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

Key Highlights

• The increasing advancements and end-user industry packaging applications are the significant factors pushing the market. In Indonesia, the use of packaging per person is rising due to consumer behavior trends, such as the use of convenience products.
• Implementing new ways for plastic packaging films to function significantly impacts Indonesia's packaging industry. Durable and versatile plastic packaging films are increasingly favored across industries, from food and pharmaceuticals to consumer goods. Their adaptability fuels the demand for diversification.
• Moreover, with multiple convenience stores, the food industry is one of the largest sectors among modern retail channels. They are projected to continue to expand in terms of the number of outlets, as they are closer to residential areas. With the rising demand for food packages, the market would escalate significantly regarding packaging options like plastic packaging films.
• Environmental laws are also anticipated to hinder the expansion of plastic packaging films. The government of Indonesia has enforced regulations to manage plastic waste and promote plastic recycling. Presidential Regulation Number 83 of 2018 on marine waste management governs the issue of marine plastic waste and aims to lower its impact on the environment.
  

  Key Highlights

  • Further, the government is working towards its target of 70% waste management and 30% waste reduction by 2025. Also, the government is devoted to addressing waste from the upstream and downstream life cycle of products, targeting “zero waste” by 2030. Such government initiatives and plastic pollution might impact the market studied over the forecast period.

Indonesia Plastic Packaging Films Market Trends

Polyethylene Segment is Expected to Witness Significant Growth

• Growing awareness of environmental issues is leading to increased demand for sustainable packaging. Innovations in recyclable and biodegradable PE films align with these consumer and regulatory demands.
• In June 2023, Indonesia's Environment and Forestry Minister announced intentions to ban single-use plastic film products by 2029. With the phasing out of single-use plastics, the market is set to witness a surge in demand for reusable and robust packaging solutions.
  • Polyethylene (PE) packaging films, prized for their durability and adaptability, are poised to emerge as a favored substitute, fueling their market demand. This shift aligns with global trends towards sustainability and environmental responsibility, further bolstering the growth prospects for PE packaging films.
• The surge in e-commerce sales leads to a higher volume of shipped products, increasing the demand for durable and protective packaging materials. Polyethylene packaging films are ideal for e-commerce packaging due to their lightweight, flexibility, and protective qualities.
  • Indonesia boasts one of Southeast Asia's largest retail e-commerce markets, as highlighted by Agriculture and Agri-Food Canada. In 2021, retail e-commerce sales in Indonesia reached USD 37.34 billion, almost five times higher than in 2017. Retail e-commerce sales are anticipated to reach USD 90.47 billion by 2026.

Food Segment to Show Significant Growth

• Innovations in packaging technology, such as multi-layer films, high-barrier films, and biodegradable films, are enhancing the functionality and sustainability of plastic packaging. These advancements cater to the specific needs of the food industry, such as extended shelf life and improved food safety.
• One of the industry insiders' critical steps was establishing the Indonesian Packaging and Recycling Association for Sustainable Environment (PRAISE). Coca-Cola Indonesia, Indian Food Sukses McMar, Nestle Indonesia, Tetra Pak Indonesia, Tirta Investama, and Unilever Indonesia Foundation founded this non-profit organization.
  • In 2030, Indonesia aimed to establish a sustainable ecosystem by converting plastic packaging waste into valuable resources, fostering economic, social, and environmental advantages.
• The rising sales of processed meat, seafood, and meat alternatives indicate a growing consumer preference for convenient, ready-to-eat, and easy-to-cook food products. These products require efficient and reliable packaging solutions, driving the demand for plastic packaging films.
  • According to an article published by the United States Department of Agriculture in July 2023, the significant increase in retail sales of processed meat, seafood, and alternatives to meat in Indonesia from USD 1.43 billion in 2017 to USD 1.97 billion in 2022 highlights a growing demand for these products.

Indonesia Plastic Packaging Films Industry Overview

• March 2024: INEOS Olefins & Polymers Europe, PepsiCo, and Amcor have collaborated to introduce an innovative snack packaging solution for Sunbites crisps, which integrates 50% recycled plastic. The companies revealed that the packaging is manufactured by converting plastic waste into food-grade material through a cutting-edge recycling process.
• March 2023: ePac Flexible Packaging has announced its early compliance with all state deadlines concerning PFAS and plastic packaging. In 2023, several states started enforcing laws and regulations prohibiting the intentional addition of polyfluoroalkyl substances (PFAS) in packaging.

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