donesia is among the world's fastest growing markets for meat, poultry and seafood, driven by a growing local demand for convenient and satiating foods. (JG Photo/ Sheryl Yehovia)
Indonesia Sees Boom in Processed Food Market
BY :DION BISARA
APRIL 25, 2017
Jakarta. Indonesia is among the world's fastest growing markets for meat, poultry and seafood, driven by a growing local demand for convenient and satiating foods.
The processed meat and poultry market grew 26.7 percent annually between 2011 and 2015 and is estimated to have reached the value of Rp 16 trillion ($1.2 billion) in 2016, according to a new research from global market intelligence agency Mintel, published on Monday (24/04).
In comparison, India's processed meat and poultry market expanded 22 percent per year in the five-year span, followed by Vietnam (15.5 percent), China (13.9 percent), and Brazil (10.9 percent).
Indonesia also saw its processed fish and seafood market growing 19.5 percent every year between 2011 and 2015, faster than Turkey (11.8 percent), South Africa (11.2 percent) and Russia (10.8 percent). Only India registered faster annual growth of 24.9 percent during the period, Mintel said in the study.
The agency estimated Indonesia's processed fish and seafood market to have hit Rp 32 trillion in value last year, six times more than the seafood markets in India, Turkey and South Africa together.
"The need for convenience is the key driver behind Asia's growing processed meat, poultry and fish retail markets in Indonesia," Patty Johnson, global food and drink analyst at Mintel said in a statement.
Product innovation has played a key role in driving demand the processed products in the Asia Pacific region, where consumers' changing lifestyles allow less time to prepare food, Mintel said. The region accounts for almost a quarter of global innovations for the products.
"Aligned with consumer interest in the region, processed meat, poultry and fish product innovation in 2016 saw strong focus on convenience claims such as ease of use and microwaveability," Johnson said.
Mintel study on Indonesian consumers in March last year found that over two in five Indonesians living in metropolitan areas tend to shop closer to home or work due to lack of time. One in four prefer to buy food in smaller, bite-size packs while as many as 39 percent look for snacks that keep them full for longer time, like high-protein snacks.
"In 2016, the casualization of meal times and growing awareness of protein continued to drive global development of snack-targeted products across the processed meat, fish and meat substitutes categories," Johnson said.