For this reason, in 2015, Indonesia government announced the policy for the expansion of infrastructures for the water supply. Thus the demand for bottled water is growing rapidly. The access rate of Improved-water supply facilities in the rural area is below 10%. The country has confronted problems of the poor quality of a drinking water as ground water is contaminated. However, Nestle, Coca-Cola and PepsiCo and a host of small local companies have also invested heavily in the bottled water capacity in recent years. French company Danone dominates the Indonesian market, accounting for about 50 percent of all bottled water sales with its majority owned Aqua brand. BOTTLED WATERīottled water accounts for the highest share of PET packaging demand in Indonesia. Share of PET packaging varies from very high (in the case of packaged water) to medium (in case of all other beverages). Readyto-drink (RTD) Tea, carbonated drinks, packaged juices and sports & energy drinks, in that order are the next four largest components of overall beverage market. Currently, some of the major PET preform and bottle producers have some of the best equipped production facilities in the region.ĭEMAND COMPONENTS OF INDONESIAN BEVERAGE PET PACKAGING INDUSTRYīottled water forms the largest component (on volume basis) of Indonesian beverage industry.
It has become the most cost effective way for the packaging of beverages on account of its lower cost, speed and ease of production, and logistical advantages as compared to some other forms of packaging such as glass containers.Ĭatered by about 80 PET preform and bottle producers of large, mid-scale and small scale producers, Indonesian PET producers have undergone major expansions and consolidation in the last decade. Packaging has made great inroads in Indonesian beverage industry in last two decades. Growing economy, rising purchasing power, tropical weather that induces thirst, increased westernisation and changing consumer habits are some of the key factors, which have propelled the country’s beverage market. Indonesia experienced relatively high economy growth during the last decade, which created new middle class society with better awareness towards a healthy life style and product quality. Beverage industry in the country has registered a steady growth rate in last few years on account of a number of factors. The country is also the largest ASEAN economy and beverage market. With a population of more than 260 million, Indonesia is world’s fourth most populated country. OVERVIEW OF THE INDONESIAN BEVERAGE INDUSTRY
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