Indonesia Folding Carton Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 5.08 Billion |
| Market Size (2029) | USD 6.63 Billion |
| CAGR (2024 - 2029) | 5.47 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Folding Carton Packaging Market Analysis
The Indonesia Folding Carton Packaging Market size is estimated at USD 5.08 billion in 2024, and is expected to reach USD 6.63 billion by 2029, growing at a CAGR of 5.47% during the forecast period (2024-2029).
- The Indonesian folding carton market is a dynamic landscape shaped by a confluence of factors spanning economic, social, and industrial domains. As per a news published in Paper Desk in November 2023, Indonesia’s pulp and paper industry (IPPI) comprises 112 industries with a total capacity of 11.45 million tons of pulp and 20.65 million tons of paper. The industry plays a significant role in the country’s economy. At its core, the market's growth is tied to Indonesia's expanding economy. As the nation continues to develop, fueled by urbanization and industrialization, the demand for packaged goods escalates, propelling the need for folding cartons across various sectors.
- Shifting consumer preferences play a pivotal role in steering the trajectory of the folding carton market. As Indonesian consumers become increasingly discerning and health-conscious, there is a growing inclination toward packaged goods that offer convenience, safety, and sustainability. This preference amplifies the demand for folding cartons, which are not only versatile but also environmentally friendly.
- The burgeoning retail landscape in Indonesia catalyzes the rising demand for folding cartons. As per a news published by FitchRatings in September 2023, Indonesia’s Retail Business Association, or Aprindo, said retail sales rose by 3.2% in 1H23. With the proliferation of supermarkets, hypermarkets, and convenience stores across urban and rural areas, there is a surge in the requirement for aesthetically appealing and functional packaging solutions. Folding cartons, with their versatility in design, durability, and cost-effcetiveness, emerge as the packaging solution of choice for businesses striving to captivate consumers in an increasingly competitive market.
- The pharmaceutical and cosmetics industries contribute significantly to the demand for folding cartons in Indonesia. The growing population of Indonesia and increasing access to healthcare and beauty products are leading to an escalating need for secure and visually appealing packaging to ensure product safety and brand recognition.
- Prices of raw materials used for folding cartons packaging are volatile. Thus, manufacturers have to adjust the end price or reduce operational costs to maximize the profit. Most raw materials, such as chemicals, are derived from crude oil (primarily utilized during the manufacturing process).
Indonesia Folding Carton Packaging Market Trends
The Food and Beverages Segment Occupies the Largest Share
- Millenial customers drive the demand for folding carton food and beverage packaging solutions in Indonesia, as they prefer environment-friendly packaging and on-the-go food. As products such as on-the-go food are designed to be portable, durable, and lightweight, folding cartons are a great option to pack them. The increase in online food deliveries has been driving the growth of the folding carton market in the country.
- The demand for folding cartons spans various sectors, each driven by unique consumer preferences and industry dynamics. Importing dairy ingredients to Indonesia strengthens the country's dairy industry by providing access to essential raw materials, meeting consumer demand, facilitating technology transfer, and stimulating economic activity. In the dairy sector, folding cartons serve as indispensable packaging solutions for products such as milk, yogurt, and flavored beverages. As consumer awareness regarding health and nutrition grows, the demand for dairy products packaged in convenient and environmentally friendly containers is increasing.
- The foodservice sector in Indonesia, comprising quick service restaurants, relies heavily on folding cartons for packaging takeaway and delivery orders. With the rise in on-the-go consumption habits and the growing popularity of food delivery services, the demand for packaging solutions that are functional, visually appealing, and environemntally sustainable is increasing.
- The spending on bakery and cereal bars has increased considerably in Indonesia during the past few years, driving the growth of the folding carton market in the country. With the bakery market witnessing a surge in artisanal and premium products, packaging aestheics are becoming increasingly vital in attracting consumers. Folding cartons with eye-catcing designs and sturdy construction not only showcase the artisanal nature of baked goods but also ensure their safe transportation and storage, contributing to overall customer satisfaction and brand perception.
The Healthcare Sector will Witness Significant Growth
- The growth of Indonesia's pharmaceutical market, coupled with its burgeoning population and youthful demographic, presents a compelling investment opportunity for both global and local companies. As the largest market in Southeast Asia, Indonesia's pharmaceutical sector is poised for sustained expansion, driven by the increasing healthcare expenditure, rising prevalence of chronic diseases, and the government’s initiaves to improve access to healthcare services. Investments in this sector are expected to catalyze the demand for folding cartons, which serve as essential packaging solutions for pharmaceutical products.
- Investments in the pharmaceutical sector will lead to a proliferation of drug manufacturing and packaging facilities in Indonesia. With the production of a diverse range of pharmaceutical products, including over-the-counter medications, prescription drugs, and vitamins, there will be a heightened need for secure and compliant packaging solutions to ensure product integrity and safety. Folding cartons, with their customizable design options and ability to meet stringent regulatory requirements, will emerge as the packaging solution of choice for pharmaceutical companies looking to uphold quality standards and enhance brand perception.
- As pharmaceutical companies strive to meet the growing demand for their products, investments in advanced packaging technologies and materials, such as folding cartons with tamper-evident features, tend to become imperative to ensure product safety and compliace with regulatory standards. For instance, in April 2023, Natco Pharma Ltd announced setting up of a subsidiary in Indonesia with an investment of up to USD 3 million for selling pharmaceutical products in the country.
- Folding cartons, with their ample space for instructional leaflets, dosage information, and branding, offer a versatile platform for pharmaceutical companies to communicate with patients and differentiate their products in the market. The increased spending on the healthcare, supported by government initiatives and schemes across Indonesia, directly impacts the growth of the healthcare industry, which is expected to lead to higher usage of folding carton packaging for bulk shipping of pharmaceuticals and healthcare products.
The Indonesian Folding Carton Packaging Industry Overview
The Indonesian folding carton packaging market is fragmented with the presence of international and local vendors. To garner market share and compete in the market ladscape, companies are adopting diverse strategies, such as mergers and acquisitions. For example, the vendor, AR Packaging, entered the market by acquiring the domestic company, PT Maju Jaya Sarana Grafika. Key market players are Industri Pembungkus Internasional Pt, PT. Fajar Surya Wisesa Tbk, and Pt. Metaform (Kompas Gramedia).
• August 2023: Leading sustainable fiber and product producer, Asia Pacific Resources International Limited, strengthened its commitment to supporting Indonesia's green economy's growth. The company announced the expansion of its product portfolio in the downstream sector by investing IDR 33.4 trillion (USD 20.57 billion) in a sustainable paperboard production facility.
• January 2024: The Indonesian government revised its food packaging regulations over the presence of dangerous chemicals entering the food supply chain. The scope of the regulation covers both new and recycled materials, including plastics, inks and dyes, paper and paperboard, resins and polymer coatings, metals, ceramics, and glass.
Indonesia Folding Carton Packaging Market Leaders
PT Industri Pembungkus Internasional
FajarPaper
Metaform
Rengo Group
Graphic Packaging
*Disclaimer: Major Players sorted in no particular order
Indonesia Folding Carton Packaging Market News
- November 2023 - The Indonesia International Paper Chain Industry Exhibition (Paper Chain Indonesia), jointly organized by the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products (CCCME) and the China Chemical Information Center (CNCIC), was launched at the JIEXPO Exhibition Center in Jakarta, Indonesia, on November 24, 2023. The rapid development of the Indonesian paper industry with higher demand has attracted a lot of investment and trade attention. The exhibition covers pulp and paper equipment, paper products and equipment, packaging products and equipment, paper chemicals, automatic intelligent equipment, paper machine accessories and equipment, and various paper product manufacturers.
- December 2023: Siegwerk joined forces with the Indonesian Packaging Federation (IPF) to raise safe packaging standards in Indonesia. The partnership was aimed to address issues related to food packaging safety and raise awareness among brand owners, regulators, converters, printers, and other key stakeholders about the importance of safe packaging.
Indonesia Folding Carton Packaging Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Demand for Eco Friendly Packaging
5.1.2 Increase in Adoption of Folding Carton by Different Industries
5.2 Market Challenges
5.2.1 Fluctuations in the Price of Raw Materials
5.3 Industry Value Chain Analysis
5.4 Trade Scenario Analysis - Import & Export Analysis of Corresponding HS Codes
5.5 Analysis of Cartonboard & Recovered Paper In Indonesia
6. MARKET SEGMENTATION
6.1 By End-User Industry
6.1.1 Food and Beverages
6.1.2 Healthcare
6.1.3 Household and Personal Care
6.1.4 Industrial
6.1.5 Other End-user Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Industri Pembungkus Internasional Pt
7.1.2 PT. Fajar Surya Wisesa Tbk
7.1.3 Pt. Metaform (Kompas Gramedia)
7.1.4 AR Packaging (CVC Capital Partners SICAV-FIS S.A)
7.1.5 Rengo Co. Ltd
7.1.6 APP (Asia Pulp & Paper)
7.1.7 PT Pabrik Kertas Indonesia (PT Pakerin
7.1.8 PT Kanepackage Indonesia
7.1.9 PT Asia Carton Lestari
7.1.10 Teguh Group
7.1.11 PT Pura Barutama
- *List Not Exhaustive
8. FUTURE OF THE MARKET
Indonesia Folding Carton Packaging Industry Segmentation
The folding carton packaging is one of the most used eco-friendly packaging solutions as they can be produced in varying sizes and have a small footprint, making it feasible for applications in various end-user industries. The growth of the Indonesian packaging industry is driven by the country's expanding population and high demand for low-cost, flexible packaging. The industries where folding cartons are mostly used include the personal care, healthcare, household, and food industries.
The report covers folding carton manufacturers in indonesia and is segmented by end-user industry (food and beverages, healthcare, household and personal care, and industrial, other end user industries). Market sizes and forecasts are provided in terms of value (USD) for all the above-mentioned segments.
| By End-User Industry | |
| Food and Beverages | |
| Healthcare | |
| Household and Personal Care | |
| Industrial | |
| Other End-user Industries |
Indonesia Folding Carton Packaging Market Research FAQs
How big is the Indonesia Folding Carton Packaging Market?
The Indonesia Folding Carton Packaging Market size is expected to reach USD 5.08 billion in 2024 and grow at a CAGR of 5.47% to reach USD 6.63 billion by 2029.
What is the current Indonesia Folding Carton Packaging Market size?
In 2024, the Indonesia Folding Carton Packaging Market size is expected to reach USD 5.08 billion.
Who are the key players in Indonesia Folding Carton Packaging Market?
PT Industri Pembungkus Internasional, FajarPaper, Metaform, Rengo Group and Graphic Packaging are the major companies operating in the Indonesia Folding Carton Packaging Market.
What years does this Indonesia Folding Carton Packaging Market cover, and what was the market size in 2023?
In 2023, the Indonesia Folding Carton Packaging Market size was estimated at USD 4.80 billion. The report covers the Indonesia Folding Carton Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Folding Carton Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Indonesia Folding Carton Packaging Industry Report
Statistics for the 2024 Indonesia Folding Carton Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Folding Carton Packaging analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
