Market Trends of Indonesia Metal Packaging Industry
This section covers the major market trends shaping the Indonesia Metal Packaging Market according to our research experts:
Growing Demand for Convenience Food
- As Indonesia is among the emerging economies in Southeast Asia with a rapidly growing middle-class population, the demand for convenience food is increasing with rising numbers of convenience stores outside Java and major urban areas.
- The increasing consumer preferences for convenience foods is a crucial factor driving the growth of packaged food in Indonesia. Due to the growing convenience factor, there has been an exponential growth of packaged food, including canned food, packaged food or meals, frozen food, preserved food, and instant products, driving demand in the metal packaging market.
- According to the USDA Foreign Agricultural Service, in 2021, revenue from packaged foods has shown a considerable rise. The confectionary packaged goods sales were USD 1,897 million in the year 2021. In the same year, the total retail sales value of packaged food increased to around USD 32.97 billion from USD 32,264 million in 2020.
- Moreover, to cater to the growing need for convenience foods in the urban areas of Indonesia, convenience store chain operators are expanding their operations by adding new outlets. In 2021, the Alfamart convenience store chain added more than 1,000 minimarts to bring its total store count to over 19,500.
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Beverage Industry to Hold Major Share in the Market
- Beverage sales are still increasing, owing to ongoing economic development, rising incomes, and population growth. However, to transform the Indonesian economy, the government is pursuing policies that reduce the country's reliance on imports and strengthen the manufacturing sector, which benefits the beverage sector.
- Despite being affected by the COVID-19 pandemic, the food and beverage industry remains resilient, growing 3.68% in the second quarter of 2022, a significant increase from 2.95% in the same period in 2021, according to the government of Indonesia. Furthermore, food and beverage industry exports reached USD 21.3 billion in January-June 2022, up 9% from USD 19.5 billion in the same period in 2021.
- Moreover, in May 2021, Nestle started constructing a beverage can plant in Batang, Indonesia. To fulfil growing consumer demand, the factory would produce Bear Brand liquid milk and ready-to-drink beverages, Milo and Nescafe. With the construction of the new factory, the company has signed an agreement with the Batang regional government to form a partnership with prospective dairy farmers and farmer groups to source additional raw materials for production. Key end-user players' initiatives in response to market development support metal packaging growth.
