What are some of the Indonesian snacking habits? What are some popular snacking brands? Read more to find out!
Snacking is considered as a popular activity but is avoided by many people around the world due to one of its adverse effects, such as weight gain. However, in Indonesia, snacking is quite popular, and Indonesian people have developed habits to fulfill their snacking hobbies.
With the prevailing opportunities and performance of the Indonesian snack industry, the Indonesian snack industry provides foreign investors with abundant opportunities and a promising outlook for investment.
What do you think are the opportunities of the Indonesian snack industry? Does it provide growth opportunities? Read more to find out!
Indonesian Snacking Habits
Overall, Indonesian people love snacks. Based on a survey by Licorice, 42.6% of Indonesians even snack as daily activities. Most Indonesian children usually buy snacks at a grocery store near their house or school, but when they grow up, they usually level up to be able to snack at work as an adult. Even when adults have reached the working stage, their snacking habits don’t necessarily stop.
With that in hand, we could safely say that Indonesia’s snacking habits have been seen consistently throughout any age and any demographic. Thus making this industry a more prevailing industry than the food and beverages industry.
Overview of the Indonesian Snack Industry
Globally, the revenue in the snack food segment amounts to USD 7.22 billion in 2022, and is expected to grow annually by 11.03% (CAGR 2022-2027). In global comparison, the most revenue is generated in the United States, amounting up to USD 103.90 billion in 2022.
Due to the Covid-19 pandemic, snacks like nuts, crisps, confectionery, and soft drinks, have been kept at risk categories in the food sector as supermarkets reallocate stock priorities towards essential supplies. In Indonesia, items like cereals, snack bars, baking flour, and soup have been stable due to the fact that consumers have been stacking long shelf-life items. This is also due to the fact that consumers living in the pandemic are adjusting to a new kind of normal lifestyle and do not want to live in more discomfort, thus opting for more convenient and healthy snacking options.
Modern grocery stores are expanding in Indonesia with a double digit CAGR. They are expanding their presence in urban and tier-II cities. They also helped lead the snack bar sale with a share of more than 70% in the distribution channel. Supermarkets and convenience stores are one of the fastest growing sales channels for snack bars owing to large brand availability and discounts on bulk purchases.
Popular International Snack Brands Who Have Penetrated the Indonesian Snack Industry
- Otsuka Pharmaceutical Co., Ltd.
Otsuka Pharmaceutical Co., Ltd. is a pharmaceutical company headquartered in Tokyo and was established on August 10th, 1964. In 2017, they were able to garner a revenue of JPY 531.2 billion.
- Nestlé S.A.
Nestle is a Swiss multinational food and drink processing conglomerate corporation headquartered in Switzerland. In 2020, Nestle had a revenue of IDR 1.323 trillion. Their highest selling product would be powdered drinks, followed by pet care, health, and then snacks. In 2021, their revenue reached 87.1 billion CHF.
Future Prospects of the Snack Industry
There are currently 4 trends shaping the global snacks industry. Among them include:
- Setting health as a priority: Special diets
- Entertaining and shopping at home: Digitalisation
- Snacks going green: Sustainability
If these 6 trends continue to be stable in the future, the snack industry would definitely have a positive prospect.
Enter The Indonesian Snack Industry with BRIGHT Indonesia
It would take a lot of in-depth research about the snack industry market in Indonesia. In order 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:
- Provide assistance for 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, arrange business meetings, and act 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.