Indonesia Drinks Packaging Market Size, Share, Trends and Forecasts 2031

Key Findings

• The Indonesia Drinks Packaging Market is growing rapidly due to the rising consumption of beverages, increased demand for sustainable packaging, and expanding e-commerce beverage distribution.
• Manufacturers are focusing on lightweight, recyclable, and innovative packaging solutions to reduce costs and environmental impact.
• Growth in the ready-to-drink (RTD) and functional beverage categories is driving packaging innovation across aluminum cans, PET bottles, cartons, and glass containers.
• Increasing use of digital printing, smart labeling, and tamper-proof closures is enhancing product traceability and consumer engagement.
• Regulatory pressures and consumer awareness around plastic waste are accelerating the shift toward bio-based and paper-based packaging alternatives.
• Major beverage brands in Indonesia are investing in circular economy initiatives and advanced packaging technologies to meet sustainability commitments and brand differentiation goals.

Indonesia Drinks Packaging Market Size and Forecast

The Indonesia Drinks Packaging Market is projected to grow from USD 132.6 billion in 2025 to USD 210.4 billion by 2031, registering a CAGR of 8.1% during the forecast period. The growth is fueled by the rising consumption of alcoholic and non-alcoholic beverages, growing urbanization, and the rapid expansion of convenience retail. Sustainable packaging innovations such as recyclable PET bottles, paper-based cartons, and biodegradable films are becoming mainstream due to environmental concerns. In Indonesia, the popularity of functional drinks, bottled water, and energy beverages is leading to strong demand for visually appealing, durable, and eco-friendly packaging formats. By 2031, the drinks packaging industry will be characterized by smart connected packaging, sustainable material adoption, and advanced digital printing technologies aimed at improving both performance and brand engagement.

Introduction

Drinks packaging plays a critical role in preserving flavor, freshness, and quality while enabling effective branding and convenience. The market includes a wide range of formats such as bottles, cans, cartons, pouches, and kegs made from materials like glass, metal, plastic, and paperboard. In Indonesia, the rising diversity of beverage categories from soft drinks and energy beverages to alcoholic and plant-based drinks has created the need for specialized packaging solutions. Increasing health consciousness and sustainable consumption trends are influencing both product design and material selection. As consumer expectations evolve toward convenience, safety, and sustainability, manufacturers are investing heavily in material innovation, digital labeling, and automation to enhance both aesthetics and functionality.

Future Outlook

By 2031, the Indonesia Drinks Packaging Market will undergo a significant transformation toward eco-efficient and digitally integrated packaging systems. Advances in biodegradable polymers, paper-based composites, and closed-loop recycling processes will enable brands to meet zero-waste targets. Smart packaging technologies equipped with QR codes, NFC tags, and freshness indicators will enhance product traceability and customer interaction. Additionally, the shift toward lightweight materials and refillable systems will reshape beverage supply chains to reduce transportation emissions. Government support for sustainable packaging initiatives and innovation in manufacturing automation will further accelerate market evolution. Overall, the drinks packaging ecosystem in Indonesia will focus on sustainability, digitalization, and consumer-centric customization.

Indonesia Drinks Packaging Market Trends

• Shift Toward Sustainable and Recyclable Materials
  The growing environmental awareness in Indonesia is driving a fundamental transition from conventional plastic packaging to recyclable and bio-based materials. Beverage producers are increasingly replacing PET and PVC with rPET (recycled PET), paper composites, and biodegradable films to align with circular economy goals. Governments are implementing strict packaging waste regulations, prompting innovation in compostable coatings and mono-material structures that facilitate recycling. Consumers now view sustainable packaging as a key brand differentiator, forcing manufacturers to adopt eco-friendly alternatives such as aluminum bottles, paper cartons, and plant-based resins. Over the next decade, sustainability will no longer be optional but an industry standard for all beverage packaging producers in Indonesia.

• Growing Popularity of Smart and Interactive Packaging
  Smart packaging technologies are revolutionizing how consumers interact with beverages. In Indonesia, QR codes, NFC chips, and augmented reality (AR) labels are being integrated into drink packages to provide real-time information on sourcing, ingredients, and authenticity. These features not only enhance consumer trust but also enable personalized marketing campaigns and loyalty programs. Embedded freshness sensors are being developed to track temperature variations during transportation, ensuring quality preservation. As brands compete for shelf differentiation, smart packaging is emerging as a powerful tool for engagement and traceability. This trend will continue to expand as consumers demand transparency, authenticity, and interactive experiences from beverage products.

• Expansion of Lightweight and Flexible Packaging Formats
  Lightweight and flexible drink packaging formats such as pouches, bag-in-box systems, and thin-wall containers are gaining momentum in Indonesia. These formats offer reduced material use, lower logistics costs, and improved portability ideal for both RTD beverages and on-the-go lifestyles. Advances in multi-layer film technology are enabling enhanced barrier protection against oxygen and UV light, extending product shelf life. Beverage companies are adopting lightweight PET bottles and thin aluminum cans to minimize carbon emissions during transport. Additionally, flexible packaging supports compact storage and better shelf presentation, catering to evolving retail formats and e-commerce delivery requirements.

• Rise in Premium and Aesthetic Packaging Designs
  The growing demand for premium beverages such as craft beers, wines, and organic juices is driving investment in visually distinctive packaging. In Indonesia, brands are prioritizing design aesthetics, tactile finishes, and innovative labeling techniques to attract consumers in competitive retail spaces. Premium packaging materials such as frosted glass, metallic coatings, and embossed cartons enhance perceived value and brand identity. The use of digital printing technologies allows for short-run, customized production, enabling brands to offer limited-edition packaging. This combination of visual appeal and personalization is increasingly essential for connecting with modern, design-conscious consumers.

• Integration of Automation and Digital Printing Technologies
  Automation and digitalization are transforming drink packaging production lines in Indonesia. Advanced robotic systems and smart sensors are improving operational efficiency, reducing human error, and optimizing material usage. Meanwhile, high-speed digital printing allows flexible design changes, variable data labeling, and mass customization without compromising production timelines. Beverage companies are adopting hybrid printing solutions that merge digital and flexographic capabilities for faster turnaround and improved quality. These innovations reduce inventory waste while supporting agile marketing strategies, marking a significant step toward Industry 4.0-enabled packaging manufacturing.

Market Growth Drivers

• Rising Beverage Consumption and Product Diversification
  The increasing consumption of soft drinks, alcoholic beverages, bottled water, and health-oriented drinks is driving demand for diverse packaging formats in Indonesia. Population growth, urbanization, and higher disposable incomes are contributing to increased beverage consumption across both rural and urban markets. Packaging plays a crucial role in ensuring freshness, convenience, and brand appeal. As functional beverages and plant-based drinks gain popularity, producers are adopting new packaging materials and structures designed for product protection and enhanced shelf appeal. The evolving consumer palate and product diversity are collectively fueling the need for flexible, innovative packaging solutions.

• Accelerating Shift Toward Sustainable Packaging Solutions
  The global emphasis on reducing plastic waste has triggered strong demand for recyclable and compostable beverage packaging in Indonesia. Government regulations banning single-use plastics and consumer pressure on sustainability are encouraging manufacturers to adopt paper, glass, and aluminum-based solutions. Leading beverage brands are making public commitments to achieve 100% recyclable packaging by the end of the decade. This transition has also fueled the growth of refillable bottle programs and closed-loop recycling systems. The combination of regulatory mandates and consumer awareness is creating a long-term structural shift toward environmentally responsible packaging materials.

• Growth of E-Commerce and Direct-to-Consumer Beverage Channels
  The rapid expansion of e-commerce and home delivery services is transforming the beverage distribution landscape in Indonesia. Drinks packaging must now withstand the rigors of shipping and handling while maintaining product integrity and presentation. 4-layer and corrugated paper-based protective solutions are increasingly replacing traditional shrink wraps for online beverage delivery. Lightweight, durable packaging that minimizes leakage and breakage is becoming a key requirement. Additionally, brands are incorporating QR-enabled packaging for digital tracking and enhanced customer engagement during online transactions. This shift toward digital retail is broadening the scope of packaging innovation in the beverage sector.

• Advancements in Packaging Material Science and Barrier Technologies
  Breakthroughs in barrier coatings, nano-layer laminations, and biodegradable films are improving packaging performance without sacrificing sustainability. In Indonesia, companies are developing hybrid materials combining cellulose fibers with biopolymers to enhance moisture and oxygen resistance. These innovations allow paper-based cartons and pouches to rival the shelf-life properties of plastic while remaining fully recyclable. Advances in coating formulations, such as aqueous dispersions and biowaxes, further expand packaging applications across carbonated, dairy, and alcoholic beverages. Material science progress will remain a cornerstone of competitive advantage for packaging manufacturers.

• Increasing Focus on Brand Identity and Differentiation
  In competitive beverage markets, packaging has become a vital element of brand storytelling and differentiation. Companies in Indonesia are leveraging innovative packaging formats, tactile finishes, and eco-friendly designs to attract environmentally conscious and design-savvy consumers. Transparent packaging, minimalist labeling, and functional features such as resealable caps are increasingly preferred. Personalized packaging campaigns enabled through digital printing and variable data systems enhance customer loyalty and drive repeat purchases. As visual appeal becomes central to consumer perception, investment in creative packaging design will continue to accelerate.

• Adoption of Smart Manufacturing and Automation in Packaging Lines
  Manufacturers in Indonesia are modernizing their production facilities through automation and IoT integration to meet growing beverage demand efficiently. Automated packaging systems improve speed, precision, and cost control while reducing waste. Real-time monitoring tools optimize energy usage and ensure quality consistency. The use of robotics for filling, capping, and labeling enhances scalability and worker safety. These advancements allow manufacturers to respond faster to changing consumer trends and large-scale customization requirements. Smart factories will play a pivotal role in driving the next phase of productivity growth in the drinks packaging sector.

Challenges in the Market

• Environmental Impact of Plastic Waste and Recycling Limitations
  Despite the ongoing transition toward sustainability, the high use of plastic in beverage packaging remains a pressing concern in Indonesia. Limited recycling infrastructure and contamination issues hinder circularity efforts. Multi-layer plastic laminates, though offering excellent barrier performance, are difficult to recycle due to material complexity. Governments are introducing extended producer responsibility (EPR) programs, but compliance costs are straining smaller players. Developing cost-effective recycling solutions and scalable biodegradable alternatives is critical to overcoming this challenge.

• High Cost of Sustainable Packaging Materials
  While sustainable packaging options such as paper composites and bio-based resins offer environmental benefits, they remain costlier than traditional plastics. In Indonesia, the price volatility of raw materials like recycled paper pulp, aluminum, and biopolymers adds uncertainty to production planning. Smaller manufacturers often struggle to absorb these costs without passing them onto consumers. Achieving economies of scale and government incentives will be necessary to make sustainable materials commercially viable.

• Stringent Regulatory Standards and Compliance Requirements
  The drinks packaging industry must adhere to strict regulations governing food safety, labeling, recyclability, and material composition. In Indonesia, compliance with varying regional standards increases operational complexity for multinational producers. Ensuring that coatings, inks, and adhesives meet health and environmental safety norms adds additional costs. Moreover, shifting international trade policies and packaging waste directives require continuous adaptation of materials and production processes. The administrative burden of maintaining compliance across multiple jurisdictions remains a significant market restraint.

• Supply Chain Disruptions and Raw Material Shortages
  Global supply chain disruptions exacerbated by geopolitical conflicts, trade restrictions, and natural disasters are impacting the availability of key packaging materials. In Indonesia, shortages of aluminum, PET resin, and recycled paper have led to price volatility and production delays. Manufacturers must diversify sourcing strategies and adopt local supply networks to ensure continuity. However, building regional resilience requires capital investment and may temporarily increase costs. Managing supply chain risks will be a key priority for maintaining market stability.

• Consumer Perception and Performance Trade-Offs in Sustainable Packaging
  Although eco-friendly materials are gaining popularity, consumers often associate paper-based or compostable packaging with reduced durability or product freshness. Beverage producers in Indonesia face the challenge of balancing sustainability with functionality, particularly for carbonated or acidic drinks that demand high barrier protection. Innovations in coatings and laminations are addressing these limitations, but widespread adoption remains gradual. Bridging the gap between sustainability perception and real-world performance is critical to achieving consumer acceptance.

• Competition from Alternative Beverage Packaging Formats
  The market is highly competitive, with multiple packaging materials such as glass, metal, and flexible plastics vying for dominance in different beverage segments. In Indonesia, glass remains the preferred choice for premium alcoholic beverages due to its perceived quality, while aluminum leads in carbonated drinks. Emerging formats like paper bottles and plant-based containers are adding further complexity. Manufacturers must continuously innovate and differentiate based on performance, cost, and consumer appeal to remain competitive in this evolving landscape.

Indonesia Drinks Packaging Market Segmentation

By Material Type

• Plastic (PET, HDPE, LDPE, PP)

• Glass

• Metal (Aluminum, Steel)

• Paper and Paperboard

• Bio-Based and Composite Materials

By Packaging Type

• Bottles

• Cans

• Cartons

• Pouches and Bags

• Kegs and Barrels

By Beverage Type

• Alcoholic Beverages

• Non-Alcoholic Beverages

• Carbonated Soft Drinks

• Juices and Functional Drinks

• Bottled Water

By End-Use Channel

• Retail and Supermarkets

• E-Commerce and Online Delivery

• Foodservice and Restaurants

• Institutional and Commercial

Leading Key Players

• Amcor Plc

• Ball Corporation

• Crown Holdings Inc.

• Tetra Pak International S.A.

• Ardagh Group S.A.

• Smurfit Kappa Group

• DS Smith Plc

• Owens-Illinois Inc.

• Berry Global Inc.

• Mondi Group

Recent Developments

• Amcor Plc launched a fully recyclable polyethylene-based drinks bottle in Indonesia, reducing material weight by 30% compared to traditional PET bottles.

• Ball Corporation expanded its aluminum can production facility in Indonesia to cater to growing demand for energy and carbonated beverages.

• Tetra Pak introduced paper-based drink cartons with bio-based polymer coatings in Indonesia, enhancing recyclability and reducing carbon footprint.

• Smurfit Kappa Group partnered with beverage producers in Indonesia to develop 100% recyclable paper-based bottle carriers and packaging trays.

• Crown Holdings invested in lightweight metal can innovation in Indonesia to improve beverage packaging efficiency and sustainability.

This Market Report Will Answer the Following Questions

1. What is the projected market size and CAGR of the Indonesia Drinks Packaging Market by 2031?

2. Which material innovations are driving the transition toward sustainable beverage packaging?

3. How are automation, digitalization, and smart packaging technologies shaping the industry’s future?

4. What are the key regulatory, cost, and sustainability challenges impacting drinks packaging manufacturers?

5. Who are the leading global and regional players driving innovation and competitiveness in Indonesia?