|Title:||Indonesia annual toothpaste production capacity in tons and percent change for 2006 to 2010|
|Source:||Indonesian Commercial Newsletter|
Start of full article - but without data
Indonesia's toothpaste production capacity
Production capacity Year (tons/y) Growth (%)
2006 XX,XXX -- 2007 XX,XXX -- 2008 XX,XXX XX 2009 XX,XXX X.X 2010 XX,XXX X.X
Source: Industry ministry, Data Consult
Indonesia is one of a few countries that managed to chalk up a fairly high economic growth in 2009 to 2011, when many advanced economies suffered a contraction; Indonesia recorded an economic growth of X.X% in 2009 only lower than the economic growth rates of China and India. In 2010, the country recorded a stronger growth of X.X% and the high economic growth rate continued in 2011.
The big domestic market and prudential policy adopted by the government and the country's banking industry saved the country from the devastating impact of the global financial crisis.
Increase in domestic demand and the purchasing power of the people in 2010 pushed up inflation but remained within control. Inflation was exceeding X.X% in 2010 and became lower in 2011.
The strong growth of domestic consumption has support the growth of demand of consumer goods including toothpaste.
Toothpaste industry in Indonesia has grown fast in the past several years to follow the trend of population growth and the increase in the purchasing power of the people and improvement of the people's awareness of tooth health.
Based on data at industry ministry, the capacity of the country's toothpaste industry has expanded sharply in the past three years. The production capacity in 2007 was XX,XXX tons per year, but in 2010, the capacity already reached XX,XXX tons per.
The highest increase in the production capacity was recorded in 2008, up XX,XXX tons to XX,XXX tons per year. In 2009, the production capacity grew only by XXXX tons per year to XX,XXX tons per year, and in 2010, the capacity grew X.X% to XX,XXX tons per year.
Producers expanded their production capacity to meet growing market demand in the country as a result of the population and economic growth.
The country has XX big and medium producers of toothpaste with fairly wide market coverage. There are many small producers with market coverage within their base areas.
Among the big players are PT Unilever Tbk; PT Ultra Prima Abadi; PT Lion Wings; PT Enzym Bioteknologi Internusa; PT Filma Utama Soap; and PT Miswak Utama.
The largest in production capacity is Unilever with a capacity of XX,XXX tons per year. With that production capacity, Unilever dominates the domestic market. The second largest producer Ultra Prima Abadi is far below with a capacity of XX,XXX tons. The third largest is Lion Wings with a production capacity of XX,XXX tons per year.
Toothpaste is used by almost the entire population; therefore, production of toothpaste grows from year to year to follow the population growth. The country's production of toothpaste has grown fast in the last past six years with average growth rate of more than XX% per year.
In 2008, the country's production of toothpaste surged XX% from the previous year--or to XX,XXX tons in 2008 from XX,XXX tons in 2007. The production growth was slower in the following two years to XX,XXX tons in 2009 and to XX,XXX tons in 2010 as shown in the following table.
Exports by Volume and Value
The country has exported part of its production of toothpaste. The export growth has been encouraging in the past three years. Exports averaged X,XXX tons a year in the period of 2005 to 2010 despite decline recorded in 2006 and 2007.
The country has exported toothpaste mainly to other Asean countries like Malaysia, Singapore, and the Philippines, and to countries in Africa like Uganda and Kenya.
After declining in 2006 and 2007, exports grew X.X% to X,XXX tons in 2008, by X.X% to X,XXX tons in 2009 and by XX.X% to X,XXX tons in 2010. See the following table.
Exports by countries of destination
Producers of toothpaste in Indonesia have exported part of their production to several countries including Malaysia, Uganda, Kenya, Singapore, Hongkong, Pakistan, China and United Arab Emirates.
Malaysia has been the major export destination of toothpaste since 2005. In 2010, exports to Malaysia reached X,XXX tons and valued at US $ X.X million.
While being an exporter, the country has continued to import toothpaste. Growing production toothpaste has not slowed imports. Imports have increased from year to year by an average of XX.X% a year in 2005-2010 periods. A decline was recorded only in 2007 when imports fell XX.X%.
In 2010, imports surged XX.X% to X,XXX tons valued at US$X.X million.
Imports by countries of origin
Imports of toothpaste have come from various countries in Asia such as Thailand and Malaysia and Europe.
Thailand and Malaysia have continued among three largest countries of origin. In 2010, the largest imports came from Thailand reaching X,XXX tons valued at US$X,XXX,XXX. Thailand has since 2008, been the largest supplier of toothpaste for Indonesia.
Malaysia is by far the second largest supplier from which imports totaled only XX tons valued at US$XXX,XXX. In 2005, Malaysia was the largest supplier, but in 2006 and 2007, the place was taken over by China.
Among supplying countries from Europe are the Netherlands, Germany and Sweden. The United States is also a regular supplier of toothpaste for Indonesia.
It is assumed that the domestic market size of toothpaste is the same as the total production plus imports minus exports. Based on the above calculation, the country's toothpaste consumption has increased XX.X% a year in the past six years. The condition of the world's economy hardly has effect on the consumption of toothpaste. In 2006, consumption grew X.X% and in 2008, the growth rate surged to XX.X%. In the following two years the growth rate was lower at X.X% in 2009 when consumption reached XX,XXX tons and X% in 2010 when consumption totaled XX,XXX tons.
The trend is expected to continue in the coming years.
Profile of major players
PT. Unilever Tbk
The company was originally named Lever Zeepfabrieken N.V which was established in XXXX by the Dutch colonial government. In 1967, Unilever took control of the company under the law on foreign capital investment.
In 1980, the name of the name of the company was changed with PT Unilever Indonesia. In 1981, the company floated XX% of its shares on the Jakarta and Surabaya Stock Exchanges and it became a public company with a new name of PT. Unilever Indonesia Tbk.
Unilever started operation in the country in XXXX producing soap with a factory in Angke, North Jakarta. In XXXX, started producing margarine and vegetable oils. The company continued to grow and in XXXX Unilever produced toothpaste and cosmetics, utilizing the factory of NV Colibri in Surabaya, East Java.