Food and Beverage in Indonesia Free Essays

Exporter Guide FOOD AND BEVERAGE IN INDONESIA Market Profile February 2012 This record is one of a progression of free data devices for exporters created by New Zealand Trade and Enterprise. New Zealand Trade and Enterprise gives a wide scope of standard administrations and modern arrangements that help organizations through each phase of the fare procedure. For data or exhortation, telephone New Zealand Trade and Enterprise on 0800 555 888, visit www. We will compose a custom article test on Food and Beverage in Indonesia or on the other hand any comparative subject just for you Request Now nzte. govt. nz, or contact your New Zealand Trade and Enterprise customer supervisor. Substance 1 MARKET STRUCTURE 1. Market Overview 1. 2 1. 3 1. 4 1. 5 1. 6 2 Market Drivers Market Potential Import Trends Key Players in the Market Regulatory Sustainability 3 6 7 8 9 11 12 13 14 MARKET ENTRY AND DEVELOPMENT 2. 1 Market Entry Strategies 2. 2. 3 2. 4 2. 5 Points of Differentiation Long Term Strategic Issues for Exporters to Consider Distribution Channels Pricing 3 MARKET RESOURCES AND CONTACTS 2/Exporter Guide | Indonesia | Food and Beverage | February 2012 1 MARKET STRUCTURE Indonesia is the world’s fourth most crowded nation with a populace of 232. million out of 2010, and the biggest economy in Southeast Asia. In 2011, New Zealand’s food and drink trades totalled US$468. 3 million, making Indonesia New Zealand’s eleventh biggest fare goal. I In November 2011, Indonesia gave formal notice of the fulfillment of its inside approval methods to empower the ASEAN â⠂¬ Australia †New Zealand Free Trade Agreement (AANZFTA). From 10 January 2012, AANZFTA will open up significant open doors for New Zealand organizations. The understanding will permit obligation/duty free access to more than 90 percent of New Zealand products and ventures by 2015. I 1. 1 Market Overview In 2010 and 2011, dairy and meat items contained more than 76 percent of New Zealand’s food and drink fares to Indonesia (2010: US$363 million; 2011: US$381 million). In 2010, Indonesia’s dairy and meat advertise merited an expected US$2 billion. Most of the populace in Indonesia, roughly 85 percent, are Muslim and all butchered food and meat (barring pork) must have halal confirmation. iii 3/Exporter Guide | Indonesia | Food and Beverage | February 2012 1. 1. Market by item classification Packaged food In 2010, Indonesia’s bundled food advertise was esteemed at US$19. 1 billion. The offer of motivation and guilty pleasure items (I. e. chocolates) became be cause of expanding abundance. Nourishment and staples (I. e. rice) developed by 31 percent in 2010. Canned/safeguarded food had a high development pace of 20 percent in 2010. Indonesia: Sales of Packaged Food by Category: Value 2005-2010 of every million USD 2007 Packaged Food †Total Nutrition/staples (I. e. rice) Dried Processed Food (I. e. dessert blends, moment soup) Impulse and Indulgence Products (I. e. hocolate covered rolls) Bakery Dairy Noodles Baby Food Confectionery Meal Solutions (I. e. tomato glues) Sweet and Savory Snacks Oils and Fats Sauces, Dressings and Condiments Frozen Processed Food Ice Cream Canned/Preserved Food Chilled Processed Food Spreads Meal Replacement (I. e. breakfast bars) Pasta Ready Meals (I. e. moment pasta) Snack Bars Soup 13,110 7,876 4,089 4,148 2,111 1,484 1,340 1,257 1,287 1,086 779 759 477 263 245 200 63 62 13 11 4 0. 9 3 2008 14,307 8,798 4,642 4,318 2,201 1,540 1,487 1,398 1,329 1,190 812 909 499 306 269 230 68 65 15 12 4 3 2009 14,817 ,167 4,909 4,404 2,238 1,596 1,526 1,496 1,360 1,244 832 845 510 327 278 251 68 66 16 13 4 3 2010 19,100 11,959 6,515 5,506 2,781 2,026 1,999 1,967 1,704 1,634 1,054 1,039 653 439 356 346 86 82 21 17 5 4 Source: Euromonitor International (NB: IDR/USD money; [2007] 9141, [2008] 9699, [2009] 10389. 9, [2010] 9090. 4) 4/Exporter Guide | Indonesia | Food and Beverage | February 2012 Fresh food In 2010, the new food advertise in Indonesia had an absolute volume of 48. 1 million tons, making Indonesia the fifth biggest new food showcase on the planet. During the period 20052010, request of new food expanded by 13 percent. v Indonesia: Fresh food showcase in Indonesia in million tons Starchy Roots Fruits Vegetables Fish and Seafood Meat Sugar and Sweeteners Eggs Nuts Pulses 2007 14,985 10,386 9,095 5,016 1,969 1,778 743 671 222 2008 15,148 10,786 9,356 5,153 2,024 1,825 761 700 224 2009 15,309 11,147 9,613 5,291 2,078 1,872 777 730 227 2010 15,455 11,489 9,868 5,432 2,138 1,914 794 762 230 2011f 15,582 11,787 10,119 5,592 2,188 1,952 808 798 234 Source: Euromonitor International (NB: 2011 gauges) Wineiv In 2011, the Indonesian wine advertise was worth roughly US$32 million (RP 275. 4 billion) and retail deals totalled 3. million liters. Wine represented just 3 percent of all out liquor deals. Brew is significantly increasingly famous as a mixed drink. During the period 2008-2010, wine volume deals declined by 6 percent. While costs expanded, the interest from Indonesian customers with high expendable salaries and exiles remained and the quantity of wine aficionados in Indonesia developed. The development was impacted by western culture and wine occasions, for example, wine sampling, wine suppers and classes. The wine advertise indicated an expansion in deals by estimation of 61 percent during the period 2008-2010. Indonesia: Wine Sales Off-exchange Value million USD Off-exchange Volume million liters 2006 12. 0 3. 3 2007 14. 0 3. 4 2008 15. 0 3. 4 2009 16. 0 3. 3 201 0 28. 0 3. 2 2011 32. 0 3. 1 Source: Euromonitor International (NB: IDR/USD cash; [2006] 9159. 3, [2007] 9141, [2008] 9699, [2009] 10389. 9, [2010] 9090. 4, [2011] 8696. 1) 1. 1. 2 Market by appropriation divert Mass basic food item retail In 2011, customary retailers, including little autonomous stores and outdoors showcases, represented an expected 77 percent of the absolute retail deals. vii 5/Exporter Guide | Indonesia | Food and Beverage | February 2012 In the sorted out retail part, Hypermarkets had the biggest piece of the overall industry in 2010, with US$13. 6 billion in deals, trailed by general stores (US$11 billion) and comfort stores/small markets (US$5 billion). During the period 2005-2010, general store deals expanded by 112 percent, trailed by hypermarkets (109 percent) and accommodation stores/small markets (105 percent). Mass Grocery Retail Sector †Estimated Number of Outlets 2005 Total Convenience Stores/Mini-Markets Supermarkets Hypermarkets Source: Business Monitor International 2006 7,154 3,337 3,173 644 2007 8,530 3,953 3,830 747 2008 9,429 4,334 4,297 798 009 10,572 4,871 4,801 900 2010 11,524 5,299 5,252 973 5,912 2,758 2,652 502 1. 2 Market Drivers coming up next are seen as key drivers for the food and refreshment showcase in Indonesia: ? The food and drink showcase in Indonesia developed in 2010, recouping from the overall downturn. Buying intensity of center and upper pay customers restored with an expan sion of discretionary cashflow. Political and monetary conditions settled and the quantity of present day retail outlets and food administration retailers developed. vi Consumers are grasping the wellbeing cognizant pattern seen all through the world, because of presentation to wellbeing training through the media. I To satisfy the expanding need of instructed and wellbeing cognizant buyers, the Indonesian government has taken on activities, for example, the Merauke Integrated Food and Energy Estate venture. Through this US$5 billion task, the administration hopes to deliver just about 2 million tons of rice, 2 million tons of corn, 2. 5 million tons of sugar, 937,000 tons of palm oil,167,000 huge amounts of soy beans and nibbling land for 64,000 steers. vii In April 2010, tax collection on wine expanded altogether bringing about an expansion in wine costs. Around 45 percent of the cost paid by customers is charge, including deals charge (VAT), extract and import charge. v While conventional markets despite everything represent most of retail deals, they face more prominent weight on piece of the overall industry as current retail turns out to be progressively mainstream. While the administration attempted to dishearten the quick spread of present day retail, it wasn’t effective in implementing its authoritative guidelines and current retailers expanded in numbers by utilizing counterfeit allows now and again. iii ? ? ? ? 6/Exporter Guide | Indonesia | Food and Beverage | February 2012 1. 3 Market Potential The general food utilization is conjecture to develop by a compound yearly development rate (CAGR) of 9. 1 percent to 2015. vii Modern retail, for example, hypermarkets are anticipated to increment in numbers as urban focuses grow and request increments for comfort and included worth items (I. e. rice and noodle prepared suppers). In any case, most purchasers in Indonesia remain value delicate and private mark will be a mainstream elective as it is seen as acceptable worth instead of modest. vii The offer of mixed refreshments is relied upon to decrease with a CAGR of 2. 3 percent during 2010-2015. In any case, wine is gauge to develop with a CAGR of 1. percent during 20102015 as wine is seen to be a more advantageous alternative than other mixed refreshments, for example, lager. v Indonesia has a gigantic youth populace of around 40. 9 million, matured somewhere in the range of 15 and 24. This age bunch will in general be more westernized contrasted with the more established populac e and is anticipated to drive interest for mass market items, for example, confectionary products. vii There are open doors for items focused to improve the state of explicit medical issues. These items incorporate calcium sustained milk to forestall osteoporosis, dairy milk for nursing moms, infant food and items for weight and cholesterol decrease. I 1. 4 Import Trendsvii In 2010, Indonesia imported an expected US$8. 1 billion, a development of 25 percent from 2009. Indonesia is moderately flexible to worldwide exchange instability yet dependent on dairy and poultry imports to fulfill need. Indonesia: Food and Beverage Tra