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.

Taxonomy

Indonesia Dairy Food Market Ecosystem

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.

Indonesia Dairy Food Industry Analysis

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.

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

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 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.

Indonesia Dairy Food Future Market Size

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'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.

Key regions include North Sumatra, East Sumatra, Kalimantan, and Sulawesi, with Jakarta serving as the capital.

1.1. Executive Summary – Indonesia Dairy Food Market

2.1. Ecosystem of Indonesia Dairy Food Market

2.2. Value Chain Analysis of Indonesia Dairy Food Market

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

4.1. 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

5.1. 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

6.1. 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

7.1. 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

8.1. Market Definitions

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Frequently Asked Questions

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Indonesia Dairy Food Market (2022-2027)

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Summary

Market Overview

Indonesia Dairy Food Market Overview