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Packaged Food in Indonesia

Indonesia packaged foods market: Revenue growth forecast between 2012-2017

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2014-03-12 06:48:02 - Packaged Food in Indonesia - a new market research report on

Amongst players in the Indonesia packaged food market, multinationals such as Heinz ABC Indonesia, Kraft Foods Indonesia and So Good Food have a strong foothold due to their early entry, high brand awareness, and huge budgets allocated for promotions and research and development. In 2012, these multinationals continued to invest heavily in new launches and promotions. For example, Heinz ABC launched ABC KecapPedas or spicy soy sauce and held road shows in major cities as well as in-store promotions in modern retail outlets. Besides launching Oreo in new orange ice cream flavour, Kraft Foods actively promoted its packaged food products through social media such as Facebook and Twitter. Meanwhile, So Good Food had just established its fourth processing factory towards



2012, adding larger production capacity to meet consumers demand.

2012 Continues To Witness Rising Consumer Preference for Healthier Choices

The trend towards healthier food continued well into 2012, especially amongst middle- and upper-income Indonesians and urban residents, who are more exposed to health issues. Rising health consciousness was partly driven by increasing coverage of health issues in newspapers, magazines and on television. In addition, packaged food manufacturers continued to invest heavily in launches of new health and wellness brands and promotional activities that emphasised the health benefits of their products.2012 continued to witness a number of products launched with vitamin fortifications, healthy ingredients, suitability for weight watching, lower sugar, lower cholesterol, and lower fat content products in both retail packaged food and foodservice outlets.Positive Investment Climate Boosts Modern Retail and Foodservice ExpansionStable political and economic conditions in the country improved the investment climate in 2012. Modern retailer outlets funded by the franchise system expanded aggressively in 2012, reaching out to previously uncultivated regions. This development improved the distribution of packaged food – especially those products needing refrigeration and products relying heavily on modern trade. Investment intent also improved for foodservice retailers, which further increased demand for packaged food directly or indirectly. Higher levels of disposable income and a positive economic outlook induced consumers to spend on packaged food products.Packaged Food Expected To Record Positive Value GrowthPackaged food is expected to record positive value growth, but is expected to taper down as the positive outlook dissipates over the forecast period. Marketing and promotional activities are expected to garner positive response from consumers with increasing health concerns and awareness tapped by manufacturers target- specific campaigns. Falling birth rates over the review period are expected to translate into slower but positive value growth over the forecast period.

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