PT.Hokkan has installed the first Sidel dry aseptic line in Indonesia and expanded its production capacity as a co-packer of non-carbonated healthy soft drinks in Indonesia.
The investment follows the success of the first Sidel line installed at the company – a wet aseptic Combi line – with the two lines now working alongside each other to offer the company increased flexibility in production.
According to the World Bank, Indonesia is one of the best-performing emerging countries with a gross domestic product growth in 2013 of 5.8%.
This continuing growth in the economy, together with an increasing population, has led to a significant jump in the consumption of beverages in the country over recent years.
For example, from 2012 to 2017, the forecast compound annual growth rate in Asian specialty drinks is 8.4%, representing a growth of almost 50% over the whole period.
As Indonesia’s growing middle-class with more expendable income is looking for new experiences and tastes, the global trend of urbanization – with more people living within the main urban areas of major cities – is reflected in the country’s consumption patterns which are expected to continue to grow.
PT.Hokkan Indonesia is part of the Japanese Hokkan Group and is a co-packer for the beverage industry, specializing in polyethylene terephthalate (PET) bottles of up to 500ml.
“From our experience in Japan, we know that aseptic technology can achieve lightweight bottles, a flexible bottle design and long product shelf life,” said Masaaki Ikezawa, President Director of PT.HokkanIndonesia.
“Aseptic technology offers us numerous opportunities for making quality products.”
Future market development
Although the purchase of healthy beverages, such as sour milk drinks and sports and energy drinks, is not yet common practice among Indonesian consumers other than the younger generation, increasing awareness of health issues, accompanied with rising disposable income, is stimulating a change in habits.
PT.Hokkan Indonesia expects naturally healthy products, including specialty Asian drinks, powder concentrates, fruit and vegetable juices, functional drinks and teas to grow significantly in sales over the coming years. Packaging formats in the country tend to be ‘single-serve’ now, with most drinks packaged in PET bottles.
Demand for returnable glass bottles has declined substantially in recent years, mainly through one producer switching production from glass to one-way PET bottles.
The increasing use of PET is down to a number of factors: its 100% recyclability, excellent barrier material properties that allow extended shelf life, bottle design freedom and the greater brand recognition possibilities offered by the package transparency.
Being re-sealable, light and compact, the PET bottles are also more convenient for the customer as they do not have to be consumed at one time and are far more suited to the dynamic urban lifestyles of younger Indonesian consumers.
