Despite the low penetration of household refrigerators in Indonesia, demand for fresh milk has been increasing over the years, supported by several factors. Firstly, the distribution channel has been further expanded – as compared to one-to-two years ago when fresh milk was only available in limited convenience stores, now it can be found in almost all conveniences store in larger cities such as Jakarta, Surabaya, and Bali, whilst also being available in selected outlets in second tier (smaller) cities.
Fresh milk is also facing some growing competition from non-dairy alternatives such as plant-based milk – notably so with the most popular styles of soy and mung bean milk, whereas other plant-based milk is still relatively immature in Indonesia. This is especially noted in foodservice, with a growing number of cafés and restaurants offering substitute options to fresh milk.
As seen in some other dairy categories, e-commerce is also becoming more relevant in drinking milk products, supported by developments in logistics. Although e-commerce had been experiencing steady growth during the pandemic, its contribution in overall sales was expected to remain small from 2022 and beyond.
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Understand the latest market trends and future growth opportunities for the Drinking Milk Products industry in Indonesia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Drinking Milk Products
This is the aggregation of flavoured milk drinks, milk and powder milk. Note: Plant-based drinking milk products should be excluded from this category and tracked under plant-based milk. Except for plant-based powder milk that should be tracked within the core dairy category of powder milk.See All of Our Definitions
This report originates from Passport, our Drinking Milk Products research and analysis database.
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