Indonesia Plastic Caps And Closures - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Indonesia Plastic Caps And Closures Market size is estimated at USD 1.75 billion in 2024, and is expected to reach USD 2.27 billion by 2029, growing at a CAGR of 5.34% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 10.81 billion units in 2024 to 13.41 billion units by 2029, at a CAGR of 4.40% during the forecast period (2024-2029).

Key Highlights

• In 2023, Indonesia's population hit around 279 million, solidifying its position as the world's fourth-most populous nation. Statistics Indonesia (BPS) reported that Indonesia's economy witnessed a 5.1% growth in 2023. This growth was primarily fueled by strong domestic demand in the country, which further propelled the food and beverage industry.
• The surge in Indonesia's food processing industry can be attributed to a burgeoning tourism sector, a sizable population, and a consistently expanding food retail industry. Indonesian consumers increasingly turn to processed and packaged foods, ranging from frozen desserts to chips and snacks, alongside processed fruits and vegetables. This shift is particularly evident as more urban women enter the workforce, leaving them with less time for meal preparation, thereby bolstering the country's food market.
• The demand for non-alcoholic beverages in Indonesia is on the upswing, propelled by shifting consumer tastes, a burgeoning middle class, and rapid urbanization. This surge in demand is fueling the need for plastic packaging, specifically caps, closures, and lids. Data from the Indonesian Soft Drink Industry Association revealed that the beverage sector experienced a 3.1% growth from 2022 to 2023, with packaged drinking water (AMDK) leading the charge.
• The market is witnessing a surge in demand for innovative threaded caps across various industries, from food and beverages to household, industrial, and personal care. This heightened demand is primarily fueled by manufacturers such as Pact Group Holding Limited, who offer a range of threaded and dispensing caps in various sizes tailored to cater to diverse bottle-neck requirements, especially in Indonesia.
• The industry faces a pressing challenge: the mounting volume of plastic packaging waste, encompassing caps, closures, and lids. This waste threatens wildlife, which can ingest these non-biodegradable materials and contribute to landfill accumulation, impeding market growth. In response, manufacturers increasingly pursue sustainable and durable metal caps and closures.

Indonesia Plastic Caps and Closures Market Trends

Threaded Caps Segment Estimated to Have the Significant Market Share

• Threaded caps ensure an airtight seal, preventing leaks and safeguarding against external contaminants. This feature is crucial for storing and transporting volatile, corrosive, or hazardous substances. Their design enables easy opening and closing, streamlining filling and emptying processes while maintaining product integrity, propelling the popularity of threaded caps across various industries in the country.
• Indonesia's growing demand for innovative and sustainable dispensing solutions for food and beverage, cosmetics, and personal care products propels the demand for threaded caps. Companies such as Aptar Group Inc. and Pact Group Holdings Limited provide lightweight, functional, and innovative tethered caps and closures for dairy, food, beverage, personal care, and healthcare markets.
• Indonesian manufacturers, such as Tetra Pak, prioritize innovative and user-friendly closure solutions tailored to the food and beverage sector. Tetra Pak's standout product, the C38 Pro resealable tethered cap, boasts a tamper band for enhanced food protection. Available in a spectrum of colors, this feature seamlessly integrates into diverse packaging designs, bolstering product appeal.
• The surge in plastic and plastic product trade within Indonesia directly impacts the demand for plastic caps and closures. Recent data from BPS Statistics Indonesia reveals a notable uptick: the nation's plastic imports surged from USD 646 billion in the previous month to USD 888.27 billion in May 2024. Concurrently, Indonesia's plastic exports also witnessed a healthy rise, rising from USD 202.63 billion to USD 250.80 billion during the same period.

Beverage Segment Expected to Dominate the Market

• The rising consumption of beverages in Indonesia is attributable to the rising food and beverage processing industry. With the swift proliferation of convenience stores that predominantly carry locally sourced products, Indonesia's distribution of beverages has significantly broadened. This propels the country's sales of non-alcoholic beverages such as bottled water, juices, energy drinks, and soft drinks.
• Rising international tourist arrivals in Indonesia and increasing tourist spending on food and beverage propel the industry's growth. According to data by the World Travel and Tourism Council (WTTC), Indonesia's tourism sector contribution to the economy they marked a significant 12.3% surge from the preceding year and a 7.7% uptick from its peak in 2019.
• The trend in Indonesia toward healthier, affordable soft drinks is driving up demand for no-calorie, zero-sugar energy drinks and ready-to-drink beverages. In April 2024, Coca-Cola unveiled its limited-edition Coca-Cola K-Wave Zero Sugar, featuring a K-pop theme in Singapore, Indonesia, Vietnam, Thailand, and the Philippines, targeting the region's youthful demographic.
• Indonesia's increasing exports of non-alcoholic beverages and spirits are pivotal in the country's economic growth. This surge in the beverage sector is also fueling the need for plastic caps and closures. Recent data from BPS Statistics Indonesia highlighted a notable jump in export values, from USD 13.51 billion in April 2024 to USD 20.63 billion in May 2024.

Indonesia Plastic Caps and Closures Industry Overview

The Indonesian market for plastic caps and closures exhibits a moderate level of consolidation. Key domestic players, like PT Hasil Raya Industries and PT Indo Tirta Abadi, stand alongside international giants such as Aptar Group Inc., Pact Group Holdings Limited, and Weener Plastics Group BV. These firms bolster their market presence through new product launches, strategic partnerships, and mergers and acquisitions.

• In April 2024, Aptar Group Inc., a US-based company with operations in Indonesia, unveiled the Future Disc Top. This sustainable closure, tailored for the beauty and personal care sector, features a secure locking ring, guaranteeing leak-proof and damage-free transportation for E-commerce orders. By incorporating this design, Aptar aims to reduce product returns and eliminate the need for supplementary protective materials such as bubble wrap or shrink sleeves.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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