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Tobacco Packaging in Indonesia

Indonesia tobacco packaging market forecast to increase at a slower rate of 3% CAGR during 2011 to 2016

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2014-02-07 15:00:03 - Tobacco Packaging in Indonesia - a new market research report on

Despite continuous efforts to heighten law enforcement by both government (in particular the Ministry of Health) and antismoking NGOs to reduce the number of smokers and the negative effects of smoking on the public health, unit volume of tobacco products continued to grow positively in 2012. Cigarettes continue to be the primary type of tobacco product in Indonesia, with other types of tobacco products not enjoying the same appeal and less regulated by the government. With the larger pack sizes posting stronger growth, total tobacco packaging´s growth rate in 2012 was slightly lower than the growth rate in tobacco in volume size (by sticks as per Euromonitor International´s research). Total tobacco packaging expanded by 6% in 2012 in unit terms



to reach 41.5 billion units.

Tobacco packaging, despite the anticipated greater restrictions imposed on the industry, will continue to see positive growth over the forecast period. A slightly slower rate of 3% CAGR in the 2011-2016 period to reach 45.6 billion units by 2016 is expected. The rising unit volume is also supported by the migration of people who previously enjoyed hand-rolled cigarettes to now smoking machine-made cigarettes still primarily in the kretek blend. The latest tax excise increase issued by regulation no 167/PMK.11/2011 also discouraged hand-rolled cigarette consumers, as the percentage increase was higher in the lower segments.

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