Indonesia Snacks Food Market Outlook to 2030

Indonesia Snacks Food Market Overview

• The Indonesia Snacks Food Market was valued at USD 3.87 billion in 2023, driven by the growing middle-class population, urbanization, and rising demand for convenience foods. The market is segmented into savory snacks, confectionery, and bakery snacks, with savory snacks being the most dominant due to their affordability and wide consumer appeal.
• Major players in the Indonesia Snacks Food Market include Indofood, GarudaFood, Mayora, and Nabati. These companies have diversified product portfolios, focusing on both traditional and Western-style snacks, catering to local tastes and global snack trends. Indofood leads the market with its popular brands like Chitato and Qtela, recognized for their flavor innovation and accessibility.
• In urban areas such as Jakarta, Surabaya, and Bandung, the demand for premium and healthier snack options is on the rise, driven by increasing health awareness among consumers. The growing penetration of modern retail channels and e-commerce platforms has further boosted market access.
• In 2023, GarudaFood launched a new line of plant-based savory snacks to meet the increasing demand for healthier, sustainable snack options. This innovation aligns with the broader trend towards health-conscious eating habits and the rising preference for plant-based products in the Indonesian snack food market.

Indonesia Snacks Food Market Segmentation

The Indonesia Snacks Food Market can be segmented by product type, sales channel, and region:

• By Product Type: The market is segmented into savory snacks, confectionery, and bakery snacks. In 2023, savory snacks remain the dominant segment due to their affordability and high consumer demand. Confectionery, especially chocolate and candy products, has seen significant growth, driven by younger consumers. Bakery snacks are also gaining popularity, with a focus on packaged cakes and pastries, particularly in urban areas.
• By Sales Channel: The market is segmented by sales channels into supermarkets/hypermarkets, convenience stores, and online retailers. In 2023, supermarkets and hypermarkets dominate the market, offering a wide variety of snack brands. Convenience stores also hold a significant share, particularly in urban areas, due to their easy accessibility. Online retailers are rapidly growing, benefiting from the increasing use of e-commerce platforms for food purchases, especially among younger, tech-savvy consumers.
• By Region: The market is segmented regionally into North, East, West and South In 2023, West Indonesia leads the market due to its large population, urbanization, and the presence of key retail and distribution networks. South follows, driven by rising incomes and increasing demand for packaged foods.

Indonesia Snacks Food Market Competitive Landscape

• Indofood: As a leading player in the Indonesian snacks food market, Indofood has a strong market presence with its wide range of savory snacks under popular brands such as Chitato and Qtela. In 2023, Indofood introduced a new premium snack line, focusing on flavor innovation and tapping into the growing health-conscious segment. The company continues to expand its distribution channels across modern retail and e-commerce, solidifying its position as a market leader.
• GarudaFood: GarudaFood is renowned for its peanut-based snacks and confectionery products. In 2023, the company launched a new range of plant-based savory snacks to cater to the rising demand for healthier and sustainable products. GarudaFood also focuses on expanding its footprint in international markets, leveraging its strong domestic brand recognition.

Indonesia Snacks Food Market Analysis

Market Growth Drivers:

• Urbanization and Middle-Class Expansion: The population of Indonesia's urban areas has shown growth, with over 180 million people now living in cities. This rapid urbanization is increasing demand for convenience snacks, as busy city dwellers seek easy, ready-to-eat food options.
• Health Consciousness: The growing focus on health and wellness has led to a surge in demand for healthier snack options. Around 65 million Indonesian consumers are increasingly opting for snacks that offer nutritional benefits such as low fat, low sugar, and plant-based ingredients.
• E-commerce Expansion: Online retail sales for snack foods have surged, with leading platforms like Tokopedia, Shopee, and Bukalapak recording over 50 million transactions related to snack purchases annually. The rise of mobile internet users, currently at 200 million, has contributed to the growth of e-commerce snack sales.

Market Challenges:

• Rising Raw Material Costs: Similar to global trends, the rising costs of raw materials, including palm oil, sugar, and packaging, are creating challenges for snack manufacturers in Indonesia. This has led to increased product prices, which may affect consumer purchasing power, particularly in the lower-income segment.
• Shifting Consumer Preferences: As health awareness grows, traditional snack products high in sugar, salt, and fat may face declining demand, forcing manufacturers to adapt their product offerings. Companies that fail to innovate or provide healthier options may struggle to maintain market share.
• Regulatory Compliance: The Indonesian snack food industry faces regulatory challenges related to food safety standards and labeling requirements. Compliance with these regulations can be costly for manufacturers, especially for smaller companies that lack the resources for extensive testing and certification.

Government Initiatives

• National Food Security Program: Indonesia has allocated a significant budget for food security. For 2024, the Indonesian government plans to allocate114.3 trillion IDRto strengthen food security, which includes increasing domestic food production. This budget represents an increase from100.9 trillion IDRin 2023 and is part of the government's priority spending to meet the needs of its population of approximately278.8 million people.
• Digital Infrastructure Development: As part of Indonesias push toward a digital economy, the government invested IDR 14 trillion to improve digital infrastructure, enabling snack food manufacturers to expand their e-commerce capabilities. The government's efforts are part of a larger initiative to strengthen the digital economy, which is projected to grow significantly in the coming years. Indonesia's digital economy was valued at approximately USD 77 billion in 2022 and is expected to reach around USD 130 billion by 2025, driven largely by e-commerce and the increasing use of digital platforms by micro, small, and medium enterprises (MSMEs).

Indonesia Snacks Food Market Future Market Outlook

The Indonesia Snacks Food Market is expected to experience continued growth through 2028, driven by changing consumer preferences, product innovations, and the expansion of modern retail channels.

Future Market Trends:

• Growth of Healthier Snack Options: As consumers become more health-conscious, the demand for snacks with added nutritional benefits, such as low-sugar, low-sodium, and high-fiber products, is expected to rise. This will drive product innovation in the market.
• Expansion of E-commerce: The increasing adoption of e-commerce platforms for purchasing snacks is expected to continue, offering convenience to consumers and allowing manufacturers to reach a broader audience, particularly in rural areas.