Insight
Asia
ASEAN Update
Source: BMI
Positive outlook for the Indonesian food industry
L eading market analyst BMI holds a positive outlook for the Indonesian food industry. Rising consumer purchasing power will stimulate demand for a wider range of food products beyond staples such as rice and cereals, whilst continued urbanisation will boost spending on convenience foods.
The Indonesian food industry is already attracting investments from major multinational companies, such as Nestlé, and local industry players, such as Indofood, as they work to exploit the enticing growth prospects on offer.
‘ Between 2017 and 2021,
BMI is forecasting a compound annual growth rate( CAGR) of 10.6 % in headline food sales.
Market outlook
Between 2017 and 2021, BMI is forecasting a compound annual growth rate( CAGR) of 10.6 % in headline food sales.
Breaking down by food category, bread, rice and cereals( within which rice is the massively predominant category) will continue to account for more than 25 % of total food sales, as many households remain highly price-conscious. However, the importance of meat and dairy products in the typical Indonesian diet( both growing from a relatively low base) will increase throughout the coming years, benefiting from income gains.
Breaking down by food category, bread, rice and cereals( within which rice is the massively predominant category) will continue to account for more than 25 % of total food sales
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