INDONESIA PLASTIC PACKAGING MARKET

Indonesia plastic packaging market is forecast to grow at a robust CAGR of 6.1% during forecast period driven by rapid urban development and an increasing demand for plastic packaging across various sectors.

Major Market Drivers and Emerging Trends

Indonesia plastic packaging market size growth is driven by the growing need for plastic packaging in numerous industries including consumer goods and automotive. The manufacturing sector in Indonesia is experiencing robust expansion with key sectors like automotive and electronics increasingly utilizing plastic packaging for various applications. This growing dependence on plastics underscores their importance in spurring innovation and addressing consumer needs. The packaging industry relies heavily on plastics due to their numerous advantages including superior chemical resistance along with recyclability. The increasing demand for plastic packaging is also accelerated by significant urbanization in the country. With 59% of the population now living in urban areas the need for plastic packaging especially in consumer goods continues to rise.

The other factor supporting Indonesia plastic packaging market growth is the population growth and expanding middle class. The growing middle class in Indonesia along with shifting consumer preferences is driving a surge in demand for plastic goods including household products and electronics. The Central Bureau of Statistics reports that 66.35% of the population in Indonesia in 2024 belongs to the middle class or is approaching the status and contributes to 81.49% of total household expenditures. This large consumption share emphasizes the middle class as a crucial support for the national economy.

The market is further propelled by changes in consumer behavior including the rising need for convenience products along with the growing use of plastic as a substitute for conventional packaging. The emerging ecommerce has further increased the need for packaging materials particularly plastic as efficient packaging crucial for product protection during transit. Additionally, strong investment from local and global players in plastic market drives technological progress and boosts product capacity which further drives market growth.

PET is highly favored in Indonesia for packaging applications owing to its excellent properties. Plastics dominate industries including food retail due to their versatility and moisture resistance which makes them preferred over other materials. PET plastic is an excellent option for food packaging because of its minimal handling risks along with the absence of harmful substances like BPA or heavy metals that ensure safety and compliance with standards.

Based on product, flexible packaging is the most commonly employed packaging material in the country. Flexible packaging provides affordable and tailored packaging solutions which makes it ideal for industries like food and beverage along with personal care due to its flexibility. The segment demand in the country is driven by growing preferences for lightweight packaging coupled with innovations in technology that improve product protection and extend shelf life. The surging interest in personal care items is increasing the demand for flexible packaging that helps improve product aesthetics and maintain quality. The demand for innovative packaging designs is also driving greater product sales volumes which includes pouches and sachets. Economic expansion and the growing demand for convenient foods are further propelling segment growth.

Based on application, the food & beverages segment is experiencing substantial growth. The growing urban population along with the expansion of supermarkets and convenience stores are boosting the need for bags or pouches. There has also been a noticeable rise in consumer spending in Indonesia particularly in food and beverages categories such as bakery goods and ready meals which further fueled the widespread use of plastic packaging.

Top Market Players

Several major players in the market are PT Berlina, Prima Jaya Eratama, Amcor Group, ePac Flexibles, among others.

Key Developments

• • In 2024, Prevented Ocean Plastic set up a large recycled plastic collection facility in Makassar in partnership with the USAID. This facility focuses on enhancing local waste management systems and addressing the rising waste challenge. It also generates dependable income prospects while supplying traceable recycled plastic to markets worldwide.
  • In 2023, ALBA Tridi Plastics Recycling Indonesia secured a blue loan worth USD 44.2 million from the ADB to set up a PET recycling plant in Central Java.

Segments covered in the Report:

The Indonesia Plastic Packaging Market has been segmented on the basis of Material, Product, and Application. Based on the Material, the market is segmented into Polyethylene (PE), Polyethylene Terephthalate (PET), Polypropylene (PP), Polystyrene, Expanded Polystyrene, Polyvinyl Chloride, Bio-based Plastics, and Others. Based on the Product, the market is segmented into Rigid and Flexible. The Rigid segment is further segmented into Bottles & Jars, Cans, Trays & Containers, Caps & Closures, and Others. The Flexible segment is further segmented into Wraps & Films, Bags, Pouches, and Others. Based on the Application, the market is segmented into Food & Beverages, Industrial Packaging, Pharmaceuticals, Personal & Household Care, and Others.

Market Segmentation

Indonesia Plastic Packaging Market by Material

• • Polyethylene (PE)
  • Polyethylene Terephthalate (PET)
  • Polypropylene (PP)
  • Polystyrene
  • Expanded Polystyrene
  • Polyvinyl Chloride
  • Bio-based plastics
  • Others

Indonesia Plastic Packaging Market by Product

• • Rigid
    • Bottles & Jars
    • Cans
    • Trays & Containers
    • Caps & Closures
    • Others
  • Flexible
    • Wraps & Films
    • Bags
    • Pouches
    • Others

Indonesia Plastic Packaging Market by Application

• • Food & Beverages
  • Industrial Packaging
  • Pharmaceuticals
  • Personal & Household Care
  • Others

Indonesia Plastic Packaging Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • PT Berlina
  • Prima Jaya Eratama
  • Amcor Group
  • ePac Flexibles