The FMCG market landscape in IndonesiaAs one of the fast-growing FMCG markets in Southeast Asia, the FMCG market in Indonesia has advanced along with the increase in demands and changing lifestyle of its population. Since 2018, Indonesian households have allocated almost 20 percent of their total household expenditure for FMCG products. In the third quarter of 2020, every FMCG segment in the country saw an increase in the average consumer spending per trip, with the food segment having the highest change. As for its distribution, traditional trade was the main sales channel of FMCG products in the country, with a 67 percent market share in the third quarter of 2020.
The FMCG industry in Indonesia is dominated by both multinational and local players. Multinational companies such as Unilever Indonesia have animated the industry by providing more product options, ranging from personal care to food products, to Indonesian consumers. Local market players such as Indofood have proved that local capabilities can compete well in the FMCG sector. In 2019, one of its products, Indomie, ranked first in the leading FMCG brands in the country, with a penetration rate of around 99 percent among Indonesian households. In addition, the net sales of PT Indofood Sukses Makmur Tbk, or Indofood, have been showing a steady upward trend since 2014, accounting for a sustained growth in the FMCG market.