LOCAL
INSIGHTS
Despite inflationary pressure, Indonesia’s FMCG market still managed to grow modestly across sectors. Shoppers are feeling the effects of inflation and are responding by reducing the size of their baskets and switching to cheaper products. The one thing all growing brands have in common is being agile to quickly adapt to changing consumer behaviour and introducing new options that meet their needs.
Although Food is the sector most impacted by inflation, it remains resilient as consumers still depend on this sector for their Pantry Essentials and Snacks. Despite the challenges, Indofood and Sasa grew CRP in food thanks to their ability to adapt to consumers’ needs. The beverages sectors is moving to on-the-go consumption as people return to their normal lives after the pandemic, so only a few in-home consumption brands have been able to grow. TOP Coffee is one of the growing brands in the instant coffee category thanks to its affordable and convenient sachet packs and good availability in traditional trade.
The category growth of dairy was boosted during the pandemic, but now is starting to slow. Despite this, Ultra Milk and Cimory joined the list of growing brands in the sector. Ultra Milk owes its growth to its core variants of plain milk, while Cimory grew by extending into the yogurt category with various flavours.
As prices increase, Home Care and Personal Care brands are adapting as shoppers look for better value to help them make savings. Daia and Mama Lemon are the fastest-growing home care brands and have attracted new buyers by offering affordable products and introducing new innovative variants. Daia Clean and Hijab Fresh, targeted Hijabi households and Mama Lemon Charcoal offered the dual function of cleaning. In Personal care, Nuvo and Giv are also riding on that same wave by offering affordable products with added anti-bacterial benefits.
