Indonesia Rigid Plastic Packaging Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Indonesia Rigid Plastic Packaging Market Analysis

The Indonesian rigid plastic packaging market will register a CAGR of 4.74% over the forecast period. The Indonesian packaging business now operates differently as a result of plastic packaging. Although Indonesia's downstream rigid plastic sector is highly developed, its reliance on imported raw materials has limited its growth potential.

• Plastic packaging is more popular with consumers than other products because plastic materials are lightweight and easy to handle. Even large manufacturers prefer plastic packaging solutions due to their low production costs. In addition, the emergence of polymers such as polyethylene terephthalate (PET) and high-density polyethylene (HDPE) expanded the applications of PET bottles. The market, demand for PET bottles is increasing in various markets.
• In Indonesia, the demand for rigid plastic packaging is still on the rise as major environmental issues are brought up. Solutions for rigid plastic packaging are used in a variety of sectors, including industrial, retail, and healthcare. Due to its excellent barrier qualities, lengthy shelf life, and durability, plastic packaging has seen substantial growth in the healthcare sector.
• Various manufacturers prefer rigid plastic packaging in the country as it is a cost-effective solution to protect food and beverages during delivery from farm to table and preserve food over longer durations. These packages also support innovations through different forms and shapes and are lighter in weight.
• However, changing regulatory standards, fluctuating raw material costs, increasing waste volumes, and rising environmental waste regulations have expected to hinder the market growth during the forecast period. This will enable companies operating in this market segment to develop new products that are potentially disruptive and reduce the current risks in the market.
• The outbreak of COVID-19 led to lockdowns and closures of businesses and supplies of raw materials across the country. But the demand for medicines and other essential items were at an all-time high. The shortage of packaging materials available to pack them and their subsequent shipment caused significant disruption to the supply chain for COVID-19 patients. These included several anesthetics, antibiotics, muscle relaxants, and off-label drugs. This led to the supply of plastic bottles to pharmaceutical companies.

Indonesia Rigid Plastic Packaging Industry Segments

Rigid plastic packaging is a packaging technique deployed in Indonesia that involves the usage of plastic material. Rigid plastic material can be defined as material that exhibits no elastic deformation and perfect plastic deformation. It comprises cups, bottles, closures, pots, and cans. The benefits offered by rigid plastic packaging are durability, cost efficiency, longevity, absorption of flavors, and lightweight. It has a range of applications in different industries, such as food & beverages, healthcare, and personal care, among others.

The Indonesian Rigid Plastic Packaging Market is segmented by Material Type (Polypropylene, Polyethylene Terephthalate, Polyethylene, Polystyrene, and Expanded Polystyrene), Product Type (Bottles & Jars, Trays & Containers, Caps & Closures), End-user Industry (Food, Beverage, Personal Care & Household Care, Pharmaceuticals & Healthcare), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

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Indonesia Rigid Plastic Packaging Market Trends

This section covers the major market trends shaping the Indonesia Rigid Plastic Packaging Market according to our research experts:

Polyethylene Terephthalate (PET) Expected to Witness Significant Growth

• There is an increasing demand for Polyethylene Terephthalate from the packaging industry in Indonesia. Superior barrier properties, high tensile strength, better surface finish, and low cost allows Polyethylene Terephthalate to be an ideal product for numerous plastic packaging applications.
• The introduction of PET allows for weight reductions of up to 90% compared to glass, enabling a more economical transportation process. PET plastic bottles are now replacing heavy and fragile glass bottles to provide reusable packaging for mineral water and other beverages.
• In the rigid packaging industry, PET is used to manufacture microwavable food trays and plastic bottles for soft drinks, water, juices, sports drinks, beer, mouthwash, ketchup, salad dressings, and food jars. There is a growing demand for PET bottles from various end-user industries, such as home care, beverages, and personal care. The growth is driven by consumer preference and its properties, such as lightweight and high recycling rate.
• In order to comply with requirements and establish a closed-loop recycling cycle, regional market vendors are also concentrating on making PET single-use packaging more recyclable. Growth opportunities for PET single-use packaging are anticipated, due to the growing emphasis on recycling these materials.
• For instance, in November 2021, Amcor Rigid Packaging (ARP) developed and launched a solution to the problem of small polyethylene terephthalate (PET) bottles slipping through the cracks at recycling centers. The company modified and innovated the bottle design that, in turn, maximizes the collapsed container’s width. The first application for the technology was a 50-ml PET bottle, which airlines use to serve liquor.

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