The FMCG market landscape in IndonesiaThe 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 second quarter of 2023, every FMCG segment in the country saw an increase in the average consumer spending per trip, with the food segment recording the highest change. As for its distribution, traditional trade was the main sales channel for FMCG products in the country, with an 83 percent market share in the third quarter of 2023. While offline channels, such as traditional trade, continue to dominate the market, online sales channels have been seeing growth. The sales value of e-grocery has experienced growth in the last few years and is expected to reach around 5.6 trillion U.S. dollars by 2026.
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 to Indonesian consumers, ranging from personal care to food products. Local market players such as Indofood have proved that local capabilities can compete well in the FMCG sector. In 2022, one of its products, Indomie, ranked first among the leading FMCG brands in the country, with a penetration rate of around 95 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 sustained growth in the FMCG market.