Keywords: Instant Noodles, Instant Food, Food, Noodles
What are the opportunities of the Indonesian Instant Noodles Industry?
Source: The Vegan Review
If we have to be honest, who hates instant noodles? They are one of the easiest and most practical foods there is in existence. They could be enjoyable for all people no matter their age, gender, ethnicity, race, and more. It is most likely one of the most irresistible unhealthy foods that one could taste. With that being said, this industry shows promise in its future performance in Indonesia.
Globally, the industry is forecasted to grow USD 32.1 billion by 2027. Amid the COVID-19 crisis, the global market for instant noodles continued to grow, at a CAGR of 1.8% over the period 2020-2027.
With that issue in hand, what are the opportunities of the instant noodles industry in Indonesia? What are its prospects? Read more to find out!
Overview of the Indonesian Instant Noodles Industry
Indonesia’s demographic market consists of the youth, with increasing working populations, rising incomes, rising purchasing power, higher band consciousness, changing consumer preference, growing urbanization, and an increase in the number of the middle-class population. These factors are what drive the growth of the instant noodle industry in Indonesia. Not to mention the fast-paced life and changing food preferences which also contribute to the growth of the instant noodles sector.
Being a country in the Southeast Asian region, Indonesia is considered to be one of the most favorable instant noodle markets in the world. In addition, Indonesia has the 2nd largest market for instant noodles with a sale of 13.4 billion units in 2014 with a market share above 45%.
Street markets and supermarkets play an important role in the distribution of the instant noodle industry in Indonesia as most of the population does their shopping in these tenants. They are mature in nature and are largely controlled by a few Cooperatives and Independent Instant Noodles companies.
Some of the world-famous brands that were able to gain a market share in Indonesia are SuperMi, ABC Selera Pedas, Healtimie, Eat & Go, Sarimi Isi 2, and Mie Sedaap. Even though these brands are mostly local brands, there are also international brands that were able to enter the Indonesian market successfully.
International Instant Noodle Brands Who Have Penetrated the Indonesian Market
As said earlier, even though most of the market players of the Indonesian instant noodle industry are local brands, there are also international brands who were able to penetrate the Indonesian instant noodle market. Among them are:
- Samyang Ramen
Samyang Ramen is one of the most successful international brands that were able to penetrate the Indonesian market and enjoyed by many. They are an instant ramen company made by Samyang Foods, a South Korean grocery company. They provide a variety of flavors, and they are most notorious for their spicy level of instant noodles. In 2020, Samyang was able to garner a revenue of KRW 648.51 billion, an increase from their 2019 revenue, which is valued at KRW 543.58 billion. When it first launched in Indonesia, Samyang was able to sell 9.210 packs of ramen throughout Indonesia.
Nissin Food Products Co., Ltd. is a Japanese food company that specializes in the production and scale of convenience food and instant noodles. They were founded in Osaka, in which they were able to garner a revenue of JPY 468.9 billion as of March 2020. Data showed that they were able to increase their revenue in Indonesia, alongside achievement in profits. In Indonesia, they were able to gain 0.7% profit as of 2020.
Maggi instant noodles were first established in 1872 by Swiss businessmen. Not only by selling instant noodles, but Maggi also sells a variety of seasonings for cooking. The maker of Maggi noodles reported a 10.2% jump in domestic sales, which benefited from at-home consumption. They are under the supervision of Nestle Indonesia, in which Nestle Indonesia was able to garner a capital of IDR 1.4 trillion for investments.
Future Prospects of the Indonesian Instant Noodles Industry
During the pandemic, social restrictions caused them to stock meals, in which instant noodles are one of them. The Indonesia Eximbank Institute, an Indonesian Export Financing Agency, from the World Instant Noodle Association stated that global instant noodle consumption reached 116.56 billion, with Indonesia ranking the second, valuing 12.6 billion servings of 10.84% of world consumption in 2020.
Aside from local consumption, Indonesia’s total instant noodle exports reached USD 271.34 million, which is an increase of 22.96% year on year from 2019. The latest data stated that the cumulative export from January to September 2021 was USD 185.04 million. Countries like Malaysia, Australia, Singapore, the United States, and Timor Leste are among the countries that were able to export instant noodles.
Enter the Indonesian Instant Noodle Industry with BRIGHT Indonesia
With the constant shift of consumer behavior and demands, it would need a lot of in-depth research about the Indonesian instant noodle industry. Therefore, to enter the Indonesian market, you would need the right local partner to assist you.
BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.
BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:
- Assist you in expanding and developing your business by identification of potential partners.
- Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arranging business meetings, and acting as a liaison.
- Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
- Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.
For more information, email email@example.com.