Indonesia Infant Nutrition Market Analysis & Forecast: 2025-2032

Indonesia Infant Nutrition Market is estimated to be valued at USD 10.55 Bn in 2025 and is expected to reach USD 17.96 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 7.9% from 2025 to 2032.

Indonesia Infant Nutrition Market: Growth Drivers

• Falling child mortality rate and increasing urbanization rate: The country's falling child mortality rate and expanding urbanization rate will enhance the demand for infant milk formula even more. For instance, 2020, As per World Bank data, Indonesia’s urban population reached 154.926 million in 2020, up 9.7 percent from 2016. In addition, Indonesia’s infant mortality rate in 2020 was 23 deaths per 1000 live births, down 4.17 percent from 2019, according to the World Bank. Furthermore, the country's rising disposable income and e-commerce are likely to boost demand for infant milk formula. The increase in innovative product launches, as well as rising nutrition and digestive health awareness, have led to increased developments by major players, which is expected to propel market's growth during the forecast period.
• Popularity of the Organic Baby Food: Powdered milk or formula is also recommended for infants with certain medical issues since it has fortified minerals like iron, calcium, and vitamins that have been added. Due to its longer shelf life comparison to other baby food items, powdered infant nourishment products are anticipated to become more popular. The increasing demand for organic food for babies is expected to fuel the Indonesian infant nutrition market growth. Marketing strategies adopted by infant nutrition product manufacturers in Indonesia are creating awareness about the importance of feeding specialty baby food and infant formula. For Instance, in 2022, Danone launched the new Dairy & Plants Blend baby formula to meet parents’ desire for feeding options suitable for vegetarian, flexitarian, and plant-based diets while still meeting their baby’s specific nutritional requirements. Danone has drawn on 50 years of scientific breast milk research and its heritage of leadership in plant-based foods through well-known brands like Alpro and Silk.

Indonesia Infant Nutrition Market: Restraints

• High Cost of Infant Food Products: One of the major restraints in the global infant food market is the high cost of infant food products. The cost of infant food products is significantly higher than the cost of regular food products. This makes it difficult for low-income families to afford infant food products. This could limit the growth of market as families may look for cheaper alternatives. The high cost of infant food products is due to the use of high-quality ingredients, extensive research and development, and strict manufacturing processes. Infant food products are also subject to stringent regulations and standards, which further increases the cost of production. The high cost of infant food products may also lead to concerns about affordability and accessibility, especially in developing countries where malnutrition is a significant problem. For Instance, in 2022, Nestlé has increased prices by 9.8% in Q1, compared to Q1 2022, reaching an organic growth of 9.3%. Signaling general volume of sales has decreased by 0.5%.
• Indonesia Infant Nutrition Market: Trends: According to the World Bank, Indonesia is the fourth-largest populous country in the world. For convenient services and attractive offers, stores, including convenience and department stores, supermarkets, hypermarkets, etc., ensure the availability of different products under one roof. So for customers, it is easy to purchase daily goods in large quantities. Stores, supermarkets, hypermarkets etc. have already established trust among people, which is the key driver expected to boost the growth infant nutrition market over the forecast period.

Indonesia Infant Nutrition Market: Market Opportunities

According to the Indonesian Food and Beverage Association’s (Gapmmi) study, Indonesia's food and beverage industry has been estimated to exhibit significant growth of around 8.5 percent (y/y) in 2020. In addition, Indonesia is the most lucrative market for Foreign Direct Investment (FDI). According to Badan Koordinasi Penanaman Modal’s (BKPM) data, FDI in Indonesia's food and beverages industry accounted for US$1.5 Bn in 2017. The expansion of the food industry is thus expected to create opportunities for global and local key players to tap potential markets for dietary supplements, especially in emerging economies.

Indonesia Infant Nutrition Market: Impact of COVID-19

The COVID-19 pandemic has had a significant effect on the Indonesian baby food market. Positively, the pandemic has increased demand for infant food products, speeding up Indonesia's transition to e-commerce. Additionally, the pandemic has increased customer demand for packaged baby food products because they are perceived to be safer and more hygienic than conventional food items. However, the pandemic has also brought about a number of challenges for the market, such as disruptions in supply networks and logistics, higher costs as a result of safety precautions, and economic downturns that have decreased consumer purchasing power.

Indonesia Infant Nutrition Market: Market Segmentation

On the basis of formulation powder segment held the dominant position and accounted for 43.30% share of Indonesia infant nutrition market in 2025. The segment value is expected to reach US$ 4.31 Bn in 2032.

Figure 1: Indonesia Infant Nutrition Market Revenue Share (%), By Formulation, 2025

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Indonesia Infant Nutrition Market: By Product Type

Among the product type , infant formula segment held the dominant position and accounted for 58% share of Indonesia infant nutrition market in 2025.

Figure 2: Indonesia Infant Nutrition Market Revenue Share (%), By Product Type, 2025

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Indonesia Infant Nutrition Market: Recent Development

• In July 2020, is linking up with online retailer Lazada to expand its e-commerce infant nutrition offering across Southeast Asia.
• In January 2022, Nestle Indonesia stated that in January 2023, the company launched a new line of organic baby food products. The new products are made with 100% organic ingredients and are free from artificial flavors, colors, and preservations.
• In December 2021, DANONE stated that in March 2023, they were going to launch a new campaign to promote the importance of breast milk. The campaign features series of public service announcements that highlight the benefits of breast milk for babies.
• In May 2021, PT Kalbe Farma said that, In April 2023, they were launching a new line of infant formula products that are specifically designed for babies with allergies. The new products are lactose-free and gluten-free.

Indonesia Infant Nutrition Market: Key Companies

Major players operating in Indonesia infant nutrition market include, Nestlé S.A., 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.

*Definition: Food is the primary source of important nutrients that the human body requires to function properly. Similarly, infants require sustenance for optimal development and growth, which is primarily obtained through breast milk. Breast milk can be replaced with infant nourishment. BPOM (The National Agency for Drug and Food Control of Indonesia) has updated the definition of food and food products in the Indonesia. BPOM is an Indonesian government agency tasked with safeguarding public health through regulation and oversight.