Indonesian Packaging Industry Faces Sluggish Growth Amidst Changing Consumer Behavior

Ramadan and Eid No Longer Significant Growth Catalysts

The Indonesian packaging industry, typically buoyed by increased demand during Ramadan and Eid al-Fitr, is bracing for sluggish growth this year. Henky Wibawa, Executive Director of the Indonesian Packaging Federation (IPF), noted that the industry is facing headwinds due to changing consumer lifestyles and retail practices. The shift in consumer behavior towards more spontaneity and retailers maintaining lower inventory levels have contributed to this slowdown.

Changing Retail Landscape Impacts Demand

Over the past five years, the retail sector has moved away from stocking high inventory levels, a trend that has directly impacted the packaging industry. Consumers are also exhibiting more spontaneous purchasing behavior, further affecting demand for packaging materials. This change in the retail landscape has made it challenging for packaging manufacturers to predict and prepare for demand fluctuations.

Industry Outlook

The combined effect of these factors suggests that the packaging industry will not experience significant growth during Ramadan and Eid this year. Industry stakeholders will need to adapt to these changing dynamics to navigate the challenging environment effectively.