Loading...
Indonesia vegetable juice market is expected to grow at a compound annual growth rate of 6.98% over the forecast period to reach a market size of US$1.8429 billion in 2027, up from US$1.149 billion in 2020.
Being the fourth most populous nation globally, which was in the order of 268 million, translates to a large domestic consumer base as of 2019. The nation’s Gross Domestic Product (GDP) was to the tune of $1,120 billion, and GDP per capita reached an estimated $4,179. The country’s retail sector registered sales of $115 billion in 2019, with traditional grocers reportedly occupying 82% of the share. The grocery retail sales registered in 2019 were the largest in Southeast Asia. Convenience stores have emerged as the primary point of sale for locally produced brands. The need for shopping closer to home, expressed by consumers who belong to the middle class, among others, has aided in the proliferation of convenience stores. Moreover, the increase in consumer expenditure occurs during the major holiday-periods Viz. Ramadan (April May in 2020), Christmas/New Year (December), and Chinese New Year (January-February). Conversely, in tandem with their respective growth strategies, the modern grocery retailers reportedly offer more fresh products as well as a wide variety of imported products which is in line with the increasing demand for products that responds to the healthy lifestyle aspirations of consumers in Indonesia. Moreover, as an initial outcome of COVID-19, a 30% increase in sales was reported by supermarket chains in the preceding month as a result of initial panic buying. Moreover, movement restrictions enforced by the government had reportedly benefited retail groceries due to the increased perception that retail grocery has comparatively better sanitary conditions. Besides, the retail sales value of soft drinks was registered at $ 7,434.3 million during 2019 (January – April), which was an increase of 3% from the sales value registered during 2018 (January – April) [Source: USDA]. The aforementioned market conditions, among others, have conclusively made way for the growth of the Indonesian vegetable juice market.
The growing pool of middle-class population is reportedly driving the interest in foreign products, which is expected to positively impact the Indonesia vegetable juice market. The total import of non-alcoholic beverages for the US accounted for $ 2 million during 2019, with annual growth registered at 80.7% [Source: USDA]. The trend of wellness and health trends are the key determinants that are expected to drive the sales of the Indonesian vegetable juice market. The shift in lifestyle among the urban population is expected to steer consumers towards beverages with reduced sugar and those which contain natural ingredients. Furthermore, the rising prevalence of lifestyle diseases that stems from the irregular eating schedule and hectic office hours necessitates the need to supplement the diet with products like vegetable juices. It also aids in bridging the gap in long pauses between meals and compensates in case of low nutrient intake. In addition, various players in the market have reportedly developed products with a variety of combinations alongside vegetable ingredients, which adds value to the products and facilitates detoxification as well.
Covid 19 Impact
Beverage giants like Del Monte, Pepsico etc observed a rise in demand for beverages with zero sugar & reduced sugar formulations in Indonesia and other South Asian regions. Though sugar reduction trend was on the rise before the pandemic, the pandemic had a significant impact on consumers related to their lifestyles, food and drinks intake leading to a further increase in demand for healthy drinks & beverages. During the peak time of crisis, due to hoarding of products supply and demand were majorly hit due to lockdown in almost every part of the world.
Key developments
Segmentation