# Indonesia Dairy Food Market (2022-2027) --- ## Report Summary Segmented by drinking milk, cheese, ice-cream, butter & spreads, yogurt & sour milk, other dairy and distribution channels --- ## Indonesia Dairy Food Market Report Table of Content Table of Contents - 1. Executive Summary - 1.1. Executive Summary – Indonesia Dairy Food Market - 2. Indonesia Dairy Food Market Overview - 2.1. Ecosystem of Indonesia Dairy Food Market - 2.2. Value Chain Analysis of Indonesia Dairy Food Market - 3. Indonesia Dairy Food Market Size Analysis, 2027-2022 - 3.1. Market Size Analysis of Indonesia Dairy Food Market by Volume, 2017-2022 - 3.2. Market Size Analysis of Indonesia Dairy Food Market by Value, 2017-2022 - 4. Indonesia Dairy Food Market Segmentation Analysis, 2022 - 4.1. Market Segmentation Analysis of Indonesia Butter and Spreads Market, 2022 - 4.2. Market Segmentation Analysis of Indonesia Yoghurt and Sour Milk Market, 2022 - 4.3. Market Segmentation Analysis of Indonesia Cheese Market, 2022 - 4.4. Market Segmentation Analysis of Indonesia Ice Cream and Frozen Desserts Market, 2022 - 4.5. Market Segmentation Analysis of Indonesia Drinking Milk Market, 2022 - 4.6. Market Segmentation Analysis of Indonesia Others (Cream, Coffee whiteners and Condensed milk) Market, 2022 - 5. Competition landscape of Indonesia Dairy Food Market - 5.1. Market Share for 2022 – Indonesia Butter and Spreads Market - 5.2. Market Share for 2022 – Indonesia Yogurt Market - 5.3. Market Share for 2022 – Indonesia Cheese Market - 5.4. Market Share for 2022 – Indonesia Ice Cream Market - 5.5. Market Share for 2022 – Indonesia Drinking Milk Market - 5.6. Market Share for 2022 – Indonesia Other (Cream, Coffee whiteners and Condensed milk) Dairy Market - 5.7. Cross Comparison of Indonesia Butter and Spreads Market, 2022 - 5.8. Cross Comparison Indonesia Yogurt Market, 2022 - 5.9. Cross Comparison Indonesia Cheese Market, 2022 - 5.10. Cross Comparison Indonesia Ice Cream Market, 2022 - 5.11. Cross Comparison Indonesia Ice Cream Market, 2022 - 5.12. Cross Comparison Indonesia Drinking Milk Market, 2022 - 5.13. Cross Comparison Indonesia Other Dairy Market, 2022 - 6. Industry Analysis of Indonesia Dairy Food Market - 6.1. PORTER’s Five Forces Analysis for Indonesia Dairy Food Market - 6.2. Growth Drivers in the Indonesia Dairy Food Market - 6.3. Trends and Developments in the Indonesia Dairy Food Market - 6.4. Key Challenges in the Industry - 6.5. Key Regulatory Bodies in Indonesia Dairy Foods Market - 6.6. Government Regulations related to Indonesia Dairy Food Market - 7. Future Outlook of Indonesia Dairy Food Market - 7.1. Future Market Size Analysis of Indonesia Dairy Food Market by Volume, 2022-2027 - 7.2. Future Market Size of Indonesia Dairy Foods Market by Value, 2022-2027 - 7.3. Market Segmentation Analysis of Indonesia Butter and Spreads Market, 2027 - 7.4. Market Segmentation Analysis of Indonesia Yoghurt and Sour Milk Market, 2027 - 7.5. Market Segmentation Analysis of Indonesia Cheese Market, 2027 - 7.6. Market Segmentation Analysis of Indonesia Ice Cream and Frozen Desserts Market, 2027 - 7.7. Market Segmentation Analysis of Indonesia Drinking Milk Market, 2027 - 7.8. Market Segmentation Analysis of Indonesia Others (Cream, Coffee whiteners and Condensed milk) Market, 2027 - 8. Research Methodology - 8.1. Market Definitions - 9. Disclaimer - 10. Contact Us --- ## Indonesia Dairy Food Market Overview Indonesia Dairy Food Market Highlights The Indonesia Dairy Food Market, valued at USD 3552.6 Mn in 2017, grew with a CAGR of 10.3% from 2017 to 2022. It is expected to reach USD 8524.4 Mn by 2027 with a projected CAGR of 8% between 2022 and 2027. The market is consolidated with the presence of certain large established players. Some of the well-established players in this market are Upfield, Yakult, Unilever, and Nestle. *The Indonesia Dairy Food Market, valued at USD 3552.6 Mn in 2017, grown with CAGR of 10.3% from 2017-2022.* --- ## Taxonomy | ID | Parent ID | Label | | --- | --- | --- | | 1 | | Indonesia Dairy Food Market | | 2 | 1 | Cheese | | 3 | 1 | Yogurt | | 4 | 1 | Ice Cream | | 5 | 1 | Drinking Milk | | 6 | 1 | Butter and Spreads | | 7 | 1 | Powdered Milk | | 8 | 1 | Sour Milk Products | | 9 | 2 | Spreadable Cheese | | 10 | 2 | Hard Cheese | | 11 | 2 | Processed Cheese | | 12 | 3 | Yoghurt | | 13 | 3 | Flavored Yogurt | | 14 | 3 | Greek Yogurt | | 15 | 4 | Take-Home Ice Cream | | 16 | 4 | Impulse Ice Cream | | 17 | 5 | UHT Milk | | 18 | 5 | Flavored Milk Drinks | | 19 | 6 | Butter | | 20 | 6 | Margarine and Spreads | --- ## Indonesia Dairy Food Market Ecosystem ### Market Ecosystem **Ecosystem for Indonesia Dairy Food Market** The ecosystem of Indonesia’s Dairy Food Market is shaped by leading manufacturers such as Indofood, Frisian Flag, Nestlé, Yakult, and Unilever, who drive product innovation and nationwide availability. These brands are supported by strong distribution networks including Alfamart, Carrefour, Hypermart, AEON, and digital platforms like HappyFresh. Regulatory bodies such as BADAN POM and the Ministry of Agriculture ensure product quality, safety, and halal compliance. Together, manufacturers, distributors, and regulators create a cohesive ecosystem that delivers consistent dairy supply to both businesses and millions of households across Indonesia. --- ## Indonesia Dairy Food Market Size (in USD Mn), 2017-2022 The Indonesia Dairy Food market, valued at USD 5801 Mn in 2022, is dominated by the drinking milk segment, which contributes more than 40% of the revenue. Between 2017 and 2022, the market witnessed significant growth, driven by changing lifestyles and increasing demand for flavored milk. The overall Indonesia Dairy Foods Market by value grew at a CAGR of 10.3% during 2017–2022, with the drinking milk segment recording the highest growth in this period. Additionally, the Indonesia Dairy Foods Market by volume grew at a CAGR of 6.2% from 2017–2022, with the cheese segment growing the highest in terms of volume. *The Indonesia Dairy Food market, valued at USD 5801 Mn in 2022, is dominated by the drinking milk segment, which contributes more than 40% of the revenue.* --- ## Indonesia Dairy Food Market Segmentation, 2022 ### Market Segmentation Analysis of Indonesia Butter and Spreads Market (in USD Mn), 2022 Margarine and spreads accounted for ~87% of the revenue in 2022 as margarine is used more than butter due to awareness of heart diseases and the rise in cholesterol levels. The shelf life being one of the major factors prevents butter volume sales, as these products require a specified temperature for storage to keep them fresh and maintain their shape. More than 99% of the butter and spreads are distributed through retail offline channels, as it requires refrigerators which are available with these offline stores. ### Market Segmentation Analysis of Indonesia Yoghurt and Sour Milk Market (in USD Mn), 2022 Sour milk products have a lower demand in Indonesia and accounted for only 18% of the share by volume in 2022 due to its limited shelf life and fewer variants as compared to yogurt products. As demand for drinking yoghurt and preference for flavored products remain high, manufacturers such as Yummy Food and Diamond Cold Storage introduced numerous new flavored drinking yoghurt. ~90% of the revenue is generated from yogurt in 2022 due to its availability in single servings and bottled packaging, and these are easily available on retail offline channels. ### Market Segmentation Analysis of Indonesia Cheese Market (in USD Mn), 2022 All of the major cheese manufacturing units are located on the Island of Java within the cities of Jakarta, Cikarang, Surabaya, Bandung and Bekasi. Processed cheese contributed mor All of the major cheese manufacturing units are located on the Island of Java within the cities of Jakarta, Cikarang, Surabaya, Bandung and Bekasi. Processed cheese contributed more than 98% to the overall cheese market both by value and volume as it is easily available at all the leading distribution channels across the country, while hard cheese is only available at modern retail outlets such as hypermarkets and supermarkets. The unfavorable and sharp taste of hard cheese makes it less popular amongst the population. ### Market Segmentation Analysis of Indonesia Ice Cream and Frozen Desserts Market (in USD Mn), 2022 The impulse ice cream is particularly popular in Indonesia because it is single-serving ice cream for on-the-go consumption. Impulse ice cream dominated the market and contributed more than 75% of the market share by value in 2022, driven by the impulse nature of much ice cream consumption in Indonesia. In Indonesia, the maximum share of distributing ice cream and frozen dessert is attained by the convenience stores. ### Market Segmentation Analysis of Indonesia Drinking Milk Market (in USD Mn), 2022 Increasing consumption of milk coupled with a surge in milk imports has driven the demand for drinking milk products. Flavored milk drinks observed the highest contribution of over 50% of the revenue in 2022, supported by a surge in health awareness, new product launches and expanded distribution channels. Popular flavored milk drinks include Cisarua Mountain Dairy’s Cimory brand, Greenfields by Greenfields Indonesia and Diamond by Diamond Cold Storage. ### Market Segmentation Analysis of Indonesia Others (Cream, Coffee whiteners and Condensed milk) Market (in USD Mn), 2022 Market for condensed milk in Indonesia is growing continuously and reached at $0.8 Bn in 2022 due to the increasing consumer awareness regarding skim condensed milk. Condensed milk is also popular due to its long shelf life, meaning it can be easily distributed throughout the country, including outside Java, and be stored in retail outlets without the need for chill compartments. Majority of the condensed milk, cream and coffee whiteners are distributed through the retail offline channels due to the large number of convenience stores in the country. --- ## Indonesia Dairy Food Industry Analysis ### Growth Drivers in the Indonesia Dairy Food Market **Greater awareness of health and quality issues** Growing health and quality issues among Indonesians is growing and dairy products in Indonesia considered as healthy products. This trend has increased the consumption of dairy products. **Changing Dietary Patterns with focus on Milk** Milk being important source of vital nutrients especially for vegetarians, consumers are shifting away from cereals to milk & dairy products, with a national herd of around 500K cows, Indonesia produces less than 1 Bn liters of milk each year. **Rising Middle Class Population & Income Levels** In 2022, Indonesia has ~115 Mn middle-class population, which will increase dairy product consumption, and growing income and disposable income will promote milk and dairy product consumption. **Shift towards branded packaged products** Increasing quality & safety concerns increasing demand for packaged food, in particular pasteurized packaged milk. **Grab and go trend** Integral change in consumer habits is the rise in demand for “grab and go” foods that are healthy and conveniently packaged. Convenience stores are one of the fastest growing retail platforms and have expanded by 400% in the last 10 years, reflecting a strong on-the-go lifestyle in Indonesia. **Urbanization** Urban population increased from 54.6% in 2017 to 57.9% in 2022, Preference for clean, hygienic & ready-to-eat milk & dairy products to boost dairy industry. ### Key Challenges in Indonesia Dairy Food Market **Low Dairy Cow Productivity** Dairy productivity is Low in Indonesia. Productivity per cow per day is only 10-11 liter. The main reason of low productivity of cow is shortage of feed and poor health of cows. **Import Reliance** Milk for the production of cheese is imported from Australia and New Zealand. In 2021, Indonesia imported $ 20.8 Mn by value in Milk. Many international players import cheese from their manufacturing plants to meet the demand in country. **Lack of technology for milking & processing** The majority of small and medium dairy farms in Indonesia still utilize conventional technologies such as natural air cooling and boiling, which has affected productivity and quality due to which only 12% of locally produced milk meets minimum industry standards. The worldwide used technologies include robotic milking, pulse light, and irradiation. **Health Awareness** Indonesians have showed interest towards healthy lifestyle and increasingly health-conscious consumers in the country are adopting alternatives of milk and other products. Butter leads to heart disease and increase in the cholesterol level, making the buyers conscious about its consumption. ### Key Regulatory Bodies in Indonesia Dairy Foods Market **Ministry of Agriculture** The MOA has stated publicly that they will continue to “encourage’’ dairy processors to form partnerships to buy local milk, invest in dairy production, and to promote local fluid milk consumption. Buy milk from local dairy producers is a necessity. **Majelis Ulema Indonesia** Halal law expands the scope of goods requiring mandatory halal certification beyond goods that have traditionally been required to be designated halal and extends the requirement to include export services such as slaughtering, processing, storage, packaging etc. **Indonesian Association of Dairy Cooperatives** Oversees the industry development including policies regarding accessing funding for infrastructure and cattle. The activities of GKSI are mainly handled by branches in East Java, Central Java and West Java. **Indonesian Association of Milk Processors** Halal law expands the scope of goods requiring mandatory halal certification beyond goods that have traditionally been required to be designated halal and extends the requirement to include export services such as slaughtering, processing, storage, packaging etc. ### Government Regulations related to Indonesia Dairy Food Market **Regulatory framework to enter the Indonesian dairy market** To enter the Indonesian market, it is required to appoint a reliable local partner that will handle the product registration, importation and distribution of the foods. Imported dairy food products in retail packaging shall be registered with the Indonesian Food & Drug Control Authority (BPOM). To obtain a registration number, the importer shall conduct the online registration and submit administrative documents (e.g., LoA as distributor, GMP certificate etc.) and technical documents (e.g., ingredient list, label information etc.). The registration number is valid for 5 years and can be extended at the earliest 12 months and at the latest 10 days before the expiration period. **Labeling and Packaging regulations** The regulation of food in Indonesia is governed by Law No. 18/2012 on Food (“Food Law”), while the quality of food is specifically governed by Government Regulation No. 28/2004 on Food Safety, Quality, and Nutrition. According to GR 69, anybody producing or importing packaged food into Indonesia must label food as part of the food packaging, which includes the name of the product, a list of materials used, date of expiration, weight or net content, and the name and address of the manufacturer. **Food Law** Production of processed food without implementing the food processing procedure, causing the decline or loss of the food nutrition of raw materials punishment of violating this regulation is imprisonment for one year or fine of not more than $ 140,000. **Entry permit, taxes & custom rules** Indonesia imposes import tariffs averaging 5% for dairy products with an exception for fermented dairy products where a tariff ranging between 5-10% are levied. Additionally, a value-added tax of 10% is applied for imports. --- ## Indonesia Dairy Food Future Market Size ### Indonesia Dairy Food Future Market Size (in USD Mn), 2022-2027 The Indonesia Dairy Food market is expected to reach USD 8524.4 Mn by 2027 and drinking milk is expected to dominate the market. Between 2022 and 2027, the Indonesia Dairy Food market is expected to reach significant growth, driven by the rising consumption of flavored milk and the changing lifestyle of Indonesians with respect to healthy consumption. The overall Indonesia Dairy Foods Market by value grew at a CAGR of 8.0% from the year 2017–2022, with the drinking milk segment growing the highest within the period. --- ## Indonesia Dairy Food Market Macro Indicators ### Indonesia GDP and Inflation Rate, 2017-2021 Indonesia's GDP exhibited steady growth from 2017 to 2021, increasing from 1.02 USD Tn to 1.19 USD Tn, with a corresponding decline in inflation rates over the same period, signaling economic stability and resilience. ### Indonesia Major Provinces, 2021 Key regions include North Sumatra, East Sumatra, Kalimantan, and Sulawesi, with Jakarta serving as the capital. --- ## Frequently Asked Questions Find quick answers to common questions about Indonesia’s growing Dairy Food Market **Q: How big is the Indonesia Dairy Food Market?** A: The Indonesia Dairy Food market, valued at USD 5801 Mn in 2022 and drinking milk is dominating the market with more than 40% of revenue. **Q: Who are the major players in Indonesia Dairy Food Market?** A: The market of dairy food in Indonesia is consolidated with presence of certain large established players in the market. Some of well-established players in this market are Upfield, Yakult, Kraft, Unilever, Nestle and Frisian Flag. **Q: What is the future of Indonesia Dairy Food Market?** A: The Indonesia Dairy Food market is expected to reach at USD 8524.4 Mn by 2027 and drinking milk is expected to dominate the market. **Q: What are the key factors driving the Indonesia Dairy Food Market?** A: Greater awareness, Changing Dietary Patterns, Rising Middle Class Population & Income Levels, shift towards branded packaged products and grab and go trend are driving Indonesia Dairy Food Market.