About this Report
- 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.
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
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- 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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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