Indonesia Ethylene Vinyl Acetate (EVA) Market Outlook to 2028

Indonesia Ethylene Vinyl Acetate Market Overview

• The Indonesia Ethylene Vinyl Acetate Market has experienced notable growth, this is reflected by GlobalEthylene Vinyl Acetate Market reaching a valuation ofUSD 8.3 billion in 2023, driven by the growing demand in industries such as footwear, packaging, and automotive. The market's expansion is fueled by the material's versatility and its applications in various sectors requiring lightweight and durable components.
• Major players in the Indonesia EVA market include PT Asahimas Chemical, PT Chandra Asri Petrochemical Tbk, and PT Pertamina (Persero). These companies are known for their significant market presence, comprehensive product portfolios, and innovations in EVA production technologies. They play a crucial role in shaping market dynamics and meeting regional demand.
• In 2023, PT Asahimas Chemical expanded its production capacity in Cilegon, enhancing its EVA output to cater to the increasing regional demand. This expansion aligns with the company's strategic initiative to consolidate its market position in Southeast Asia and support local industries with advanced material solutions.
• The Jakarta region dominates the Indonesia EVA market, attributed to its high industrial activity, significant automotive manufacturing base, and extensive packaging industry. The region's strategic importance is underscored by its developed infrastructure and proximity to key markets, which facilitate efficient distribution and supply chain management.

Indonesia Ethylene Vinyl Acetate Market Segmentation

By Product Type

The Indonesia EVA market is segmented by product type into Foam, Film, and Adhesives. In 2023, foam products dominated the market due to their extensive use in footwear and packaging applications, where properties like cushioning and flexibility are crucial. The foam segment's leadership is bolstered by its widespread adoption in everyday consumer goods and industrial applications.

By Application

The market is segmented by application into Footwear, Packaging, Automotive. In 2023, the footwear segment held the largest market share, driven by the material's durability and comfort, which are key attributes in shoe manufacturing. The packaging segment follows, benefiting from the demand for flexible, lightweight packaging solutions that EVA provides.

By Region

The regional segmentation of the Indonesia EVA market includes North, South, East, and West. The North region, particularly Jakarta, dominates due to its dense industrial activities and well-developed infrastructure. This region's market share is driven by significant investments in manufacturing and logistics, making it a central hub for EVA distribution.

Indonesia Ethylene Vinyl Acetate Market Competitive Landscape

• PT Chandra Asri Petrochemical Tbk: In 2024, PT Chandra Asri announced a partnership with a major global chemical company to develop new EVA grades. This collaboration aims to expand the company's product offerings and enhance its competitiveness in the market, particularly in high-performance applications.
• PT Pertamina (Persero): As part of its diversification strategy, PT Pertamina (Persero) launched a new EVA production line in 2024, focusing on producing eco-friendly products. This initiative supports the company's commitment to sustainability and addresses the rising demand for green materials.

Indonesia Ethylene Vinyl Acetate Industry Analysis

Indonesia Ethylene Vinyl Acetate Market Growth Drivers

• Rising Demand from the Footwear Industry: The footwear sector is a significant contributor to the growth of the ethylene vinyl acetate (EVA) market in Indonesia. As of 2024, the footwear industry in Indonesia is projected to reach a market value of approximately 15 trillion IDR. EVA is favored for its flexibility, lightweight properties, and cushioning capabilities, making it an ideal material for various types of footwear.
• Expansion of the Packaging Sector: The packaging industry in Indonesia is undergoing substantial growth, projected to reach a valuation of around 100 trillion IDR by 2025. EVA's properties, such as excellent adhesion, water resistance, and thermal insulation, make it a preferred choice for packaging solutions. The rise in e-commerce and online shopping has further accelerated the demand for effective and sustainable packaging materials.
• Growth in Renewable Energy Applications: The renewable energy sector, especially solar energy, is increasingly utilizing EVA for solar panel encapsulation. In 2024, Indonesia's renewable energy capacity is anticipated to exceed 10 GW, with solar energy contributing significantly to this figure. EVA's durability and transparency make it an ideal material for protecting solar cells, enhancing their efficiency and longevity.

Indonesia Ethylene Vinyl Acetate Market Challenges

• Volatility in Raw Material Prices: The EVA market faces challenges due to fluctuations in the prices of its raw materials, primarily ethylene and vinyl acetate. In 2024, the price of ethylene is projected to hover around 1,000 USD per ton, influenced by global supply chain disruptions and geopolitical tensions. This volatility can lead to increased production costs for manufacturers
• Environmental Concerns and Regulations: There is a growing concern regarding the environmental impact of EVA products, particularly in terms of recyclability and biodegradability. As of 2024, stricter regulations are expected to be implemented in Indonesia regarding plastic waste management, which may pose challenges for EVA manufacturers.

Indonesia Ethylene Vinyl Acetate Market Government Initiatives

• National Energy Policy (NEP): The Indonesian government has implemented the National Energy Policy, which aims to increase the share of renewable energy in the national energy mix to 23% by 2025. This initiative is expected to drive the demand for EVA in solar panel applications, as manufacturers seek materials that enhance the efficiency and durability of solar technologies.
• Green Industry Roadmap: In 2024, Indonesia's Green Industry Roadmap is set to promote sustainable manufacturing practices across various sectors, including plastics. This initiative encourages the use of eco-friendly materials and technologies, which could lead to increased investment in the development of sustainable EVA products.

Indonesia Ethylene Vinyl Acetate Market Future Trends

• Technological Innovations in EVA Production: By 2028, advancements in EVA production technologies are anticipated to significantly enhance efficiency and reduce environmental impact. Innovations such as the development of bio-based EVA materials are expected to gain traction, with projections indicating that up to 40% of EVA products may incorporate renewable resources.
• Increased Demand from the Renewable Energy Sector: The renewable energy sector is projected to continue its robust growth, with the demand for EVA in solar applications expected to double by 2028. This increase will be fueled by Indonesia's commitment to expanding its renewable energy capacity, which is projected to reach 20 GW by 2028.