February 21, 2024
Indonesia Infant Nutrition Market

Indonesia Infant Nutrition Market is driven by Growing Birth Rate and Rising Purchasing Power in Indonesia

The infant nutrition market in Indonesia involves providing nourishment to infants to help them grow healthy and strong. Infant formula is becoming popular as it mimics breast milk to provide balanced nutrition. With growing urbanization and more mothers joining the workforce, the demand for convenience products like infant formula is rising. Moreover, pre-packaged baby food such as cereals, pourees and snacks are gaining traction due to their nutritional value and ease of use. The growing birth rate along with increasing disposable incomes in the middle-class population is fueling the sales of infant nutrition products in Indonesia.

The global Indonesia Infant Nutrition Market is estimated to be valued at US$ 9.06 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends witnessed in the Indonesia infant nutrition market is the preference for organic and natural products. Parents want foods that are free from artificial preservatives, colors, flavors and sweeteners and contain only natural ingredients. Companies are launching product lines targeting this segment. For instance, Groupe Danone offers SGM baby food range made from natural ingredients without preservatives. Another significant trend is customization and personalized nutrition. Manufacturers provide products tailored to suit the unique nutritional needs of infants based on their age, gender and allergies. They also focus on function-specific formulations addressing issues like digestion, brain development and immunity.

Porter’s Analysis
Threat of new entrants: The infant nutrition market in Indonesia has high entry barriers as it requires substantial investments in manufacturing, supply chain and brand building. However, the growing demand opens up opportunities.
Bargaining power of buyers: Buyers have moderate bargaining power given the availability of many alternatives. However, customized offerings and quality build loyalty over time.
Bargaining power of suppliers: Raw material suppliers have low to moderate bargaining power due to availability of substitutes and less concentration.
Threat of new substitutes: Threat from new substitutes exists as consumers may switch to private label products or homemade alternatives. Compliance to regulations is necessary.
Competitive rivalry: The market is highly competitive with brands from Groupe Danone, PT Indofood, Nestle, and others vying for market share through differentiated offerings.

Key Takeaways
The Global Indonesia Infant Nutrition Market Size is expected to witness high growth over the forecast period. The global Indonesia Infant Nutrition Market is estimated to be valued at US$ 9.06 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030.

Regional analysis:

The Western region holds the major share of the Indonesia infant nutrition market currently due to higher disposable incomes and awareness. However, Eastern regions are witnessing faster growth led by increasing per capita spending and expanding retail landscape.

Key players:

Key players operating in the Indonesia Infant Nutrition market are Groupe Danone, PT Kalbe Farma Tbk, PT Indofood Sukses Makmur, Indofood CBP, Mirota KSM, Nutricia Indonesia Sejahtera, Sari Husada, Mead Johnson Indonesia, and PT Frisian Flag Indonesia. Groupe Danone dominates the market with its flagship brands such as Nan and Nan 1. Indofood CBP and PT Indofood Sukses Makmur also have a sizable presence. Players compete on the qualities of nutritional value, taste, brand image and distribution.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it