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Indonesia Frozen Food Market - Growth, Trends, Covid-19 Impact, And Forecasts (2021 - 2026)

- Rise in consumer preferences for convenience foods and the development of cold chain logistics in the country are some of the crucial factors driving the growth of the frozen food market in Indonesia.
- Further, the advancement of modern retail channels has additionally determined the development frozen food. Supermarket giants, such as Super Indo, Giant Eksatra, and Ramayana have become a significant source of growth for the frozen foods market.
- Although the COVID-19 impact on the cold chain supply has been significant, the evolving buying patterns of the consumers with more inclination towards health has helped the frozen food market to show resilience faster than expected.
- Thus, the market is expected to register robust growth rate, owing to increasing customer appetite and acceptance, complemented by an increase in selling points, deeper penetration by organized retail players, as well as an increase in the available freezer space in the retail domain.
Key Market Trends
Rise in Demand For Convenience Foods
Rise in consumer preferences for convenience foods is a crucial factor ...
... driving the growth of the packaged food market in Indonesia. Owing to the growing convenience factor, there has been an exponential growth of packaged food specially the ready meals and frozen food there is less / no further preparation of food is required before consumption. The packed food includes canned food, packaged food or meals, frozen food, preserved food, and instant products.
Frozen ready meals are appealing to consumers in Indonesia with hectic lifestyles, those who are trying to lose weight, and people who live alone and do not want to prepare a full meal. Presence of various global players in this country has led to a wider availability of products. Furthermore, due to increasing purchasing power, food safety, and hygiene are being considered among consumers in the country. These factors have given global players a potential opportunity to make their products available on retail shelves as the brands are often considered high-quality products.
Frozen Meat Segment and Fish Segments Contribute to the Maximum Revenue
The consumer preference for frozen meat is increasing, in part due to the hygiene issues associated with making fresh products available. The popularity of protein diets has made meat and fish all the more popular, and seafood, in particular, is emerging as an important source of export earnings for the country.
With the increase in bilateral and international agreements regarding the expansion of agriculture and food trade, the frozen meat and fish segment is expected to grow during the forecast period. These products exhibit longer shelf life ranging from six months to a year, making it convenient for export to farthest of places. The Indonesian companies export various types of fish meat after processing and adding preservative materials according to the international standards and consumer demand.
Competitive Landscape
The Indonesian frozen foods market is fragmented, with numerous domestic and international players offering different varieties of frozen products. The major players, like General Mills Inc, Unilever PLC, PT Charoen Pokphand Indonesia Group, are heavily capitalizing on research and development. Ajinomoto Co. Inc, Gunung Sewu Group.(Belfoods Indonesia), and Kelola Group (PT Kelola Mina Laut) are some of the other leading players in the market with significant range of product offerings. In developing new products, manufacturers are sensitive to ongoing consumer wariness and trends about choosing products that are suitable for their healthy lifestyle choices, and thus players are offering products with international standards and certifications such as organic and kosher.
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