The market growth is attributed to the rising awareness of infant health and a healthy diet, along with increasing economic affluence in the country.
Indonesia's traditional diet relies on rice, vegetables, and fresh fruits. Baby food also includes fruits, vegetables, and cereals. These foods promote the overall development of the child. Especially with infants, this food acts as a substitute for breast milk. They are generally used for children from the age group of 6 months to 4 years. They come in organic and non-organic types of food.
The baby food market in Indonesia is attributed to several factors. One of the major factors is population. With Indonesia being one of the largest populated countries, the market is set to grow at a significant rate. in the year 2020 according to World Bank data, the total population of the country was 273,523,621. And it is expected to show steady growth during the forecast period. With the growing population, the working population, that is, labour force is also marked as growing, that is 134,616,083 in the year 2020. Moreover, in 2019, there was around 39% growth in the working women’s population in Indonesia.
Hence, the growing birth rate and population have raised the demand for infant diets in Indonesia. Along with this, growth in the working women’s population is also expected to decline in breastfeeding. Thus, baby food products, due to their advertisements and strategies by market players, are the best substitute for breastfeeding. Therefore,
The demand for the baby food market in Indonesia has increased and is expected to show the same steady growth in upcoming years.
Though the percentage of the labour force increased in the year 2020, the overall ratio of employment to population declined in 2020. According to the world bank data, the employment ratio in 2019 was 57.5% while in 2020 it declined to 54.8%. Thus, the population is in a rush to reduce or cut down on extra and unnecessary expenses. This can also hamper the growth of the baby food market in Indonesia due to a downfall in demand, especially from the rural areas.
The expansion of the baby food market is dependent on urbanization. Due to a lack of awareness about the product in rural areas, as well as a preference for the traditional diet, demand for a baby food product in rural areas is lower than in provinces such as Jakarta, Bali, and many other cities. Jakarta holds a significant market share in the baby food market and is expected to grow in upcoming years with the expansion of its urbanization.
Due to the outbreak of the COVID-19 pandemic. The industrial sector was severely affected in the country. With the restrictions imposed by the government, the supply chain, retail sales, and import-export also got disrupted. However, with the increase in population and strategies by key market players, the baby food market is estimated to grow by 2020 and is projected to grow at a steady pace during the forecast period.
Indonesia's traditional diet relies on rice, vegetables, and fresh fruits. Baby food also includes fruits, vegetables, and cereals. These foods promote the overall development of the child. Especially with infants, this food acts as a substitute for breast milk. They are generally used for children from the age group of 6 months to 4 years. They come in organic and non-organic types of food.
Key market drivers
The baby food market in Indonesia is attributed to several factors. One of the major factors is population. With Indonesia being one of the largest populated countries, the market is set to grow at a significant rate. in the year 2020 according to World Bank data, the total population of the country was 273,523,621. And it is expected to show steady growth during the forecast period. With the growing population, the working population, that is, labour force is also marked as growing, that is 134,616,083 in the year 2020. Moreover, in 2019, there was around 39% growth in the working women’s population in Indonesia.
Hence, the growing birth rate and population have raised the demand for infant diets in Indonesia. Along with this, growth in the working women’s population is also expected to decline in breastfeeding. Thus, baby food products, due to their advertisements and strategies by market players, are the best substitute for breastfeeding. Therefore,
The demand for the baby food market in Indonesia has increased and is expected to show the same steady growth in upcoming years.
Restraints in the market
Though the percentage of the labour force increased in the year 2020, the overall ratio of employment to population declined in 2020. According to the world bank data, the employment ratio in 2019 was 57.5% while in 2020 it declined to 54.8%. Thus, the population is in a rush to reduce or cut down on extra and unnecessary expenses. This can also hamper the growth of the baby food market in Indonesia due to a downfall in demand, especially from the rural areas.
Regional overview
The expansion of the baby food market is dependent on urbanization. Due to a lack of awareness about the product in rural areas, as well as a preference for the traditional diet, demand for a baby food product in rural areas is lower than in provinces such as Jakarta, Bali, and many other cities. Jakarta holds a significant market share in the baby food market and is expected to grow in upcoming years with the expansion of its urbanization.
COVID-19 impacts on the Indonesian baby food market
Due to the outbreak of the COVID-19 pandemic. The industrial sector was severely affected in the country. With the restrictions imposed by the government, the supply chain, retail sales, and import-export also got disrupted. However, with the increase in population and strategies by key market players, the baby food market is estimated to grow by 2020 and is projected to grow at a steady pace during the forecast period.
Market Segmentation:
By Type
- Organic baby food
- Non-organic baby food
By Product Type
- Dried baby food
- Milk formula
- Prepared baby food
- Others
By Distribution Channel
- Online
- Offline
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
5. Indonesia Baby Food Market Analysis, by Type
6. Indonesia Baby Food Market Analysis, by Product
7. Indonesia Baby Food Market, by Distribution Channel
8. Competitive landscape and analysis
9. Company Profiles
Companies Mentioned
- Danone Indonesia
- Nestle Indonesia
- Abbott Indonesia
- PT INDOFOOD SUKSES MAKMUR Tbk
- Saipro Biotech Private Limited
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 85 |
Published | May 2022 |
Forecast Period | 2020 - 2027 |
Estimated Market Value ( USD | $ 1.55 billion |
Forecasted Market Value ( USD | $ 2.44 billion |
Compound Annual Growth Rate | 6.7% |
Regions Covered | Indonesia |
No. of Companies Mentioned | 5 |