2012-10-26 05:27:28 - New Food market report from Business Monitor International: "Indonesia Food & Drink Report Q4 2012"

The consumer story in Indonesia continues to be one of the brightest in the world, with a recent global survey conducted by Nielsen confirming the country's relative outperformance. Indonesia ranked third globally in the survey, which gauged consumer sentiment, despite global economic threats and generally rising costs. Since the poll was conducted, the government has announced that it will shelve plans to reduce fuel subsidies for at least the remainder of 2012, alleviating concerns that higher fuel prices would hit consumers' wallets. Wage growth in Indonesia has been strong as the economy's growth has begun to translate to higher employment. Minimum wages have been raised by as much as 20% in some cities, and double digit wage growth is generally

expected, with a survey conducted by Towers Watson indicating that employers plan to increase salaries by 9.5% this year.

Headline Industry Data

* Food consumption growth for 2012 = +7.1%; CAGR forecast to 2016 = +8.6%.
* Alcoholic drinks sales growth for 2012 = +11.5%; CAGR forecast to 2016 = +11.8%.
* Soft drinks sales growth for 2012 = +11.2%; CAGR forecast to 2016 = +12.1%.
* Mass grocery retail sales growth for 2012 = +12.0%; CAGR forecast to 2016 = +13.5%.


Full Report Details at
- www.fastmr.com/prod/464499_indonesia_food_drink_report_q4_2012.a ..


Key Industry Trends

Growth Of Minimarkets Poses Threat To Supermarkets - The proliferation of minimarts is gradually eating into the supermarket retailers' consumer base. Due to the rapid spread of minimarts, the number of supermarkets fell by 17% in 2011 to 1,229 stores from 1,477 stores in 2008, according to data from the Indonesia retail employers' association, Aprindo. In comparison, the number of minimarts increased by 63% to 16,720 in 2011, from 10,289 in 2008. Given the competitive advantages of minimarkets such as cheaper product prices, greater accessibility and the format's increasing popularity among the younger generation, minimarts are likely to remain a major threat to the sales opportunities of supermarket retailers.

Asahi Attracted By Dynamism In Soft Drinks - In July 2012, Japanese beverage maker Asahi announced the establishment of a partnership with Indonesia-based PT Indofood CBP Sukses Makmur for the distribution of non-alcoholic drinks across Indonesia. According to local reports, the deal is valued at around US$321mn, and the move will see the firms set up two joint ventures, one for manufacturing and one for marketing and distribution. The move is a continuation of Asahi's overseas expansion in response to maturity in its domestic market, with the beverage market in Indonesia forecast to achieve rapid growth over coming years.

Risk To Outlook

One of the more obvious headwinds that Indonesia faces in 2012 is a slowing regional economy. The developing hard landing in China means that regional growth will be subdued compared to the heady rates of 2010-11, and trade in particular is set to suffer. Indeed, Indonesia's own links to China have become considerably deeper since the enactment of the ASEAN-China Free Trade Agreement, and exports to the mainland now account for approximately 13.4% of total exports, passing the US, Japan, and the eurozone to become one of Indonesia's largest markets.

Partial Table of Contents:

BMI Industry View
SWOT Analysis
- Indonesia Food Industry SWOT
- Indonesia Drink Industry SWOT
- Indonesia Mass Grocery Retail Industry SWOT
Business Environment
- BMI's Core Global Industry Views
- Table: Core Views
- Asia Pacific Risk/Reward Ratings
- Table: Food & Drink Risk/Reward Sub-Factor Ratings, Q412 (score out of 10)
- Table: Asia Pacific Food & Drink Risk/Reward Ratings, Q412
- Indonesia's Risk/Reward Rating
- Macroeconomic Outlook
- Table: Indonesia - Economic Activity, 2011-2016
Industry Forecast Scenario
- Consumer Outlook
- Food
- Food Consumption
- Table: Food Consumption Indicators - Historical Data & Forecasts, 2009-2016
- Canned Food
- Table: Value/Volume Sales, selected food sub-sectors - Historical Data & Forecasts, 2009-2016
- Confectionery
- Table: Value/Volume Sales, selected food sub-sectors - Historical Data & Forecasts, 2009-2016
- Trade
- Table Indonesia Food & Drink Trade Indicators - Historical Data & Forecasts, 2009-2016
- Drink
- Hot Drinks
- Table: Indonesia Beverage Sub-Sectors - Value Sales - Historical Data & Forecasts, 2009-2016
- Alcoholic Drinks
- Table: Indonesia Beverage Sub-Sectors - Value Sales - Historical Data & Forecasts, 2009-2016
- Soft Drinks
- Table: Indonesia Beverage Sub-Sectors - Value Sales - Historical Data & Forecasts, 2009-2016
- Mass Grocery Retail
- Table: Indonesia Mass Grocery Retail Sales by Format, 2009-2016
- Table: Grocery Retail Sales by Format (%) - Historical Data & Forecasts
Food
- Key Industry Trends And Developments
- Indonesia Steadily Adopting Consumerism
- Setting Sights On Indonesian Potential
- Tapping Into The Fast-Food Potential
- Witnessing Strong Revenue Showing
- Market Overview
- Food Production
- Confectionery
- Halal
- Agriculture
- Organics
Drink
- Key Industry Trends And Developments
- Asahi Attracted By Dynamism In Soft Drinks
- CCA Could Lean On Indonesia To Mitigate Near-Term Domestic Headwinds
- Exciting Beer Prospects Capturing The Sights Of Regional Brewers
- Drinks Sector Remains An Investment Magnet
- Market Overview
- Soft Drinks
- Alcoholic Drinks
- Hot Drinks
Mass Grocery Retail
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Full Table of Contents is available at:
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