Market Trends of Indonesia Rigid Plastic Packaging Industry
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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Food Sector Expected to Witness Significant Share
- Rigid plastic packaging, including plastic bottles and containers, continues to be popular in industries for food packaging applications. Containers are used to pack sauces, and other consumer goods, which use HDPE and LDPE material for packaging.
- Indonesia's food business employs a range of rigid plastic packaging options. Indonesians are becoming more interested in eating organic food, which has led to stores stocking and exporting an increasing amount of organic produce. One of the primary end uses of packaging in Indonesia is food. However, Indonesia has long imported many processed and essential food components.
- Some materials used for making bottles and container products include Polyethylene terephthalate (PET) and polypropylene (PP), among others. PP is blow-molded to produce crates, bottles, and pots. PP thin-walled containers are standard across the country and used for food packaging.
- Moreover, the Indonesian government has also introduced a new food contact packaging legislation to update the domestic packaging standards and bring them in line with international standards such as those used by the US FDA (Food and Drug Association) and EU food legislation. The revised regulation covers domestic and imported food packaging across the five packaging categories, including rigid plastics.
- As a result of the regulation, major worldwide food product corporations will adhere to just one standard. However, given the nation's high poverty rates and the poor financial bases of several domestic packaging makers, it seems unlikely that the new regulation will be fully implemented and widely adopted.
