Indonesia: spotlight on south-east Asia's largest consumer market
While an important plank in many a multinational's strategy for south-east Asia, the Indonesian economy is seeing a slowdown. How should food manufacturers react? What opportunities lay ahead in the longer term?
Indonesia is south-east Asia's largest consumer market and is central to the growth strategy of many an international packaged food manufacturer eyeing or operating in the region. However, Indonesia's economy has slowed in recent years, hitting consumer spending, while there are concerns over issues from infrastructure to regulation. just-food gives a run-down of the issues in Indonesia strategy executives need to consider.
Indonesia's dairy market has enjoyed solid expansion in the last decade. With China's economy cooling, more attention is being paid to other markets in south-east Asia, suggesting Indonesia could become of growing interest. However, the country has seen its own economic slowdown and its dairy sector has a series of significant challenges to surmount. Dean Best reports.
Indonesia has become one of the world's largest markets for infant formula by volume, supported by demographic trends such as a large – and young – population. However, the country's economic situation means selling prices are low. Meanwhile, poor sanitation and high poverty levels leave infant formula makers in a very precarious position, with their products linked to infant mortality. Katy Askew looks at the potential and pitfalls of selling infant formula in Indonesia.
Ice cream is big business in Indonesia, where a growing middle class and a population of 254.5m has fuelled rising demand. But with inflation coming at a time when the Indonesian economy is slowing, the outlook for the Indonesian ice cream market could be increasingly challenging, adding to the distribution issues caused by the country's under-developed infrastructure. Katy Askew takes a look at the prospects for the sector.
Indonesia's confectionery sector is predicted to grow in a big way. By 2018 it is forecast to be worth US$2.6bn up from US$1.37bn in 2013. But with local players dominating the scene thanks to their knowledge of local tastes and the ability to offer cheaper options, international players looking to get in on the action may struggle. Hannah Abdulla explores
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