Indonesia’s packaging industry sees double digit growth
Indonesia’s packaging industry revenue is expected to grow at a double digit rate this year. The Indonesian Packaging Association said that the country’s packaging industry is expected to rise by 11.1% this year compared to last year. This growth is owing to strong demand from end-user industry, which is expanding along with the country’s economic growth.The association’s data estimates that the local food and beverage industry consumes around 70% of the total packaging supply annually and the demand for food and beverages packaging continues to surge. Also the product innovation has been developing, simultaneously.Plastic-based packaging, flexible packaging and rigid plastic packaging are likely to contribute around 56% of the overall demand, while plastic-based packaging, which only accounted for around 51% in the past, has now increased.The revenue of the packaging industry is expected to double by 2016, given the stable growth rate of more than 10% annually and a challenge is expected to rise from raw materials supply, of which between 25% and 40% were imported at present. Raw materials for plastic packaging accounted for the highest proportion at 40%, out of the total materials imported, the association observed (PackagingNews, 10 April 2012).