Packaging Industry in Indonesia
Euromonitor International's Packaging Industry in Indonesia report offers a comprehensive guide to the size and shape of the market at a national level. It provides historic market size data by industry, allowing you to identify the most popular pack types. It identifies the leading companies, and offers strategic analysis of key factors influencing the market- be they new product developments, recycling or legislation issues. Forecasts illustrate how the market is set to change.
Chapters: 5 | Tables: 36 | Publication date: Nov 2008
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Executive summary
Shortage of Packaging Materials Become the Main Challenge in 2008
The food packaging industry in Indonesia continues to be lucrative, boosted by the continued switch from non-packaged fresh products to packaged ones. Product packaging continues to grow in demand towards 2008, from packaged food to packaged beverages, cosmetics and toiletries to household care products. The industry faced an important challenge to meet the growing demand, from the rising cost of packaging in 2008 that has risen, due to the shortage of packaging raw materials.
Rocketing oil prices in 2008, posed a tough situation for packaging companies as it resulted in a steep increase in packaging prices. However, a more significant issue in 2008 was the shortage of packaging raw material. The shortage was most felt for the plastic packaging raw material made from polypropylene (PP). The growing trend towards plastic packaging and away from more traditional pack types such as glass, meant that the packaging companies suddenly had to either try to switch to other alternative plastic packaging raw materials that do not use PP or have seen their profitability come under pressure due to such rising costs.
Stronger Regulations Implemented on Packaging
Regulations governing the packaging industry in Indonesia are still relatively minimal and the packaging industry itself is still in an early development stage. As the pack types of various consumer goods products become more varied over the review period, the government has tried to keep up with the introduction of new regulations. In August 2008, Indonesia's food and drug administration body, BPOM announced a new regulation governing the packaging materials used for food packaging. The regulation covers which materials are allowed or forbidden to be used in food packaging, as well as specifying the penalty for the breach of the regulations. Implemented from August 2008, the new regulation is meant to help improve the quality and safety of packaged food products. More such regulations are expected to be announced on other consumer goods packaging in the coming years, however the main challenge for the government will be the enforcement of these regulations.
Domestic Packaging Companies Still Dominate
The packaging industry in Indonesia is fragmented with numerous small to big local players as well as the presence of multinationals. While some areas of pack types such as glass and metal packaging are consolidated due to the more advanced technology required, other areas such as plastic and paper packaging are fragmented with small-scale to big-scale companies serving various consumer goods companies as their clients. Local packaging companies such as Dynaplast Tbk PT, Berlina Tbk PT have strong presence while multinationals are not as well established in Indonesia up to 2008. This is in part due to the government regulations in import tariffs that have resulted in local packaging companies, being able to offer more competitive rates for their products. More packaging players are expected to emerge and foreign packaging companies will enter as well, leading to a more competitive industry.
The Way Ahead Still Bright for Packaging Industry
The packaging industry in Indonesia still has a lot of potential for growth, especially given the high proportion of foods, beverages and non-foods that are still sold unpacked. Rising consumer awareness of the safety and hygiene factors for packaged foods and beverages, means that consumers are increasingly opting for these products and the demand for packaged is expected to continue to see good growth over the next five – ten years. However, as the packaging industry matures, manufacturers will need to get ready to address more advanced issues such as the environmental impact of packaging, recycling issues, the need to invest into eco-sustainable pack types. Other future issues will include looking at packaging cost reduction, due to raw material shortages and rising prices. Technological improvement in secondary areas of packaging, such as closures and labelling technology will also need to be addressed as issues of closure safety, tamper proof packages and packages that can prevent counterfeiting. The industry is also evaluating investments for developing packages that reduce handling and logistics costs and improve efficiency in the total supply chain. The industry is set to move beyond basic issues to more advanced demands on packaging that are emerging.
Table of contents
EXECUTIVE SUMMARY
SHORTAGE OF PACKAGING MATERIALS BECOME THE MAIN CHALLENGE IN 2008
STRONGER REGULATIONS IMPLEMENTED ON PACKAGING
DOMESTIC PACKAGING COMPANIES STILL DOMINATE
THE WAY AHEAD STILL BRIGHT FOR PACKAGING INDUSTRY
MARKET BACKGROUND
PACKAGING LEGISLATION
Existing labelling regulations
Pressing need for more transparency through packaging and labelling
New regulation on food packaging materials announced in August 2008
RECYCLING AND THE ENVIRONMENT
Recycling requirements on packaging still non-existent
More companies go for certifications in environmentally friendly practices
CORPORATE ACTIVITY IN PACKAGING
Domestic companies still lead the packaging industry in Indonesia
More companies build new plants to meet packaging demand
MAJOR MARKET PLAYERS
ALCAN PACKAGING FLEXIPACK PT
Strategic direction
Company background
Competitive positioning
Summary 1 Major End-use Markets for Alcan Packaging Flexipack PT by Pack Type 2008
BERLINA TBK PT
Strategic direction
Company background
Competitive positioning
Summary 2 Berlina Tbk PT Operational Indicators 2007
Summary 3 Major End-use Markets for Berlina Tbk PT by Pack Type 2008
MULIA GLASS PT
Strategic direction
Company background
Competitive positioning
Summary 4 Major End-use Markets for Mulia Glass PT by Pack Type 2008
PURA BARUTAMA PT
Strategic direction
Company background
Competitive positioning
Summary 5 Major End-use Markets for Pura Barutama PT by Pack Type 2008
PELAT TIMAH NUSANTARA (LATINUSA) PT
Strategic direction
Company background
Competitive positioning
Summary 6 Major End-use Markets for Pelat Timah Nusantara PT by Pack Type 2008
TRI POLYTA INDONESIA TBK PT
Strategic direction
Company background
Competitive positioning
Summary 7 Tri Polyta Indonesia Tbk PT Operational Indicators 2007
Summary 8 Major End-use Markets for Tri Polyta Indonesia Tbk PT by Pack Type 2008
TRIAS SENTOSA TBK PT
Strategic direction
Company background
Competitive positioning
Summary 9 Trias Sentosa Tbk PT Operational Indicators 2007
Summary 10 Major End-use Markets for Trias Sentosa Tbk PT by Pack Type 2008
DYNAPLAST TBK PT
Strategic direction
Company background
Competitive positioning
Summary 11 Dynaplast Tbk PT Operational Indicators 2007
Summary 12 Major End-use Markets for Dynaplast Tbk PT by Pack Type 2008
DAI NIPPON PRINTING INDONESIA PT
Strategic direction
Company background
Competitive positioning
Summary 13 Major End-use Markets for Dai Nippon Printing Indonesia PT by Pack Type 2008
IGLAS (PERSERO) PT
Strategic direction
Company background
Competitive positioning
Summary 14 Major End-use Markets for Iglas (Persero) PT by Pack Type 2008
INDAH KIAT PULP & PAPER TBK PT
Strategic direction
Company background
Competitive positioning
Summary 15 Indah Kiat Pulp & Paper Tbk PT Operational Indicators 2007
Summary 16 Major End-use Markets for Indah Kiat Pulp & Paper Tbk PT by Pack Type 2008
KAGEO IGAR JAYA TBK PT
Strategic direction
Company background
Competitive positioning
Summary 17 Major End-use Markets for Kageo Igar Jaya Tbk PT by Pack Type 2008
MELINDO DIPTA PT
Strategic direction
Company background
Competitive positioning
Summary 18 Major End-use Markets for Melindo Dipta PT by Pack Type 2008
INDAH CUP SUKSES MAKMUR PT
Strategic direction
Company background
Competitive positioning
Summary 19 Major End-use Markets Indah Cup Sukses Makmur PT by Pack Type 2008
INNOVATIVE PLASTIC PACKAGING PT
Strategic direction
Company background
Competitive positioning
Summary 20 Major End-use Markets for Innovative Plastic Packaging PT by Pack Type 2008
PRIMA KALPLAS PT
Strategic direction
Company background
Competitive positioning
Summary 21 Major End-use Markets for Prima Kalplas PT by Pack Type 2008
SINAR DJAJA CAN PT
Strategic direction
Company background
Competitive positioning
Summary 22 Major End-use Markets for Sinar Djaja Can PT by Pack Type 2008
REXPLAST PT
Strategic direction
Company background
Competitive positioning
Summary 23 Major End-use Markets for Rexplast PT by Pack Type 2008
MASTER LABEL PT
Strategic direction
Company background
Competitive positioning
Summary 24 Major End-use Markets for Master Label PT by Pack Type 2008
CITRA MANDIRI METALINDO ABADI PT
Strategic direction
Company background
Competitive positioning
Summary 25 Major End-use Markets for Citra Mandiri Metalindo Abadi PT by Pack Type 2008
MAJOR PLAYERS BY PACK TYPE
RIGID PLASTIC
Rigid plastic is consolidated due to specific technology and high investment
PET bottles gain popularity within packaged food and soft drinks
Summary 26 Share of Major Rigid Plastic Companies 2007
Summary 27 Major Rigid Plastic Packaging Companies by Pack Type 2008
METAL
Latinusa PT the only significant player in metal packaging
Summary 28 Share of Major Metal Packaging Companies 2007
Summary 29 Major Metal Packaging Companies by Pack Type 2008
FLEXIBLE PACKAGING
More players emerge to meet growing domestic demand for flexible packaging
Summary 30 Share of Major Flexible Packaging Companies 2007
Summary 31 Major Flexible Packaging Companies by Pack Type 2008
GLASS
Few players in declining pack type
Summary 32 Share of Major Glass Packaging Companies 2007
LIQUID CARTONS
Tetra Pak dominates in the small arena of liquid cartons
Summary 33 Share of Major Liquid Carton Companies 2007
PAPER-BASED CONTAINERS
Fragmented arena dominated by local companies
Summary 34 Share of Paper-Based Container Companies 2007
Summary 35 Major Paper-based Container Companies by Pack Type 2008
CLOSURES
Packaging companies also feature strongly in closures arena
Summary 36 Ranking of Major Closure Companies 2007