Indonesia Folding Carton Packaging Market - Growth, Trends, Covid-19 Impact, And Forecasts (2021 - 2

By Author: Statzy Market Research
Total Articles: 979
Comment this article

Increases in income levels, owing to higher employment levels and minimum wages is supporting the growing middle class in the country. This is leading them to increase their budget for consumer products. The demand for personal care and cosmetics, especially skin, makeup, and hair care products, is witnessing rapid growth.

- Increasing demand for eco-friendly packaging is driving the market. Indonesian consumers are increasingly becoming aware of environmentally friendly packaging. As these practices are on the rise from consumers, the companies are focusing more on environmental impact leading to the adoption of folding carton packaging. According to the Packaging Machinery Manufacturers Institute (PMMI), it is estimated that one in five household care consumers place environmentally responsible packaging among the top purchasing criteria.

- Increase in adoption of folding carton by different industries is driving the market. Growing adoption of folding cartons for packaging in industries, such as personal care and cosmetics, beverages, healthcare, and tobacco is driving the market's growth in the country. The ...
... higher disposable income of Indonesian consumers fuels demands for better quality packaging and different packaging formats. For instance, according to Trading Economics, consumer spending in the country increased to IDR 1467542.40 billion in the second quarter of 2019 from IDR 1442550.90 billion in the first quarter of 2019.

- Fluctuations in the price of raw materials is restraining the market to grow. The prices of raw materials for paper folding cartons packaging are volatile, owing to which the manufacturers have to adjust the end price accordingly or reduce the cost of operations to maximize profit. Most of the raw materials, such as chemicals, are derived from crude oil which is primarily utilized during the manufacturing process.

Key Market Trends

Food and Beverages Segment Occupies the Largest Segment

- The food and beverages sector is projected to remain the mainstay of supporting Indonesia's economic growth. The Indonesian Ministry of Industry predicted a growth of at least 9% for the food and beverage sector in 2019.

- According to the Frisian Flag Indonesia senior manager, beverages in small carton packs are big-sellers as many consumers need the convenience aspect. They prefer beverages in carton packs as they can take with them and conveniently drink from even when they are out.

- According to the Foreign Agricultural Service, total dairy consumption in the country is 3.8 billion liters. Around 56% of the consumption is in the form of liquid fresh milk, flavored/fermented milk, evaporated/condensed milk, UHT milk, and cream. The consumption is expected to increase an additional 12.5% in 2018, reaching 2,142 billion liters.

- The companies, such as SIG Combibloc, offer 80ml version of its small CombiblocXSlim carton pack in the Indonesian market. Royal FrieslandCampina, a Dutch dairy company brought a new brand of strawberry- and chocolate-flavored milk drinks under the name Frisian Flag, as part of its Frisian Flag Indonesia subsidiary. This line of flavored milk is available in the country in CombiblocXSlim carton pack.

Healthcare to Witness Significant Growth

- The pharmaceutical industry in Indonesia is expected to develop at a rapid pace, primarily due to the Indonesian government's economic and healthcare initiatives. The country's growing population and economy offer various opportunities for pharmaceutical companies, as the government looks to develop the healthcare services and provide improved drug treatments to its citizens.

- This sector is defined by regulatory requirements for quality and flexibility in the packaging of various drugs and client requirements aligned to these products. In addition, packaging of unique drug products and the delivery systems require specialized packaging to meet multiple applications.

- For instance, in 2018, Kalbe Farma inaugurated a USD 36.3 million medicine ingredients and biological products factory in West Java. The drugs facility may manufacture products used in dialysis treatment, cancer medication, and red blood cell production. Such factors may drive the need for folding carton packaging to contain, protect, and transport medical drug products.

Competitive Landscape

The Indonesia folding carton packaging market is fragmented as the market has the presence of international and local vendors. Notably, to garner market share and compete vigorously in the market, the companies are adopting diverse strategies, such as mergers and acquisitions. Vendors, such as AR Packaging, entered the market by acquiring domestic company PT Maju Jaya Sarana Grafika. Key players are Industri Pembungkus Internasional Pt, PT. Fajar Surya Wisesa Tbk, Pt. Metaform (Kompas Gramedia), etc. Recent developments in the market are -

-

Aug 2019 - Rengo Co. Ltd announced that its consolidated subsidiary, Tri-Wall Holdings Limited will acquire 100% of the shares in TRICOR Packaging & Logistics AG through its subsidiary, Tri-Wall Germany GmbH. TRICOR is the producer of heavy-duty corrugated packaging in Europe.

- Apr 2019 - AR Packaging is expanding its footprint through the acquisition of Nampak Cartons Nigeria Limited, a producer of folding carton products for tobacco, food, and consumer goods segments. Nampak Cartons Nigeria Ltd is among the leading carton packaging companies in Nigeria. The company serves a broad market of multinational customers in the tobacco and food segments from its production facility in Ibadan, Oyo State.

Reasons to Purchase this report:

- The market estimate (ME) sheet in Excel format
- 3 months of analyst support

For sample report please visit : https://www.statzyreports.com/report/sr499171/indonesia-folding-carton-packaging-market

Contact Us:
Poojan Dogra
Public Relations Manager
Email : sales@statzyreports.com
Email : info@statzyreports.com
(IN) - +918484035727
(US) - +1415-871-0483
Website : www.statzyreports.com

StatzyReports is the premier global market research and business reports company based in India. StatzyReports.com functions under Statzy Market Research. We offer our expertise globally in services related to market research, business strategy consulting, surveys or questionnaire, forecast and statistical data analysis. Our experience working with major business and customer driven companies enabled us to develop some of the best winning strategies for succeeding in various global markets. Our globally renowned experts mastered the art of perfection with their unique skillset and vast experience in research and data analytics.