Baby Food in Indonesia

2021 DEVELOPMENTS

Drop in demand for baby food as home-based parents prepare home cooked meals or embrace daily deliveries of pre-made fresh food

The COVID-19 pandemic since March 2020 has forced many mothers to stay at or work from home. Consequently, more mothers are breastfeeding their babies, rather than giving them packaged milk formula.

Growing role of e-commerce in baby food, particularly in the marketing of growing-up milk formula

E-commerce is playing an important role in baby food as the ongoing presence of the virus continues to limit movement and mobility, especially for parents who have younger children at home. In order to limit virus transmission, many are reducing the frequency at which they leave their homes.

Group Danone leverages strong milk formula brand awareness to lead the category

Groupe Danone is the leading player in baby food, supported by a comprehensive product line-up, high brand awareness and strong distribution, especially for its baby milk formula. Distributed in Indonesia by Sarihusada Generasi Mahardhika under the SGM brand, its follow-on formula, growing-up milk formula and special milk formula all rank first in their respective categories.

PROSPECTS AND OPPORTUNITIES

Growing demand for daily home deliveries of fresh baby food pose a threat to baby food

Over and above the growth in home cooked meals, the mushrooming of small and medium sized enterprises will impose challenges on the performance of baby food in Indonesia. Home cooked meals require more effort and time to prepare where the emergence of small and medium sized enterprises able to deliver freshly made baby food on a daily basis will provide an ideal meal solution for many working parents.

Growing demand for “other” baby food as the pandemic recedes and parents seek on the go snacking options for their children

“Other” baby food will continue to grow in popularity. While dried and prepared baby food are usually consumed for babies’ main meals such as breakfast, lunch or dinner, “other” baby food is usually consumed as a snacking option.

Growing competition to milk formula from shelf stable and fresh milk for reasons of price

In addition to the threat from the increasing popularity and government promotion of breast feeding, milk formula will also face challenges from shelf stable milk and fresh milk. Many consumers have begun to veer towards these products over milk formula.