Indonesia Coding and Marking Systems Market by Technology (Continuous Inkjet, Laser Coding & Marking, Thermal Inkjet, Drop-on-Demand, Print & Apply Labeling, Thermal Transfer Overprinting), Application (PET Bottles, Metal Cans, Flexible Films & Foils, Rigid Plastic Containers, Glass Bottles & Containers, Paperboard, Corrugated Packaging, Retail-Ready Packaging, Shrink Wrap, Extrusions, Plastic & Rubber Parts, Wooden Materials, Metal Parts, Bags), End User (Food and Beverage, Tobacco, Cosmetics, and Personal and Home Care, Electrical and Electronics, Automotive and Aerospace, Chemical, Healthcare, Building and Construction), Regional Outlook – Industry Trends and Growth Forecast to 2023

Indonesia Coding and Marking Systems Market Overview

The Indonesian coding and marking systems market was valued at $27.4 million in 2017 and is projected to reach $48.7 million by 2023, witnessing a CAGR of 10.1% during the forecast period. The market growth in the country is primarily driven by the rising demand for coding and marking systems in the food and beverage, building and construction, and automotive industries.

INDONESIA CODING AND MARKING SYSTEMS MARKET, BY TECHNOLOGY, UNITS (2013-2023)

Coding and marking systems provide product-related details on the packaging, such as batch number, price, and manufacturing and expiry dates, to the end users. Coding and marking facilitate the identification and tracking of components through the different phases of the production process.

On the basis of technology, the Indonesian coding and marking systems market is categorized into continuous inkjet, laser coding and marking, thermal inkjet, drop-on demand (DoD), print and apply labeling, thermal transfer overprinting (TTO), and others, where the “others” category includes valve jet and hot-melt inkjet. Of these, continuous inkjet technology held the largest share in the market in 2017, accounting for more than 40.0% in terms of value. The largest share of the technology can be attributed to its low operational cost, which encourages its wide application across various industries.

Based on application, the Indonesian coding and marking systems market is categorized into polyethylene terephthalate (PET) bottles, metal cans, flexible films and foils, rigid plastic containers, glass bottles and containers, paperboard, corrugated packaging, retail-ready packaging, shrink wrap, extrusions, plastic and rubber parts, wooden materials, metal parts, bags, and others, where “others” include trays, pouches, and cases. PET bottles were the largest application area of coding and marking systems during the historical period. This can be attributed to their wide use as a packaging material for consumer products, such as cold drinks and fruit juices.

On the basis of end user, the Indonesian coding and marking systems market is categorized into food and beverage; tobacco; cosmetics, and personal and home care; electrical and electronics; automotive and aerospace; chemical; healthcare; building and construction; and others, where the “others” category includes marine and military industries . In terms of volume, food and beverage accounted for more than 30.0% share in the market in 2017. This can be attributed to the large-scale use of coding and marking solutions for printing elemental product information on packaged food items such as confectionery and beverages.

Based on city, the Indonesian coding and marking systems market is classified into Jakarta, Surabaya, Bandung, Semarang, and others. Jakarta accounted for the highest demand for coding and marking solutions in the Indonesian market in 2017. Jakarta, being the most populous city in the country, continues to generate a significant demand for packaged food and beverage products, metal products, and construction products. Coding and marking on these products help provide quality assurance to the end users. Owing to this, the demand for coding and marking solutions in Jakarta is expected to remain high in the coming years.

Indonesia Coding and Marking Systems Market Dynamics

Trend

Historically, coding and marking requirements in the Indonesian manufacturing and processing sector were met with the use of systems featuring analog technologies. However, the scenario has changed in recent years, owing to the increasing complexity in coding and marking in product packaging and the availability of digital coding and marking solutions. The application of high-tech, sensitive printers is growing in the Indonesian market. For example, continuous inkjet printers are being preferred over manual systems for printing on product packaging. Such shift in the user preference, from analog technologies to digital technologies, is being observed as a major trend in the Indonesian coding and marking systems market.

Driver

Tobacco sales in Indonesia have significantly increased in recent years. The sales of cigarettes witnessed a CAGR of 3.0% during 2010–2015 in the country. Besides, increased emphasis on cleanliness to ensure the quality of end products is leading to the increased demand for modernized and sophisticated coding solutions in the industry. Modern coding technologies facilitate increased productivity, enhanced readability, and high-resolution printing for direct-to-the-box and automatic label applications. Owing these benefits, the demand for coding technologies is increasing in the tobacco industry, which, in turn, is positively impacting the growth of the Indonesian coding and marking systems market.

Restraint

The price of coding and marking technologies depends on their specifications, level of technology integration, applications, size, and nature of consumables used. Due to such wide criteria, high variance is observed in the pricing of coding and marking solutions. The high price of these systems often dents their attractiveness among price-sensitive industrial users. In addition, users need to spend money on printing consumables besides the maintenance of these systems. Thus, the high lifecycle cost of these systems can be viewed as a key factor hampering the growth of the Indonesian coding and marking systems market.

Indonesia Coding and Marking Systems Market Competitive Landscape

Some of the major players operating in the Indonesian coding and marking systems market are Domino Printing Sciences plc, Dover Corporation, Danaher Corporation, Koenig & Bauer Coding GmbH, KGK Marking Technologies Group, ANSER Coding Inc., Linx Printing Technologies, PT Samartha Solusi Indonesia, Matthews International Corporation, and Hitachi Ltd.