Indonesia Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)


Posted April 22, 2021 by statzyreports

The market for Indonesia plastics was valued at over USD 7.5 billion in 2020 and the market is projected to register a CAGR of more than 5% during the forecast period (2021-2026).
 
The market for Indonesia plastics was valued at over USD 7.5 billion in 2020 and the market is projected to register a CAGR of more than 5% during the forecast period (2021-2026). COVID-19 has largely affected the raw material import, as the Indonesian plastic market mostly relies on imported raw materials for plastic production. The packaging industry was highly impacted, this was due to prime concern about the hygiene and safety of reusable packaging. This can act as a barrier to the Indonesian plastics market.

- Over the medium term, growing demand from the end-user industries such as packaging, electrical & electronics, as well as the construction industry are expected to drive the market growth.

- Over-reliance on the Imports of raw materials are expected to hinder the growth of the market.
- Waste management will be one of the drawbacks as there is about 200,000 tons of waste is produced every day in Indonesia.

- Innovative applications such as eco-friendly products are expected to offer various opportunities for the growth of market.

Key Market Trends

Injection Molding Technology to Dominate the Market

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- Injection molding is mostly done using virgin or high-quality processing resins. High-performance plastic pallets are usually injection molded. Injection molding is a relatively capital-consuming process but offers the advantage of high-speed processes.

- Therefore, injection molding is found to be beneficial in the bulk production of plastic pallets. Injection molding processes are used in wire spools, packaging, bottle caps, automotive dashboards, pocket combs, etc.
- The explosive growth of local automotive, packaging, and chemical processing industries, across the world, is expected to provide a favorable market for injection molding.

- The investment in the Indonesian manufacturing sector increased from around USD 7.3 billion in the first quarter of 2019 to around USD 9.1 billion during the first quarter of 2020, reaching a 23.9% growth rate.
- Owing to the increasing demand from various end-user industries, the market for injection molding is projected to increase over the forecast period.

Increasing Demand from the Packaging Industry

- Packaging accounts for the largest application segment in the Indonesian market. The prime reasons for the growing application of engineering plastics, in the packaging segment, are better wear and chemical resistance, ease of molding, recyclability, puncture resistance, and high mechanical strength.

- Some of the major applications of engineering plastics, in the packaging segment, are as follows: packaging of bottled water, flexible packaging, such as sausage skin, flexible foils, such as shopping bags.
- Polyethylene terephthalate (PET) is one of the plastics majorly used for packaging purposes in Indonesia, mostly in the food and beverage industry. Portability, design flexibility, ease of cleaning, lightweight, and protection against moisture, are a few properties of PET, which makes it suitable for packaging purposes. In addition, low handling hazards, low toxicity, and absence of bisphenol A (BPA) and heavy metals are some of the other factors that allow PET to be used for food packaging.

- PETs are used for making clamshells, bakery and take-out containers, microwaveable food trays, carbonated soft drink bottles, and other packages. Other applications include packaging materials for cooking oils, shampoo, hand wash, and more products.
- Among all the industries, food and packaging industry consumes around 70% of the total packaging industry supplies.

- The packaging industry in Indonesia was valued at USD 9.6 billion in 2020
- Polyamide is another major engineering plastic that finds major application in the packaging sector. Bi-axially oriented and non-oriented polyamide films are used in medical and food packaging, owing to the former’s high impact strength and good heat resistance.

- Increasing household and commercial applications for containers, plastic bags, canisters, and tableware, among others, are expected to drive the consumption demand for plastics in the packaging sector, during the forecast period.
- The usage of plastics for packaging products is expected to experience a fairly steady demand, during the forecast period. Requirements for rubber gloves in the healthcare sector, stretch films, garbage bags, and other medical devices, are anticipated to witness greater demand, in the coming years.

Competitive Landscape

The Indonesia plastics market is consolidated with the top five players accounting for a major share of the market. The prominent players in the market include PT LOTTE CHEMICAL TITAN Tbk, TORAY INDUSTRIES, INC., PT Polychem Indonesia Tbk, BASF SE, and PTT Global Chemical Public Company Limited, among others.

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/sr496920/indonesia-plastics-market
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Tags covid19 impact , indonesia plastics market , indonesia plastics market analysis , indonesia plastics market forecast , indonesia plastics market growth , indonesia plastics market share , indonesia plastics market size , indonesia plastics market trends
Last Updated April 22, 2021