry
CAGR (2024 to 2034)	4.8%
Growth Factor	Growth of cross-border trade between Eastern and Western Europe generating Consumer Electronics Packaging demand.
Key Trend	Attractive printable features offered by consumer electronics packaging to boost the industry.

China Consumer Packaging Industry Assessment:

The consumer packaging industry in China is witnessing considerable growth due to increased awareness of hygiene and safety concerns among consumers and the rising adoption of e-commerce platforms. Online shopping is becoming increasingly popular and the adoption of secure and tamper-evident packaging is becoming more prevalent in the country.

Attributes	Description
Related Industry	China Consumer Packaging Industry
CAGR (2024 to 2034)	5.7%
Growth Factor	Rising eCommerce sector and surging demand for consumer packaging in China
Key Trend	New trend of on-the-go packaging solutions in China

Category-wise Insights

The section contains information about the leading segments in the industry. In terms of material, plastic is estimated to account for a share of 53.1% by 2034. By end-use, the food industry is projected to dominate by holding a share of 49.8% in 2034.

Plastic is the Most Favored Material for Consumer Packaging leads

Material	Plastic
Value CAGR (2034)	5.7%

Plastic material is dominating the consumer packaging industry in Indonesia. The segment is anticipated to rise at a CAGR of 5.7%, generating an incremental growth opportunity worth USD 4.3 billion by 2034. Plastic has been the preferred choice of consumer packaging material because of its inherent properties.

Some of the essential properties required for optimum packaging solutions offered by plastic, like the balance between strength, flexibility, toughness, and improved sealing ability have led to its use at large scale for a variety of purposes.

Plastic is considered an affordable option over metal and glass which makes them an attractive solution for businesses to provide effective packaging at lower cost. Plastic is the most versatile and flexible, which makes it suitable for a wide variety of products.

Its strength and durability ensure efficient packaging and protection of goods during shipping. Rising preference for portability and convenience in Indonesia supplementing the demand for lightweight packaging, especially for consumer products.

Efficient Packaging Solutions to Maintain the Freshness and Integrity of Food

End-use	Food
Value CAGR (2034)	5%

The food segment is anticipated to grow at 5% CAGR and generate incremental revenue worth USD 3.7 billion during the forecast period. The rapidly growing popularity of efficient packaging solutions for maintaining the product quality of food items is driving the industry.

Efficient, safe, and attractive packaging is a vital element in the food industry for brand marketing to attract new customers and retain of previous customer base. Maintaining the quality, integrity, and freshness of the product, storage and transport.

The packaging material that offers tamper-evidence, high strength, low thermal conductivity, transparency, and resistivity towards sunlight and moisture is considered essential for food packaging.

Indonesia is predicted to have a 5% increase in consumer spending on food and beverages annually until 2030. The young and urbanized population in Indonesia is inclining towards time-saving and healthy food options driven by changing consumption patterns.

Competitive Landscape

The companies operating in the consumer packaging industry in Indonesia are concentrating on developing sustainable solutions and innovations. To strengthen their resources, renowned players are also seeking to execute the merger and acquisition strategy.

To accommodate the increasing demand, a few other firms are creating different products. Key industry players are focusing on enhancing their production capacities to meet the rising demand.

Companies are expanding their product offerings by providing customized options. Businesses are making investments in research and development for developing new products and incorporating the latest production technologies.

Industry Updates

• In May 2024, Amcor plc, along with AVON, a seller of cosmetics, skincare, perfume, and personal care products launched the AmPrima Plus refill pouch for the AVON Little Black Dress classic shower gels in China.
• In March 2024, 3M launched the first known padded, paper-based curbside recyclable mailer material, namely 3M Padded Automatable Curbside Recyclable (PACR) Mailer Material for shipping and sale of goods across various industries.

Key Players in Indonesia Consumer Packaging Industry

• Oji Holdings Corporation.
• Amcor plc
• Crown Holdings, Inc.
• Sonoco Product Company
• PT. INDONESIA TOPPAN PRINTING
• Billerud AB
• 3M Company
• International Paper Company
• CCL Industries
• Novoflex Industries Pvt. Ltd
• PT Primajaya Eratama
• Epac Holdings, LLC
• Pura Group
• Supernova
• Gordopack Flexible Packaging Indonesia. PT

Indonesia Consumer Packaging Industry Segmentation

By Packaging Formats:

In terms of packaging format, the industry is divided into flexible packaging and rigid packaging. Flexible packaging is further sub-categorized into pouches, bags and sacks, films and wraps, sachets, stick packs, cups, tubes, labels, and clamshells and rigid packaging into trays, blisters, tubes and lids, caps and closures, pumps and dispensers, boxes, cartons, bottles and jars, cans, cores and tubes.

By Material:

Few of the important materials include plastics, paper, aluminium foil, wood, and metal. The plastic segment is further sub-categorised into polyethylene, polypropylene, PET, PVC, nylon, EVOH, polystyrene, post-consumer recycled (PCR), and bioplastics.

The polyethylene sub-segment is further divided into HDPE, LDPE, and LLDPE, whereas bioplastics into PLA, starch-based plastics, Bio-PET, Bio-PE, and others. The metal segment is sub-categorized into aluminium, tin, and steel.

By End Use:

Few of the leading end-users include food, beverage, personal care and hygiene, homecare and toiletries, pharmaceuticals, consumer electronics, and medical devices. The food segment is sub-categorized into bakery and confectionaries, dairy products, baby food, edible oil, meat poultry, seafood, snacks, spices and condiments, fruits and vegetables, pet food, rte food, pulses, and cereals.

The beverage segment is sub-categorized into alcoholic and non-alcoholic. The alcoholic beverages are further sub-segmented into beer, wine, spirits, and other alcoholic beverages, and non-alcoholic beverages into fruit juices, carbonated drinks, RTD beverages, bottles of water, tea and coffee, and milk products.

The personal care and hygiene segment is sub-categorized into skincare, haircare, makeup, fragrance, and nail care. The homecare and toiletries segment is sub-categorized into toiletries, laundry care products, personal hygiene, and air fresheners.

By Level of Packaging:

In terms of packaging level, the industry is segmented into primary, secondary, and tertiary.

By Technology:

Some of the prominent technologies employed are injection molding, thermoforming, blow molding, extrusion, and other technologies.

By Distribution Channel:

In terms of distribution channels, the industry is categorized into online and offline.

Frequently Asked Questions

What is the future of Indonesia consumer packaging industry?

The industry is projected to witness a CAGR of 5.5% between 2024 and 2034.

What was the worth of the Indonesia consumer packaging industry in 2023?

The Indonesia consumer packaging industry stood at USD 10 billion in 2023.

What will the worth of Indonesia consumer packaging by 2034 end?

Indonesia consumer packaging industry is anticipated to reach USD 18.2 billion by 2034.

Which packaging format recorded rapid CAGR during the forecast period?

Rigid packaging is set to record a CAGR of 6.5% in the assessment period.

Who are the key players of Indonesia consumer packaging industry?

Oji Holdings Corporation., Amcor plc, and Crown Holdings, Inc.