Market Trends of Indonesia Plastic Caps And Closures Industry
Threaded Caps Segment Estimated to Have the Significant Market Share
- Threaded caps ensure an airtight seal, preventing leaks and safeguarding against external contaminants. This feature is crucial for storing and transporting volatile, corrosive, or hazardous substances. Their design enables easy opening and closing, streamlining filling and emptying processes while maintaining product integrity, propelling the popularity of threaded caps across various industries in the country.
- Indonesia's growing demand for innovative and sustainable dispensing solutions for food and beverage, cosmetics, and personal care products propels the demand for threaded caps. Companies such as Aptar Group Inc. and Pact Group Holdings Limited provide lightweight, functional, and innovative tethered caps and closures for dairy, food, beverage, personal care, and healthcare markets.
- Indonesian manufacturers, such as Tetra Pak, prioritize innovative and user-friendly closure solutions tailored to the food and beverage sector. Tetra Pak's standout product, the C38 Pro resealable tethered cap, boasts a tamper band for enhanced food protection. Available in a spectrum of colors, this feature seamlessly integrates into diverse packaging designs, bolstering product appeal.
- The surge in plastic and plastic product trade within Indonesia directly impacts the demand for plastic caps and closures. Recent data from BPS Statistics Indonesia reveals a notable uptick: the nation's plastic imports surged from USD 646 billion in the previous month to USD 888.27 billion in May 2024. Concurrently, Indonesia's plastic exports also witnessed a healthy rise, rising from USD 202.63 billion to USD 250.80 billion during the same period.
Understand The Key Trends Shaping This Market
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Beverage Segment Expected to Dominate the Market
- The rising consumption of beverages in Indonesia is attributable to the rising food and beverage processing industry. With the swift proliferation of convenience stores that predominantly carry locally sourced products, Indonesia's distribution of beverages has significantly broadened. This propels the country's sales of non-alcoholic beverages such as bottled water, juices, energy drinks, and soft drinks.
- Rising international tourist arrivals in Indonesia and increasing tourist spending on food and beverage propel the industry's growth. According to data by the World Travel and Tourism Council (WTTC), Indonesia's tourism sector contribution to the economy they marked a significant 12.3% surge from the preceding year and a 7.7% uptick from its peak in 2019.
- The trend in Indonesia toward healthier, affordable soft drinks is driving up demand for no-calorie, zero-sugar energy drinks and ready-to-drink beverages. In April 2024, Coca-Cola unveiled its limited-edition Coca-Cola K-Wave Zero Sugar, featuring a K-pop theme in Singapore, Indonesia, Vietnam, Thailand, and the Philippines, targeting the region's youthful demographic.
- Indonesia's increasing exports of non-alcoholic beverages and spirits are pivotal in the country's economic growth. This surge in the beverage sector is also fueling the need for plastic caps and closures. Recent data from BPS Statistics Indonesia highlighted a notable jump in export values, from USD 13.51 billion in April 2024 to USD 20.63 billion in May 2024.
