Indonesia Edible Oil Market Outlook to 2027

Market Overview:

A moderately fragmented market with immense growth potential the edible oil market in Indonesia is highly competitive, with numerous players offering a variety of products. The emergence of a sustainability and customer centric approach is set to change the dynamics of Indonesia Edible Oil Market.

The total addressable market in Indonesia for Edible Oil market has been expanding. Govt. takes initiatives to boost the market share of edible oils especially palm oil with country accounting for 40% of the global demand as of 2022. Demand grows for healthy eco-friendly cooking oil options. The changing consumer dietary patterns with their hectic work schedules are propelling the consumption of processed food items that utilize edible oil as food preservatives and flavoring agents, thereby catalyzing the product demand in the country.

Indonesia Edible Oil industry is catered by the domestic and international players such as Astra Agro Lestari Tbk PT, PT. Asianagri Hilir, PT. Bina Karya Prima are amongst the top players in the industry.

Indonesia Edible Oil Market Analysis

• The expanding food processing industry along with the wide applications of edible oil in baking, dressing, frying, etc., is augmenting the market growth.
• Indonesia Edible Oil Market has grown at a CAGR of 19.6% from 2017 to 2022 with the increase in demand for edible oil, especially palm oil.
• Growing population & evolving dietary habits are some of the factors driving the Indonesia Edible Oil Market.
• The changing consumer dietary patterns with their hectic work schedules are propelling the consumption of processed food items that utilize edible oil as food preservatives and flavoring agents, thereby catalyzing the product demand in the country.
• Palm Oil is the most widely used oil owing to its affordability & Versatility
• Increasing awareness about health benefits associated with soybean oil & coconut oil have led to an increase in their demand.

Key Trends by Market Segment:

By Oil Type: Palm oil remains the dominant category within edible oils in Indonesian 2022 in value and volume terms. It is commonly used for cooking on a daily basis and it has established a high level of acceptance amongst Indonesian consumers because of its extensive distribution and the wide variety of brands to choose from.

By Brand: The Indonesia Edible Oil market is sub segmented by brand into Bimoli, Tropical, Filma, Sania, Fortune, Others. Consumers are also likely to look for value-for-money options such as products in larger refill packs or private label products. Indeed, there is also likely to be polarization in terms of pack size.

Competitive Landscape:

• With increasing environmental concerns, there is a rising demand for sustainability & health concerns, companies adopting sustainable practices can tap into this to come out as market leaders.
• These companies offer a diversified portfolio of oil products and are involved in business both domestically & internationally.
• There is an opportunity for market players toto introduce a wider range of products to cater to variety of preferences for Indonesian population.
• Indofood Sukses Makmur Tbk PT (Brand name; Bimoli and Happy) was the largest cooking oil company in Indonesia.

Recent Developments:

• Indonesia is determined to regain a significant share of the Indian palm oil market, which slipped to about 47% (2022).
• Indonesia said it will suspend some palm oil export permits to secure domestic supply as cooking oil prices
• With aims to secure a steady flow of palm oil exports from Asia toward the EU, Indonesia and Malaysia are sending a joint delegation to Europe to gather more information and present their views on the bloc’s future policy regarding the commodity.
• The three companies, Wilmar Group, Permata Hijau Group and Musim Mas Group were named suspects by the Supreme Court for alleged misconduct in obtaining crude palm oil (CPO) export permits at a time when shipments of the commodity were being restricted during the cooking oil scarcity period.

Future Outlook:

• Indonesia Edible Oil Market will expand at a CAGR of 3.1% between 2022 and 2027 owing to the rising demand for palm oil segment.
• Consumers are also likely to look for value-for-money options such as products in larger refill packs or private label products. Indeed, there is also likely to be polarisation in terms of pack size.
• Net Profit of Bimoli Cooking Oil Producer, Salim Ivomas Pratama increases 320% in 2021.
• Edible Oil Sales in Indonesia will be driven by the Government regulation and price sensitive attitude of the population.
• Rising demand for high quality edible oil in Indonesia will drive the demand for palm oil in Indonesia.
• Palm Oil will have huge preference in the market especially for owing to increasing demand both domestically & internationally.