14 May 2020
Posted in Consumer
Indonesia’s seasonings, dressings & sauces sector to reach US$4.8bn by 2024, says GlobalData
The seasonings, dressings & sauces sector in Indonesia is forecast to grow from Rp48.2 trillion (US$3.4bn) in 2019 to Rp70.5 trillion (US$4.8bn) by 2024, at a compound annual growth rate (CAGR) of 7.9%, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Indonesia Seasonings, Dressings & Sauces – Market Assessment and Forecasts to 2024’ reveals that the condiment sauces category led the sector with the majority share of 68.8% in value terms in 2019. It is followed by ‘herbs, spices and seasonings’, and ‘dressings’ categories. Furthermore, bouillons and stocks is forecast to register the fastest value growth at a CAGR of 9.1% during 2019–2024 and it is also expected to gain maximum market share in value terms during the same period.
Karthik Varma Kakarlapudi, Consumer Analyst at GlobalData, says: “The availability of convenient and time-saving options for time-pressed consumers will drive the growth of the seasonings, dressings and sauces sector in Indonesia.”
The per capita consumption
(PCC) of seasonings, dressings & sauces in Indonesia is high compared to
the regional and global averages. It stood at 7.1kg in 2019 and is expected to
grow further in the next five years to reach 8.5kg by 2024.
Daesang, Nestle SA and Unilever are the leading companies in the Indonesian seasonings, dressings & sauces sector. Through its brand Chung Jung Won, Daesang led the Indonesian seasonings, dressings & sauces sector in value terms in 2019. Further, private labels, which account for a small share, are growing at a higher CAGR than the brands in the sector.
Among the distribution channels, convenience stores dominated the sector with a value share of 63.8% in 2019.
Karthik concludes: “With the growing health awareness among the Indonesian consumers, the demand for seasonings, dressings and sauces products with health and wellness claims such as ‘free-from’, ‘naturally healthy’, ‘food intolerance’ and ‘food minus’ is expected to increase, particularly in bouillons & stocks, dressings & herbs, spices & seasonings categories.”