What are some of the promising prospects of the Indonesian herbs and spices industry? Read more to find out!
Herbs and spices are very powerful ingredients for cooking or even health, specifically providing benefits like antioxidants and vitamins for health purposes. The demand for herbs and spices are increasing worldwide, leading to an annual growth of 3.18% (CAGR 2022-2027) in market size. The countries who hold a significant share of the global herb and spice market are East Asia and North America, which accounts for 29 and 11% respectively of the market. Online sales of spices and herbs grew significantly during the pandemic, but direct selling is still dominating the sales channel, making up almost two-thirds of the global herbs and spices market.
Given the promising prospect of the herbs and spices industry worldwide, the herbs industry in Indonesia also provides promising aspects for foreign investments. What do you think are these promising aspects? How is the condition of the herbs and spices market? Read this article to find out more!
Overview of the Indonesian Herbs and Spices Industry
Indonesia is the world’s fourth largest exporter of spices and has a highly lucrative market. The Indonesian Ministry of Trade According to the Indonesian Ministry of Trade, the exports of spices and herb amount to USD 500 million per year.
A program initiated by the Indonesian government called Indonesia Spice Up the World was meant to promote and increase investment opportunities on local spices and herbs. In addition, it also wants to bring attention to Indonesian spices and dishes at the international stage to boost the value of export for local spices.
The opportunity for Indonesian spices doesn’t just stop at exporting goods. One of the Indonesia Spice Up the World programs encourage the Indonesian diaspora to display local culinary delights in their countries and support Indonesian restaurants abroad, both part of the government’s attempt to increase gastro diplomacy.
Not only on food, but herbs being used for traditional medicine has a positive prospect in Indonesia too. Large pharmaceutical companies have paved their path from a small-scale company to a massive industry. Sido Muncul, an early herbal medicine player, together with Deltomed Laboratories, are two main leading contenders in the herbal medicine market.
With its abundant natural resources, Indonesia has no shortage of roots, herbs, spices, or fruits to be continuously examined and explored for new and improved herbal medicines. It is approximated that among 30,000 species of flowers and plants, 1,000 of them have been identified to have medicinal potential that are used for herbal medicine.
In addition to that, there has been a significant increase in the demand for Indonesian herbal remedies in the international markets as well. Countries like Australia, much of Europe, and America have all been successful in penetrating the Indonesian market, considering that the government has also provided strong support for the industry, like “Back to Nature, Use Indonesian Traditional Medicine”.
Popular Herbs and Spices Products Exported from Indonesia
- White Pepper
Majority of its importers include the United States, China, India, Vietnam, and Netherlands
Future Prospects of the Indonesian Herbs and Spices Industry
The herbs and spices industry have an increasing demand for the future. There are diseases caused by the excessive use of chemicals and additives which are rising rapidly across the world. So consumers have shifted towards food and beverages containing natural herbs and spices. In the pharmaceutical sector, herbs and spices are used in the formulation of various medical remedies and can also be used in various personal care products like skincare, haircare, face car, oil, and others. Manufacturers are also using herbs and spices to ready-to-eat beverages in order to meet the rising demand among consumers, thus giving the industry a competitive advantage among other industries and giving them a positive prospect for investment in the future.
Enter The Indonesian Herbs and Spices Industry with BRIGHT Indonesia
It would take a lot of in-depth research about the herbs and spices industry 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 firstname.lastname@example.org.