INDONESIA POLYETHYLENE TEREPHTHALATE (PET) MARKET

Indonesia Polyethylene Terephthalate (PET) Market is estimated to grow at a steady CAGR of 5.3% between 2025 and 2032 primarily driven by the increasing demand from various industries coupled with the growing need for sustainable packaging.

Major Market Drivers and Emerging Trends

The market is growing rapidly primarily owing to the rising demand from various industries. PET offers remarkable strength which makes it a popular option for many applications. From food packaging or medical devices PET finds application in various sectors which makes it among the most widely used materials in Indonesia.

The emerging ecommerce is driving the need for packaging materials which offer durability and light weight. PET is the ideal material for ecommerce packaging owing to its ability to offer protection with its lightweight nature. The growing ecommerce has sparked a need for more compact and effective packaging solutions that has in turn driven the demand for PET materials.

Its popularity in packaging is further being fueled by the increasing emphasis on environmental considerations. Its high recyclability makes it a desirable substitute for other plastics especially for beverage products. With rising concern over plastic waste many businesses are turning to environmentally responsible materials to minimize their environmental impact. PET is a top choice for businesses aiming to adopt sustainable packaging with its recyclability. Improvements in recycling technologies are further accelerating this trend.

It is also increasingly popular in the automotive sector for its strength. The composites are increasingly favored in the industry for their ability to manufacture durable components including interior panels and exterior trim. The materials are important for reducing vehicle weight which boosts fuel efficiency. The growing focus on environmental standard is also driving the sector to adopt lighter materials to comply with emission requirements. The increasing need for these materials in the industry is estimated to significantly contribute to market growth.

PET is also a popular option in the textile sector especially for manufacturing fibers in clothing. The textile market favors it for its durability and affordability which makes it a top choice for various applications. Its contribution to the textile industry is anticipated to expand in the coming years with growing consumer focus on circular economies.

Even though PET is recyclable it is still a plastic and concerns about the waste continue to influence the market. Despite recycling rates continuing to improve the need for efficient waste management remains a significant challenge. Another challenge is the high costs and limited availability of raw materials needed for PET production. This can drive up expenses for local producers and make them less competitive in comparison to international players.

Based on type the market is classified into recycled and virgin materials. The growing emphasis on environmentally friendly practices is fueling a substantial growth in the need for recycled plastic. RPET is created from recycled bottles which cuts down on the demand for virgin materials while helping reduce overall waste. Many companies are turning to rPET to comply with regulatory standards and meet consumer expectations for green products. Advances in technologies including better purification techniques are improving its quality and broadening its use cases.

Based on application the packaging segment continues to dominate the market. The packaging industry has experienced significant growth primarily driven by the booming food and beverage sector. Its strong growth has been instrumental in establishing PET packaging as a market leader. Its excellent barrier characteristics make it a popular choice for packaging beverages like water or carbonated drinks as it effectively preserves their quality.

Key Developments

• • In 2024, the Alba Blue Loan for Recycling has been launched by the ADB and the LEAP in partnership with ALBA to develop a plant for recycling PET in Central Java. The loans are designed to finance projects that protect marine environments and promote sustainable water management practices.
  • In 2023, Alba Group spent nearly USD 60 million to build a PET waste management facility located at KIP in Central Java.

Segments covered in the Report:

The Indonesia Polyethylene Terephthalate (PET) Market has been segmented on the basis of Type and Application. Based on the Type, the market is segmented into Virgin and Recycled. Based on the Application, the market is segmented into Packaging, Automotive, Construction, Medical, and Others.

Market Segmentation

Indonesia Polyethylene Terephthalate (PET) Market by Type

• • Virgin
  • Recycled

Indonesia Polyethylene Terephthalate (PET) Market by Application

• • Packaging
  • Automotive
  • Construction
  • Medical
  • Others