Indonesia Plastic Food Tray - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Indonesia Plastic Food Tray Market size is estimated at USD 411.41 million in 2024, and is expected to reach USD 504.41 million by 2029, growing at a CAGR of 4.16% during the forecast period (2024-2029).

Key Highlights

• A growing number of restaurants, convenience stores, caterers, and other food suppliers, including online meal delivery services, have found benefits when they move from conventional paperboard, styrofoam, and aluminum material trays to plastic trays. Ready-made meals are becoming a standard solution in Indonesia for contemporary individuals because of the country's socioeconomic progress and changing lifestyles, one of the primary factors driving the market for plastic meal trays.
• The market for food trays is anticipated to register growth in Indonesia due to rising packaged food consumption. Due to a shift in customer attention toward processed and specialty foods, the consumption of plastic food trays is expected to be significant in the market. The sharp rise in demand for moisture-proof and spill-proof packaging options is responsible for the rapid growth in demand for plastic food trays. According to the Global Organic Trade Association, in 2023, the consumption value of organic packaged food in Indonesia amounted to around USD 16.7 million. The value is forecast to increase to around USD 19 million by 2025.
• Many millennials in Indonesia travel, and the search for convenient options has significantly increased the number of individuals dining out. These fast-paced trends offer many opportunities for hospitality and new developments in the country. Plastic packaging also offers benefits in enhancing business brand identity as well as strengthening visual marketing. Food trays are versatile and attractive to promote the brand and drive more sales. Digitally printed trays can enhance a brand's identity in many ways.
• With a population of 275.7 million, the fourth-largest in the world, a significant growth of the middle-income group, and a steady upward trend of expenditure per capita, Indonesia's food and beverage (F&B) industry continues to be one of the strongest businesses in the country. This trend is expected to continue in 2024. According to Statistics Indonesia, in 2023, the gross domestic product growth rate for the food and beverage manufacturing industry in Indonesia was recorded at around 4.47%.
• As of July 2023, the government provided competency-building training to 300 human resources and 200 businesses within the F&B industry. By the end of this year, the government intends to enable at least 80 F&B business owners to receive competency certificates to hasten the transition to Industry 4.0 - as is in line with the Indonesian government's Making Indonesia 4.0 Road Map. By 2024, the government plans to have 400 F&B players ready to self-evaluate the readiness of their businesses to be included in the Indonesia Industry 4.0 Readiness Index (INDI 4.0).
• Consumers in the country visit cafes and quick-service restaurants as these outlets offer affordable and convenient ready-to-eat food, thereby driving the packaging industry. Efforts by business operators to constantly improve and enhance their menus also play an essential role in attracting consumers. This channel is dominated by American and local cuisines in the country. QSR outlets are popular, offering chicken, burgers, pizza, and other food items with a local twist. In addition, in June 2024, Pizza Hut Indonesia, a pioneer of pizza companies in Indonesia, celebrated its 40th anniversary with special menus and promos to mark this significant milestone. Since its establishment, Pizza Hut Indonesia expanded to over 600 restaurants across 36 provinces. This growth reflects Pizza Hut Indonesia's commitment to providing customers with a memorable dining experience.
• In addition to these factors, the Indonesian government has implemented regulations to manage plastic waste, notably by placing restrictions on single-use plastics. These initiatives are likely to spur innovation within the plastic food trays market, prompting the emergence of more sustainable alternatives. Concurrently, as consumer preferences pivot toward eco-friendly choices, businesses operating in the plastic food trays market are swiftly adapting. They are rolling out environmentally friendly options to meet this growing demand, creating a promising picture for the market nationwide.
• Moreover, the shift toward sustainable packaging material and changing consumer preferences pose challenges to the long-term growth of the plastic food trays market. Also, increasing inflation in Indonesia poses several challenges to the development of plastic food trays. Plastic food trays are typically made from petroleum-based materials. As inflation rises, so do the costs of raw materials, making production more expensive. Manufacturers either absorb these costs, which reduces their profit margins, or pass them on to consumers, potentially reducing demand.

Indonesia Plastic Food Tray Market Trends

Increasing Demand for Ready-to-eat Food and Online Food Delivery Driving the Market

• Meeting consumer demands is a significant driver for existing and new packaging technologies. The packaging industry has been experiencing fundamental shifts focused on brand experience. Demand for ready-to-eat meals is also a key driver of change. The food trays used are considerably less expensive and lighter in weight for transportation.
• According to a survey conducted by Trade and Investment with Indonesia, by 2050, Indonesia is projected to be the world's fourth-largest economy. The per capita consumption of commodities such as beef and grains is expected to be higher than in China. Indonesia is a USD 2.5 billion export market for Australian farming and fisheries, among other industries. Rising incomes and increasing urbanization drive consumer demand for more pre-packaged, ready-to-eat, and deliverable food options.
• According to Statistics Indonesia, as of March 2023, approximately 26.32% of monthly per capita expenditure on food in rural areas in Indonesia was spent on prepared food and beverages. In comparison, about 8.51% of monthly per capita expenditure on food in rural areas in Indonesia was spent on fish, shrimp, squid, or shellfish.
• Furthermore, the demand for convenient and instant food, particularly instant pasta, snacks, meat products, and rice, among others, is growing at a faster pace due to changes in social and economic patterns, increased expenditure on food and beverage, growing awareness about healthy foods, changes in meal patterns and existing food habits, the growing ex-pat settlement population around the country, and the desire to taste new products. For instance, in January 2023, Restaurant Brands Asia, the parent company of Tim Hortons, Burger King, and Firehouse Subs, among others, introduced the renowned US fried chicken brand Popeyes to Indonesia. Its subsidiary, PT Sari Chicken Indonesia (SCHI), made this move possible. Popeyes debuted in Indonesia by launching four outlets in the Jakarta metropolitan area, also known as Jabodetabek. These locations include Margo City Mall, Supermal Karawaci, Skyline, and Kelapa Gading. The brand has ambitious plans to establish a network of 300 Popeyes restaurants nationwide.
• Moreover, according to a recent survey by the Center for Indonesian Policy Studies, online grocery delivery services in Indonesia are projected to grow at an annual rate of 11.5% from 2020 to 2024. Online grocery delivery offers many Indonesians increasing choice and convenience by expanding the dining options available to consumers, including restaurants, home grocers, food courts, and food stalls. Online grocery delivery also provides employment and entrepreneurial opportunities for vendors and drivers. All these factors drive the market demand for ready-to-eat and online food delivery in the country.

PET Resin Type Holds a Significant Market Share

• PET has become the most widely used material for packaging food products. The material offers a high melting point, low brittleness, transparency, and high barrier. It is gaining importance due to its low cost compared to other thermoplastic materials. PET food trays have become the first preference among different product types for packaging food products. Drying PET granules before processing is necessary as they could get hydrolyzed at high temperatures due to their moisture content. One of the latest innovations in the PET food trays industry has been the introduction of high-quality lightweight PET food trays to reduce material and energy consumption.
• With the growing demand for convenience products, Indonesians are increasingly looking for quick and easy solutions that satisfy their needs without sacrificing quality or taste. This trend for convenience items is driven by more mobility and decreased time spent at home due to increasingly hectic lifestyles. Ready-to-eat food satisfies these requirements because it can be consumed quickly and easily without requiring any preparation. According to Statistics Indonesia, as of March 2023, approximately 49% of household expenditure in Indonesia was allocated for food.
• The increased consumption of packaged food products in Indonesia would significantly raise demand for PET food trays during the forecast period. This is primarily due to busier lifestyles, which contribute to a strong preference for convenience products. According to Statistics Indonesia, as of February 2024, approximately 142.18 million people were employed in Indonesia. The increasing number of office workers may create demand for ready-to-eat food, driving market growth.
• Food processors and quick-service restaurants increasingly use PET food trays to satisfy their packaging needs. However, due to new and current rules and regulations regarding plastic packaging, demand for PET food trays may decrease.
• Furthermore, demand for PET food trays is likely to rise further as new food products are introduced into the packaged food category. Because of their numerous advantages and qualities, RPET and PET plastic are among the thermoformed tray manufacturing materials with the most significant growth and implementation in the Indonesian market. In addition, Burger King (BK) Indonesia has targets to make 330 stores operational by Q1 2026. The QSR chain said this aggressive growth plan would close the gap with market leaders and penetrate through tier 1, 2, and 3 cities in Indonesia.

Indonesia Plastic Food Tray Industry Overview

The Indonesian plastic food trays market is highly fragmented, with the presence of major players like Amcor PLC, Sonoco Products Company, Thermopak Karya Indonesia, PT. Vacpack Indonesia, and PT. Gosyen Pacific Sukses Makmur. Players in the market are adopting strategies such as partnerships, mergers, innovations, investments, company expansions, and acquisitions to enhance their product offerings and gain a sustainable competitive advantage.

• April 2024 - Klöckner Pentaplast (KP) announced the industry's inaugural food packaging tray crafted solely from recycled materials. This innovation stems from its Tray2Tray closed-loop program, dedicated to reclaiming PET waste. Through Tray2Tray, the company retrieves and recycles used food trays, transforming them into fresh, sustainable food packaging solutions.

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