The Indonesia Flexible Packaging market was valued at USD 2,982.94 million in 2019 and is forecasted to reach USD YY million by 2027, with a CAGR of 6.12% during the forecast period (2020-2027).
Indonesia has a developed industry for both flexible and rigid packaging markets and is highly reliant on importation of raw materials. Flexible Packaging market in Indonesia has dominating share within Association of Southeast Asian Nations (ASEAN) market and is expected to lead the region in coming years. Flexible packaging segment is the largest product type in overall Indonesian packaging industry.
Flexible plastic is the biggest product type within flexible packaging in Indonesia. The growth in the industry is driven by increasing urban population and changing lifestyles have led to the adoption of flexible packaging products especially for food products. Flexible packaging is mainly seen in food and non-food product types and beverages as a primary and/or secondary packaging. Most of the flexible packaging products were consumed in the food industry. Slider bags are growing popularly in Indonesia within flexible pouch packaging products, due to ease of usage and convenience of slider bags.
Market Dynamics
Drivers
- Convenience of flexible packaging
- Increasing demand for flexible packaging
Restraints
- Difficulties for recycling the flexible plastic packaging
Convenience of flexible packaging
Convenience has become a crucial factor in consumer choice of flexible packaging in Indonesia, mainly due to hectic lifestyles and time scarcity. Innate characteristics such as lightweight and convenience of flexible packaging are driving their demand across many industries. Brands are also promoting flexible packaging features to leverage the ongoing trends and provide products that help save time. The demand for flexible packaging is increasing due to the ability of customization to fit the shape of any product. It is possible to package products and accessories of many shapes and sizes with flexible packaging with low cost than rigid packaging. Flexible packaging integrates the best qualities of plastics and films. These resourceful packaging supplies are a functional solution that needs minimal production costs, attracting many small new enterprises to enter the market. Additionally, in terms of production, flexible packaging utilizes less base material than the traditional rigid packaging, and the easy formability of flexible substance decreases production time and energy consumption. In terms of creating marketing value, flexible packaging materials allow more creative and visible packaging shapes. Together with top-of-the-line printing and design services, this makes sure conspicuous and striking packaging which enhances marketing value. So for advertisement purposes, many food production enterprises use flexible packaging, driving the market growth.
In addition, in terms of product life, flexible packaging protects products from environmental contaminants such as moisture, UV rays, mold, dust etc., that can negatively affect the product, thus maintaining its quality and extending its shelf life. These features are suitable for food & beverage products. Other than that, in terms of customer convenience, flexible packaging is less bulky and lighter than traditional rigid packaging, so it is easier for customers to buy, transport, and store products.
Due to the properties of flexible packaging, Shipping and handling costs are substantially decreased since this method is lighter and takes up less amount of space than rigid packaging, which helps manufacturers decrease costs from logistics and transportation. For instance, to transport unfilled packaging for the same amount of product needs 26 truckloads of glass jars against one truckload of flexible pouches. Which drastically changes the fuel expenditure and greenhouse emission.
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Additionally, producing a flexible food service pouch needs 75 percent less energy than manufacturing metal can for the equivalent amount of product while causing only 1/10th of CO2 emissions in production.
Further, One of the main reasons for the growing demand for flexible packaging is it enables the colorful visibility of its contents, driving shelf appeal and enhancing consumer confidence at the point of purchase. Moreover, it is generally extendable into diverse product categories, generating shelf appeal in various retail environments.
Competitive Scenario
Dai Nippon Printing Co., Ltd
Dai Nippon Printing Co., Ltd. engages in the provision of publishing and commercial printing services. It operates through the following segments: Information Communication, Lifestyle and Industrial Supplies, Electronics, and Beverages.
The Information Communication segment involves the manufacture and sale of publications, commercial printing materials, business forms, and educational and publications distribution.
The Lifestyle and Industrial Supplies segment offers packaging materials, interior and exterior construction materials, photographic materials, and industrial supplies. The Electronics segment handles precision electronic components and other products.
The Beverages segment produces and sells carbonated and non-carbonated beverages. The company was founded on October 9, 1876 and is headquartered in Tokyo, Japan.