Market Size of Indonesia Metal Packaging Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.60 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Metal Packaging Market Analysis
The Indonesia Metal Packaging Market is expected to grow at a CAGR of 3.6% over the forecast period. Evolving market dynamics where consumer shift towards the usage of processed food and beverages in their food habits is expected to aid the growth of the metal packaging market.
- The growth of high disposable incomes in the country contributes to the development of metal cans. In addition, urbanization and growing middle-class incomes are driving demand for packaged foods, leading to increased production capacity for food and beverage manufacturers. Further, the growth of the metal can have been driven by the growing consumption of beverages such as tea, iced coffee, and soft drinks.
- Furthermore, increasing construction activities in the country and government infrastructure initiatives such as recently announced infrastructure budgets for building a new capital city, as well as growing urbanization are the factors creating a demand for paints and coating products, which are expected to drive growth in the metal packaging market by creating the need for metal packaging solutions.
- However, adopting low-cost alternative packaging products made of paper and plastic restricts the market's growth, especially for metal cans. Moreover, incremental enhancements in plastic packaging pose a threat to the market, which can primarily be allocated to the popularity of plastics, such as polyethylene terephthalate (PET), as substitutes. PET plastics threaten to displace metal container packaging solutions in the food and beverage sector.
- The COVID-19 outbreak and the resulting economic downturn have negatively impacted metal packaging sales volume in Indonesia. Steep changes due to the pandemic characterize the supply-demand dynamics of the country's metal packaging industry. The pandemic highlighted the country's need to focus on developing its domestic market and decrease over-dependence on international markets for raw materials, food products, and exports. It has led to new investments marking expansion projects for various key players in the studied market, supporting its growth. Further, the Russia-Ukraine war has impacted the overall packaging ecosystem leading to increased raw material prices.
