Indonesia Whole Flour & Margarine Market Synopsis
Indonesia Whole Flour & Margarine Market is estimated to rise significantly in the coming years. The demand for wheat-based products in Indonesia is witnessing a significant surge due to the rapid growth of the middle class and their increasing affinity for Western cuisine. Although rice remains a staple in the Indonesian diet, there is an unmistakable shift towards incorporating wheat-based alternatives such as toast for breakfast, pizza for lunch, or doughnuts for dessert. This fundamental change in eating habits indicates promising investment prospects in the wheat milling and food processing sectors, as Indonesia presents exciting opportunities for catering to the rising demand for wheat-based products as well as margarine.
According to this research, Indonesia Whole Flour & Margarine Market is projected to grow at a CAGR of 4.4% during 2023-2029. The growth can be attributed to the population increase, rising income, and urbanization. The Indonesian population has shown a rise in preference for bakery products like breads, pastries etc as most believe the ease of preparation and consumption are often easier. The rising incomes of the middle-class population have instigated them to opt for fast, convenient meals. Consequently, the flour milling sector is projected to witness expansion, with its capacity estimated to reach over 14 million metric tons by 2024-25.
Whole Flour (Market by Raw Material)
In 2022, wheat acquired the largest market revenue share due to it being a crucial ingredient in some of Indonesia's staple foods, such as bread, noodles, and pastries. The consumption of these products has been steadily increasing in Indonesia, driven by changing dietary preferences and the growing popularity of Western-style bakery items.
Whole Flour (Market by Applications)
Noodles and Pasta have a significant market share in the whole flour market due to their widespread consumption and long-standing local culinary traditions. They are convenient food options that are easy to store, cook, and consume and also have relatively long shelf lives making them suitable for busy lifestyles and on-the-go consumption.
Whole Flour (Market by Sales Channels)
Offline channels like wet markets, retail stores, etc. continue to be the preferred mode of shopping for the people of Indonesia. Offline channels provide a sense of trust and assurance to consumers. They can physically examine products, assess quality, and have immediate recourse if they encounter any issues or concerns with their purchases.
Whole Flour (Market by Channels)
SMEs segment acquire the largest market revenue share in Indonesia whole flour market on the back of it having a stronger local presence and a better understanding of the local market dynamics coupled with SMEs being closely connected to the local communities and can leverage their knowledge to offer products that resonate with Indonesian consumers. This localized approach gives them an advantage in competing with larger, multinational corporations.
Margarine (Market by Source Type)
Plant-based margarine accounted for the major share of volume in the Indonesian margarine market, primarily due to Indonesia being a predominantly Muslim country. Islamic dietary laws prohibit the consumption of pork and its derivatives. Animal-based margarine, such as butter, is often made from milk, which may not meet halal requirements if it comes from non-halal sources or involves cross-contamination with non-halal ingredients, thus prohibiting consumers in Indonesia from consuming animal-based margarine.
Margarine (Market by Form Type)
In terms of form type, the Cubes segment accounted for the major share of the Indonesian margarine market. This can be attributed to their extensive utilization in the retail, residential, and bakery industries. Cube margarine typically has a longer shelf life compared to liquid margarine, allowing consumers to store and use it over a longer period without concerns about spoilage or degradation.
Margarine (Market by Sales Channel)
In Indonesia, the offline segment in the margarine market accounted for the major revenue share. Offline shopping has traditionally been the preferred method of purchasing groceries and food products in the country. Offline sales channels in Indonesia have well-established distribution networks that reach various regions, including remote areas. These networks have developed over time and are tailored to the needs of traditional retailers, making it easier for margarine manufacturers to reach a wider consumer base through offline channels.
Margarine (Market by Channels)
In Indonesia, the SMEs segment in the margarine market accounted for the major revenue share. This can be attributed to the strong local and regional presence of SMEs in the Indonesian market, as they cater to the specific needs and preferences of the local consumer base. This gives them a competitive advantage over larger multinational companies. SMEs often have a better understanding of local tastes, cultural nuances, and market dynamics, allowing them to develop products that resonate with Indonesian consumers.
Margarine (Market by Regions)
In Indonesia, the Java region accounted for the highest revenue share in Indonesia margarine market, followed by the Sumatra region as a result of being the two most populous and developed islands in Indonesia accounting for more than 65% of the country's population allowing them to have larger consumer base and greater demand for food products, including margarine.
Key Attractiveness of the Report
- COVID-19 Impact on the Market.
- 11 Years Market Numbers.
- Historical Data Starting from 2019 to 2022.
- Base Year: 2022
- Forecast Data until 2029.
- Key Performance Indicators Impacting the Market.
- Major Upcoming Developments and Projects.
Key Highlights of the Report
- Indonesia Whole Flour & Margarine Market Overview
- Indonesia Whole Flour & Margarine Market Outlook
- Indonesia Whole Flour & Margarine Market Forecast
- Indonesia Whole Flour & Margarine Market Trading & Process Analysis
- Historical Data and Forecast of Indonesia Whole Flour & Margarine Market Revenues for the Period 2019-2029F
- Historical Data and Forecast of Indonesia Whole Flour Revenues, By Application, for the Period 2019-2029F
- Market Drivers and Restraints
- Industry Life Cycle
- Porter’s Five Force Analysis
- Impact Analysis of COVID-19
- Impact Analysis of Rise in Consumption of Instant Noodles
- Impact Analysis of Disposable Income
- Market Potential of Indonesia Whole Flour & Margarine Market
- Key Strategic Recommendations
Market Covered
The report offers a comprehensive study of the subsequent market segments:
By Whole Flour
By Raw Material
- Wheat (Including Durum Flour)
- Maize (Including Corn Flour)
- Rice
- Others
By Applications
- Noodles & Pasta
- Bread & Bakery Products
- Wafers, Crackers, & Biscuits
- Animal Feed (Including Pet Food)
- Non-Food Application (Including Bio-Plastics, Biomaterials, And Glue)
- Others (Including Roux & Baby Food)
By Sales Channels
- Online
- Offline
By Channels
- Industries (F&B, Feed)
- SMEs
- Retail & Household
- Exports
By Margarine
By Source Type
- Animal Based
- Plant Based
By Form Type
- Liquid
- Sticks
- Cubes
By Sales Channels
- Online
- Offline
By Channels
- SMEs
- Bakeries Industries
- Wet market
By Regions
- JAVA
- Sumatra
- Kalimantan
- Sulawesi
- Papua
Table of Contents
1. Executive Summary
Companies Mentioned
- PT Wilmar Cahaya Indonesia Tbk
- PT SMART Tbk
- PT. Salim Ivomas Pratama
- Sinar Meadow
- PT Bogasari Flour Mills
- PT Sriboga Flour Mill
- AB Mauri
- PT. Tunas Baru Lampung
- PT. Cerestar Flour Mills
- PT Cargill Indonesia
