Mordor Intelligence has published a new report on the Indonesia Plastics Market, offering a comprehensive analysis of trends, growth drivers, and future projections.
Indonesia’s plastics industry is poised for significant growth, driven by increasing demand across various sectors such as packaging, construction, and electronics. According to Mordor Intelligence, the market is expected to expand from 7.36 million tons in 2025 to 9.17 million tons by 2030, reflecting a compound annual growth rate (CAGR) of over 4.5% during the forecast period .
This growth trajectory is supported by the country’s expanding middle class, urbanization, and the proliferation of e-commerce, which collectively boost the consumption of plastic products. However, challenges such as regulatory constraints on plastic usage and reliance on imported raw materials may temper the market’s expansion. Nonetheless, the increasing demand for eco-friendly products presents new opportunities for innovation and development within the industry.
Key Trends
Surge in Packaging Industry Demand
The packaging sector remains the largest consumer of plastics in Indonesia. The material’s attributes—such as wear and chemical resistance, ease of molding, recyclability, puncture resistance, and high mechanical strength—make it ideal for packaging applications. Polyethylene terephthalate (PET) is particularly prevalent in packaging due to its safety for food contact, durability, and recyclability .
The rise of e-commerce and online food delivery services has further amplified the demand for plastic packaging. Consumers’ preference for convenience and ready-to-eat products has led to increased use of plastic containers, bottles, and films, solidifying the packaging industry’s role as a key driver of plastic consumption.
Growth in Construction and Electronics Sectors
The construction industry in Indonesia utilizes plastics for various applications, including piping, insulation, and fittings, due to their durability and resistance to corrosion. Similarly, the electrical and electronics sector employs plastics for components like casings, connectors, and insulation materials, benefiting from the material’s insulating properties and versatility. The expansion of infrastructure projects and the proliferation of electronic devices contribute to the growing demand for plastics in these sectors.
Emphasis on Sustainable and Eco-Friendly Products
Environmental concerns and government regulations are prompting a shift towards sustainable plastic products. Manufacturers are exploring alternatives such as bioplastics and recycled materials to meet the growing demand for eco-friendly options. This trend aligns with global movements towards sustainability and presents opportunities for innovation within the Indonesian plastics market.
Market Segmentation
By Product Type
Traditional Plastics: Includes widely used materials like polyethylene (PE), polypropylene (PP), and polyvinyl chloride (PVC), prevalent in packaging, construction, and consumer goods.
Engineering Plastics: Comprises materials such as polycarbonate (PC) and acrylonitrile butadiene styrene (ABS), utilized in automotive, electronics, and industrial applications for their enhanced mechanical properties.
Bioplastics: Encompasses biodegradable and bio-based plastics, gaining traction due to environmental concerns and regulatory support for sustainable materials.
By Technology
Injection Molding: A dominant manufacturing process for producing complex and high-volume plastic parts, widely used across various industries.
Extrusion Molding: Employed for creating continuous profiles like pipes, sheets, and films, essential in construction and packaging.
Blow Molding: Utilized for manufacturing hollow plastic products such as bottles and containers, significant in the packaging sector.
Other Technologies: Includes thermoforming and rotational molding, catering to specialized applications in automotive and consumer goods.
By Application
Packaging: The largest application segment, driven by the food and beverage industry’s demand for durable and lightweight packaging solutions.
Automotive and Transportation: Plastics are used for interior and exterior components, contributing to vehicle weight reduction and fuel efficiency.
Building and Construction: Applications include piping systems, insulation materials, and fittings, benefiting from plastics’ durability and ease of installation.
Electrical and Electronics: Plastics serve as insulating materials and structural components in various electronic devices and appliances.
Furniture and Bedding: Utilization in manufacturing lightweight and cost-effective furniture items, offering design flexibility.
Other Applications: Encompasses agriculture, healthcare, and household products, where plastics provide functional and economic advantages.
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Key Players
The Indonesian plastics market features several prominent players contributing to its growth and innovation:
BASF SE: A global chemical company offering a wide range of plastic materials and solutions for various industries.
PT LOTTE CHEMICAL TITAN Tbk: Engaged in the production of polyethylene and polypropylene, serving the packaging and construction sectors.
PTT Global Chemical Public Company Limited: Provides petrochemical products, including plastic resins, catering to diverse applications.
PT Polychem Indonesia Tbk: Involved in manufacturing polyester and ethylene glycol, essential raw materials for plastic production.
TORAY INDUSTRIES, INC.: Specializes in advanced materials, including engineering plastics, serving automotive and electronics industries.
Conclusion
Indonesia’s plastics market is on a growth trajectory, propelled by increasing demand in packaging, construction, and electronics sectors. While challenges such as environmental regulations and dependence on imported raw materials exist, the industry’s focus on sustainable practices and innovation offers promising avenues for development. As consumer preferences evolve and industries seek efficient and eco-friendly solutions, the plastics market in Indonesia is expected to adapt and thrive, contributing significantly to the nation’s economic progress.
Industry Related Reports
Vietnam Plastic Market: The market report provides a comprehensive analysis of manufacturers within Vietnam’s plastic industry. It segments the industry by type, including traditional plastics, engineering plastics, and bioplastics. The report also categorizes technologies used in production, such as blow molding, extrusion, injection molding, and other processing methods. Additionally, it explores various application areas, including packaging, electrical and electronics, building and construction, automotive and transportation, housewares, furniture and bedding, along with other emerging uses.
South-East Asia Plastic Market: The Market is categorized based on type, technology, application, and geography. By type, the market is segmented into traditional plastics, engineering plastics, and bioplastics. In terms of technology, the market is divided into blow molding, extrusion, injection molding, and other manufacturing technologies. Based on application, the market covers various sectors including packaging, electrical and electronics, building and construction, automotive and transportation, housewares, furniture, and bedding, along with other specialized applications. Geographically, the market analysis extends across key countries in South-East Asia, specifically Indonesia, Thailand, Malaysia, Singapore, Philippines, Vietnam, and the rest of the South-East Asia region.
India Plastic Market: The plastic industry in India is categorized based on type, technology, and application. By type, the industry is segmented into traditional plastics, engineering plastics, and bioplastics. In terms of technology, the market is divided into blow molding, extrusion, injection molding, and other manufacturing processes. Furthermore, the industry finds applications across various sectors, including packaging, electrical and electronics, building and construction, automotive and transportation, housewares, furniture and bedding, as well as other emerging applications.
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