2019 Asia Manufacturing Summit: Food and Beverages, Plastic packaging and Plastic Recycling Technology

Southeast Asia: Rising star in global plastics packaging industry

Indonesia poses high demand for innovative technologies and plastic materials

There is no doubt that Southeast Asia now plays an all-important role in the global plastics industry, with a plastics market that is projected to grow by more than 5% yearly. Indonesia, aside from being the largest economy, has a dynamic manufacturing sector that now ranks the highest in the region. The country's plastics industry alone is expected to grow by about 6% annually up to year 2023. This tremendous growth potential poses strong demand for highly advanced technologies and performance materials.



Breakthrough technologies are finding their way into Indonesia's dynamic sectors. Automation, artificial intelligence (AI), IoT, digitalization and smart manufacturing are fast gaining acceptance in Indonesia where manufacturers recognize that they need to adopt these latest trends to see a better future in the global arena. In the same way, high performance plastic materials are witnessing the fastest growth in demand owing to the significant rise in the requirements of plastics-dependent sectors. 

Indonesia Leading in Flexible Packaging

To secure the robust 3.7% annual sales growth of retail industry, food and beverage market is employing newest technologies to best accommodate contradicting demands of its 260 million customers: eco-friendliness and functional health benefits with fast-paced lifestyles of Indonesia's flourishing urban population demanding smaller, convenient, on-the-go packaging.

Investment in innovations and the fact that food packaging accounts for 70% of plastic consumption, positions Indonesia in the lead of the flexible packaging market in the region. It is forecasted to grow with a CAGR of 4.3% from 2016 to 2021 - increasing from 42 billion units produced in 2016 to 52 billion in 2021 and maintaining its 42% market share. However, that does not leave rigid packaging behind – with 25% of the market it is expected to keep growing at a CAGR of 7.7% by 2021. 

Indonesia forecasting 9% growth for F&B manufacturing industry in 2019

Recognizing the importance of 4th biggest GDP contributing market, Indonesian government is increasing its investment in promoting and supporting of transition of domestic companies for 4.0 manufacturing, by increasing the investment in the sector, to a record US$4.4 bn.

This continuous investment in F&B industry is expected to generate an annual revenue growth rate CAGR of 13.8% between 2018 and 2022 and the sector growth of 6.7% in the same period. Already, the value of the food and beverage processing industry reached USD 92.3 billion.