Indonesia Paper Packaging Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 14.28 Billion |
| Market Size (2029) | USD 19.18 Billion |
| CAGR (2024 - 2029) | 6.07 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indonesia Paper Packaging Market Analysis
The Indonesia Paper Packaging Market size is estimated at USD 14.28 billion in 2024, and is expected to reach USD 19.18 billion by 2029, growing at a CAGR of 6.07% during the forecast period (2024-2029).
Packaging materials made of paper are widely used for packaging various goods, including food, medical, and personal care items.
- Due to their eco-friendly quality, paper packaging is becoming more popular in Indonesia. Paper is used more frequently as an exterior covering to keep the products together in a multi/bundle box.
- Additionally, the need for folding cartons is being favorably impacted by the demand of healthcare and pharmaceutical industries for simple-to-transport, biodegradable, and recyclable packaging options for medications and related items.
- Furthermore, as environmental concerns became more prominent, the general public's emphasis on sustainability increased. People are becoming more environmentally conscious, which indicates that they are making more sustainable purchases, which has resulted in the food packaging industry experiencing a shift in consumer preferences.
- Paper is made from newly planted forests' tree fibers or recycled paper. Deforestation and forest degradation are global issues. To begin with, approximately half of the world's forests have vanished. Every year, another 13 million hectares of trees are lost (though afforestation replaces eight). According to the World Resources Institute (WRI), around 22% of the world's old-growth forests remain intact.
- With the outbreak of COVID-19, the demand for the transport packaging flow of necessities, such as packaging for food and other consumer products, medical and pharmaceutical products, as well as tissue and hygiene products, and the demand for paper packaging, increased significantly in the nation.
Indonesia Paper Packaging Market Trends
This section covers the major market trends shaping the Indonesia Paper Packaging Market according to our research experts:
Corrugated Boxes Expected to Show Significant Adoption
- Local markets in the country are witnessing tremendous industrial expansion, and businesses are forming new strategic alliances in the region, which is why the corrugated packaging market in the entire Asia-Pacific region is witnessing immense growth.
- Other elements, such as urban populations' growing environmental consciousness, the nation's increasing demand for sustainable packaging solutions, the rise in demand for convenient packaging, and the expansion of e-commerce activity, are also accelerating the growth of the corrugated packaging market in powerful nations like Indonesia.
- The usage of corrugated boards for packaging is increasing due to the significant demand for Fast-Moving Consumer Goods (FMCG) and branded consumer durables worldwide. Corrugated boards are widely used in the food & beverage sector to package processed foods, including bread, snacks, Ready-To-Eat (RTE) meals, meat products, fruits, durable foods, and beverages.
- Food service establishments, for instance, use corrugated boxes for packaging pizza. The demand for catering high-quality packaging services has been driven by a shift in consumer lifestyle and the increased desire for convenience food, fueling the expansion of the corrugated board industry across the country.
- In May 2021, SCG Packaging PCL increased its packaging investment in Indonesia by acquiring a 75% share in IntanGroup, a corrugated packaging company located in four central provinces. This development is part of the company's plan to increase its investment in the ASEAN area. The corporation believes that expanding corrugated packaging will benefit the industry.
Food and Beverage Industry Expected to Exhibit Maximum Growth
- Paper packaging is being extensively used in the food sector. It is both environmentally beneficial and convenient for consumers. As a result, there is tremendous competition in the food & beverage industry among companies that provide high-quality products to consumers. Various packaging materials, such as cardboard and corrugated boxes, are available in the market to satisfy multiple packaging needs.
- Moreover, the e-commerce platform has gained a lot of attraction in this region's food market. This is because it offers various food products and ensures they are delivered on time and in proper packaging. As a result of the expansion of e-commerce, food packaging demand is expected to rise. This is because good, innovative packaging preserves the product's quality and extends its shelf-life.
- Furthermore, millennial customers in the region are primarily driving the demand for flexible paper packaging solutions, as they favor single-serving and on-the-go food and beverage products. Flexible paper packaging is a common alternative for packing these products because they are meant to be portable, sturdy, and lightweight. The need for flexible packaging from the food & beverage industry in the region is likely to be governed by the fastest-growing categories of snack foods, both in terms of fresh goods and processed foods.
- Additionally, rising per capita income, urbanization, and a young population is expected to boost the country's packaged food and beverage (F&B) segment's rise. This will help fuel the increase in folding carton packaging in the food retail and restaurant industries. Paper packaging will benefit from growing concerns about the sustainability of plastic packaging.
Indonesia Paper Packaging Industry Overview
The paper packaging industry in Indonesia is moderately fragmented due to the presence of several major market players in the country who hold the majority share. The market players such as, PT Industri Pembungkus Internasional, PT Fajar Surya Wisesa Tbk, PT Metaform (Kompas Gramedia), AR Packaging Group AB, and Rengo Co. Ltd, are considering strategic partnerships and collaborations to expand their market share.
- In September 2022, Rengo Co., Ltd. announced its acquisition of Marufuku, and the agreement strengthened the company's potential to expand its folding carton and flexible packaging operations further in each region.
Indonesia Paper Packaging Market Leaders
PT Industri Pembungkus Internasional
PT Fajar Surya Wisesa Tbk
PT Metaform (Kompas Gramedia)
AR Packaging Group AB
Rengo Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Indonesia Paper Packaging Market News
- June 2022 - Mondi expected its sustainable packaging portfolio with its 'Grow&Go' line. The entire Grow&Goportfolio complies with food contact standards and is made entirely of paper.
- April 2022 - Asia Pacific Resources International Limited (APRIL Group) committed to strengthening the growth of the green economy in Indonesia by expanding its product portfolio in the downstream sector, investing IDR 33.4 trillion (USD 176777.47301420002 Million) in a sustainable paperboard production facility. Once completed, this facility is expected to produce 1.2 million tons of fully recyclable and biodegradable folding box boards annually.
Indonesia Paper 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 Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 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
6. IMPACT OF COVID-19 ON THE PACKAGING INDUSTRY
7. CURRENT TRADE SCENARIO - EXPORT/IMPORT ANALYSIS
7.1 Cartonboard
7.2 Recovered Paper
8. INDONESIA COUNTRY ANALYSIS
8.1 Analysis of Key Macro-economic Indicators
8.2 Regulatory and Legal Landscape
8.3 Major Industries Contributing to the Economic Growth
8.4 Key Imperatives for Foreign Companies to Establish Presence in Indonesia
9. INDONESIA PACKAGING INDUSTRY OUTLOOK
10. MARKET SEGMENTATION
10.1 By Type
10.1.1 Folding Cartons
10.1.2 Corrugated Boxes
10.1.3 Other Types (Flexible Paper Packaging, Liquid Cartons etc.)
10.2 By End-user Industry
10.2.1 Food & Beverage
10.2.2 Healthcare
10.2.3 Personal Care & Household Care
10.2.4 Industrial
10.2.5 Other End-user Industries
11. COMPETITIVE LANDSCAPE
11.1 Company Profiles
11.1.1 PT Industri Pembungkus Internasional
11.1.2 PT Fajar Surya Wisesa Tbk
11.1.3 PT Metaform (Kompas Gramedia)
11.1.4 AR Packaging Group AB
11.1.5 Rengo Co. Ltd
11.1.6 APP (Asia Pulp & Paper)
11.1.7 PT Pabrik Kertas Indonesia (PT Pakerin)
11.1.8 International Paper Company
11.1.9 PT Asia Carton Lestari
11.1.10 Teguh Group
11.1.11 PT Pura Barutama
- *List Not Exhaustive
12. INVESTMENT ANALYSIS
13. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indonesia Paper Packaging Industry Segmentation
Paper is one of the most extensively used materials for packaging products. Paper and paperboard packaging include materials related to paper and boards like kraft paper, corrugated paper, recycled paper, and cardboard, among others. Paper packaging is lightweight, biodegradable, and recyclable, making it an essential component of modern life.
The Indonesia Paper Packaging Market is segmented by Type (Corrugated Boxes, Folding cartons, and other types) and End-user Industry (Food & Beverage, Healthcare, Personal Care & Household Care, Industrial, and other end-user industries).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| By Type | |
| Folding Cartons | |
| Corrugated Boxes | |
| Other Types (Flexible Paper Packaging, Liquid Cartons etc.) |
| By End-user Industry | |
| Food & Beverage | |
| Healthcare | |
| Personal Care & Household Care | |
| Industrial | |
| Other End-user Industries |
Indonesia Paper Packaging Market Research FAQs
How big is the Indonesia Paper Packaging Market?
The Indonesia Paper Packaging Market size is expected to reach USD 14.28 billion in 2024 and grow at a CAGR of 6.07% to reach USD 19.18 billion by 2029.
What is the current Indonesia Paper Packaging Market size?
In 2024, the Indonesia Paper Packaging Market size is expected to reach USD 14.28 billion.
Who are the key players in Indonesia Paper Packaging Market?
PT Industri Pembungkus Internasional, PT Fajar Surya Wisesa Tbk, PT Metaform (Kompas Gramedia), AR Packaging Group AB and Rengo Co. Ltd are the major companies operating in the Indonesia Paper Packaging Market.
What years does this Indonesia Paper Packaging Market cover, and what was the market size in 2023?
In 2023, the Indonesia Paper Packaging Market size was estimated at USD 13.46 billion. The report covers the Indonesia Paper Packaging Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Indonesia Paper Packaging Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Indonesia Paper Packaging Industry Report
Statistics for the 2024 Indonesia Paper Packaging market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Paper 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.
