Indonesia Plastic Packaging Market Size

Indonesia Plastic Packaging Market Analysis

The Indonesian plastic packaging market is expected to register a CAGR of 2.5% over the forecast period. Owing to the COVID-19 pandemic, food and beverage companies are developing response actions and effective plans to help mitigate their risk and prepare for how they would deal with the effects of the coronavirus. These plans include establishing an interdisciplinary crisis response team of personnel from all aspects of the business to identify, assess, and manage the risk presented.

• The increasing technological advancements and end-user industry packaging applications are the significant factors driving the growth of the market studied. In most of Indonesia, the population is growing, and the use of packaging per person is increasing. It is also growing due to consumer behavior trends, such as the growth in the use of convenience products and the increasing use of plastic as a substitute for other packaging materials.
• Plastic packaging has implemented new ways for the functioning of the packaging industry. Packaging solutions that are durable, lightweight, and comfortable have augmented the use of plastics as a packaging material across the region.
• The price of LDPE packaging is currently low in the region, which means that there will be minimal impact on the sellers from the additional cost of using the material. The demand for surgical masks, which are made of materials such as polypropylene, polyisoprene, and polyurethane, has also increased.
• Plastic pollution has become a global problem. Several types of research have stated plastic's adverse effects on the environment. Owing to this, Indonesia also implemented regulations to reduce the use of plastics. The Indonesian plastic packaging market is facing serious concerns due to the plastic resin price rise. This is leading to increased lags in recovering higher costs of resin and reduced profitability among established local players.
• Additionally, to fund a response to the COVID-19 pandemic, the Indonesian government introduced a fiscal stimulus package worth trillions of rupiah and increased its state budget deficit above the 3% legal limit. The country's current flexible packaging market players are anticipated to benefit from this. However, breaking even for newcomers may provide unheard-of difficulties. There is also the impact of the Russia-Ukraine war on the overall packaging ecosystem.