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Country Report

Indonesia Flag Dairy Products in Indonesia: ISIC 152

| Pages: 16

Price: US$600

About this Report

Cheese

TRENDS

  • While a decade ago cheese was perceived as a premium product, Mulia Boga Raya and its Prochiz brand have succeeded in bringing a new concept to middle- and lower-income households. Offered at a lower price than existing brands, Prochiz, which was launched in late 2009, continues to grow in popularity. More Indonesian families, particularly in the big cities, have started to use cheese as a main ingredient in their meals. Cheese has also become very popular to serve with white bread as a substitute for chocolate sprinkles, jam and honey.

COMPETITIVE LANDSCAPE

  • Kraft remains by far the leading cheese brand in Indonesia in 2014, with Kraft Ultrajaya Indonesia commanding a 61% share of category value sales. The company’s dominant position can be attributed to its early entry into the Indonesian market, its wide variety of unspreadable processed cheese products and aggressive marketing, using both television advertisements and below-the-line activities.

PROSPECTS

  • With the growing popularity of Western foods and the aggressive efforts from manufacturers to educate consumers as to the uses of cheese in various meals, consumption is expected to increase sharply in Indonesia over the forecast period. More consumers are expected to consider cheese as a nutritious product with a high calcium content. Parents are likely to use cheese in homemade dishes for their children more frequently.

Drinking Milk Products

TRENDS

  • Heavy advertising in the mass-media by manufacturers, along with the increasing number of television programmes as well as magazine articles focusing on health issues, led to the rising health awareness of Indonesian consumers over the review period. Drinking milk products, which are perceived to be healthy, benefited from this growing awareness, particularly among mid- to higher-income consumers.

COMPETITIVE LANDSCAPE

  • Drinking milk products in Indonesia continues to be led by five players, namely Nestlé Indonesia, Frisian Flag Indonesia, Ultrajaya Milk Industry & Trading Co, Indolakto and Fonterra Brands Indonesia. Ultrajaya Milk Industry & Trading Co has overtaken Indolakto in 2014, jumping from fourth to third place. These five drinking milk companies are set to account for a total value share of 78%. Their positions can be attributed to a longstanding presence in the market, a wide distribution network, heavy and continuous marketing activities, as well as investment in new product launches. These companies nevertheless are having to face intensified competition from a number of small players, including Kalbe Farma, Nutrifood Indonesia, Danone Dairy Indonesia, Sari Husada and Greenfields Indonesia. A new player has also joined the fray in 2014; Tempo Scan Pacific, through its subsidiary Kian Mulia Manunggal, has opened a new plant in Surabaya (East Java) to produce powder milk. The plant started to operate in June 2014. The company also plans to start producing long-life/UHT milk by the end of 2014 or early 2015.

PROSPECTS

  • Drinking milk products is expected to continue to post robust growth thanks to rising awareness of the benefits of milk as well as growing demand for fortified milk products. However, the category is also anticipated to continue to face competition from other dairy products over the forecast period, leading to a gradual slowdown in volume growth. Indonesian consumers, who are not accustomed to drinking milk on a regular basis, are expected to have a preference for products offering the same benefits as milk or those claiming to contain milk, such as yoghurt, ice cream and desserts. Younger aged consumers, including children and teenagers, and a majority of adult consumers who do not like the taste of milk, are likely to opt for such “milk substitutes” due to their richer flavours and tastes. Fortified powder milk, including calcium-fortified and omega-3 and omega-6-fortified powder milk, is likely to continue to face competition from more convenient dietary supplements.

Yoghurt and Sour Milk Drinks

TRENDS

  • Yoghurt and sour milk products continue to grow in popularity among middle- and high-income consumers, particularly women, due to rising health awareness. Yoghurt and sour milk products are being aggressively promoted in the mass-media as offering nutritional benefits and aiding digestion. Female consumers are increasing their consumption of such products as they believe that yoghurt and sour milk products can help them maintain a slim figure, improve their skin and slow the ageing process.

COMPETITIVE LANDSCAPE

  • In 2013, Yakult Indonesia Persada assumed the leading position in the category from Danone Dairy Indonesia, with the two players commanding value shares of 36% and 35%, respectively. In 2014, Yakult has succeeded in increasing the gap on Danone thanks to gaining nearly two percentage points in share, while Danone has seen its share fall to 34%. This can mainly be attributed to the stronger growth of yoghurt as opposed to sour milk drinks. Yakult Indonesia Persada and its Yakult brand lead yoghurt, while Danone Dairy Indonesia dominates sour milk products with its brand Milkuat.

PROSPECTS

  • Yoghurt and sour milk products is likely to continue to benefit from growing health awareness, particularly among middle- to upper-income consumers. The increasing number of health-conscious consumers is predicted to result in the expansion of the category’s consumer base over the forecast period. Manufacturers will likely continue to invest heavily in educating consumers about the health benefits of yoghurt and sour milk products.

Other Dairy

TRENDS

  • Other dairy in Indonesia in 2014 continues to comprise only three categories - coffee whiteners, condensed/evaporated milk and cream. Chilled and shelf stable desserts, chilled snacks and fromage frais and quark remain negligible categories. The various uses of coffee whiteners, condensed/evaporated milk and cream have helped to maintain the positive performance of other dairy in 2014. Condensed/evaporated milk is used for mixing with coffee, tea and other cold and hot drinks and in making cakes and puddings. Coffee whiteners have started to be widely used when cooking as a substitute for coconut milk and are popular among consumers who prefer fresh ground coffee with a separate whitener, instead of instant 3-in-1 coffee. Cream, meanwhile, is benefiting from the growing popularity of Western-style desserts like cakes and puddings.

COMPETITIVE LANDSCAPE

  • Frisian Flag Indonesia and Indolakto remain the leading players in other dairy. Frisian Flag Indonesia with its Frisian Flag brand is set to register a value share of 35% in 2014, closely followed by Indolakto, with its brands Indomilk and Enaak, with a share of 34%. Nestlé Indonesia sits in third position with a value share of 16%. These companies’ leading positions can be attributed to their strength in condensed/evaporated milk, with their brands supported by heavy promotional and marketing activities. Their brands continue to be perceived as high quality but affordable products and are available in both modern and traditional retail outlets.

PROSPECTS

  • The affordability, various uses and long shelf life of condensed/evaporated milk are expected to continue to sustain the positive performance of other dairy over the forecast period. Cream, meanwhile, is likely to benefit from the growing popularity of Western-style desserts and beverages, whereby decorating products with whipped cream will become more common.

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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?

Why buy this report?

  • 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

This industrial report originates from Passport our global market research database.  Passport Industrial is a breakthrough economic research solution that analyses the industrial makeup of the largest economies in the world. It provides a strategic assessment of every industry and explains the complex relationships between them.

Table of Contents

Headlines

Markets Trends

Production Trends

Competitive Landscape

Prospects

Industry Overview

  • 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

Industry Sectors

  • 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

Firmographics

  • 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

Households

  • 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

Suppliers

  • Table 19 Supply Structure 2007–2012
  • Table 20 Supply Structure: Annual Growth 2008–2012
  • Table 21 Supply Structure:Share of Total 2007–2012

Labour Costs

  • 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

Future Outlook

  • Table 24 Forecasts 2013–2018

Definitions

Dairy Products

Milk and Cream

Butter

Cheese and Curd

Yoghurt and Other Dairy Produce

Ice Cream

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