The economic fallout of COVID-19 led to widespread slashed salaries, job losses and falling incomes in Indonesia, and thus reduced disposable incomes. Spending therefore became more mindful and rational as consumers prioritised products deemed to be necessities and cut back on luxuries, leading to declining sales in fragrances and colour cosmetics packaging, but a stronger performance in bath and shower packaging, for example.
Prior to the pandemic, demand for small pack sizes was being driven by the desire for portion control, the on-the-go snacking trend and the rise of home-delivery services. In drinking milk products, for example, smaller or single-serve packaging sizes were gaining popularity in line with the growing awareness of portion control as well as a focus on targeting younger generations or children.
The Indonesian government continues to focus on plastic usage regulations, expecting key brands to align with the trend by investing in sustainable pack types, such as rPET bottles. Due to the increasing demand for PET bottles, industry leaders continue to think along sustainable packaging lines.
Glass remained the most widely used primary packaging type for alcoholic drinks in Indonesia in 2020, especially within the on-trade channel. While there has been an emergence of other pack types, including metal beverage cans in beer, the bulk of packaging is mainly in glass due to its perception that it best retains the taste quality.
Sustainable packaging and natural ingredients are becoming popular among Indonesian consumers and are expected to continue seeing growth over the forecast period. Brand owners that can provide innovation in packaging and promote natural ingredients at the same time are expected to enjoy success in the future, as the desire for natural ingredients continues to steadily grow.
Despite major travel restrictions being in place due to the pandemic for much of 2020, there was a surge in demand for travel-sized sanitisers, which are usually packed in pouches. While the bulk of establishments across the country were installing plastic dispensers for their employees/consumers to sanitise their hands with, consumers and businesses were also buying single-use sanitisers in pouches to further reduce the risk of contracting the virus by touching common surfaces.
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Understand the latest market trends and future growth opportunities for the Packaging industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of packaging types.
If you're in the Packaging industry in Indonesia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Packaging research and analysis database.
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