2016 Total Packaging Market Size (million units):

139,143

2011-16 Total Packaging Historic CAGR:

6.9%

2016-21 Total Packaging Forecast CAGR:

5.4%

• The total Indonesian packaging industry, sized at over139 bn units in 2016, experienced robust growth of 6.9% during the forecast period.
• Moving forward, growth is predicted to slow slightly to a 5.4% CAGR by 2021.
• Food and beverage packaging are the clear leaders of the Indonesian market.

• Packaging design gains importance to attract consumers. Beauty and personal care and home care product players became more competitive over the review period and tapped packaging design to appeal to consumers and drive sales.
• Convenience stores drive sales for small pack size food as llimited shelf space means offer a wider variety of products displayed at once. Indonesian’s busy lifestyles leave little time for supermarkets or time to prepare a meal from scratch. That means fewer large pack sizes.

• Mandatory Product Labelling New legislation mandates use of Bahasa Indonesia for all labelling to eliminate language barriers. The regulation will give domestic brands a short-term competitive edge as international players adjust. However, long term, the requirements will likely help imported brands engage and communicate better with local consumers.
• Tax on drinks packaging Implemented to reduce plastic bottle waste, this tax is believed by many to lead to higher prices and slower volume growth of drinks.

• Legislation on Waste Management  Waste Manufacturers must use green packaging for products and to collect and recycle their own waste if the packaging materials cannot decompose. The government has granted a grace period until 2022 for companies to comply.  
• Recycling Codes on Plastic-based Foods and Drinks In 2010, the Ministry of Industry issued legislation governing the display of food grade logos and recycling codes on plastic-based foods and drinks packaging
• More effort to raise awareness on reducing waste  In February 2016, the government imposed a national tax on plastic bags aimed to reduce the volume of carrier bags. While still a trial, the attempt represents a first step towards raising environmental awareness and reducing waste.

• Attractive packaging played an important role as newly launched beauty and personal care players differentiated themselves to consumers.
• More soft drinks in PET bottles offer ergonomic design for easier handling. Many of the subtle or significant packaging designs are aimed to provide consumers with more convenience.
• Usage of more characters on packaging labels such as Disney Princess and Star Wars characters to target younger consumers.