About this Report
- In 2015, cheese continued to gain awareness among Indonesians as consumers became increasingly receptive to its taste. This was largely a result of the popularity of dishes such as pasta, pizza, cakes, pastries and toast, which commonly include cheese. In 2015, foodservice outlets and urban housewives increasingly incorporated cheese into food products. This included affordable food products sold by street hawkers such as toast, fried breaded banana, chips, pastries and even traditional cakes. Cheese continued to be seen as a premium and healthy dairy product.
- In Indonesia, Kraft remained the most established cheese brand in 2015, with Kraft Ultrajaya Indonesia dominating cheese sales throughout the review period, commanding a 61% value share in 2015. The company’s strength lies in its early entry into the Indonesian market, its wide variety of other processed cheese products and heavy investment in both television advertisements and below-the-line activities.
- Over the forecast period cheese consumption in Indonesia is expected to grow steadily thanks to predicted 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 diets 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 stronger consumer health awareness in 2015. 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 product sales benefited from this growing health awareness as these products are perceived to be healthy.
- Five drinking milk companies, namely Ultrajaya Milk Industry & Trading Co, Frisian Flag Indonesia, Nestlé Indonesia, Indolakto and Fonterra Brands Indonesia, remained the leading players in 2015, together accounting for a combined value share of 82%, up slightly from the previous year. They consolidated their already strong position in drinking milk products through various strategies, including establishing a widespread distribution network reaching urban and rural areas and heavy investment in new product launches and promotions. They managed to retain their already strong positions despite intensified competition from smaller players such as Kalbe Farma, Greenfields Indonesia and Nutrifood Indonesia.
- Drinking milk products is expected to continue to face competition from other products over the forecast period, thus resulting in a gradual slowdown in volume growth. For example, there will be a growing preference for products offering the same benefits as milk or those claiming to contain milk. Such products will be favoured by a number of children who dislike the regular consumption of milk. Furthermore, calcium-fortified powder milk and flavoured powder milk drinks may continue to face competition from more convenient calcium supplements in tablet or effervescent drink format.
Yoghurt and Sour Milk Drinks
- In 2015, yoghurt and sour milk products continued to grow in popularity among upper- and middle-income consumers, especially women, due to the various perceived benefits of these products cited in articles in the mass-media. Yoghurt is believed to be good for digestion. Female consumers also believe that yoghurt can help them maintain a slim figure, improve their skin and slow the ageing process.
- Yakult Indonesia Persada, with its Yakult drinking yoghurt, maintained its leadership in yoghurt and sour milk products in 2015 with a 39% value share. This can be attributed to the intensive marketing efforts of the company. Its leading position was also supported by a strong distribution network, with the company continuing to recruit more “Yakult Ladies” in more areas in Indonesia. The rapid development of convenience stores also helped to boost the penetration of Yakult in 2015.
- 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 product companies, especially the larger players such as Yakult Indonesia Persada and emerging players such as Heavenly Nutrition Indonesia, will likely continue to invest heavily in communicating the health benefits of yoghurt and sour milk products to consumers.
- A variety of uses helped to sustain the positive performance of other dairy in 2015. Condensed 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 are using coffee whiteners to replace coconut milk as a cooking ingredient. There are also a number of adult consumers who still prefer to drink fresh ground coffee with separate coffee whiteners instead of mixed or 3-in-1 coffee. Meanwhile, cream benefited from the rising number of consumers baking their own Western-style cakes.
- In 2015, Frisian Flag remained the leading brand in other dairy with a value share of 36%, followed by Indomilk and Enaak from Indolakto. Frisian Flag’s good performance over the review period was partly due to packaging innovation. The brand’s owner, Frisian Flag Indonesia, also frequently advertised the brand on television and in other media.
- The positive performance of other dairy over the forecast period is likely to be sustained by the various uses of these products. Housewives with limited budgets purchase condensed 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 saturated fat content.
This Euromonitor industrial report provides unique data and analysis of Dairy Products in Indonesia: ISIC 152. With this industrial report, you’ll be able to explore in detail the entire industry from its sources of supply to its buyers.
The Dairy Products in Indonesia: ISIC 152 report includes:
- Qualitative analysis of key industry trends and future developments in Indonesia
- Analysis of market growth and industry performance
- Industry data including production data, imports, exports, industry buyers, suppliers, cost structure, bargaining power and profitability
- Attractiveness index that measures industry performance in both stable and challenging economic conditions
- Analysis of suppliers to the industry
- Analysis of buyers from the industry
The report will answer questions such as:
- What is the turnover of the industry?
- How much have salary levels changed over the last decade?
- What is the industry costs structure?
- How profitable is this industry?
- Who are the key customers of this industry?
- How many people are employed in the industry?
- What is the bargaining power of the industry with its suppliers and customers?
- How important are large enterprises in the industry?
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- Understand the structure of the industry from suppliers to buyers
- Track key industry trends, opportunities and threats
- Benchmark performance against industry averages
- Identify growth opportunities
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Table of Contents
- Table 1 Key Industry Indicators 2007–2012
- Table 2 Key Industry Indicators: Annual Growth 2008–2012
- Chart 1 Production vs Nominal GDP 1997–2018
- Chart 2 Producer Volume Index vs Producer Price Index 1997–2012
- Table 3 Production by Sector: Value 2007–2012
- Table 4 Production by Sector: Annual Growth 2008–2012
- Table 5 Production by Sector: Share of Total 2007–2012
- Chart 3 Industry Sectors’ Growth Indices 1997–2018
- Table 6 Number of Companies by Employment Size 2007–2012
- Table 7 Number of Companies by Employment Size: Annual Growth 2008–2012
- Table 8 Number of Companies by Employment Size: Share of Total 2007–2012
- Table 9 Production by Employment Size 2007–2012
- Table 10 Production by Employment Size: Annual Growth 2008–2012
- Table 11 Production by Employment Size: Share of Total 2007–2012
- Table 12 Industry Leaders: Company Production Shares in 2010
Import and Export
- Table 13 Import and Export 2007–2012
- Table 14 Export Destinations 2007–2012
- Table 15 Importing Countries 2007–2012
- Chart 4 Import vs Export Growth 1997-2012
Market and Buyers
- Table 16 Key Market Indicators 2007–2012
- Table 17 Key Market Indicators: Annual Growth 2008–2012
- Table 18 Households: Key Statistics 2007–2012
- Chart 5 Household Expenditure on Dairy Products vs GDP 1997–2018
- Chart 6 Household Expenditure on Dairy Products vs Population 1997–2018
- Table 19 Supply Structure 2007–2012
- Table 20 Supply Structure: Annual Growth 2008–2012
- Table 21 Supply Structure:Share of Total 2007–2012
- Table 22 Key Statistics 2007–2012
- Chart 7 Number of Employees vs Average Salary 1997–2012
- Chart 8 Output per Employee vs Average Salary 1997–2012
Industry Attractiveness Index
- Table 23 Attractiveness Index Composition
- Chart 9 Attractiveness Index of Dairy Products Among Other Indonesia Industries
- Chart 10 Binary Diagram of Attractiveness Index
Attractiveness Index: Explanation
- Table 24 Forecasts 2013–2018
Milk and Cream
Cheese and Curd
Yoghurt and Other Dairy Produce