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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