Food companies doing business in Indonesia are intensifying efforts to attract Gen Z consumers, who are demanding products that not only taste good but align with their identity, health goals and social values.
What Gen Z wants matters: the cohort born between 1997 and 2012 is the biggest generation group in Indonesia, accounting for just under 28% of the country’s 281 million people.
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According to GlobalData senior consumer analyst Hannah Cleland, Gen Z consumers in Indonesia are not only looking for minimally processed food with recognisable ingredients and low calorie counts but also have other demands.
“Gen Z are all about high impact and functionality when it comes to things like flavours and health,” she says.
Research by GlobalData, Just Food‘s parent, from the first quarter of this year shows 51% of Gen Z consumers in Indonesia eat high-protein foods four to seven times a week – a proportion greater than Millennials (37%) and Gen X (26%) consumers.
In May, European dairy giant Arla Foods gave a signal of how it sees consumer behaviour in Indonesia with news of a deal with Brenntag, the ingredients distribution business. As well as selling a range of consumer-facing products under the Arla brand (and Lurpak butter) in Indonesia, Arla is also looking to build its B2B ingredients business in the country. Its tie-up with Brenntag covers three markets in the region – Vietnam, Thailand and Indonesia – and will see the companies push the Danish co-op’s dairy ingredients in the region.
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By GlobalDataAlexander Leufgen, head of Asia-Pacific markets at Arla’s ingredients business, said: “Demand for high-quality whey and dairy ingredients is growing across South East Asia, especially in key segments like active nutrition and food functionality. Our goal is to improve and extend our offering to manufacturers across the region. By building on our existing arrangement with Brenntag we’ll be able to better tailor our products and services to meet their needs.”
It’s important for food companies operating in Indonesia to understand how Gen Z consumers define health. For example, 72% of say they try to improve their mood and mental wellbeing through the products they consume.
PT Talasi Tru Origin, a Bali-based brand that sells honey, cashews and cocoa, has embraced Gen Z’s values by sourcing directly from smallholder farmers and promoting “truthful labelling” – avoiding additives and emphasising product origin and impact.
“Today’s young consumers don’t just buy for taste or nutrition,” says Talasi marketing manager Cindy Marcella. “They look for meaning – where the product comes from, whether it’s sustainable, and if the brand shares their values.”
Talasi has redesigned its packaging with clean visuals and hand-drawn motifs, targeting Gen Z’s aesthetic preferences and desire for traceability. “Young consumers are not only looking for what food is free from – such as preservatives – but also what it adds to their lives,” Cindy says. “Increasingly, they seek foods that support holistic wellbeing.”
However, Indonesia’s Gen Z isn’t simply focused on health and wellness. “Gen Z eating habits also tend to be more unstructured than older generations, with a particular proclivity to snack throughout the day,” Cleland adds. Only 3% of Indonesia’s Gen Z skip late-night snacks – far less than Millennials (9%) or Gen X (17%).
In February, PepsiCo relaunched Cheetos in Indonesia with a $200m investment in production first announced two years ago, banking on nostalgia and emotional eating.
Flavour experimentation is also important. GlobalData research from 2024 showed 56% of Gen Z respondents in Indonesia said they opted for trendy or unusual flavours in savoury snacks – more than Millennials (54%) and Gen X (41%).
Research published this year by Kantar shows impulse preferences differ across age groups in Indonesia. Younger consumers, particularly teens and young adults, devote around two-thirds of their impulse spending to products such as snacks and baked goods. As consumers age, that preference shifts toward RTD beverages.
From storytelling to TikTok virality
Social media plays a crucial role in shaping the choices of Gen Z. In February, Indofood, one of Indonesia’s largest food companies, partnered with Japan-based digital commerce firm AnyMind Group to drive sales via TikTok Shop during Ramadan in mainly Muslim Indonesia.
The campaign, featuring national football players, led to a 426% spike in sales and drew thousands of live viewers. Its top-selling item was the Indofood 100k Ramadan Parcel, typically a curated bundle of instant noodles, snacks, syrups, and condiments.
It’s important to remember Gen Z is not a uniform group. “Their income levels vary just like the general population,” Tutum Rahanta, chairman of the advisory board at the Indonesian Retailers and Shopping Centre Tenants Association (HIPPINDO), says. “So, the key for food entrepreneurs is deciding which income class they want to target. Each segment has its own purchasing power.”
What makes this new generation especially influential is not just how they consume food but how they discover it. “They follow fashion food – new, trendy items they see on social media. If something goes viral, they’ll try it. Social media plays a major role in their food choices,” Tutum says.
Indeed, traditional advertising is losing traction among younger audiences, who are more likely to be influenced by peer reviews, viral content and influencer collaborations “Many Gen Z consumers are concerned about their health. You can see a rise in food products tailored to their needs – things like less-sugar beverages, plant-based snacks and even meals designed specifically for fitness routines,” he adds.
Affordability remains a hurdle
Affordability remains a constraint. A 2024 study by Indonesia’s Bandung State Polytechnic found that even environmentally aware Gen Z shoppers often revert to conventional options due to price and accessibility.
Another study carried out last year, this time by Jakarta-based Mercu Buana University and ethical food enterprise PT Parara Bumi Nusantara, found that Indonesians aged 17 to 25 view healthy eating as a form of self-care, yet often struggle to balance affordability, flavour and convenience. The research, based on empathy mapping and student interviews, revealed a generation full of good intentions but limited by price sensitivity and restricted access.
The research suggests that many Gen Z Indonesians understand the health benefits of fresh, nutritious, and local foods. The findings indicate they are eager to support local and sustainable food practices. However, the study claims their actual eating habits are held back by three major barriers: limited access (such products are not widely available), affordability concerns and a widespread belief that healthy food is bland or boring.
The tension between intention and action is further complicated by Indonesia’s economic headwinds – it is still a comparatively low-income country – with the World Bank assessing per capita GDP in 2024 at US$14,470. According to PwC’s Voice of the Consumer 2025 report, half of all Indonesian respondents identified the cost of living and economic instability as their top concern. As a result, 63% said they are buying cheaper alternatives, and 56% are planning meals in advance to reduce impulsive spending.
Generational divides are stark, however, PwC says. Older Indonesian consumers tend to prioritise fresh ingredients and meal planning, while Gen Z gravitates toward budget-friendly options and influencer-driven trends. Many younger shoppers rely on digital platforms for discovery, favouring brands that meet them where they already are – on TikTok, Instagram, and increasingly, AI-driven platforms for meal planning and fitness.
