Page 50 - GM_2018_6

COUNTRY OUTLOOK
Country outlook

Globally, the high urbanisation ity country, alcohol sale is very & beverage industry has regis-
rate has been an important factor low in Indonesia as compared to tered steady growth in recent
for the growth of the container some of its other ASEAN peers. years. The container glass indus-
glass industry, as high urbani- About 90 per cent of Indonesia’s try has benefited to some extent
sation has a strong correlation population is Muslim, and in thanks to this growth, but other
with container glass consump- theory banned from drinking. forms of packaging have gained
tion. Indonesia has one of the However, a high proportion of more share of the growth in
highest rates of urbanisation in total population practice a mod- recent years. Being a Muslim
ASEAN countries. Currently, 56 erate form of Islam and alcohol majority country, alcohol usage is
per cent of the Indonesian popu- is available in cities and holiday not very widespread. Because of
lation lives in urban areas (at the destinations, but its consumption religious beliefs, the country has
start of the century - in 2000 - is quite low. one of the lowest per capita alco-
the figure was 42 per cent). With Stricter rules on sales of alco- hol consumption in the region.
Indonesia’s urban population holic beverages, introduced in
growth averaging 4.4 per cent 2015, constitute a challenge for BEVERAGE CONSUMPTION
annually over the past 60 years, container glass manufacturers. IN INDONESIA
it is predicted that 68 per cent of For example, in addition to the The food & beverage sector
the country’s population will be ban of liquor sales in minima- is expected to see robust growth
living in cities and towns in the rkets and kiosks, these outlets are in container glass consumption
coming 10 years, according to additionally no longer allowed in the country in next few years.
the World Bank. to sell beer. Although still avail- The Indonesia government has
The Indonesian tourism sec- able in larger supermarkets and recently drawn up a road map for
tor is expected to become a sig- hypermarkets, as well as bars, upgrading five manufacturing sec-
nificant contributor to container restaurants and hotels, the mar- tors and making the country one
glass consumption in coming ket for alcoholic drinks is heavily of the world’s 10 biggest econo-
years. In 2017, the country wel- restricted. mies. The plan, entitled ‘Making
comed over 14 million visitors, Indonesia 4.0’ and released by
an increase of more than 2 mil- THE PACKAGED FOOD & the Ministry of Industry in May
lion compared to the previous BEVERAGE INDUSTRY 2018, calls for developing the
year. This rapid increase in visi- The Indonesian packaged food food and beverage, textile and
tors provides a steady
demand of glass contain-
ers, as per capita con- TABLE 1
sumption of food & bev- BEVERAGE CONSUMPTION IN INDONESIA
erages is quite higher for
tourists in comparison to Product Volume (in million litres) Volume growth (in %) over 2015 Value (in IDR Trillion)
the local population. Bottled water 20,440.8 11.6 % 45.80
On the negative side, Carbonates 1,065 3.4 % 16.01
container glass industry
Concentrates 108.6 -1,5 % 8.92
growth has been ham-
pered due to less than Juices 661.3 7.8 % 9.53
average consumption RTD Tea 2,752.8 9.6 % 30.74
in alcoholic beverages.
RTD Coffee 94.2 20.5 % 2.49
Being a Muslim major-
Sports & 661.1 4.5 % 10.10
Energy Drinks

glass machinery plants & accessories 6/2018 6/2018
48
48 glass machinery plants & accessories