1. An elevated festive season
As anticipated, the 2024 festive season in Indonesia emerged as a bigger celebration than the previous year, with a significant uplift in spending. This growth was also coupled with the election period in January and February 2024, which had already set a higher baseline for consumer spending. The upward trend reflects renewed confidence, and a greater willingness to spend during this period of celebration.
Not only did shoppers increased their spending, but they also purchased 8% more units, despite continued price increases. This represents organic growth in consumption, with shoppers absorbing the price increases , specifically during the festive season. Consumers are keen to celebrate with more items, reflecting their adaptability to rising costs and their desire to make the most of the festivities.
Although shoppers bought more goods, they still prioritised certain items in their baskets. Highly relevant categories like pantry essentials, food, beverages and dairy thrived, all experiencing double-digit growth. Conversely, other categories that are less relevant to the festivities stagnated or even saw a slight dip due to shoppers prioritising. This signals an opportunity for festive-related manufacturers to push beyond to achieve more growth within this eight-week timeframe.
Shoppers purchased a wider variety of categories on average than they did in 2023 – again emphasising the tendency to absorb price increases and buy more goods during this year’s festive season. While the categories with the highest uplift in value remained mostly unchanged from last year, three newcomers entered the top 10: hot cereal, isotonic drinks, and cold cereal – indicating a shift to more healthier categories.
