Changing lifestyles and growing disposable income boost ready-to-eat market in Indonesia

Rising employment opportunities, economic growth and general lifestyle changes are all driving demand for ready-to-eat food products in Indonesia. TechSci Research, a research-based global management consulting firm, projects that demand will continue to increase. 

In Indonesia Ready-to-eat Food Market Forecast & Opportunities, 2019, the country's ready-to-eat food market is projected to grow at a CAGR of more than 7% during from 2013 to 2014. The company points out that the country has a large base of young consumers which now form the majority of the country's workforce. These consumers have little time for traditional cooking, creating significant demand for convenience food products, which can be cooked easily and quickly. Rising per capita disposable income, especially in the middle income group, is also driving significant growth in the Indonesian ready-to-eat food market. 

As Indonesia has the largest Muslim population across the globe, food suppliers have to secure halal certification from the concerned authorities to ensure proper food quality standards in accordance to Islamic regulations. The process of certification is very stringent, the research firm notes. TechSci Research also notes that Indonesian consumers are highly price-sensitive, with brand preference changing very quickly with small changes in price. 

Major players in Indonesia's ready-to-eat food market include Charoen Pokphand Indonesia, Tee Yih Jia Group and Sekar Bumi Indonesia.

"Retail chains are the key contributors in increasing the awareness level among consumers about ready-to-eat products. Significant presence of large retail formats in regions like Java is contributing to the demand for ready-to-eat food products in Indonesia. However, such chains are predominantly restricted to urban centres within the country. 

"To overcome this issue, many retail giants have voiced plans to expand their distribution network to other regions over the coming years, especially in the eastern region. These efforts are expected to add to the awareness level of consumers in other regions as well, thereby driving growth in the country's ready-to-eat food market over the next five years," said Karan Chechi, Research Director, TechSci Research.