18 Dec, 2020 Indonesia’s packaging market to grow at 2.4% CAGR and reach 159.2 billion units by 2024, says GlobalDataPosted in Packaging
The packaging sector in Indonesia is expected to reach 159.2 billion units by 2024 at a compounded annual growth rate (CAGR) of 2.4% for the forecast period of 2019-2024, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Indonesia Packaging Industry – Trends and Opportunities’ reveals that the sector is majorly driven by growth in the flexible packaging, which is forecast to register the fastest volume CAGR of 4.2% during 2019–2024. The category is closely followed by rigid plastics, which is expected to record a CAGR of 1.9% during the next five years.
Anchal Bisht, Consumer Analyst at GlobalData, says: “Convenience emerged as a crucial factor in consumer choice of products in Indonesia, attributed mainly to growing hectic lifestyle and time scarcity. Inherent attributes such as lightweight and convenience of flexible packaging are driving their adoption across various industries, although predominated by the food industry. Brands are optimizing on the on-going trends and are offering products which help save time.”
Flexible packaging was the most consumed pack material in Indonesian packaging industry that accounted for a market share of 40.2% in 2019. It is expected to reach 43.8% by 2024. Rigid plastics and paper & board were the other popular pack materials.
Food industry characterized the most use of packaging in Indonesia and accounted for 44.2% market share. It was followed by non-alcoholic beverages and other industries with shares at 38.3% and 15.3%, respectively.
Food industry was leading in terms of usage of rigid plastics, with a share of 83.3% in 2019. It was followed by non-alcoholic industry which accounted for a share of 9.6% in the same year.
Anchal concludes: “Growing concerns over plastic packaging is driving more brands to explore opportunities and offer packaging with recyclability and decomposability benefits. This is further supported by implementation of stringent sustainable packaging regulations by the Indonesian government so as to curb the negative impact of plastic packaging on the environment.”