Executive Summary

Aug 2019
PROSPECTS
Wide demand for condensed milk in foodservice and retail ensures its dominance within “other” dairy

In Indonesia, condensed milk dominates the “other” dairy market, and it is expected to continue to reign in the category over the forecast period. Demand for this product remains strong despite the Indonesian government’s having banned manufacturers from using the term “milk” to describe their product on their packaging.

Pricing and competition from other options keep sales of cream and coffee whiteners slower than those of condensed milk

In Indonesia demand for cream and coffee whiteners is stronger in the foodservice channel than it is in retail, and demand in the former channel has been increasing as more cafés and bakeries are opening in the country. Retail demand for these products remains stable, but retail value sales continue to be relatively low compared to foodservice value sales because cream is expensive – and is mainly demanded by more affluent consumers that like to buy coffee beans and make their own coffee – and coffee whitener faces strong competition from prepacked coffee mix for which no additional coffee whitener is needed, such as 3-in-1 instant coffee, which is becoming increasingly prevalent in Indonesia, and from fresh drinking milk, for people that are looking for fresher products similar to what they find in cafés such as Starbucks, which serve their hot beverages with fresh milk rather than with coffee whitener.

With demand for condensed milk strong, major players strive to boost interest by introducing new flavoured products

Unique to Indonesia, demand for condensed milk has always been significantly large. However, although plain condensed milk has traditionally been more popular than flavoured condensed milk, as its neutral flavour makes it more suitable for use in a wider range of dishes, recently the major condensed milk players have been striving to develop unique flavours.

COMPETITIVE LANDSCAPE
Despite increased competition from domestic producers, Frisian Flag maintains lead

Frisian Flag Indonesia leads in “other” dairy, where it dominates the condensed milk category. It is expected to maintain its leading position over the forecast period, in spite of increased competition from domestic producers Indolakto and, increasingly, Riau Sakti United Plantation, which have been making great strides in creating more brand awareness and generating more sales for their lower-cost condensed milk products, which appeal to price-sensitive consumers.

Popularity of Fonterra’s Anchor brand of cream in foodservice boosts appeal in retail

Fonterra Brands Indonesia is the fifth-ranked player in the cream category in Indonesia, supported by increasingly strong product awareness for its flagship cream brand, Anchor. Fonterra is a multinational dairy cooperative owned by approximately 10,500 dairy farmers in New Zealand, and it made steady headway in Indonesia’s foodservice sector between 2014 and 2019.

Players focus on smaller packaging and stand-up pouches to generate higher sales of condensed milk

Most players operating in condensed milk have put more effort into designing new packaging types and sizes to meet demand for different occasion uses. For example, they are producing products in smaller packaging such as sachets for one-time consumption in an effort to generate sales in traditional retail channels at a lower selling price.

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Other Dairy in Indonesia

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Overview

Discover the latest market trends and uncover sources of future market growth for the Other dairy products industry in Indonesia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Other dairy products industry in Indonesia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Other dairy products in Indonesia market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Other dairy products in Indonesia?
  • What are the major brands in Indonesia?
  • How are volatile farmgate prices for milk impacting retail prices and sales performance?
  • Given mounting obesity concerns, are consumers moving from full-fat to reduced fat/fat-free offerings?
  • How are soy-based products performing against traditional dairy items?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Packaged Food market research database.

Other Dairy in Indonesia - Category analysis

HEADLINES

PROSPECTS

Wide demand for condensed milk in foodservice and retail ensures its dominance within “other” dairy
Pricing and competition from other options keep sales of cream and coffee whiteners slower than those of condensed milk
With demand for condensed milk strong, major players strive to boost interest by introducing new flavoured products

COMPETITIVE LANDSCAPE

Despite increased competition from domestic producers, Frisian Flag maintains lead
Popularity of Fonterra’s Anchor brand of cream in foodservice boosts appeal in retail
Players focus on smaller packaging and stand-up pouches to generate higher sales of condensed milk

CATEGORY DATA

Table 1 Sales of Other Dairy by Category: Volume 2014-2019
Table 2 Sales of Other Dairy by Category: Value 2014-2019
Table 3 Sales of Other Dairy by Category: % Volume Growth 2014-2019
Table 4 Sales of Other Dairy by Category: % Value Growth 2014-2019
Table 5 Sales of Cream by Type: % Value 2014-2019
Table 6 NBO Company Shares of Other Dairy: % Value 2015-2019
Table 7 LBN Brand Shares of Other Dairy: % Value 2016-2019
Table 8 Distribution of Other Dairy by Format: % Value 2014-2019
Table 9 Forecast Sales of Other Dairy by Category: Volume 2019-2024
Table 10 Forecast Sales of Other Dairy by Category: Value 2019-2024
Table 11 Forecast Sales of Other Dairy by Category: % Volume Growth 2019-2024
Table 12 Forecast Sales of Other Dairy by Category: % Value Growth 2019-2024

Packaged Food in Indonesia - Industry Overview

EXECUTIVE SUMMARY

Growth supported by convenience store expansion, digital pay methods and third party delivery services
New product developments reflect Indonesians’ openness to try new products, flavours and formats
While Indofood maintains its lead, Nestlé is set to strengthen its position with major expansion
Packaged food distribution is significantly improved in 2019 by expansion of convenience stores
Forecast period growth to benefit from health and wellness trend and demand for convenience

FOODSERVICE

Sales to Foodservice
Domestic players benefit from buyers’ price considerations, especially for most commonly used products
Smaller foodservice players move away from retail purchases to participate in cost-efficient central kitchens
Demand for single-serving packaged food rises in line with increased franchising and third party delivery services
Consumer Foodservice
Third-party delivery services support restaurants and other players in the foodservice channel
Increased use of mobile wallets such as Go-Pay and OVO causes transactions boosts consumer foodservice demand
Aggressive discounting by fintech companies and third party delivery services encourages shift from street stalls/kiosks towards restaurants and cafés
Category Data
Table 13 Foodservice Sales of Packaged Food by Category: Volume 2014-2019
Table 14 Foodservice Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 15 Forecast Foodservice Sales of Packaged Food by Category: Volume 2019-2024
Table 16 Forecast Foodservice Sales of Packaged Food by Category: % Volume Growth 2019-2024

MARKET DATA

Table 17 Sales of Packaged Food by Category: Volume 2014-2019
Table 18 Sales of Packaged Food by Category: Value 2014-2019
Table 19 Sales of Packaged Food by Category: % Volume Growth 2014-2019
Table 20 Sales of Packaged Food by Category: % Value Growth 2014-2019
Table 21 GBO Company Shares of Packaged Food: % Value 2015-2019
Table 22 NBO Company Shares of Packaged Food: % Value 2015-2019
Table 23 LBN Brand Shares of Packaged Food: % Value 2016-2019
Table 24 Penetration of Private Label by Category: % Value 2014-2019
Table 25 Distribution of Packaged Food by Format: % Value 2014-2019
Table 26 Distribution of Packaged Food by Format and Category: % Value 2019
Table 27 Forecast Sales of Packaged Food by Category: Volume 2019-2024
Table 28 Forecast Sales of Packaged Food by Category: Value 2019-2024
Table 29 Forecast Sales of Packaged Food by Category: % Volume Growth 2019-2024
Table 30 Forecast Sales of Packaged Food by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources