Indonesia Glass Packaging Market - Growth, Trends, COVID -19 Impact, Forecasts (2021 - 2026)

The Indonesia Glass Packaging Market is expected to register a CAGR of 5.5% during the forecast period. Indonesia has been working with China on vaccine research, production, distribution, and support exchanges of relevant departments and medical institutes to help ensure affordable vaccines across the region and the world. Indonesia’s Bio Farma is the only vaccine maker in the country teaming up with Chinese biopharmaceutical company, Sinovac Biotech, to produce the vaccine. The distribution is expected to increase glass packaging demand in the country.

Key Highlights

• The country is the largest market in Southeast Asia. The Indonesian cosmetics industry has become an attractive sector for foreign and domestic investors, which influences the country's cosmetic packaging growth.
• According to the Indonesian Ministry of Industry, the growth of the domestic cosmetics industry was driven by increasing domestic and export market demand. The exports have grown by an average of 3.56% in the last five years.
• The progressive trend of people, primarily due to the increasing population of young women or the millennials group, within the country who make beauty products as their primary needs is a significant contributor to the glass packaging industry's growth.
• In addition, stringent government regulations regarding the restrictions on the usage of PET material for pharmaceutical packaging are further increasing the attractiveness of glass packaging for the pharmaceutical industry in the country.

Key Market Trends

Vials Expected to Witness Significant Growth

• Glass packaging is also 100% recyclable, making it a desirable packaging option from an environmental point of view. Also, colored glass, such as amber and red-colored glass, protects its contents from ultraviolet rays and certain wavelengths. Further, Glass ampoules and vials can easily be sterilized, making them ideal for pharmaceutical packaging in the country.​
• Indonesia pharmaceutical industry is expected to witness increased revenues owing to the introduction of the Jaminan Kesehatan Nasional (JKN), a new Universal Health Care Scheme. Predicted rises in income per capita would also drive sales of OTC medicines in the coming years. This is expected to drive demand for glass packaging in the country.
• Additionally, the Aging population and greater incidence of lifestyle-related diseases coupled with a rising GDP per capita would see increased consumer spending on pharmaceuticals in Indonesia.
• According to the Indonesian Packaging Federation, the pharmaceutical, food, and beverage industry is driving Indonesia's packaging market. Moreover, Hi-quality, sophisticated packaging is witnessing increasing need in the country in the fight against counterfeited pharma products.

Personal Care Expected to Witness Significant Growth

• Indonesia cosmetic industry's positive prospects have resulted in a rising number of local brands entering the market and resulted in a much more challenging competitive landscape. Moreover, international brands are also seeking partnerships with local brands and retailers to increase their reach.
• Further, South Korean beauty company Amorepacific Group launched the Etude brand in Indonesia in Feb 2020 by partnering with local lifestyle retailer PT Mitra Adiperkasa Tbk (MAP) to boost its business growth in the territory.
• In addition, in January 2020, Sozio, a fragrance creation firm, announced its expansion into the country to tap into halal fragrance opportunities. The company expects the sales in the country to reach 15% of global sales in the next three years. The company also expects that the country will become a significant destination for its R&D development as well.

Competitive Landscape

The Indonesia Glass Packaging Market moderately competitive, with a considerable number of regional and global players. However, the properties of glass and its benefits to beverages, cosmetics, and other industries are leading to increased adoption of glass bottles, containers, vials and ampoules. Players in the market adopting strategies such as product innovation, partnerships, mergers and acquisitions to increase their market share and further recyclability driving the market.

• March 2021 - SGD Pharma announced the updated version of the Type I molded glass vial range, available in three market-driven offerings, each offered to satisfy different needs and parenteral drug specifications. The offering provides pharma and biopharma companies with products and services solutions that meet the needs of their therapeutic applications, drug properties, and business environment.
• January 2021 - Frigoglass S.A.I.C. announces that the Company's beverage coolers supply agreement with Coca-Cola HBC AG, extended until December 31, 2025. Further, Frigoglass has a strong presence in more mature regions while still expanding and establishing itself in emerging areas.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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