Indonesia: Market for Synthetic Organic Tanning Substances 2024

Market Size for Synthetic Organic Tanning Substances in Indonesia

After two years of decline, the Indonesian synthetic organic tanning substances market increased by 83% to $X in 2021. Over the period under review, consumption, however, showed a drastic downturn. Synthetic organic tanning substances consumption peaked at $X in 2014; however, from 2015 to 2021, consumption stood at a somewhat lower figure.

Production of Synthetic Organic Tanning Substances in Indonesia

In value terms, synthetic organic tanning substances production fell slightly to $X in 2021 estimated in export price. The total output value increased at an average annual rate of +1.0% from 2012 to 2021; the trend pattern remained consistent, with only minor fluctuations being observed throughout the analyzed period. The most prominent rate of growth was recorded in 2018 when the production volume increased by 12% against the previous year. Synthetic organic tanning substances production peaked at $X in 2020, and then reduced slightly in the following year.

Exports of Synthetic Organic Tanning Substances

Exports from Indonesia

Synthetic organic tanning substances exports from Indonesia skyrocketed to X tons in 2021, rising by 30% compared with 2020. The total export volume increased at an average annual rate of +3.6% over the period from 2012 to 2021; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed in certain years. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

In value terms, synthetic organic tanning substances exports surged to $X in 2021. The total export value increased at an average annual rate of +3.9% from 2012 to 2021; the trend pattern indicated some noticeable fluctuations being recorded in certain years. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

Exports by Country

China (X tons) was the main destination for synthetic organic tanning substances exports from Indonesia, with a 62% share of total exports. Moreover, synthetic organic tanning substances exports to China exceeded the volume sent to the second major destination, South Korea (X tons), threefold. Vietnam (X tons) ranked third in terms of total exports with a 5.9% share.

From 2012 to 2021, the average annual growth rate of volume to China stood at +5.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: South Korea (+2.9% per year) and Vietnam (+4.9% per year).

In value terms, China ($X) remains the key foreign market for synthetic organic tanning substances exports from Indonesia, comprising 67% of total exports. The second position in the ranking was taken by South Korea ($X), with a 20% share of total exports. It was followed by Vietnam, with a 4.3% share.

From 2012 to 2021, the average annual growth rate of value to China amounted to +5.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: South Korea (+3.9% per year) and Vietnam (+2.1% per year).

Export Prices by Country

In 2021, the average synthetic organic tanning substances export price amounted to $X per ton, approximately mirroring the previous year. Overall, the export price saw a relatively flat trend pattern. The growth pace was the most rapid in 2018 when the average export price increased by 15% against the previous year. As a result, the export price attained the peak level of $X per ton; afterwards, it flattened through to 2021.

Prices varied noticeably country of destination: the country with the highest price was China ($X per ton), while the average price for exports to Singapore ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to South Korea (+1.0%), while the prices for the other major destinations experienced more modest paces of growth.

Imports of Synthetic Organic Tanning Substances

Imports into Indonesia

In 2021, purchases abroad of synthetic organic tanning substances increased by 60% to X tons for the first time since 2018, thus ending a two-year declining trend. The total import volume increased at an average annual rate of +2.2% over the period from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. As a result, imports attained the peak and are likely to continue growth in the immediate term.

In value terms, synthetic organic tanning substances imports soared to $X in 2021. The total import value increased at an average annual rate of +1.7% over the period from 2012 to 2021; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Imports peaked at $X in 2014; however, from 2015 to 2021, imports failed to regain momentum.

Imports by Country

India (X tons), Italy (X tons) and Thailand (X tons) were the main suppliers of synthetic organic tanning substances imports to Indonesia, with a combined 58% share of total imports.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Thailand (with a CAGR of +16.8%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Italy ($X), India ($X) and Germany ($X) were the largest synthetic organic tanning substances suppliers to Indonesia, together comprising 52% of total imports. These countries were followed by Spain, China, the Netherlands, Thailand, France and South Korea, which together accounted for a further 42%.

In terms of the main suppliers, Thailand, with a CAGR of +18.5%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average synthetic organic tanning substances import price amounted to $X per ton, rising by 6.7% against the previous year. In general, the import price, however, recorded a relatively flat trend pattern. The pace of growth appeared the most rapid in 2013 when the average import price increased by 10%. As a result, import price reached the peak level of $X per ton. From 2014 to 2021, the average import prices remained at a somewhat lower figure.

Prices varied noticeably country of origin: the country with the highest price was Germany ($X per ton), while the price for Thailand ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Germany (+4.8%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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