Fortified/Functional Packaged Food in Indonesia

PROSPECTS

Slightly faster sales increases due to growing population and spreading awareness

During 2019, retail sales of fortified/functional packaged food recorded slightly faster value growth than in 2018. Moreover, fortified/functional packaged food remains the highest contributor to overall sales in the health and wellness market.

The success of FF probiotic yoghurt due to the wide popularity of FF dairy

FF probiotic yoghurt was the most dynamic category of fortified/functional packaged food in 2019. Growth in the category was driven largely by the favourable performance of the Yakult brand.

New packaging requirements for all edible oils impact FF vegetable and seed oil

Towards the end of the review period, the Indonesian government introduced new packaging requirements for edible oils. This represents the clearest sign so far that the government is interested in stamping out sales of unpackaged edible oils due to fears over the widespread sale of products that are tainted or contaminated with inferior ingredients and/or illegal adulterants.

COMPETITIVE LANDSCAPE

Domestic players lead sales in FF butter and spreads and FF vegetable and seed oil

At the end of the review period, local manufacturers remained prominent among the leading players in FF butter and spreads and FF vegetable and seed oil. Salim Ivomas Pratama Tbk PT remains the second leading player in FF butter and spreads via its Filma and Amanda brands of margarine.

Frisian Flag remains the category’s leading international brand

Frisian Flag maintained its position as the leading international brand in fortified/functional packaged food and 2019. Although Nestlé Indonesia generated higher sales and higher position in the rankings than Frisian Flag’s parent company, the brand continues to generate huge sales due to its leading position in FF milk.

Local players continue to outperform international rivals as local knowledge pays off

The several global players among the leading names in major fortified/functional packaged food categories such as Frisian Flag Indonesia PT and Kellogg Co are struggling to keep up with their local rivals. Towards the end of the review period, domestic manufacturers saw stronger growth than many of their international rivals and this trend is expected to develop over the early stages of the forecast period.

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