Indonesia Direct Thermal Paper Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Direct Thermal Paper Market Size

• The Indonesia direct thermal paper market size was valued at USD 46.44 billion in 2024 and is expected to reach USD 72.37 billion by 2032, at a CAGR of 5.70% during the forecast period
• The market growth is primarily driven by the increasing demand for efficient and cost-effective printing solutions in retail, logistics, and healthcare sectors, fueled by Indonesia’s rapid urbanization and expanding e-commerce industry
• In addition, the rising adoption of point-of-sale (POS) systems and the need for high-quality, durable labels and receipts in various applications are positioning direct thermal paper as a preferred choice, significantly contributing to market expansion

Direct Thermal Paper Market Analysis

• Direct thermal paper, widely used for printing receipts, labels, and tickets without the need for ink or ribbons, is becoming a critical component in Indonesia’s retail, logistics, and healthcare industries due to its cost-effectiveness, ease of use, and compatibility with modern thermal printers
• The growing demand is driven by the booming e-commerce sector, increasing adoption of POS systems in retail, and the need for quick, reliable printing solutions in ticketing and labeling applications
• Growing consumer awareness of the health risks associated with BPA, a chemical commonly used in thermal paper coatings, is driving demand for safer alternatives
• Manufacturers are leveraging advanced technologies to produce high-quality, sustainable thermal paper that aligns with environmental regulations and consumer preferences
• The top coated segment dominated the largest market revenue share of 57.8% in 2024, driven by its superior abrasion resistance and archival life, making it ideal for applications such as labels and tickets where durability is critical

Report Scope and Direct Thermal Paper Market Segmentation       

Direct Thermal Paper Market Trends

“Increasing Adoption of Eco-Friendly and BPA-Free Thermal Paper”

• The Indonesia Direct Thermal Paper Market is experiencing a notable shift towards the adoption of eco-friendly and Bisphenol A (BPA)-free thermal paper solutions
• Growing consumer awareness of the health risks associated with BPA, a chemical commonly used in thermal paper coatings, is driving demand for safer alternatives
• Manufacturers are leveraging advanced technologies to produce high-quality, sustainable thermal paper that aligns with environmental regulations and consumer preferences
  • For instances, companies are developing phenol-free thermal paper for applications such as point-of-sale (POS) receipts and labels, which offer enhanced durability and print quality while reducing environmental impact
• This trend is particularly significant in industries such as retail and healthcare, where sustainability and safety are becoming key purchasing factors
• The integration of digital printing technologies is also enhancing the production of customized, eco-friendly thermal paper for applications such as tickets, labels, and lottery tickets

Direct Thermal Paper Market Dynamics

Driver

“Growing E-Commerce and Retail Sector Demand”

• The rapid expansion of Indonesia’s e-commerce and retail sectors is a primary driver for the direct thermal paper market
• The rise in online shopping, fueled by increased internet penetration and smartphone usage, has boosted the need for thermal paper in applications such as shipping labels, invoices, and POS receipts
• Government initiatives promoting digital transactions and the proliferation of POS terminals in retail, supermarkets, and small businesses are further accelerating demand
• The widespread use of thermal paper in packaging and labeling, particularly in the food and beverage industry, supports market growth due to stringent labeling requirements
• The adoption of advanced thermal printing technologies, which offer fast, inkless printing, enhances efficiency in retail and logistics, making thermal paper a preferred choice

Restraint/Challenge

“High Production Costs and Concerns over Raw Material Price Volatility”

• The high cost of producing direct thermal paper, particularly due to the reliance on specialized chemicals for thermal coatings, poses a significant barrier to market growth
• Fluctuations in the prices of raw materials, such as dyes and chemicals, can impact production costs and profitability for manufacturers
• In addition, concerns over data security and print durability present challenges. Thermal paper is sensitive to environmental factors such as heat and light, which can cause printed data to fade, raising concerns in applications requiring long-term record-keeping, such as healthcare and logistics
• The fragmented regulatory landscape regarding chemical usage and environmental standards across Indonesia and other regions complicates compliance for manufacturers
• These factors may limit market expansion, particularly in cost-sensitive segments and regions with stringent environmental regulations

Direct Thermal Paper market Scope

The market is segmented on the basis of product type, thickness, application, and end use.

• By Product Type

On the basis of product type, the Indonesia direct thermal paper market is segmented into top coated and non-top coated. The top coated segment dominated the largest market revenue share of 57.8% in 2024, driven by its superior abrasion resistance and archival life, making it ideal for applications such as labels and tickets where durability is critical. The demand for high-quality, long-lasting prints in retail and logistics further bolsters this segment’s dominance.

The non-top coated segment is expected to witness the fastest growth rate from 2025 to 2032, propelled by its cost-effectiveness and suitability for short-term applications such as point-of-sale (POS) receipts. Increasing adoption in small-scale retail and emerging e-commerce sectors, coupled with advancements in eco-friendly coatings, supports this segment’s growth.

• By Thickness

On the basis of thickness, the Indonesia direct thermal paper market is segmented into up to 50 microns, 51-80 microns, and more than 81 microns. The 51-80 microns segment is expected to hold the largest market revenue share of 43.5% in 2024, attributed to its balance of durability and affordability, making it the preferred choice for POS receipts, labels, and lottery tickets. This thickness is widely used across retail, logistics, and gaming applications due to its versatility.

The more than 81 microns segment is anticipated to experience the fastest growth rate from 2025 to 2032, driven by increasing demand for heavy-duty thermal paper in applications such as industrial labels and tags. The need for robust, high-durability paper in harsh environments, such as logistics and manufacturing, fuels this segment’s growth.

• By Application

On the basis of application, the Indonesia direct thermal paper market is segmented into tickets and labels, point of sales (POS) receipts, lottery and gaming, and others. The POS receipts segment dominated with a market revenue share of 67% in 2024, driven by the widespread adoption of POS systems in retail, hospitality, and banking. The growth of digital billing and the increasing number of retail outlets and ATMs in Indonesia further strengthen this segment.

The tickets and labels segment is expected to witness the fastest growth rate of 6.9% from 2025 to 2032, fueled by the booming e-commerce sector and stringent labeling requirements in industries such as food and beverage, pharmaceuticals, and logistics. The rise in online shopping and the need for shipping labels and tracking tags significantly contribute to this growth.databridgemarketresearch.com

• By End Use

On the basis of end use, the Indonesia direct thermal paper market is segmented into retail, packaging and labelling, printing and publishing, healthcare, and others. The retail segment held the largest market revenue share of 36.1% in 2024, driven by the rapid expansion of retail chains, supermarkets, and e-commerce platforms in Indonesia. The widespread use of thermal paper for POS receipts, promotional coupons, and loyalty programs underpins this segment’s dominance.

The packaging and labelling segment is anticipated to exhibit the fastest growth rate of 6.5% from 2025 to 2032, propelled by the increasing demand for thermal paper in e-commerce logistics for shipping labels, invoices, and packing slips. Stringent regulatory requirements for accurate labeling in food, beverage, and pharmaceutical industries, combined with Indonesia’s growing industrial and logistics sectors, further drive this segment’s growth.

Direct Thermal Paper Market Share

The direct thermal paper industry is primarily led by well-established companies, including:

• APP (Asia Pulp & Paper) (Indonesia)
• Oji Holdings Corporation (Japan)
• Mitsubishi Paper Mills Limited (Japan)
• Hansol Paper Co., Ltd. (South Korea)
• Thermal Solutions International, Inc. (U.S.)
• Ricoh Company, Ltd. (Japan)
• Koehler Paper Group (Germany)
• Jujo Thermal Ltd. (Finland)
• Nippon Paper Industries Co., Ltd. (Japan)
• Siam Paper Public Company Limited (Thailand)
• Avery Dennison Corporation (U.S.)
• UPM-Kymmene Corporation (Finland)
• Lecta Group (Spain)
• Nakagawa Manufacturing (Japan)
• PM Company (U.S.)

What are the Recent Developments in Indonesia Direct Thermal Paper Market?

• In September 2024, Dai Nippon Printing (DNP) introduced two advanced thermal transfer ink ribbons—R380 and V670—targeting global markets with notable relevance for Indonesia. The R380 ribbon delivers 30% improved alcohol resistance, ideal for barcode and 2D code printing in sectors such as electronics and pharmaceuticals. The V670 ribbon ensures crisp, high-speed printing on both plastic and paper packaging, supporting food, medical, and consumer goods industries. These innovations cater to Indonesia’s growing demand for durable, eco-friendly thermal paper solutions and were showcased at ProPak India and Labelexpo India 2024
• In September 2024, Lecta launched its Termax range of high-substance thermal papers tailored for ticketing applications across sectors such as events, transportation, logistics, and retail—areas experiencing rising demand in Indonesia. The lineup includes Termax TFX (phenol-free), Termax TFS (BPA-free), and Termax TC30X (phenol-free with a protective top coating), offering excellent double-sided pre-printing quality and superior thermal image stability. Designed for durability and environmental safety, these papers meet stringent standards and are ideal for access control, boarding passes, parking tickets, and shelf labels
• In April 2023, Koehler Paper and Nissha Metallizing Solutions partnered to launch Metivo Advanced, a sustainable packaging paper based on Koehler’s NexPlus barrier technology. Designed to replace plastic in packaging, Metivo offers excellent resistance to oxygen, grease, and mineral oils, making it ideal for food and cosmetic applications. The paper features a thin metallized vacuum coating that ensures recyclability and supports circular economy goals. This collaboration addresses rising global demand—including in Indonesia—for eco-friendly, high-performance packaging solutions that combine durability, printability, and environmental safety
• In April 2022, Jujo Thermal announced plans to rename its range of direct thermal papers as part of a broader ERP system upgrade. The new naming structure aims to simplify product identification, making it more uniform and informative across label, ticket, and POS categories. This strategic rebranding reflects Jujo Thermal’s commitment to improving customer experience and operational efficiency. By enhancing clarity and consistency, the move may strengthen the company’s market positioning globally—including in emerging markets such as Indonesia—where demand for durable and eco-friendly thermal papers continues to grow
• In January 2021, UPM Raflatac introduced Linerless OptiCut, a direct thermal linerless labeling solution featuring proprietary adhesive technology tailored for key end-use environments such as retail, logistics, and quick-service applications. Designed to prevent paper jamming and minimize adhesive build-up, OptiCut ensures smooth performance across diverse surfaces—including rough and sub-zero conditions. It offers excellent adhesion, reduces service time, and enhances printer uptime, making it ideal for high-demand sectors such as logistics and labeling in Indonesia. The product supports sustainability by cutting material usage by up to 40%, aligning with eco-conscious packaging trends

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