July 29, 2024 – Indonesia, known for its culinary diversity, is witnessing significant changes in food and beverage consumption. From the rise of healthy alternatives to the growing importance of clean labels, here we provide a comprehensive overview of the Indonesian market. Innova’s 360 research covers key trends such as innovations and market trends in the food and beverage industry.
Indonesia Beverage Trends
The consumption rates of both alcoholic and non-alcoholic alternative beverages have been waning over the past year. Indonesia is a low drinking nation, with a 9% penetration rate of alcohol purchasing compared to the global average of 44%. This food trend is driven by factors like health concerns, changing lifestyles, budget constraints, a desire to control alcohol intake, and ethical reasons.
Food trends in Indonesia research shows that bottled water consumption has increased by 32% over the past year due to its healthy image. Energy drinks and iced tea also witnessed an increasing rate of consumption, driven by fresh, natural, and indulgent claims.
Additionally, hot coffee and tea consumption is on the rise, with taste being the primary influence. Increased variety and novelty drive coffee consumption, whereas health benefits are the main drivers for hot tea.
Everyday Staple Food Trends
In Indonesia, consumer interest in fresh bread and cereal is driving growth in these categories. Bread and breakfast cereal consumption have increased, fueled by a focus on health and taste. Consumers prefer protein and halal claims in both the bread and cereal subcategories.
Dairy penetration in Indonesia is lower than the global average; however, the demand for cheese, milk, and yogurt has been rising. Food trends in Indonesia research shows that cost, health aspects, and variety are highly important to Indonesian consumers when purchasing milk and cheese products. Alongside halal and kosher claims, product safety and being made with real ingredients are also influential in dairy products. Overall, dairy products are seeing an increase in purchases as compared to the previous year.
Meat and fish are also popular in Indonesia, with fish and seafood consumption growing rapidly. Health factors are driving the increased intake of meat and fish, with freshness being a key attribute. Consumers are particularly interested in products with high protein, halal, and omega-3 claims. Food trends in Indonesia research shows that Indonesian consumers prefer more protein claims compared to the global average in all these staple categories.
Meal Preparation Food Trends
Overall, the meal preparation category in Indonesia has seen significant growth over the past year, though consumer attitudes toward different options are mixed. While taste is the main attribute, indulgence is also a significant factor in influencing purchasing decisions for food in this category.
In bouillons, stocks and seasonings, the top reason for those upping their intake is more promotional activity, cited by 1 in 2 consumers. Natural claims are also important to consumers in this subcategory.
In savory and sweet spread subcategories, besides halal and natural, consumers are looking for certain health claims, notably functional ingredients in savory spreads and protein in sweet spreads.
In contrast, the uptake of ready meals has been slower, influenced by changing taste preferences. This food trend indicates that Indonesian consumers are moving towards fresher, more customizable meal preparation options that align with their evolving tastes and health considerations.
Indonesia Snacks and Treats Trends
In Indonesia, many consumers enjoy snacks and sweet treats; however, consumption rates have been slowing over the past year. This food trend is influenced by health concerns and budget constraints, as consumers prioritize healthier options and manage their spending.
The demand for healthier snacks is evident in the growing popularity of cereal and energy bars. Food trends in Indonesia research shows that 19% of consumers have increased their intake of these products in the past year. Consumers are drawn to cereal and energy bars with high fiber and protein claims, reflecting a broader preference for healthier formulations.
While focusing on healthy indulgence, when buying snacks and sweet treats, Indonesians show below-average interest in traditional health claims such as functional ingredients and sources of protein. This indicates that consumers are more interested in balancing health with indulgence in a way that meets evolving consumer preferences.
Plant-Based and Special Diets Food Trends
Food trends in Indonesia research displays that Indonesians are increasingly embracing plant-based and special diets, driven primarily by health concerns. While the penetration rate for meat alternatives is slightly below the global average (17% vs. 20%), dairy alternatives show a more varied picture depending on the subcategory.
Health remains a key driver for purchasing decisions in this category, with increased variety and novelty also playing significant roles. Halal and organic claims are particularly important to consumers. A fiber claim is important in non-dairy cheese, while a protein claim influences choices in milk and meat substitutes.
Additionally, the demand for sports and functional nutrition products is on the rise. Food trends show that 36% of consumers in Indonesia have purchased these products compared to the global average of 28% over the past year.
Overall, the plant-based and special diets market in Indonesia is experiencing significant growth, driven by a growing awareness of the benefits of these dietary choices.
What’s Next in Food Trends in Indonesia?
The Indonesian food and beverage market is constantly innovating, with consumers seeking indulgent experiences, prioritizing product safety, and becoming increasingly conscious of health and budget.
Food trends in Indonesia research shows that consumers value indulgent eating and drinking experiences. This presents a potential opportunity for brands to focus on creating unique flavors and textures that enhance sensory appeal.
Health is also a significant driver, with consumers looking for healthier choices across various categories. Brands can tap into this trend by incorporating functional ingredients and promoting health benefits.
Consumers are increasingly concerned about safety, so brands can highlight transparency and clear messaging regarding ingredient sourcing and production processes via product packaging. This can help consumers understand the products better. Brands that combine indulgence, health benefits, and transparency are likely to lead in the Indonesian food and beverage market.
This article is based on our report, “Category Growth Drivers in Indonesia.” If you are interested in reading this report, feel free to request a demo.
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