Industry Insights
Indonesia frozen food market was estimated to be worth USD 447.6 million in the year 2016. The key trend in the market of Indonesia is consumption of nutritional and high-quality food items. Indonesia being the fifth populous country of Asia Pacific, Savvy and sophisticated consumers are extremely choosy while making food purchases and are ready to pay premium prices for the products that are made from ethical and good farming practice however, affordability and price sensitivity are expected to be vital factors while making buying decisions by local Indonesian people.
Indonesia frozen food market revenue, by type, 2014 - 2024 (USD Million)
Presence of maximum teenage population along with the drive for easy and nutritional processed food, the market is expected to grow over the forecast period, 2017 - 2024.
Consumers in Indonesia seek for convenient and fast food without compromising on the health benefits, hence, frozen food is expected to be the best fit in the processed food category. These food products reduces the cooking time but offer most of the goodness contained in fresh vegetables or non-vegetable products. Hypermarkets and supermarkets with well equipped storage and freezing facility are expected to drive the demand for frozen convenience food in the local Indonesian market.
Segmentation by Type
• Frozen ready meals
• Frozen pizza
• Frozen fish/seafood
• Frozen meat
• Frozen potato products
• Frozen bakery products
• Others
Frozen meat is the largest segment in Indonesian market accounting for majority market revenue share in the year 2016 followed by ready meals. Frozen ready meal is another lucrative segment which is expected to grow at a healthy rate over the forecast period. Frozen potato products have accounted for the minimum market revenue share in the year 2016 owing to maximum export of potatoes to other countries.
Chilled and canned processed food are expected to challenge the market owing to similar characteristic as frozen food but however, factors associated with chilled food such as higher cost, lower shelf life and more preparation time owing to its raw form is expected to hamper the market of chilled and canned frozen food over the coming years which in terms will boost the market.
Segmentation by Distribution Channel
• Online
• Offline
Among offline distribution channel, Supermarkets, hypermarkets, and convenient stores are the dominant categories in the retail sector and has accounted for maximum market revenue in the year 2016. Offline distribution is still the leading distribution channel for frozen food products in Indonesia and has accounted for maximum market revenue share of about 65.2% in the year 2016 and is expected to show decent growth in the future. Online distribution channel which has accounted for minimum market revenue share in the year 2016 is expected to grow at a higher CAGR owing to technological advancement coupled with presence of savvy and sophisticated consumer base in Indonesia.
Competitive landscape
Key companies are coming up with new strategies, new technology, and product diversification. This new trend of introducing new technologies, more creative food innovations, and better food ingredients is expected to improve Indonesian industry for the coming years. Increase in the number of consumers favoring frozen food products, busy life styles, and love for various frozen food categories is expected to boost imports of these ingredients over the forecast period. The top companies in the Indonesian market includes General Mills, Inc., Ajinomoto Co., Inc., Nestle, Unilever Plc, Allens Inc, Heinz, and Amy’s Kitchen Inc.
