Indonesia Rigid Plastic Packaging Market Outlook to 2030

Indonesia Rigid Plastic Packaging Market Overview

• Indonesia Rigid Plastic Packaging market was valued at USD 4.5 billion in 2023. This market is largely driven by the food and beverage sector, which continues to demand durable, cost-effective, and sustainable packaging solutions. Urbanization and the increasing use of consumer goods have further amplified the markets growth.
• Key players in Indonesia Rigid Plastic Packaging Market include PT Indo Tirta Abadi, Dynapack Asia, and PT Berlina Tbk. These companies dominate the market by providing high-quality, customizable packaging solutions to various industries, particularly food and beverage and healthcare. Their strategic partnerships and investments in innovative packaging technologies have given them a competitive edge and solidified their market positions.
• In 2022, Dynapack Asia has entered a long-term partnership with Linfox Indonesia to enhance logistics capabilities. This collaboration involves a new warehouse facility in Jakarta, equipped with advanced Very Narrow Aisle (VNA) technology, which aims to improve storage efficiency and customer service. The facility can handle up to 34,000 pallets per month and represents a significant investment in modern infrastructure for Dynapack Asia in the region.
• Jakarta and Surabaya are the leading cities in Indonesias rigid plastic packaging market. This dominance is attributed to the high concentration of manufacturing and distribution hubs in these cities. Additionally, Jakarta serves as the economic center, with a booming food and beverage industry, driving the demand for rigid plastic packaging.

Indonesia Rigid Plastic Packaging Market Segmentation

By Material Type: Indonesia Rigid Plastic Packaging Market is segmented by material type into polyethylene terephthalate (PET), high-density polyethylene (HDPE), and polypropylene (PP). In 2023, PET holds the dominant market share within this segment due to its widespread use in beverage packaging and its recyclability. PETs lightweight and cost-effective nature makes it a preferred choice for manufacturers looking to balance sustainability and durability.

By End-User Industry: The market is also segmented by end-user industry into food and beverages, healthcare, and personal care. In 2023, the food and beverage industry dominate with the largest share. The rise of ready-to-eat products and the expansion of the beverage sector, particularly in urban areas, are the key drivers behind the demand for rigid plastic packaging in this segment. The durability and safety offered by rigid plastic containers make them a preferred choice for packaging perishable items.

By Region: Rigid plastic packaging market in Indonesia is divided into Java, Sumatra, and Kalimantan. Java holds the largest market share in 2023 due to its high population density, industrialization, and presence of key manufacturing units. The islands well-developed infrastructure and access to key distribution channels make it a hub for packaging demand, especially in urban centers like Jakarta.

Indonesia Rigid Plastic Packaging Market Competitive Landscape

• PT Kencana Group: In 2024, Azelis, a global innovation service provider, has acquired PT Marga Dwi Kencana (MDK), a leading Indonesian distributor serving the personal care market. The acquisition expands Azelis' presence in Indonesia, strengthens its life sciences market foothold, and adds technical expertise in the Halal cosmetic market. MDK's management team and employees will join Azelis, supporting the integration process.
• PT Eka Plastic: In 2024, the US-based private equity firm Symphony Technology Group (STG) acquired Bengaluru-based commodities trade and risk management (CTRM) software company Eka Software Solutions. The combination of Eka Software and Quor Group aims to provide their combined user base with enhanced capabilities to navigate the complexities of the commodity markets.

Indonesia Rigid Plastic Packaging Industry Analysis

Growth Drivers:

• E-commerce Boom: Indonesias e-commerce sector is one of the fastest-growing in Southeast Asia, leading to a rise in demand for rigid plastic packaging. The need for durable and secure packaging solutions has increased due to the growth of online retail platforms. Amcor has developed a bottle that is up to 30% lighter and 100% recyclable using their new PowerPost technology, which emphasizes the industry's focus on innovation and sustainability. Consumers are now preferring home deliveries, businesses are investing in stronger, more cost-effective packaging to meet the logistical challenges posed by the rapidly expanding digital marketplace.
• Food and Beverage Industry Expansion: Indonesia's food and beverage industry is projected to contribute to the GDP, driven by urbanization and changes in consumer behavior. The food and beverage manufacturing sector recorded a GDP growth rate of 5.33% year-on-year (yoy) in the first quarter of 2023, surpassing the overall manufacturing sector's growth of 4.43% yoy and the national GDP growth of 5.03% yoy. The push towards ready-to-eat meals and packaged beverages in urban areas further supports the growth of the rigid plastic packaging market.
• Sustainability and Recycling Initiatives: Driven by the Indonesian governments plastic waste reduction targets, companies are increasingly adopting recyclable rigid plastics. Bersih Indonesia Program was initiated in 2022 which aims to serve 6.5 million people and is expected to collect over 800,000 tonnes of municipal solid waste annually, diverting approximately 140,000 tonnes of plastic waste each year. The demand for recyclable PET and HDPE packaging materials continues to rise as environmental concerns among consumers and businesses grow.

Challenges:

• Raw Material Price Volatility: Indonesia faced increased volatility in raw material costs due to global supply chain disruptions leading to cost pressures for packaging manufacturers. Companies relying on imported raw materials for rigid plastic packaging have been severely affected, limiting their production capabilities and profitability. This challenge is likely to continue, with further fluctuations expected as global oil prices remain unpredictable.
• Environmental Regulations: Government-imposed regulations to limit single-use plastics have impacted the rigid plastic packaging market. The restrictions on certain plastic types, including single-use plastic bottles and packaging materials, are pushing companies to invest in alternative materials or sustainable options. Businesses must comply with the regulations or face hefty penalties, adding an additional layer of cost and operational complexity.

Government Initiatives:

• Plastic Waste Reduction Roadmap: The roadmap is grounded in Presidential Decree No. 97/2017, which outlines the National Policy and Strategy on Management of Household Waste, and Decree No. 83/2018 focusing on Marine Debris Management. Indonesia aims to reduce marine plastic waste by 70% by 2025 and achieve a 30% reduction in overall plastic waste generation by 2025. The current recycling rate is approximately 10%, with plans to double this capacity by improving waste collection and recycling infrastructure.
• Extended Producer Responsibility (EPR) System: Implemented in 2019, the EPR system requires producers to reduce the waste generated from their products and packaging by 30% by 2029. This initiative mandates that producers develop long-term waste reduction plans, thereby encouraging them to innovate in packaging design and materials used. Additionally, producers are incentivized to adopt sustainable practices, such as increasing the use of recycled materials and enhancing product recyclability.

Indonesia Rigid Plastic Packaging Future Market Outlook

Indonesia Rigid Plastic Packaging Market is set to experience steady growth, driven by sustainability efforts, increased consumption of packaged goods, and government initiatives promoting recycling. The push toward reducing plastic waste and improving recycling infrastructure will continue to shape the market landscape.

Future Trends

• Sustainability to Drive Innovation: Companies will increasingly invest in innovative materials and designs that cater to sustainability goals. The use of biodegradable and recyclable rigid plastics will expand as consumer preferences shift towards environmentally conscious products. Companies will focus on reducing their carbon footprint by implementing closed-loop recycling systems.
• Growth of Food and Beverage Packaging: The food and beverage industry will continue to dominate the demand for rigid plastic packaging. As urbanization progresses and ready-to-eat meals and beverages become more popular, the demand for sturdy, cost-effective, and safe packaging solutions will rise. This trend will be further fueled by the expansion of international food brands into Indonesia.