Indonesia Infant Nutrition Market was valued at US$ 8.4 in 2022. According to the Indonesia infant nutrition market report, By Product Type (Baby Food and Infant Formula), by Distribution Channel (Hypermarket, Supermarket, Specialty Store, Online, and Others), and by Formulation (Ready- to- Eat, Powder, and Liquid) as published by Coherent Market Insights.
Indonesia infant nutrition market is predicted to exhibit a CAGR of 7.9% during the forecast period (2023 to 2030). One of the most important factors influencing a child's development and growth is nutrition. The infant nutrition market includes a wide range of products, including infant formulas and baby food. The initial 6 months after birth play a crucial role in the development of a child, and ensuring optimal nutrition during this period is of paramount importance.
Drivers
Marketing strategies adopted by infant nutrition product manufacturers in Indonesia are creating awareness about the importance of feeding specialty baby food and infant formulas. For instance, PT Frisian Flag Indonesia Company is engaged in conducting local contests and offers rewards for winners. For instance, in 2020, the winners of a company contest had their family message displayed on the packaging of sweetened condensed milk products from Frisian Flag, and each got a monthly supply of Frisian Flag milk products for a whole year. Also, 30 weekly winners were shown their message in Kompas newspaper, and each will get a product package from Frisian Flag.
Increasing demand for organic food for babies is expected to fuel the Indonesia infant nutrition market growth. Modern farming techniques utilize chemical fertilizers, pesticides, and preservatives. The presence of these chemical contaminants in food has various short-term and long-term consequences for infant and child health. For instance, the preservative nitrite is converted into carcinogenic compound nitrosamines, by the human body. Whereas, fresher and more nutritional food helps to boost the overall development of the infant, resulting in a strong and robust immune system.
Market Restraints
The current legislation in Indonesia prohibits manufacturers and distributors from promoting and advertising formula milk for infants aged 6 months and below in health facilities. Also, healthcare facilities and healthcare workers are not permitted to sell, give, or promote formula milk for infants. In addition, there are some limited restrictions on the labeling and advertising of milk products for infants under the age of 1 year. These regulations may negatively impact the infant nutrition market growth and pose a major challenge for global and local manufacturers and raw material providers in Indonesia.
Key Trends and Analysis of Indonesia Infant Nutrition Market:
- Owing to a busy lifestyle and increasing disposable income among the populace, the demand for processed and ready-to-eat food is increasing across the world. Key drivers such as natural alternatives to artificial flavors and colors, healthier alternatives to regular food, government campaigns for food, and the increasing prevalence of foodborne diseases are directing the attention of manufacturers, investors, retailers, and raw material providers towards infant nutrition. Meals that are ready to eat reduce the amount of time and effort it takes to prepare a meal at home. At around 6 months of age, infants are usually ready to eat solid foods. Ready-to-eat products are most convenient types of baby food products, such as dried natural fruits and vegetables, baby cereal, and oat meal products.
- A wide range of baby food is available online at reasonable prices, which is one of the key trends in Indonesia infant nutrition market. The inclination of customers towards purchasing various products through online distribution channels has increased due to their busy lifestyles. The increasing population of women in the workforce is expected to fuel the sale of infant nutrition products through the online channel over the forecast period.
Market Opportunities
According to the United Nations Children's Fund (UNICEF), in Indonesia, over half of the 5 million children born each year do not fully benefit from breastfeeding during the initial years of their lives. Despite a high number of women breastfeeding their children at some point, only 42% of infants aged below 6 months are exclusively breastfed. Therefore, declining breastfeeding practices are creating potential market opportunities for local and global infant nutrition product manufacturers to invest in Indonesia infant nutrition market.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/indonesia-infant-nutrition-market-4932
Key Takeaways
- Among distribution channel, supermarket segment held the largest revenue share of 93% in Indonesia infant nutrition market in 2020
- Supermarkets have established trust among consumers with convenient services and attractive offers. Most customers prefer a particular brand over others that are usually stocked by supermarkets. Due to the discount and bulk availability of different products under one roof. This factor is expected to boost growth of the supermarket segment in Indonesia infant nutrition market over the forecast period.
Key Players
- 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
- Key players are focusing on various growth strategies such as acquisition, development of solutions for infant nutrition, and investment in new facilities and advanced technologies. For instance, in 2020, Danone announced the acquisition of WhiteWave Foods Company, a leader in organic food, plant-based milk, and related products.
Impact of Coronavirus (COVID-19) Pandemic
Due to the COVID-19 virus pandemic, as well as social distancing conventions and prohibitions, there has been a significant loss in infant nutrition product sales. The pandemic has been affecting the food system, wreaking havoc on health and nutrition services, destroying livelihoods, and posing a serious threat to food security. On the other hand, market participants are found to be heavily invested in ensuring that children have access to essential nutrition and food. One of the major industries affected by the COVID-19 outbreak is the global food and beverage industry. Due to the pandemic and social distancing, a significant loss was observed in sales and product distribution. Market players were focusing on maintaining the supply of essential nutrition and food to children. These factors have had a significant impact on Indonesia infant nutrition market.
