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Baby Food Packaging in Indonesia

Indonesia baby food packaging market driven by healthy birth rate and increasing disposable incomes in 2012

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2014-02-07 11:15:01 - Baby Food Packaging in Indonesia - a new market research report on

Indonesia´s healthy birth rate and increasing disposable income, primarily due to the robust rise of the middle class, saw baby food continue to register strong retail volume sales growth in 2012. Despite the growing campaign for breastfeeding and the affordability of fresh food, baby food increasingly featured as a primary or secondary meal or a mixture of both. Baby food products continued to enjoy a competitive advantage as they are perceived to contain a complete nutrition solution for babies. The growing number of working mothers is also imposing limitations on breastfeeding. Baby food has therefore become a viable alternative to meet the nutrition aspect and time constraints in preparing fresh baby food or breastfeeding.

Because of healthy population growth and rising



disposable incomes, baby food packaging is projected to post strong off-trade unit volume growth over the forecast period. The leading manufacturer, Nestlé Indonesia PT, is investing US$200 million in its new facility in Karawang, West Java to produce the Dancow, Cerelac and Milo brands. Both Dancow and Cerelac are leading brands in baby food. The facility, which is expected to be fully operational by Q1 2013, will add substantial volume to the company´s production capacity. This, coupled with an improved distribution network, should see Nestlé pose a significant challenge to existing manufacturers and strengthen its foothold in baby food and dairy in Indonesia.

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