Indonesia Baby Care Products Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Baby Food, Body Care, Safety and Convenience), And By Distribution Channel (Online, Supermarket/Hypermarket, Others) - Forecasts From 2022 To 2027

The Indonesian baby care products market is expected to grow at a compound annual growth rate (CAGR) of 5.27% from US$1.925 billion in 2025 to US$2.490 billion in 2030.

The Indonesia baby care products market growth is attributed to the rising awareness of infant health and a healthy diet, along with increasing economic affluence in the country. Baby care products include baby food, and body care products such as toiletries and diapers, shampoos, lotions, oils, wipes, and many others. These products are preferred for the sake of hygiene and to avoid any sort of infection spreading to a child. The increasing awareness of such products is boosting the demand for the. The promotion of various baby products by key market players is one of the factors creating awareness among consumers in Indonesia.

Moreover, Indonesia's baby care products market is estimated to grow at an exponential rate. The burgeoning middle class and rising disposable incomes are driving the Indonesian baby care products industry, resulting in higher expenditure on baby skincare, cleanliness, and health products. Parents' increased knowledge of the importance of safe and natural components drives demand for organic and environmentally friendly solutions. The expansion of contemporary retail channels, such as supermarkets and e-commerce platforms, increases customer accessibility and choice, accelerating market development. These factors collectively represent changing consumer choices and socioeconomic trends, influencing the landscape of the Indonesian baby care products market.

What are the drivers of the Indonesian baby care products market?

• Rising urbanization and growing birth rate

Rising urbanization and growing birth rate are prime factors influencing the demand for baby care products. According to the World Bank, Indonesia have about 58% of the urban population in 2022, which was about 57% less in the year 2020. Moreover, the nation has a total fertility rate of 2.2 births per woman, in 2021. Another important factor attributing to the growing trajectory of baby care products is the rising female workforce participation rate. According to the International Labour Organization (ILO), about 54% of women were part of the labor force in 2021. Increasing urbanization in a growing women workforce country with a steady population growth rate is boosting the adoption of ready-to-use baby products.

Further, improved disposable income is another important factor. Indonesia had a strong GDP of about US$1.32 trillion in 2022, with a per capita GDP growth of about 4.6%. In addition, the rising adoption of E-commerce and the growing influence of Western culture are additional factors boosting the demand for baby care products during the forecast period.

• Expanding retail businesses (online and offline)

The growing number of live births, increasing disposable income, and growing internet penetration are booming the online and offline modes of purchase for baby care products in Indonesia. Offline retail sales still dominate at present in comparison to the online mode of purchase which includes hypermarkets, supermarkets, and shopping malls, where consumers find it quite convenient to find their products under one roof.

Slowly, with the advent of urbanization and a fast-paced lifestyle, young parents in the country are highly influenced by the online mode of purchasing, hence fueling the market growth. Besides, growing internet penetration in the country is also widening the scope of online sales channels which is further expected to boost the demand for baby care products in the coming years. For instance, according to the World Bank, Individuals using the Internet as a percent of the total population in Indonesia has increased from 54% in 2020 to 66% in 2022.

Additionally, many retailers are moving to the creation of online sales channels in addition to offline sales, offering convenience to a wide population with a busy lifestyle along with secure modes of online payment and heavy discounts. According to the ITA USA, the nation has about 22.4 million registered merchants in 2022. Indonesia also joined a cross-border payment program between five ASEAN nations, which includes Thailand, Singapore, Malaysia, and the Philippines.

Apart from this, according to the International Trade Administration, digital wallets reign as the top choice for Indonesian e-commerce transactions, with 72% of shoppers preferring this convenient and secure payment method like GoPay and OVO. Cash on Delivery (COD) remains popular at 57%, offering a reassuring payment option upon delivery. Mobile and internet banking follow closely at 39%, reflecting trust in direct bank transfers via mobile apps. Pay later and P2P lending gain ground among Millennials and GenX, comprising 19% of transactions. Traditional methods like bank transfers (17%) and cards (10%) still hold sway. This diverse payment landscape highlights Indonesia's dynamic e-commerce growth, fueled by evolving consumer preferences and digital innovation.

• Growth in the baby food segment

The increase in female labor participation in Indonesia drives demand for convenient infant meals, encouraging the industry to diversify with products such as cereals, purees, and snacks. For instance, as per the data published by the Work Bank, the female labor force in Indonesia increased from 39.17% of the total labor force in 2022 to 39.39% in 2023. This trend highlights the changing requirements in Indonesia's baby food business, combining both convenience and socioeconomic factors.

In addition to this, the World Bank Indonesia, with the support of the Australian Government, is executing its Gender Engagement Plan to help the Indonesian government reach its goal of closing the female labor force participation gap by 25% by 2025. The Gender Engagement Plan, via a series of outreach and engagement events, highlights major reforms, programs, and evidence-based assistance targeted at increasing women's employment. Apart from this, as people become more conscious of the detrimental consequences of synthetic products, there has been a growing focus on vegan, paraben-free, and synthetic-free products.

The growing food range as well as the rising customization service to specify the texture of the meal to meet the demands of children, have led to increased product developments by major players in the market, which in turn is anticipated to propel the segment's growth in the country during the forecast period. For instance, in January 2022, Grouu, an Indonesian infant food catering service, received US$400,000 in a pre-seed round led by Selera Kapital, as well as Plug and Play Indonesia. The firm enables parents to sign up for a baby food catering service, with food delivered to their homes daily. Grouu intends to use the additional funds to create satellite kitchens in other Indonesian cities and to launch packaged baby food items.

The Indonesia baby care products market is segmented and analyzed as follows:

• By Type
  • Baby Food
    • Dried Baby Food
    • Milk Formula
    • Prepared Baby Food
    • Others
  • Body Care
    • Skin Care
    • Hair Care
    • Toiletries
    • Others
  • Safety and Convenience
• By Distribution Channel
  • Online
  • Offline
    • Hypermarket
    • Supermarket
    • Pharmacies
    • Others
• By Province
  • Jakarta
  • West Java
  • East Java
  • Central Java
  • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits for the Stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. INDONESIA BABY CARE PRODUCT MARKET BY TYPE 

5.1. Introduction

5.2. Baby Food

5.2.1. Dried Baby Food

5.2.2. Milk Formula

5.2.3. Prepared Baby Food

5.2.4. Others

5.3. Body Care

5.3.1. Skin Care

5.3.2. Hair Care

5.3.3. Toiletries

5.3.4. Others

5.4. Safety and Convenience

6. INDONESIA BABY CARE PRODUCT MARKET BY DISTRIBUTION CHANNEL

6.1. Introduction

6.2. Online

6.3. Offline

6.3.1. Hypermarket

6.3.2. Supermarket

6.3.3. Pharmacies

6.3.3.1. Others 

7. INDONESIA BABY CARE PRODUCTS MARKET BY PROVINCE 

7.1. Introduction

7.1. Jakarta

7.2. West Java

7.3. East Java

7.4. Central Java

7.5. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitive Matrix

9. COMPANY PROFILES

9.1. Kino Corporation

9.2. Pigeon Corporation

9.3. Danone

9.4. Unicharm Corporation

9.5. Nestle Indonesia

9.6. Johnson & Johnson Indonesia

9.7. PT Kao Indonesia

9.8. Unilever Indonesia

Kino Corporation

Pigeon Corporation

Danone

Unicharm Corporation

Nestle Indonesia

Johnson & Johnson Indonesia

PT Kao Indonesia

Unilever Indonesia