- Thanks to one particular company, Mulia Boga Raya PT with ProChiz brand, cheese managed to witness expansion of its consumer base towards 2013. ProChiz in fact, was already launched in late 2009, but the promotional campaign has been getting more aggressive towards 2013, with a new product variant, ProChiz Slice containing five and ten slices of cheese being introduced in late-2012. ProChiz was priced lower compared to other cheese brands and is clearly targeted at the middle- to lower-income consumers. The brand is also widely available in traditional retail outlets and many convenience stores nationwide.
- In Indonesia, Kraft is the most established cheese brand, and Kraft Ultrajaya Indonesia dominated cheese sales throughout the review period. It extended its domination in 2013 with an almost 62% value share. The company’s strength lies in its early entry into the Indonesian market, its wide variety of unspreadable processed cheese products, and its large investment in both television advertisements and below-the-line activities.
- Over the forecast period, cheese consumption by Indonesians is expected to grow steadily. This is thanks to the expected rising disposable incomes and the growing influence of Western culture. As Western dishes and food become more popular, cheese will feature more prominently in the diet of Indonesians. Consumers are also expected to become more aware of the nutritional value of cheese as a high-calcium food. Parents will also increasingly use cheese in homemade dishes for their children.
Drinking Milk Products
- The growing number of television shows and magazine articles focusing on health issues contributed to better health awareness by Indonesian consumers in 2013. Although the majority of consumers come from low-income groups where health-consciousness is still relatively low, better health awareness among middle-income and upper-income consumers was evident towards the end of the review period. Drinking milk products sales benefited from this growing health awareness over the review period, as the products are perceived to be healthy.
- Five drinking milk companies: Nestlé Indonesia, Frisian Flag Indonesia, Indolakto, Ultrajaya Milk Industry & Trading Co and Fonterra Brands Indonesia remained the leading players in 2013. They accounted for a combined value share of 78% in 2013; an increase of one percentage point from the previous year. They consolidated their already strong position in drinking milk products in Indonesia through various strategies, including establishing a widespread distribution network reaching urban and rural areas and large investments in new product launches and promotions. They managed to retain their already strong position, despite intensified competition from smaller players such as Kalbe Farma, Greenfields Indonesia and Nutrifood Indonesia.
- Drinking milk products is expected to continue facing competition from other products during the forecast period, thus resulting in the gradual slowdown of volume growth. For example, there will be growing preference for products offering the same benefits as milk or those claiming to contain milk, including yoghurt such as Milkuat yoghurt, ice cream such as Wall’s Moo and desserts such as Vita Pudding. Such products will be favoured by a number of children who dislike regular consumption of milk. Further, calcium-fortified powder milk and flavoured powder milk drinks may continue to face competition from the more convenient calcium supplements in tablets or effervescent drink format.
Yoghurt and Sour Milk Drinks
- In 2013, yoghurt and sour milk products continued to gain popularity among upper- and middle-income consumers, especially women, due to the various perceived benefits of the products cited in articles in the mass media. Yoghurt is believed to be good for dietary purposes and to improve digestion. Female consumers also perceive that yoghurt can help them maintain a slim figure, improve their skin, and slow down the ageing process.
- In 2012, Danone Dairy Indonesia led yoghurt and sour milk drinks with a 36% value share, with Yakult Indonesia Persada trailing in the second position with 34% value share. The situation however, changed in 2013, when Yakult Indonesia Persada managed to take first rank with almost 36% value share. Meanwhile, Danone Dairy Indonesia is slightly trailing behind with a 35% value share in yoghurt and sour milk products. This was because yoghurt, where Yakult Indonesia Persada clearly led, registered much higher value growth compared sour milk drinks, a category where Danone Dairy Indonesia was the leading player.
- Yoghurt and sour milk products is predicted to witness an expansion of its consumer base over the forecast period, in line with the expected growing health awareness trend among middle- to upper-income consumers. Yoghurt and sour milk drinks companies, especially the bigger players, such as Yakult Indonesia Persada, Ultra Prima Artaboga and Danone Dairy Indonesia, have the potential to continue investing heavily in communicating the health benefits of yoghurt and sour milk drinks to consumers.
- The variety of usage helped to sustain the positive performance of other dairy products in 2013. Condensed/evaporated milk can be used to make milk, can be mixed with coffee, tea and other cold and hot drinks, used as a spread on bread, as well as to make cakes and puddings. Meanwhile, an increasing number of housewives use coffee whiteners to replace coconut milk as one of the ingredients for cooking meals. There was also a number of adult consumers who still prefer to drink fresh ground coffee and separate coffee whiteners, instead of mixed or 3-in-1 coffee. Meanwhile, cream benefits from the rising number of consumers making their own Western-style cakes.
- Frisian Flag remained the number one brand in other dairy during the review period with a value share of more than 38%, followed by Indomilk and Enaak from Indolakto and Milkmaid brand from Nestlé Indonesia. Frisian Flag’s respectable performance over the review period was partly due to packaging innovation. While most condensed/evaporated milk products are available only in can packaging, Frisian Flag introduced flexible pouch packaging in 2007. The new packaging has its own nozzle to make it easier for consumers to pour. In addition, the company introduced a new product, Frisian Flag Gold, in mid-2012, thus further boosting the company’s value sales. The company, Frisian Flag Indonesia, also frequently advertised its Frisian Flag brand on television and in other media.
- The variety of usage is expected to continue to sustain the positive performance of other dairy during the forecast period. Housewives with a limited budget can purchase condensed/evaporated milk for various uses such as to make milk, to be mixed with coffee and to be used as a spread on bread. More health-conscious housewives are also likely to switch from coconut milk to coffee whiteners, as the former is considered less healthy due to its high cholesterol content.
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Discover the latest market trends and uncover sources of future market growth for the Dairy industry in Indonesia with research from Euromonitor's team of in-country analysts.
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If you're in the Dairy industry in Indonesia, our research will save you time and money while empowering you to make informed, profitable decisions.
The Dairy in Indonesia market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Dairy in Indonesia?
- What are the major brands in Indonesia?
- How has the economic downturn impacted sales performance given its staple food status?
- Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
- How are volatile farmgate prices for milk impacting retail prices and sales performance?
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This industry report originates from Passport, our Packaged Food market research database.
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