Indonesia Infant Nutrition Market Is Driven By Rapidly Increasing Middle-Class Population


Infant nutrition products such as infant formula, baby food, and baby drinks are essential for fulfilling the nutritional needs of babies and infants. Infant formula is becoming popular among urban households in Indonesia as more mothers are now working women. Infant formula products provide complete nutrition to support the growth and development of infants. They contain proteins, fats, carbohydrates, vitamins, and minerals required by babies. Baby food products such as cereal, culinary, fruits and vegetable purees are easy to digest and introduce complementary feeding to infants. Baby drinks products including milk, soy, rice, and cereal drinks provide hydration to infants.

The global Indonesia Infant Nutrition Market is estimated to be valued at US$ 10.44 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends: Rising disposable income and rapid urbanization have boosted the adoption of packaged infant nutrition products among middle-class households in Indonesia over the past few years. According to the World Bank, the middle-class population in Indonesia reached 74 million in 2020 and is expected to further expand significantly in the coming years. This large and growing middle-income demographic is expected to fuel demand for branded infant nutrition products in the country through the forecast period from 2024 to 2031.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the Indonesia infant nutrition market is moderate. The market requires huge investments and is dominated by few major players. However, ease of doing business in Indonesia encourages small businesses to enter.

Bargaining power of buyers: The bargaining power of buyers is high in Indonesia infant nutrition market. Buyers have various options to choose from and brands have to offer competitive prices and quality to attract consumers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Key raw materials are perishable dairy items and depend on local produce. However, major players have global suppliers to negotiate prices.

Threat of new substitutes: The threat of substitutes is low. There are limited substitutes for infant formula to fulfill the nutrition requirement of infants. Breastfeeding is promoted as an alternative but cannot replace formula fully.

Competitive rivalry: The competition is high among existing players. Major players compete on the basis of product innovation, quality, promotion, and price.

Key Takeaways

The Global Indonesia Infant Nutrition Market Growth  expected to witness high. The growing middle-class population, rising awareness about baby nutrition, and increasing women workforce is expected to drive the demand. The global Indonesia Infant Nutrition Market is estimated to be valued at US$ 10.44 Mn in 2024 and is expected to exhibit a CAGR of 4.7% over the forecast period 2024 to 2031.

Regional analysis comprises- Western Indonesia dominates the market currently due to larger population share and better economic prospects compared to Eastern region. However, Eastern cities like Surabaya and Makassar are emerging markets with rising income levels and growing popularity of branded products.

Key players operating in the Indonesia infant nutrition market are Nestlé S.A., Groupe Danone, PT Kalbe Farma Tbk, PT Indofood Sukses Makmur, Indofood CBP, Mirota KSM, Nutricia Indonesia Sejahtera, Sari Husada, Mead Johnson Indonesia, and PT Frisian Flag Indonesia. Players primarily focus on product innovation, expansion in rural markets, and promotional activities to increase penetration in Indonesia.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it