Indonesia Flexographic Printing Market Outlook to 2028

Indonesia Flexographic Printing Market Overview

The Indonesia Flexographic Printing Market has witnessed a notable growth, this is reflected by the global flexographic printing market reaching a valuation of USD 8.12 billion in 2023. This growth is driven by the increasing demand for flexible packaging in the food and beverage industry, the rise of e-commerce, and the shift towards sustainable packaging solutions. The adoption of advanced flexographic printing technologies, which offer high efficiency and cost-effectiveness, has also contributed to the market expansion.

The key players in the Indonesian Flexographic Printing Market includes PT. Suparma Tbk, PT. Pura Barutama, PT. Cahaya Buana Intitama, PT. Bali Offset, PT. Argha Karya Prima Industry Tbk. These companies dominate the market through extensive distribution networks, advanced printing technologies, and strategic partnerships with packaging and consumer goods manufacturers.

In June 2022, PT Trias Sentosa Tbk (TRST), a prominent packaging manufacturer, announced that Biaxially orientated polypropylene (BOPP) and cast polypropylene (CPP), two new machines to be operational in the fourth quarter of 2022. TRST is expecting the year's sales to improve due to the inclusion of the new machine. A total investment value of USD 40 million and USD 8 million, respectively, is assigned to each of them.

The Java region dominates the Flexographic Printing Market in Indonesia in 2023. This dominance is attributed to the region's robust industrial infrastructure, high concentration of manufacturing facilities, and strategic location as a logistics hub. Additionally, the presence of major players and access to a skilled workforce further strengthen Java's market position.

Indonesia Flexographic Printing Market Segmentation

The Indonesia Flexographic Printing Market can be segmented by various factors like by product type, by application and by region.

By Product Type: The Indonesia Flexographic Printing Market is segmented by product type into labels, flexible packaging, and folding cartons. In 2023, Flexible packaging was dominating the market due to its versatility, cost-effectiveness, and growing application in the food and beverage industry. The shift towards lightweight and durable packaging solutions has further fueled the demand for flexible packaging.

By Application: The Indonesia Flexographic Printing Market is segmented by application into food & beverage, pharmaceuticals, and cosmetics. In 2023, the food & beverage segment dominated the market due to its rising consumption of packaged foods and the growing trend of convenience foods have significantly driven this segment's growth. The need for high-quality, attractive packaging solutions in the competitive food industry further supports this dominance.

By Region: The Indonesia Flexographic Printing Market is segmented by region into north, south, east, and west Indonesia. In 2023, the southern region was dominating the market due to its advanced infrastructure and logistics networks supporting large-scale production and efficient distribution of printed packaging materials. The combination of a thriving industrial base, advanced logistics, and the presence of major market players solidifies South Indonesias leading position in the flexographic printing market.

Indonesia Flexographic Printing Market Competitive Landscape

Indonesia Flexographic Printing Market Major Players

Company Name

Establishment Year

Headquarters

PT. Suparma Tbk

1976

Surabaya

PT. Pura Barutama

1970

Kudus

PT. Cahaya Buana Intitama

1985

Jakarta

PT. Bali Offset

1990

Denpasar

PT. Argha Karya Prima Industry Tbk

1980

Bogor

Mark Andy Inc.: In June 2024, Mark Andy Inc. formed a strategic partnership with Roto Metals, a specialist in high-precision rotary tooling for the flexographic printing industry. The collaboration aims to combine Roto Metals' tooling expertise with Mark Andy's printing technology to develop innovative solutions that enhance print quality, efficiency, and productivity. This partnership will address industry challenges and meet the evolving needs of flexographic printers through advanced tooling innovations and joint research efforts.

Tanobel: Tanobel, the Indonesian company behind the Cleo-branded bottled water, has set Rp 300 billion (roughly $19.88 million) in capital expenditure in 2023 to build factories and expand its distribution network. This surge in demand is driving the need for high-quality flexographic printing to produce attractive and functional packaging.

Indonesia Flexographic Printing Market Analysis

Indonesia Flexographic Printing Market Growth Drivers

Expansion of the Packaging Industry: The flexographic printing market in Indonesia is driven by the expanding packaging industry, which is expected to grow substantially over the next five years. The flexible packaging requires less material and generates 75% fewer greenhouse emissions compared to traditional packaging, making it an increasingly attractive option in a world that is progressively prioritizing sustainability. The demand for efficient and versatile printing solutions, such as flexographic printing, is increasing as manufacturers seek to cater to this growing need for high-quality, durable packaging materials.

Expansion of E-Commerce Sector: As of 2022, Indonesia had 204.7 million internet users, with an internet penetration rate of 73.7%, due to internet penetration and mobile device usage. The growth of online retail has resulted in a heightened demand for printed packaging solutions, including corrugated boxes and labels, which are essential for protecting and branding products during shipping. This expansion continues to propel the flexographic printing market.

Growth in Food and Beverage Sector: The food and beverage industry is a significant contributor to the flexographic printing market. As consumer preferences shift towards convenience foods and ready-to-eat meals, the demand for flexible packaging solutions is on the rise. Flexographic printing is particularly suited for producing high-quality, food-safe packaging, which is vital for maintaining product integrity. This trend is expected to further solidify the position of flexographic printing within the packaging sector.

Indonesia Flexographic Printing Market Challenges

Skilled Labor Shortage: The flexographic printing industry in Indonesia faces a shortage of skilled labor, the workforce adequately trained in advanced printing techniques as of 2023. This shortage affects the quality and efficiency of production, making it difficult for companies to meet the growing demand for high-quality printed packaging.

Rising Raw Material Costs: The flexographic printing market faces challenges due to increasing raw material costs, particularly for inks and substrates. In 2024, the cost of key raw materials is projected to rise, impacting profit margins for printing companies. This increase is largely attributed to global supply chain disruptions and fluctuating oil prices, which affect the cost of petroleum-based inks. As a result, companies may need to explore alternative materials or cost-saving measures to maintain competitiveness.

Indonesia Flexographic Printing Market Government Initiatives

Training Programs for the Printing Industry: In 2024, the Indonesian government is targeting a total budget of IDR 5 trillion (approximately USD 307 million) for its Kartu Prakerja program, which aims to reach 1.15 million participants. This program is part of a broader initiative to enhance workforce productivity through skilling, upskilling, and reskilling across various sectors, including but not limited to the printing industry.

High Import Duties: The Indonesian government's imposition of import duties, ranging from 50% to 200% on Chinese products, is designed to protect local industries, including printing and packaging sectors. By making imported goods more expensive, this policy encourages local production, including flexographic printing, to meet the domestic demand. This protective measure is expected to boost local businesses and reduce dependency on imported printing materials.

Indonesia Flexographic Printing Market Future Outlook

The Indonesia Flexographic Printing Market is continuously grown by 2028, driven by continuous advancements in printing technology, the rise of digital printing integration, and the growing emphasis on eco-friendly packaging. The increasing consumer preference for aesthetically appealing and customized packaging will further boost market growth. Additionally, government regulations promoting sustainable packaging practices will encourage the adoption of flexographic printing.

Market Trends

Adoption of Advanced Printing Technologies: The adoption of advanced flexographic printing technologies is expected to increase by 2028, driven by government incentives and the need for high-quality, efficient production. Companies will invest in state-of-the-art printing machines to enhance output and reduce operational costs, aligning with market demands for precision and speed.

Growth in Sustainable Packaging Solutions: The trend towards sustainability will continue to shape the flexographic printing market in Indonesia. By 2028, the use of eco-friendly inks and biodegradable materials will become standard practice, driven by regulatory pressures and consumer preference for green packaging. This shift will open new opportunities for companies offering sustainable printing solutions.
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