Why Are Indonesian Food and Beverage Firms Adopting Coding and Marking Systems?

The International Organization of Motor Vehicle Manufacturers (OICA) states that 139,886 commercial vehicles and 551,400 cars were manufactured in Indonesia in 2020. The automobile industry uses coding and marking systems for labeling metal, plastic, rubber, and other vehicle parts to provide quality assurance to customers. Additionally, effective labeling helps automakers track the components throughout the supply chain and keep a tab on counterfeiting. Thus, the surging automobile production, owing to the growing disposable income of people, will boost the adoption of such systems in the country.

Moreover, the increasing tobacco consumption will help the Indonesian coding and marking systems market grow at a healthy CAGR of 10.1% during 2018–2023. The market valued $27.4 million in 2017, from where it is expected to reach $48.7 million revenue by 2023. Tobacco companies use modernized and sophisticated coding solutions owing to their increasing focus on cleanliness. The adoption of advanced coding technologies assists tobacco companies in increasing productivity, enhancing readability, and printing high-resolution direct-to-the-box and automatic labels.

In recent years, the food and beverage industry has emerged as the leading user of these systems in Indonesia due to the implementation of stringent government regulations on traceability and product safety. Such regulations mandate the proper labeling of ingredients, nutrition facts, manufacturing and expiry dates, and manufacturer's details on the packaging of food items and drinks. This sector uses coding and marking solutions for labeling salty snacks, baked goods and cereals, beverage cans and bottles, dairy products, meat and poultry, eggs, beverages, fruits and vegetables, and pet food and animal feed.

According to P&S Intelligence, Jakarta dominated the Indonesian coding and marking systems market in the preceding years. This can be ascribed to the extensive demand for packaged food and beverages, construction items, and metal products owing to the vast population of the city. Coding and marking on these goods give quality assurance to the end users. Owing to these reasons, the city will also adopt this equipment at the highest rate in the upcoming years.

Thus, the flourishing automotive industry and burgeoning tobacco demand will augment the deployment of coding and marking systems in Indonesia.

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