Packaging Adhesive Market in Indonesia

Packaging Adhesive in Indonesia Trends and Forecast

The future of the packaging adhesive market in Indonesia looks promising with opportunities in the case & carton, corrugated packaging, labeling, flexible packaging, folding cartons, and specialty packaging markets. The global packaging adhesive market is expected to reach an estimated $26.5 billion by 2031 with a CAGR of 5.1% from 2025 to 2031. The packaging adhesive market in Indonesia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increasing awareness among consumers in developing nations about the importance of food safety, the growing consumer appetite for packaged food and beverage products, and the rapidly rising e-commerce industry across the globe.

• Lucintel forecasts that, within the technology category, water-based will remain the largest segment over the forecast period because they are water-soluble and has better moisture resistance than other adhesives, as well as water-based technology is becoming increasingly favored among manufacturers of packaging adhesives owing to heightened environmental awareness and more stringent VOC regulations.
• Within the application category, labelling will remain the highest growing segment over the forecast period because these adhesives are crafted from natural and soluble synthetic polymers and are employed for labeling and bonding purposes owing to their eco-friendliness.

Emerging Trends in the Packaging Adhesive Market in Indonesia

The packaging adhesive market in Indonesia is experiencing a significant transformation, driven by evolving consumer preferences, regulatory changes, and technological advancements. As the demand for packaged goods rises, manufacturers are seeking innovative adhesive solutions that enhance product safety, sustainability, and efficiency. The market is also influenced by global trends such as eco-friendly materials and digitalization, which are shaping local industry practices. These developments are prompting both local and international players to adapt their strategies, invest in research and development, and collaborate across the value chain to remain competitive in this dynamic environment.

• Shift towards sustainable adhesives: Growing environmental awareness and stricter regulations are pushing manufacturers to adopt eco-friendly adhesives derived from renewable resources or featuring reduced volatile organic compounds. This trend is not only helping companies meet regulatory requirements but also appealing to environmentally conscious consumers. As a result, there is increased investment in research and development of biodegradable and water-based adhesives, which are gradually replacing traditional solvent-based products in the Indonesian packaging sector.
• Rising demand for food-safe adhesives: With the expansion of Indonesia’s food and beverage industry, there is a heightened focus on adhesives that comply with food safety standards. Manufacturers are prioritizing formulations that are free from harmful chemicals and certified for direct or indirect food contact. This trend is driving innovation in adhesive chemistry, ensuring that packaging materials do not compromise product safety or quality, and helping brands build consumer trust in a competitive market.
• Adoption of smart packaging solutions: The integration of smart technologies, such as QR codes and RFID tags, into packaging is increasing the need for specialized adhesives that can securely bond electronic components. This trend is enabling enhanced product tracking, authentication, and consumer engagement. Adhesive manufacturers are responding by developing products with improved conductivity, flexibility, and durability, supporting the growth of smart packaging applications across various industries in Indonesia.
• Growth in flexible packaging formats: Flexible packaging is gaining popularity due to its convenience, cost-effectiveness, and reduced material usage. This shift is driving demand for adhesives that offer strong bonding on diverse substrates, including plastics and laminates. Manufacturers are innovating to provide adhesives with superior performance characteristics, such as heat resistance and fast curing, to meet the specific requirements of flexible packaging in sectors like food, pharmaceuticals, and personal care.
• Emphasis on automation and efficiency: The Indonesian packaging industry is increasingly adopting automated production lines to boost efficiency and reduce labor costs. This trend is influencing the development of adhesives that are compatible with high-speed application processes and offer consistent performance. Manufacturers are focusing on products that minimize downtime, enhance productivity, and support seamless integration with modern packaging machinery, thereby improving overall operational efficiency.

These emerging trends are fundamentally reshaping the packaging adhesive market in Indonesia by driving innovation, sustainability, and efficiency. As manufacturers respond to changing consumer demands and regulatory pressures, the market is witnessing a shift towards greener, safer, and more technologically advanced adhesive solutions. The adoption of smart packaging, flexible formats, and automation is enhancing product value and operational performance, positioning the Indonesian packaging industry for continued growth and global competitiveness.

Recent Developments in the Packaging Adhesive Market in Indonesia

The packaging adhesive market in Indonesia is experiencing a significant transformation, driven by evolving consumer preferences, regulatory changes, and technological advancements. As the demand for sustainable and efficient packaging solutions rises, manufacturers and suppliers are adapting to new trends and challenges. Recent developments in the sector reflect a focus on innovation, environmental responsibility, and strategic partnerships. These changes are shaping the competitive landscape and influencing the future direction of the market, making it essential for stakeholders to stay informed about the latest trends and their implications.

• Sustainability Initiatives: Leading adhesive manufacturers are investing in eco-friendly formulations, such as water-based and biodegradable adhesives, to meet growing environmental regulations and consumer demand for sustainable packaging. These initiatives are reducing the carbon footprint of packaging operations and helping companies align with global sustainability goals. The shift towards greener adhesives is also opening new market opportunities and enhancing brand reputation, as businesses prioritize responsible sourcing and production. This trend is expected to accelerate as Indonesia strengthens its environmental policies and consumers become more environmentally conscious.
• Technological Advancements: The adoption of advanced adhesive technologies, including hot-melt and pressure-sensitive adhesives, is improving packaging efficiency and product performance. These innovations enable faster production speeds, stronger bonding, and greater versatility across various packaging materials. As a result, manufacturers can offer more reliable and cost-effective solutions to their clients. The integration of automation and digitalization in adhesive application processes is further streamlining operations, reducing waste, and supporting the industry‘s move towards Industry 4.0 standards.
• Strategic Partnerships and Mergers: Companies in the Indonesian packaging adhesive market are increasingly forming strategic alliances and pursuing mergers to expand their product portfolios and market reach. These collaborations enable firms to leverage complementary strengths, share resources, and accelerate innovation. By joining forces, companies can better address the diverse needs of local and international customers, enhance supply chain resilience, and achieve economies of scale. This trend is fostering a more competitive and dynamic market environment, encouraging continuous improvement and growth.
• Regulatory Compliance: Stricter government regulations regarding food safety, chemical usage, and environmental impact are prompting adhesive manufacturers to reformulate products and improve quality control. Compliance with these regulations is essential for market access and consumer trust, particularly in the food and beverage sector. Companies are investing in research and development to create adhesives that meet or exceed regulatory standards, ensuring product safety and minimizing health risks. This focus on compliance is driving innovation and raising industry standards across the market.
• Growth in E-commerce Packaging: The rapid expansion of e-commerce in Indonesia is fueling demand for high-performance packaging adhesives that ensure product integrity during shipping and handling. Adhesive suppliers are developing solutions tailored to the unique requirements of e-commerce packaging, such as tamper-evident and resealable adhesives. This growth is creating new business opportunities and encouraging investment in specialized adhesive technologies. As online retail continues to grow, the packaging adhesive market is expected to benefit from increased demand and evolving customer expectations.

These recent developments are collectively reshaping the Indonesian packaging adhesive market by driving innovation, enhancing sustainability, and improving regulatory compliance. The focus on advanced technologies and strategic partnerships is fostering a more competitive landscape, while the rise of e-commerce is expanding market opportunities. As companies adapt to these changes, the market is poised for continued growth and transformation, benefiting both industry stakeholders and consumers.

Strategic Growth Opportunities for Packaging Adhesive Market in Indonesia

The packaging adhesive market in Indonesia is experiencing robust growth, driven by evolving consumer preferences, rapid urbanization, and the expansion of e-commerce. As industries seek more efficient, sustainable, and innovative packaging solutions, adhesives play a pivotal role in enhancing product integrity and shelf appeal. This dynamic environment presents significant opportunities for market players to capitalize on emerging trends and address the diverse needs of key application areas, fostering long-term growth and competitiveness in the Indonesian market.

• Sustainable Packaging Solutions: The increasing demand for eco-friendly packaging is propelling the adoption of bio-based and recyclable adhesives. These solutions help brands meet regulatory requirements and consumer expectations for sustainability, reducing environmental impact and enhancing brand reputation. Companies investing in green adhesive technologies are gaining a competitive edge, as sustainability becomes a key purchasing criterion. This shift not only supports environmental goals but also opens new market segments, driving growth and innovation in the packaging adhesive industry.
• Flexible Packaging Expansion: The rise of flexible packaging in food, beverage, and personal care sectors is fueling demand for high-performance adhesives. Flexible packaging offers advantages such as lightweight, convenience, and extended shelf life, requiring specialized adhesives for durability and safety. Manufacturers focusing on developing adhesives tailored for flexible substrates are capturing greater market share. This trend is accelerating as consumer lifestyles shift towards on-the-go consumption, making flexible packaging a critical growth driver for adhesive suppliers.
• E-commerce Packaging Growth: The surge in e-commerce is transforming packaging requirements, emphasizing the need for strong, tamper-evident, and easy-to-use adhesives. As online retail expands, packaging must ensure product safety during transit and enhance unboxing experiences. Adhesive manufacturers are innovating to provide solutions that address these challenges, supporting the rapid growth of e-commerce. This opportunity is significant, as reliable packaging adhesives are essential for maintaining customer satisfaction and reducing product returns.
• Food Safety and Compliance: Stringent food safety regulations are increasing the demand for adhesives that are compliant with health standards and safe for direct or indirect food contact. Companies developing adhesives with low migration and non-toxic properties are well-positioned to serve the growing food packaging market. This focus on safety and compliance not only mitigates regulatory risks but also builds trust with consumers and food manufacturers, driving adoption and market expansion.
• Automation and Efficiency: The push for greater automation in packaging lines is creating opportunities for adhesives that enable faster processing and improved efficiency. High-speed, easy-to-apply adhesives reduce downtime and operational costs, supporting manufacturers’ efforts to optimize production. Suppliers offering innovative adhesive solutions that integrate seamlessly with automated systems are gaining traction, as efficiency becomes a key differentiator in the competitive packaging landscape.

These strategic growth opportunities are reshaping Indonesia’s packaging adhesive market, fostering innovation, sustainability, and operational excellence. By addressing evolving application needs, market players are not only enhancing their competitive positioning but also contributing to the broader transformation of the packaging industry. As these trends continue to gain momentum, the market is poised for sustained growth, driven by advancements in technology, regulatory compliance, and shifting consumer preferences.

Packaging Adhesive Market in Indonesia Driver and Challenges

The packaging adhesive market in Indonesia is shaped by a complex interplay of technological advancements, economic trends, and regulatory frameworks. As the country’s manufacturing and e-commerce sectors expand, demand for efficient and sustainable packaging solutions rises. However, the market also faces challenges such as fluctuating raw material prices, stringent environmental regulations, and the need for continuous innovation. Understanding these drivers and challenges is crucial for stakeholders aiming to capitalize on growth opportunities while navigating potential obstacles in Indonesia’s dynamic packaging adhesive landscape.

The factors responsible for driving the packaging adhesive market in Indonesia include
• Growth in E-commerce: The rapid expansion of Indonesia’s e-commerce sector has significantly increased the demand for packaging materials, including adhesives. Online retailing requires secure, tamper-proof, and attractive packaging to ensure product safety and customer satisfaction. This surge in e-commerce activity has led to higher consumption of packaging adhesives, as businesses seek reliable solutions for shipping and handling a diverse range of products. The trend is expected to continue as internet penetration and digital payment adoption rise across the country.
• Advancements in Packaging Technology: Technological innovations in packaging, such as smart packaging and lightweight materials, are driving the need for specialized adhesives. These advancements require adhesives with enhanced properties like flexibility, strength, and compatibility with new substrates. As manufacturers adopt automated and high-speed packaging lines, demand for adhesives that can withstand rigorous processing conditions increases. This technological shift not only improves packaging efficiency but also opens new avenues for adhesive manufacturers to develop tailored solutions.
• Rising Consumer Awareness of Sustainability: Indonesian consumers are increasingly aware of environmental issues, prompting a shift towards eco-friendly packaging solutions. This trend drives demand for adhesives that are biodegradable, recyclable, or derived from renewable resources. Companies are investing in research and development to create sustainable adhesive products that meet both regulatory standards and consumer expectations. The push for sustainability is influencing purchasing decisions and encouraging innovation in the packaging adhesive market.
• Expansion of the Food and Beverage Industry: The growth of Indonesia’s food and beverage sector is a major driver for the packaging adhesive market. As urbanization and disposable incomes rise, there is greater demand for packaged foods and beverages, which require safe and effective sealing solutions. Adhesives play a critical role in ensuring product integrity, shelf life, and compliance with food safety regulations. This sector’s expansion directly correlates with increased consumption of packaging adhesives.

The challenges in the packaging adhesive market in Indonesia are
• Volatility in Raw Material Prices: The packaging adhesive industry is highly sensitive to fluctuations in the prices of raw materials such as resins, solvents, and additives. Many of these materials are imported, making the market vulnerable to global supply chain disruptions and currency fluctuations. Price volatility can squeeze profit margins for manufacturers and lead to higher costs for end-users. Companies must develop strategies to manage these risks, such as diversifying suppliers or investing in alternative materials.
• Stringent Environmental Regulations: Indonesia has implemented stricter environmental regulations to address pollution and promote sustainability. These regulations affect the formulation, production, and disposal of packaging adhesives, requiring manufacturers to comply with new standards. Adapting to these regulations can increase operational costs and necessitate significant investment in research and development. Non-compliance can result in penalties or restricted market access, making regulatory adherence a critical challenge for industry players.
• Intense Market Competition: The Indonesian packaging adhesive market is highly competitive, with both local and international players vying for market share. This competition drives innovation but also puts pressure on pricing and profit margins. Companies must continuously improve product quality, invest in marketing, and differentiate their offerings to maintain a competitive edge. The presence of low-cost alternatives and counterfeit products further complicates the market landscape, challenging established brands to protect their market position.

Overall, the packaging adhesive market in Indonesia is propelled by robust demand from e-commerce, technological advancements, sustainability trends, and a thriving food and beverage sector. However, it faces significant challenges from raw material price volatility, stringent regulations, and intense competition. Successfully navigating these factors will determine the ability of market participants to achieve sustainable growth and capitalize on emerging opportunities in Indonesia’s evolving packaging industry.

List of Packaging Adhesive Market in Indonesia Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, packaging adhesive companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the packaging adhesive companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10

Packaging Adhesive Market in Indonesia by Segment

The study includes a forecast for the packaging adhesive market in Indonesia by technology and application.

Packaging Adhesive Market in Indonesia by Technology [Analysis by Value from 2019 to 2031]:

• Solvent-Based
• Water-Based
• Hot Melt
• Others

Packaging Adhesive Market in Indonesia by Application [Analysis by Value from 2019 to 2031]:

• Case & Carton
• Corrugated Packaging
• Labeling
• Flexible Packaging
• Folding Cartons
• Specialty Packaging
• Others

Features of the Packaging Adhesive Market in Indonesia

Market Size Estimates: Packaging adhesive in Indonesia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Packaging adhesive in Indonesia market size by technology and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different technology and application for the packaging adhesive in Indonesia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the packaging adhesive in Indonesia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q.1 What are the major drivers influencing the growth of the packaging adhesive market in Indonesia?
Answer: The major drivers for this market are increasing awareness among consumers in developing nations about the importance of food safety, growing consumer appetite for packaged food and beverage products, and rapidly rising e-commerce industry across the globe.
Q2. What are the major segments for packaging adhesive market in Indonesia?
Answer: The future of the packaging adhesive market in Indonesia looks promising with opportunities in the case & carton, corrugated packaging, labeling, flexible packaging, folding cartons, and specialty packaging markets.
Q3. Which packaging adhesive market segment in Indonesia will be the largest in future?
Answer: Lucintel forecasts that water-based will remain the largest segment over the forecast period because they are water-soluble and has better moisture resistance than other adhesives, as well as, water-based technology is becoming increasingly favored among manufacturers of packaging adhesives owing to heightened environmental awareness and more stringent VOC regulations.
Q4 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the packaging adhesive market in Indonesia by technology (solvent-based, water-based, hot melt, and others) and application (case & carton, corrugated packaging, labeling, flexible packaging, folding cartons, specialty packaging, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Packaging Adhesive Market in Indonesia, Packaging Adhesive Market in Indonesia Size, Packaging Adhesive Market in Indonesia Growth, Packaging Adhesive Market in Indonesia Analysis, Packaging Adhesive Market in Indonesia Report, Packaging Adhesive Market in Indonesia Share, Packaging Adhesive Market in Indonesia Trends, Packaging Adhesive Market in Indonesia Forecast, Packaging Adhesive Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.