Packaging Sophistication in Indonesia & Asia

Packaging Sophistication in Indonesia

When one thinks about where sophisticated consumer packaging is created, most people naturally gravitate towards Western markets for the answer, but one country that is leapfrogging all expectations in consumer packaging is Indonesia. Ariana Susanti is currently President of the Asian Packaging Federation after 12 years as Director of the Indonesian Packaging Federation.

What is the current state of the packaging market in Indonesia?
Indonesia has a population of more than 240 million people, an emerging middle class that is driving strong domestic consumption and a robust and resilient economy. In turn, this is encouraging private spending to remain robust in Southeast Asia’s largest economy, allowing the packaging industry in Indonesia to grow in line with other industries — the food and beverage industry being the biggest.

How have consumers played a role in the improvements in packaging design and usability?
There are many things that impact trends in packaging. While the economy plays a central role, there are a number of other factors that have an impact irrespective of the performance of the economy. As consumers, these include trends like the ageing population; smaller households; the increasing requirement for convenience; rising health awareness; and the trend towards “on-the-go” lifestyles.

How is available technology in the market evolving?
Improvement in the production process and product appearance is an important element when enhancing product quality and increasing market share. Since product packaging has evolved to become product identity, applications of packaging technology and creative packaging design is an ideal strategy that should enhance our national product competitiveness in the global market. But with many technology improvements and several product innovations, the packaging industry and its applied industries are trying to find new innovative packaging for its products in order to add to its sales value.

How does the Indonesian market compare with the Asian or global market as a whole?
The Asia-Pacific region is becoming a larger player in the global economy, which is evident in both demographic and economic terms. Indonesian middle-class consumers have been showing signs of cost savviness in terms of their choice of product packaging. This is resulting in a robust increase in demand for relatively new packaging formats such as stand-up pouches for soy-based sauces (instead of glass bottles) and condensed milk (in place of metal cans).

What does the future of the packaging market in Indonesia look like to you?
In the future this industry will continue to grow, in parallel to strengthening demands for not only packaging but better quality packaging. The growth of the modern retail sector in Indonesia will fuel growth for packaged products as convenience stores are trying to attract Indonesian consumers from low- to middle-class families who traditionally shop at neighborhood outdoor markets.

Did You Know?
Indonesia is the fourth most populous nation and fits 138 people per square kilometer. Compare this to the United States’ 35. Indonesia’s emerging middle class is driving domestic consumption.1

1 World Bank